Dover Downs Gaming & Entertainment, Inc. Reports Results for the Fourth Quarter and Year Ended December 31, 2012
DOVER, Del.--(BUSINESS WIRE)--
Dover Downs Gaming & Entertainment, Inc. (NYSE-DDE) today reported
results for the fourth quarter and year ended December 31, 2012.
The Company’s revenues were $48,559,000 for the fourth quarter of 2012
compared with $61,619,000 for the fourth quarter of 2011. Gaming revenue
decreased 21.4% compared to the fourth quarter of last year as a result
of increased competition in the region compounded by the impact of
hurricane Sandy.
Other operating revenues declined to $5,310,000 from $6,600,000 due
primarily to lower food and beverage revenue related to catering
services for the NASCAR weekend in Dover which was held in the third
quarter of this year compared to the fourth quarter of last year. The
lower casino volume and the hurricane also impacted these revenues.
Occupancy levels in the Dover Downs Hotel were approximately 81% for the
fourth quarter of 2012 compared with approximately 87% for the fourth
quarter of 2011.
Net loss was ($528,000), or ( $. 02) per diluted share, compared with net
earnings of $2,120,000, or $. 07 per diluted share for the fourth quarter
of 2011.
Net earnings for the year were $4,807,000, or $. 15 per diluted share
compared with $5,359,000 or $. 17 per diluted share for 2011.
Denis McGlynn, the Company’s President and Chief Executive Officer,
stated: “Gaming expansion in Maryland and Pennsylvania continues to
depress gaming revenues in Delaware and we are keeping the Lottery
Office and the Administration informed as to the impacts on our business
and our ability to maintain current employment levels. We are
encouraging a review of the gaming tax structure during the current
legislative session.”
“At the same time, we continue to collaborate on a roll out of the
nation’s most comprehensive internet gaming program – estimated to
commence in the third quarter of 2013. We remain confident that
Delaware’s internet casino offerings will be among the first to come
online and set the standard for other states. Our goal remains to stay
one step ahead of the competition and to continue offering our patrons
the region’s finest amenities and richest gaming experiences.”
Given the competitive environment and recent financial results, the
Company’s Board of Directors has suspended the quarterly dividend.
This release contains or may contain forward-looking statements based on
management’s beliefs and assumptions. Such statements are subject to
various risks and uncertainties that could cause results to vary
materially. Please refer to the Company’s SEC filings for a discussion
of such factors.
Owned by Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE), Dover
Downs Hotel & Casino® is a premier gaming and
entertainment resort destination in the Mid-Atlantic region. Gaming
operations consist of approximately 2,500 slots and a full complement of
table games including poker. The AAA-rated Four Diamond hotel is
Delaware’s largest with 500 luxurious rooms/suites and amenities
including a full-service spa/salon, concert hall and 41,500 sq. ft. of
multi-use event space. Live, world-class harness racing is featured
November through April, and horse racing is simulcast year-round.
Professional football parlay betting is accepted during the season.
Additional property amenities include multiple restaurants from fine
dining to casual fare, bars/lounges and retail shops. For more
information, please visit www.doverdowns.com.
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
In Thousands, Except Per Share Amounts
(Unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2012
2011
2012
2011
Revenues:
Gaming (1)
$
43,249
$
55,019
$
203,055
$
217,415
Other operating (2)
5,310
6,600
22,857
22,527
48,559
61,619
225,912
239,942
Expenses:
Gaming
41,000
48,468
182,951
193,392
Other operating
4,009
4,785
16,359
16,510
General and administrative
1,506
1,434
6,034
6,288
Depreciation
2,528
2,797
10,297
11,665
49,043
57,484
215,641
227,855
Operating (loss) earnings
(484
)
4,135
10,271
12,087
Loss on extinguishment of debt
-
-
-
45
Interest expense
388
625
1,805
2,872
(Loss) earnings before income taxes
(872
)
3,510
8,466
9,170
Income taxes
(344
)
1,390
3,659
3,811
Net (loss) earnings
$
(528
)
$
2,120
$
4,807
$
5,359
Net (loss) earnings per common share:
- Basic
$
(0.02
)
$
0.07
$
0.15
$
0.17
- Diluted
$
(0.02
)
$
0.07
$
0.15
$
0.17
Weighted average shares outstanding:
- Basic
31,745
31,646
31,745
31,645
- Diluted
31,745
31,646
31,745
31,645
________________________
(1)
Gaming revenues from the Company’s slot machine and table game
operations include the total win from such operations. The
Delaware State Lottery Office collects the win and remits a
portion thereof to the Company as its commission for acting as a
Licensed Agent. The difference between total win and the amount
remitted to the Company is reflected in gaming expenses.
