Nevada Gold & Casinos Inc. (NYSE MKT:UWN) Q4 2018 Earnings Conference Call - Final Transcript
Jul 26, 2018 • 04:30 pm ET
Good afternoon, ladies and gentlemen, and welcome to the Nevada Gold & Casinos, Inc. Fourth Quarter 2018 Financial Results Call. Today's call is being recorded. (Operator Instructions)I would now like to turn the presentation over to your host for today's call, Preston Graham, IR.
Thank you and good afternoon. We appreciate you joining us today. With me on the call is Mike Shaunnessy, CEO; Jim Meier, CFO; and Victor Mena, VP of Washington Operations.
The purpose of today's call is to review the company's financial results for the fourth quarter ended April 30, 2018. Following the company's remarks, there will be an opportunity to ask questions.
(Forward-Looking Cautionary Statements)
With that, I'd like to turn the call over to Nevada Gold's CEO, Mike Shaunnessy. Mike?
Thanks, Preston. Good afternoon, everyone. I'll start with a quick recap of our recent news concerning our ongoing strategic review process. We closed on the sale of our South Dakota route operation as planned on June 30. And on June 27, we signed a definitive agreement to sell the Club Fortune Casino in Henderson for $14.6 million to Truckee Gaming. We expect that transaction to close by the end of the year. We also recently announced that effective with the closing of that sale, we will relocate our corporate headquarters from Las Vegas to the Seattle, Washington area, reducing our corporate overhead expenses by about $1.2 million. And at that time, Victor Mena, our VP of Washington Operations, who's on the call with us today, will succeed me as President and CEO.
Our strategic review process is ongoing, and we will not be addressing it further on this call or during questions and answers.
To start, I'd like to formally introduce Victor and have him say a few words. Victor?
Victor Hugo Mena
Thanks, Mike. Good afternoon, everyone. I'm happy to be participating on the call today to get my feet wet with the upcoming new responsibilities. I'm grateful to have Mike here to help me navigate through the early part of this upcoming transition. And I've been with Nevada Gold as VP of Washington Operations since the company first entered Washington card room business back in 2009. And I look forward to what I expect to be a great adventure moving forward. Thank you.
Thanks, Victor. Starting with Washington. During 2018, we faced the first full 12-month period of wage increases in the state. As you'll recall, the wage rates increased $1.50 an hour for the first 8 months of the year and then an additional $0.50 an hour for the remaining 4 that began in January of this year. Despite that 12% increase in the minimum wage over that period, our overall payroll and benefits increase in Washington was only approximately $400,000 or 2% based on the efforts of the management there to mitigate as much as possible the overall payroll wage increases.
During October, as you'll recall, we made a strategic shift to convert our Red Dragon property to a poker-only location. And for the full