Attached files
file | filename |
---|---|
8-K/A - AMENDMENT TO FORM 8-K - NEVADA GOLD & CASINOS INC | v234886_8ka.htm |
EX-99.2 - EXHIBIT 99.2 - NEVADA GOLD & CASINOS INC | v234886_ex99-2.htm |
EX-23.1 - EXHIBIT 23.1 - NEVADA GOLD & CASINOS INC | v234886_ex23-1.htm |
Exhibit 99.3
Nevada Gold & Casinos, Inc.
|
Pro-forma Balance Sheet as of the Fiscal Year Ended April 30, 2010
|
Nevada Gold as
reported in
Form 10-K
|
Consolidated
Silver Dollar
Casinos
reported at
April 30, 2010
(unaudited)
|
Silver Dollar
Pro-forma
Adjustments
to elim assets
not acquired
|
Acquired Silver
Dollar Casinos
at April 30, 2010
(unaudited)
|
Pro-forma
Adjustments
|
Pro-forma
Balance
Sheet
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | 3,155,736 | $ | 2,026,970 | (72,766 | ) | 1,954,204 | $ | - | $ | 5,109,940 | |||||||||||||
Restricted cash
|
5,266,938 | - | (5,000,000 | ) | 266,938 | |||||||||||||||||||
Accounts receivable
|
66,822 | 207,861 | (207,861 | ) | - | 66,822 | ||||||||||||||||||
Prepaid expenses
|
475,262 | 145,663 | (147,143 | ) | (1,480 | ) | - | 473,782 | ||||||||||||||||
Income tax receivable
|
1,750,374 | - | - | 1,750,374 | ||||||||||||||||||||
Other current assets
|
155,796 | 196,028 | (34,460 | ) | 161,568 | 70,000 | 387,364 | |||||||||||||||||
Total current assets
|
10,870,928 | 2,576,522 | (462,230 | ) | 2,114,292 | (4,930,000 | ) | 8,055,220 | ||||||||||||||||
Investments in development projects
|
1,418,789 | (1,273,649 | ) | 145,140 | ||||||||||||||||||||
Investments in development projects held for sale
|
3,437,932 | 3,437,932 | ||||||||||||||||||||||
Notes receivable
|
- | 497,985 | (497,985 | ) | - | - | ||||||||||||||||||
Notes receivable - development projects, net of allowances
|
1,700,000 | 1,700,000 | ||||||||||||||||||||||
Goodwill
|
10,243,362 | 1,419,943 | (1,419,943 | ) | - | 3,993,643 | 14,237,005 | |||||||||||||||||
Identifiable intangiable assets , net of accumulated amortization of $1,025,300 at April 30, 2010
|
5,101,800 | 3,382,851 | 8,484,651 | |||||||||||||||||||||
Property and equipment, net of accumulated depreciation
|
- | |||||||||||||||||||||||
of $2,978,679 at April 30, 2010
|
3,473,051 | 2,056,483 | (167,620 | ) | 1,888,863 | 5,361,914 | ||||||||||||||||||
Deferred tax asset
|
1,848,419 | 419,900 | (419,900 | ) | - | 1,848,419 | ||||||||||||||||||
BVO receivable
|
4,000,000 | 4,000,000 | ||||||||||||||||||||||
Other assets
|
376,938 | 1,173,177 | (1,173,177 | ) | - | 376,938 | ||||||||||||||||||
Total assets
|
$ | 42,471,219 | $ | 8,144,011 | $ | (4,140,855 | ) | $ | 4,003,155 | $ | 1,172,845 | $ | 47,647,219 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||||
Accounts payable and accrued liabilities
|
$ | 1,060,017 | $ | 1,941,361 | (1,835,361 | ) | 106,000 | $ | 1,166,017 | |||||||||||||||
Accrued interest payable
|
70,000 | 39,423 | (39,423 | ) | - | 70,000 | ||||||||||||||||||
Other accrued liabilities
|
687,819 | 1,050,670 | (1,050,670 | ) | - | 687,819 | ||||||||||||||||||
Taxes payable
|
- | 340,432 | (340,432 | ) | - | - | ||||||||||||||||||
Long-term debt, current portion
|
- | |||||||||||||||||||||||
Total current liabilities
|
