Nevada Gold & Casinos Inc. on Tuesday posted a third-quarter profit, as the company continues to pay down debt, adjust operations at its casinos and slot routes, and complete its restructuring program.
The gaming company reported net income of $235,356, or 1 cent a share, for the fiscal quarter ended Jan. 31, compared with a loss of $288,047, or 1 cent per share, a year earlier.
Revenues rose 20 percent to $16.2 million from $13.5 million.
The company’s casinos in Washington contributed $14.4 million, while its South Dakota slot operations contributed $1.8 million in the third quarter.
“We are pleased with the quarter’s strong cash flow and the results of our Washington and South Dakota portfolios, both of which performed according to plan,” Nevada Gold CEO and President Michael Shaunnessy said.
Shaunnessy said Nevada Gold was “in a good position as we move into the fourth quarter” to meet its goal of generating $5 million in adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization.
Nevada Gold’s move of its headquarters from Houston to Las Vegas is expected to be completed by the end of the month. Shaunnessy said the move will let the company “expand its footprint and take advantage of future opportunities.”
Shaunnessy said the company also reduced its debt outstanding by $1.8 million in 2013. The company last month launched Gold Star Slots, a free-to-play casino application on Facebook.
Shaunnessy told analysts in a conference call that Nevada Gold has seen “a decent response to date” as it uses its social gaming app to “build its brand and introduce our brick-and-mortar properties.”
Shaunnessy, a former executive vice president of operations at MGM Resorts International, took over as Nevada Gold CEO on Dec. 1, replacing interim President Ernest East.
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