Nevada Gold & Casinos F2Q08 (Qtr End 10/28/07) Earnings Call Transcript

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2007-12-10 07:53:58.0

Tags: Nevada Gold & Casinos Inc.

Question-and-Answer Session

Operator

(Operator Instructions) We will take our first question from Michael Friedman at Noble Financial.

Michael Friedman - Noble Financial

Good morning. I wanted to focus in a little bit on the New York race tracks. You mentioned it earlier in your comments. It seems to be some of your former partners are publicly talking about some problems with the New York race tracks. What obligations, if any, on the guarantees does Nevada Gold currently have related to those race tracks?

James J. Kohn

Our responsibilities are very limited, if any at all. At this juncture, we still are supporting them from a general ledger accounting system. They are scheduled to wean themselves off of that at the end of this month. It will remain open for a few months as they close their audit year.

From an operational standpoint, that is all that we have from an involvement standpoint. From a financial standpoint, we do have a guarantee of $11 million to vest in, which is fully guaranteed or indemnified by both of the partners that currently bought our interest.

So from that perspective, we believe we are fully covered both operationally and financially and have no responsibilities related to that particular property.

Michael Friedman - Noble Financial

Great. Thanks. I’ll jump back in the queue.

Operator

We’ll take our next question from Evan Greenberg at Meadowbrook Capital Management.

Evan Greenberg - Meadowbrook Capital Management

A couple of things; number one, I wanted to know if you broke out the Cripple Creek performance in the quarterly report. It didn’t look like it.

James J. Kohn

We do not segregate that information out, although one could easily identify it, since it is our only operating property at this point in time. All of the revenues down to the net revenue line are Cripple Creek and the first four expense lines, which would be casino, food and beverage, marketing and advertising, and facility are all specifically related to the Cripple Creek property.

Evan Greenberg - Meadowbrook Capital Management

Okay. All right, great. Number two question had to do with the one-time write-down you took and it had to do with operating cash flow and EBITDA. It seemed like you pretty much -- the operating cash was about a negative $500,000 this quarter, somewhere around there. Is that the correct number?

James J. Kohn

I’m looking at the income statement. We did not have any write-offs this quarter. There were write-offs last year same quarter of $3.5 million related to a Native American project, but there were none this year. In fact, this quarter we had a slight gain of just short of $19,000 on the sale of our gold field resources, non-core asset.

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