1,817,836 | 3,371,886 | (3,265,886 | ) | 106,000 | - | 1,923,836 | |||||||||||||||||
Long-term debt, net of current portion
|
10,000,000 | 508,325 | (508,325 | ) | - | 5,070,000 | 15,070,000 | |||||||||||||||||
Other liabilities
|
30,944 | (0 | ) | - | (0 | ) | 30,944 | |||||||||||||||||
Total liabilities
|
11,848,780 | 3,880,212 | (3,774,211 | ) | 106,000 | 5,070,000 | 17,024,780 | |||||||||||||||||
Commitments and contingencies
|
- | - | - | - | - | - | ||||||||||||||||||
Stockholders' equity:
|
||||||||||||||||||||||||
Common stock, $0.12 par value per share; 50,000,000
|
||||||||||||||||||||||||
shares authorized; 13,935,330 shares issued and
|
||||||||||||||||||||||||
12,764,130 and 12,939,130 shares outstanding at
|
||||||||||||||||||||||||
April 30, 2010, and April 30, 2009, respectively
|
1,672,240 | - | - | - | - | 1,672,240 | ||||||||||||||||||
Additional paid-in capital
|
19,859,966 | 33,107,196 | (33,107,196 | ) | - | 19,859,966 | ||||||||||||||||||
Dividends
|
- | (130,000 | ) | 130,000 | - | - | - | |||||||||||||||||
Retained earnings
|
19,464,972 | (28,713,397 | ) | 32,610,553 | 3,897,155 | (3,897,155 | ) | 19,464,972 | ||||||||||||||||
Treasury stock, 1,171,200 and 996,200 shares at April 30, 2010 and April 30, 2009, respectively, at cost
|
(10,369,200 | ) | - | - | - | - | (10,369,200 | ) | ||||||||||||||||
Accumulated other comprehensive income
|
(5,539 | ) | - | - | - | - | (5,539 | ) | ||||||||||||||||
Total stockholders' equity
|
30,622,439 | 4,263,799 | (366,644 | ) | 3,897,155 | (3,897,155 | ) | 30,622,439 | ||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 42,471,219 | $ | 8,144,011 | $ | (4,140,854 | ) | $ | 4,003,155 | $ | 1,172,845 | $ | 47,647,219 |
Nevada Gold & Casinos, Inc.
Pro-forma Statement of Operations for the Fiscal Year Ended April 30, 2010
Nevada Gold as
reported in
Form 10-K
|
Consolidated
Silver Dollar
Casinos reported
for the year
ended April 30,
2010
(unaudited)
|
Silver Dollar
Pro-forma
Adjustments to
elim assets not
acquired
|
Operating
Results of the
acquired Silver
Dollar Casinos
for the twelve
months ended
April 30, 2010
(unaudited)
|
Pro-forma
Adjustments
|
Pro-forma
Statement of
Operations
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Casino
|
$ | 18,822,900 | $ | 30,907,006 | (4,510,724 | ) | 26,396,282 | $ | - | $ | 45,219,182 | |||||||||||||
Food and beverage
|
4,534,744 | 8,846,188 | (1,682,367 | ) | 7,163,821 | - | 11,698,565 | |||||||||||||||||
Other
|
865,264 | 1,901,071 | (522,447 | ) | 1,378,624 | - | 2,243,888 | |||||||||||||||||
Management fees
|
620,968 | - | - | - | 620,968 | |||||||||||||||||||
Gross revenues
|
24,843,876 | 41,654,265 | (6,715,538 | ) | 34,938,727 | - | 59,782,603 | |||||||||||||||||
Less promotional allowances
|
(2,817,888 | ) | (4,653,560 | ) | 748,125 | (3,905,435 | ) | (6,723,323 | ) | |||||||||||||||
Net revenues
|
22,025,988 | 37,000,705 | (5,967,413 | ) | 31,033,292 | - | 53,059,280 | |||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||
Casino
|
8,562,284 | 21,102,219 | (4,535,594 | ) | 16,566,625 | - | 25,128,909 | |||||||||||||||||
Food and beverage
|
2,851,635 | 7,370,536 | (1,657,335 | ) | 5,713,201 | - | 8,564,836 | |||||||||||||||||
