Announcing results for Q4 and the full year to April 30, 2018, Nevada Gold & Casinos reported a significant drop in EBITDA, attributing a 24 per cent year-on-year quarterly fall to the ongoing strategic overhaul of the business.
The company said the financial results reflect “an adjustment related to progressive liabilities for $0.6m in fiscal 2018 and $0.2m in the prior year, which reduced casino revenue and marketing expense equally with no effect on operating income.”
For the fourth quarter, the Nevada Gold reported net revenues of $18.5m, down from $19.8m a year prior.
Operating income dropped similarly, down to $0.6m from $1.9m in Q4 2017. Consolidated adjusted EBITDA was $2.1m, compared to $2.6m in 2017.
For the full fiscal year, the operator reported net revenues of $74.6m, more or less unchanged from the $74.5 million posted in fiscal year 2017. Operating expenses were $72m, compared to $72.7m in 2017, while net income was $1.3m, up from $0.6m.
During the year, Nevada Gold confirmed it repaid $4.3m in bank debt and, as of April 30, the outstanding bank debt was $8m.
In a statement, the company said: “The Strategic Review is ongoing and has resulted to date in significant steps to restructure the company’s operations.
“On June 30, 2018, the company completed the sale of its South Dakota slot route operations and on June 27, executed a definitive agreement to sell the Club Fortune Casino in Henderson, Nevada for $14.6m.
“The company has previously announced that effective upon closure of the sale of Club Fortune casino, its corporate headquarters will relocate from Las Vegas to the Seattle, Washington, area reducing corporate overhead by $1.2m. At that time Victor Mena will succeed Michael Shaunnessy as president and CEO.
