Nevada Gold & Casinos Inc. (NYSE MKT:UWN) Q1 2019 Earnings Conference Call - Final Transcript
Sep 13, 2018 • 04:30 pm ET
Good afternoon, ladies and gentlemen and welcome to the Nevada Gold & Casinos Incorporated First Quarter 2019 Financial Results Call. Today's conference is being recorded.
I would now like to turn the presentation over to your host for today's call, Mr. Preston Graham, IR. Please go ahead.
Thank you and good afternoon. We appreciate you joining us today. With me on the call is Mike Shaunnessy, CEO; and Jim Meier, CFO. The purpose of today's call is to review the company's financial results for the first quarter of 2019. 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 the Nevada Gold's CEO, Mike Shaunnessy. Mike?
Thank you, Preston. Good afternoon, everyone. First, I'll start with a quick recap of where we are with our ongoing strategic review process. We closed on the sale of our South Dakota route operation on June 30. As you recall in June, 27th 2018, we announced that we had signed a definitive agreement to sell Club Fortune for 14.6 million which we expect to close in December of this year and on August 3rd of this year we announced that we had entered into exclusive negotiations to sell the company. This process is ongoing and we will not be addressing any further details during this call.
Now let's get to the first quarter. The quarter numbers are unique and confusing. Since not only do we have the new revenue recognition rules impacting comparability between periods but the Club Fortune operations due to the sign sale agreement are now classified as held for sales in the accounting finance and they are reflected on the income statement as a single net of tax amount and the associated assets and liabilities are included on the balance sheet under assets held for sale.
In addition, with a sale of South Dakota this quarter's operations reflects two months for South Dakota this year versus a full three months in the quarter of last year. So the main body of the income statement therefore represents our Washington operations and the final two months of our South Dakota route operation, all under the new revenue recognition rules for the current period.
So having said that, let's start with Washington. During October of last year, we made a strategic shift to convert our Red Dragon property to Poker only and our consolidated Poker revenue increased over $400,000 or 44% for the first quarter pretty much on plan with our expectations and where we had been trending since we made the conversion.
In addition, our nearest table games location, the Crazy Moose Mountlake Terrace had approximately 1.5 million an additional drop for the quarter. Primarily resulting from the play that previously had been at the Red Dragon. We continue to spend some additional marketing dollars on this conversion but the positive impact on EBITDA has already occurred in this significant and continuing.
In last year's first quarter as you