Marketing and administrative
|
5,564,288 | 813,348 | (211,685 | ) | 601,663 | - | 6,165,951 | |||||||||||||||||
Facility
|
1,070,933 | 4,091,271 | (1,002,986 | ) | 3,088,285 | 4,159,218 | ||||||||||||||||||
Corporate expense
|
4,216,475 | 2,483,908 | (160,316 | ) | 2,323,592 | - | 6,540,067 | |||||||||||||||||
Legal expenses
|
241,468 | 7,795 | (5,945 | ) | 1,850 | - | 243,318 | |||||||||||||||||
Depreciation and amortization
|
1,344,323 | 795,863 | (155,047 | ) | 640,816 | 2,228,443 | ||||||||||||||||||
Impairment of assets
|
4,347,183 | - | - | 4,347,183 | ||||||||||||||||||||
Write-off of project development cost
|
50,486 | - | - | - | - | 50,486 | ||||||||||||||||||
Other
|
476,395 | 638,964 | (135,934 | ) | 503,030 | - | 979,425 | |||||||||||||||||
Total operating expenses
|
28,725,470 | 37,303,904 | (7,864,842 | ) | 29,439,062 | 296,304 | 58,460,836 | |||||||||||||||||
Operating income (loss)
|
(6,699,482 | ) | (303,199 | ) | 1,897,429 | 1,594,230 | (296,304 | ) | (5,401,556 | ) | ||||||||||||||
Non-operating income (expenses):
|
||||||||||||||||||||||||
Loss from unconsolidated affiliates
|
- | - | - | - | - | - | ||||||||||||||||||
Gain (loss) on sale equity investees and assets
|
16,511 | (127,821 | ) | 122,648 | (5,173 | ) | - | 11,338 | ||||||||||||||||
Other non-operating expenses
|
(15,723,669 | ) | 15,723,669 | - | - | |||||||||||||||||||
Interest income
|
192,708 | 303,767 | (303,767 | ) | - | (10,721 | ) | 181,987 | ||||||||||||||||
Interest expense
|
(866,034 | ) | (264,685 | ) | 264,685 | - | (557,700 | ) | (1,423,734 | ) | ||||||||||||||
Amortization of loan issue costs
|
(58,972 | ) | - | - | - | - | (58,972 | ) | ||||||||||||||||
Loss on extinguishment of debt
|
(128,834 | ) | - | - | - | - | (128,834 | ) | ||||||||||||||||
Income (loss) before income tax expense (benefit)
|
(7,544,103 | ) | (16,115,607 | ) | 17,704,664 | 1,589,057 | (864,726 | ) | (6,819,772 | ) | ||||||||||||||
Income tax expense (benefit)
|
||||||||||||||||||||||||
Current
|
(1,546,698 | ) | (31,893 | ) | 69,293 | 37,400 | 246,273 | (1,263,025 | ) | |||||||||||||||
Deferred and change in valuation allowance
|
(1,248,623 | ) | - | - | - | - | (1,248,623 | ) | ||||||||||||||||
Total income tax benefit
|
(2,795,321 | ) | (31,893 | ) | 69,293 | 37,400 | 246,273 | (2,511,648 | ) | |||||||||||||||
Net income (loss)
|
$ | (4,748,782 | ) | $ | (16,083,714 | ) | $ | 17,635,371 | $ | 1,551,657 | $ | (1,110,998 | ) | $ | (4,308,123 | ) | ||||||||
Per share information:
|
||||||||||||||||||||||||
Net income (loss) per common share - basic
|
$ | (0.37 | ) | $ | (1.25 | ) | $ | 1.37 | $ | 0.12 | $ | (0.09 | ) | $ | (0.33 | ) | ||||||||
Net income (loss) per common share - diluted
|
$ | (0.37 | ) | $ | (1.25 | ) | $ | 1.37 | $ | 0.12 | $ | (0.09 | ) | $ | (0.33 | ) | ||||||||
Basic weighted average number of shares outstanding
|
12,878,240 | 12,878,240 | 12,878,240 | 12,878,240 | 12,878,240 | 12,878,240 | ||||||||||||||||||
Diluted weighted average number of shares outstanding
|
12,878,240 | 12,878,240 | 12,878,240 | 12,878,240 | 12,878,240 | 12,878,240 |
Nevada Gold & Casinos, Inc.
