Nevada Gold & Casinos, Inc (UWN) swung to a net loss for the quarter ended Jan. 31, 2017. The company has made a net loss of $0.68 million, or $ 0.04 a share in the quarter, against a net profit of $0.47 million, or $0.03 a share in the last year period. Revenue during the quarter went down marginally by 2.03 percent to $17.99 million from $18.36 million in the previous year period. Gross margin for the quarter contracted 300 basis points over the previous year period to 43.03 percent. Operating margin for the quarter stood at negative 2.70 percent as compared to a positive 6.44 percent for the previous year period.
Operating loss for the quarter was $0.48 million, compared with an operating income of $1.18 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.43 million compared with $2.33 million in the prior year period. At the same time, adjusted EBITDA margin contracted 476 basis points in the quarter to 7.93 percent from 12.69 percent in the last year period.
"Our Washington portfolio endured harsh weather conditions beginning in mid-December and continued into mid-February,” stated President and Chief executive officer Michael Shaunnessy. “The growth in volumes we had seen in the first two quarters stalled, and we continued to be plagued by a softer than normal hold percentage, particularly compared to the prior year. On a more positive note, Club Fortune generated its highest quarterly revenue and EBITDA since acquisition.”
Working capital declines
Nevada Gold & Casinos, Inc has witnessed a decline in the working capital over the last year. It stood at $9.22 million as at Jan. 31, 2017, down 10.02 percent or $1.03 million from $10.25 million on Jan. 31, 2016. Current ratio was at 2.96 as on Jan. 31, 2017, down from 3.14 on Jan. 31, 2016. Days sales outstanding were almost stable at 5 days for the quarter, when compared with the last year period.
Debt comes down significantly
Nevada Gold & Casinos, Inc has recorded a decline in total debt over the last one year. It stood at $13.74 million as on Jan. 31, 2017, down 29.23 percent or $5.67 million from $19.41 million on Jan. 31, 2016. Nevada Gold & Casinos has recorded a decline in long-term debt over the last one year. It stood at $13.74 million as on Jan. 31, 2017, down 29.23 percent or $5.67 million from $19.41 million on Jan. 31, 2016. Total debt was 26.16 percent of total assets as on Jan. 31, 2017, compared with 33.04 percent on Jan. 31, 2016. Debt to equity ratio was at 0.41 as on Jan. 31, 2017, down from 0.56 as on Jan. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