|
|||||||||
Pro-forma Balance Sheet as of the Fiscal Year Ended April 30, 2010
|
|||||||||
Pro-forma adjustments to give effect to the acquisition as if it occurred April 30, 2010 (the last day of fiscal 2010)
|
|||||||||
JE #1: Eliminate assets/liabilities not acquired
|
Debit
|
Credit
|
|||||||
Drift on Inn
|
|||||||||
Cash
|
14,291 | ||||||||
Accounts receivable
|
14,904 | ||||||||
Prepaid expenses
|
4,097 | ||||||||
Other current assets
|
17,784 | ||||||||
PPE
|
102,436 | ||||||||
Other assets
|
48,190 | ||||||||
Accounts payable and accrued liabilities
|
226,662 | ||||||||
Other accrued liabilities
|
2,376 | ||||||||
Taxes payable
|
64,000 | ||||||||
Other liabilities
|
3,625,179 | ||||||||
Paid in capital
|
1,050,000 | ||||||||
Retained earnings
|
4,766,515 | ||||||||
Golden Nugget Shoreline
|
|||||||||
Cash
|
29,203 | ||||||||
Accounts receivable
|
16,526 | ||||||||
Deferred tax asset
|
57,000 | ||||||||
Other assets
|
2,085 | ||||||||
Accounts payable and accrued liabilities
|
44,900 | ||||||||
Other liabilities
|
1,326,182 | ||||||||
Paid in capital
|
62,205 | ||||||||
Retained earnings
|
1,297,079 | ||||||||
Little Nevada 2 (LN2)
|
|||||||||
Accounts payable and accrued liabilities
|
17,464 | ||||||||
Taxes payable
|
458,000 | ||||||||
Other liabilities
|
1,158,305 | ||||||||
Paid in capital
|
1,000 | ||||||||
Retained earnings
|
718,769 | ||||||||
Little Nevada 3 (LN3)
|
|||||||||
Accounts payable and accrued liabilities
|
27,167 | ||||||||
Accrued interest payable
|
33,255 | ||||||||
Taxes payable
|
253,000 | ||||||||
Long-term debt, net of current portion
|
439,496 | ||||||||
Other liabilities
|
2,293,848 | ||||||||
Paid in capital
|
16,000 | ||||||||
Retained earnings
|
2,556,766 | ||||||||
SHI
|
|||||||||
Cash
|
9 | ||||||||
Other assets
|
5,650,000 | ||||||||
Taxes payable
|
1,000 | ||||||||
Other liabilities
|
4,014 | ||||||||
Paid in capital
|
5,650,000 | ||||||||
Retained earnings
|
3,005 | ||||||||
SNO
|
|||||||||
Other liabilities
|
172 | ||||||||
Retained earnings
|
172 | ||||||||
GAI
|
|||||||||
Cash
|
278 | ||||||||
Accounts receivable
|
2,977 | ||||||||
Prepaid expenses
|
439 | ||||||||
Accounts payable and accrued liabilities
|
520 | ||||||||
Other liabilities
|
19,341 | ||||||||
Retained earnings
|
16,167 | ||||||||
Silver Dollar Tukwila
|
|||||||||
Cash
|
87,391 | ||||||||
Accounts receivable
|
7,542 | ||||||||
Prepaid expenses
|
9,735 | ||||||||
Other current assets
|
16,676 | ||||||||
PPE
|
65,184 | ||||||||
Deffered tax asset
|
85,000 | ||||||||
Other assets
|
11,183 | ||||||||
Accounts payable and accrued liabilities
|
139,677 | ||||||||
Other accrued liabilities
|
8,147 | ||||||||
Taxes payable
|
112,000 | ||||||||
Other liabilities
|
710,653 | ||||||||
Retained earnings
|
687,766 | ||||||||
JE #2: Eliminate assets and liabilities NGWAII is not acquiring from the remaining/acquired Silver Dollar Casinos
|
|||||||||
Accounts receivable
|
165,912 |
None to be acquired
|
|||||||
Prepaid expenses
|
132,872 |
MAS annual fee balance of $1,480
|
|||||||
Notes receivable
|
497,985 |
None to be acquired
|
|||||||
Goodwill
|
1,419,943 |
None to be acquired
|
|||||||
Deferred tax asset
|
277,900 |
None to be acquired
|
|||||||
Other assets
|
4,538,281 |
None to be acquired
|
|||||||
Accounts payable and accrued liabilities
|
1,468,771 |
$106,000 to be transferred
|
|||||||
Accrued interest payable
|
6,168 |
None to be acquired
|
|||||||
Other accrued liabilities
|
1,040,147 |
None to be acquired
|
|||||||
Taxes payable
|
876,432 |
None to be acquired
|
|||||||
Long-term debt, net of current portion
|
68,829 |
None to be acquired
|
|||||||
Other liabilities
|
9,137,694 |
None to be acquired
|
|||||||
Paid in capital
|
26,327,991 |
None to be acquired
|
|||||||
Dividends
|
130,000 |
None to be acquired
|
|||||||
Retained earnings
|
18,667,158 |
None to be acquired
|
|||||||
Goodwill
|
3,897,155 |
Difference
|
|||||||
To give effect to the acquisition as if it occurred April 30, 2010 (last day of fiscal 2010)
|
|||||||||
Restricted cash
|
5,000,000 |
Remaining cash to be paid for acquisition
|
|||||||
Long-term debt, net of current protion
|
5,070,000 |
New credit agreement
|
|||||||
Investments in development projects
|
1,273,649 |
Reclass
|
|||||||
Memorabilia inventory
|
70,000 |
Hollywood Casino memorabilia
|
|||||||
Customer relationships
|
2,074,131 |
Used same % as NGWA acquisition
|
|||||||
Trade names
|
1,308,720 |
Used same % as NGWA acquisition
|
|||||||
Retained earnings
|
3,897,155 |
Eliminate remaining Retained Earnings of Silver Dollar Casinos
|
|||||||
Goodwill
|
3,993,643 |
Nevada Gold & Casinos, Inc.
|
|||||||||
Pro-forma Statement of Operations for the Fiscal Year Ended April 30, 2010
|
|||||||||
Debit
|
Credit
|
||||||||
Reduce interest income for the use of cash to purchase casinos for one year at 0.18%
|
|||||||||
Interest income
|
10,800 | ||||||||
Cash
|
10,800 | ||||||||
To account for interest expense on $5,070,000 long-term debt at 11.0%
|
|||||||||
Interest expense
|
557,700 | ||||||||
Cash
|
557,700 | ||||||||
To amortize Customer Relationship intangible asset over 7 years
|
|||||||||
Amortization of intangible assets expense
|
296,304 | ||||||||
Accumulated amortization of intangible assets
|
296,304 | ||||||||
To account for interest on $1 million deposit made to acquire casinos for 16 days at 0.18%
|
|||||||||
Cash
|
79 | ||||||||
Interest income
|
79 | ||||||||
JE #8: Eliminate operating results of casinos/operating units not acquired
|
|||||||||
DOI
|
|||||||||
Casino revenues
|
1,578,128 | ||||||||
Food and beverage revenues
|
1,110,430 | ||||||||
Other revenues
|
353,985 | ||||||||
Promotional allowances
|
433,885 | ||||||||
Casino expenses
|
1,687,482 | ||||||||
Food and beverage expenses
|
1,000,560 | ||||||||
Marketing and administrative
|
124,591 | ||||||||
Facility
|
516,727 | ||||||||
Corporate expenses
|
75,945 | ||||||||
Legal expenses
|
997 | ||||||||
Depreciation and amortization
|
91,423 | ||||||||
Other expenses
|
83,383 | ||||||||
Loss on sale of assets
|
51,898 | ||||||||
Interest expense
|
313,863 | ||||||||
Other non-operating expenses
|
2,776,225 | ||||||||
Golden Nugget Shoreline
|
|||||||||
Casino revenues
|
1,419,669 | ||||||||
Food and beverage revenues
|
173,450 | ||||||||
Other revenues
|
77,145 | ||||||||
Promotional allowances
|
102,058 | ||||||||
Casino expenses
|
1,264,415 | ||||||||
Food and beverage expenses
|
226,125 | ||||||||
Marketing and administrative
|
54,536 | ||||||||
Facility
|
222,074 | ||||||||
Corporate expenses
|
33,221 | ||||||||
Depreciation and amortization
|
21,552 | ||||||||
Other expenses
|
22,269 | ||||||||
Loss on sale of assets
|
70,750 | ||||||||
Interest expense
|
109,609 | ||||||||
Other non-operating expenses
|
45,372 | ||||||||
Income tax benefit
|
69,293 | ||||||||
Gaming Management, Inc.
|
|||||||||
Corporate expenses
|
1,252 | ||||||||
Little Nevada 2 (LN2)
|
|||||||||
Other revenues
|
500 | ||||||||
Casino expenses
|
5,839 | ||||||||
Marketing and administrative
|
931 | ||||||||
Facility
|
422 | ||||||||
Interest expense
|
73,328 | ||||||||
Other non-operating expenses
|
4,828 | ||||||||
Little Nevada 3 (LN3)
|
|||||||||
Casino expenses
|
1,936 | ||||||||
Legal expenses
|
4,948 | ||||||||
Interest expense
|
178,554 | ||||||||
Other non-operating expenses
|
335,907 | ||||||||
SHI
|
|||||||||
Interest expense
|
573 | ||||||||
Silver Dollar Tukwila
|
|||||||||
Casino revenues
|
1,512,927 | ||||||||
Food and beverage revenues
|
398,487 | ||||||||
Other revenues
|
90,817 | ||||||||
Promotional allowances
|
212,182 | ||||||||
Casino expenses
|
1,591,472 | ||||||||
Food and beverage expenses
|
430,650 | ||||||||
Marketing and administrative
|
31,627 | ||||||||
Facility
|
263,763 | ||||||||
Corporate expenses
|
49,898 | ||||||||
Depreciation and amortization
|
42,072 | ||||||||
Other expenses
|
30,282 | ||||||||
Interest expense
|
36,673 | ||||||||
Other non-operating expenses
|
24,050 | ||||||||
JE#9: Eliminate non-recurring transactions related to the Receivership/Restructuring and write off of intercompany lines of credit
|
|||||||||
Other non-operating expenses SD-Mill Creek
|
1,429,591 | ||||||||
Other non-operating expenses Club Hollywood
|
2,896,650 | ||||||||
Other non-operating expenses Royal Casino
|
1,459,981 | ||||||||
Other non-operating expenses Golden Nugget Tukwila
|
2,516,431 | ||||||||
Other non-operating expenses Gaming Consultants Inc.
|
4,916,104 | ||||||||
JE#10: Eliminate interest income and expense as recorded for acquired operations (including intercompany transctions)
|
|||||||||
Interest income
|
303,767 | ||||||||
Interest expense
|
446,769 | ||||||||
Retained earnings
|
750,536 |
(through change of Stmt of Ops)
|
|||||||
To account for Federal income tax at 34% of pro-forma pre-tax operating adjustments
|
|||||||||
Income tax receivable
|
294,007 | ||||||||
Income tax expense-current
|
294,007 | ||||||||
To account for Federal income tax at 34% of pre-tax operating results of acquired casinos
|
|||||||||
Income tax expense-current
|
540,279 | ||||||||
Income tax receivable
|
540,279 |