(2)
Other operating revenues do not include the retail amount of
promotional allowances which are provided to customers on a
complimentary basis.
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
December 31,
December 31,
2012
2011
ASSETS
Current assets:
Cash
$
14,993
$
18,634
Accounts receivable
4,093
3,982
Due from State of Delaware
9,708
9,440
Inventories
1,921
1,860
Prepaid expenses and other
3,207
3,659
Income taxes receivable
155
-
Deferred income taxes
1,284
1,317
Total current assets
35,361
38,892
Property and equipment, net
168,963
176,415
Other assets
938
877
Total assets
$
205,262
$
216,184
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
3,785
$
4,035
Purses due horsemen
9,833
9,004
Accrued liabilities
10,361
11,912
Payable to Dover Motorsports, Inc.
-
11
Income taxes payable
-
444
Deferred revenue
346
254
Total current liabilities
24,325
25,660
Revolving line of credit
58,500
69,000
Liability for pension benefits
6,983
5,570
Other liabilities
-
147
Deferred income taxes
1,994
3,301
Total liabilities
91,802
103,678
Stockholders’ equity:
Common stock
1,590
1,576
Class A common stock
1,660
1,660
Additional paid-in capital
4,136
3,464
Retained earnings
109,322
108,090
Accumulated other comprehensive loss
(3,248
)
(2,284
)
Total stockholders’ equity
113,460
112,506
Total liabilities and stockholders’ equity
$
205,262
$
216,184
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
Years Ended
December 31,
2012
2011
Operating activities:
Net earnings
$
4,807
$
5,359
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation
10,297
11,665
Amortization of credit facility origination fees
101
90
Stock-based compensation
793
905
Deferred income taxes
(318
)
(389
)
Loss on extinguishment of debt
-
45
Changes in assets and liabilities:
Accounts receivable
(111
)
(884
)
Due from State of Delaware
(268
)
389
Inventories
(61
)
129
Prepaid expenses and other
310
(995
)
Income taxes receivable/payable
(928
)
869
Accounts payable
(470
)
604
Purses due horsemen
829
(825
)
Accrued liabilities
(1,571
)
(374
)
Payable to Dover Motorsports, Inc.
(11
)
29
Deferred revenue
92
(53
)
Other liabilities
(325
)
(913
)
Net cash provided by operating activities
13,166
15,651
Investing activities:
Capital expenditures
(2,625
)
(1,853
)
Proceeds from sale of available-for-sale securities
-
214
Purchase of available-for-sale securities
-
(291
)
Net cash used in investing activities
(2,625
)
(1,930
)
Financing activities:
Borrowings from revolving line of credit
19,620
180,683
Repayments of revolving line of credit
(30,120
)
(190,283
)
Dividends paid
(3,575
)
(3,888
)
Repurchase of common stock
(107
)
(150
)
Credit facility fees
-
(268
)
Net cash used in financing activities
(14,182
)
(13,906
)
Net decrease in cash
(3,641
)
(185
)
Cash, beginning of period
18,634
18,819
Cash, end of period
$
14,993
$
18,634
Dover Downs Gaming & Entertainment, Inc. Timothy R. Horne - Sr.
Vice President-Finance 302-857-3292
Source: Dover Downs Gaming & Entertainment, Inc.
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About
Dover Downs Gaming & Entertainment, Inc., together with its subsidiaries, operates as a gaming and entertainment company in the United States. Its operations include Dover Downs Casino, a 165,000 square foot casino complex featuring popular table games comprising craps, roulette, and card games; slot machine offerings, such as multi-player electronic table games, and a race and sports book operation; the Dover Downs
Press Release $DDE Dover Downs Gaming & Entertainment Inc.
DOVER, Del.--(BUSINESS WIRE)-- Dover Downs Gaming & Entertainment, Inc. (NYSE-DDE) today reported results for the fourth quarter and year ended December 31, 2012.
The Company’s revenues were $48,559,000 for the fourth quarter of 2012 compared with $61,619,000 for the fourth quarter of 2011. Gaming revenue decreased 21.4% compared to the fourth quarter of last year as a result of increased competition in the region compounded by the impact of hurricane Sandy.
Other operating revenues declined to $5,310,000 from $6,600,000 due primarily to lower food and beverage revenue related to catering services for the NASCAR weekend in Dover which was held in the third quarter of this year compared to the fourth quarter of last year. The lower casino volume and the hurricane also impacted these revenues. Occupancy levels in the Dover Downs Hotel were approximately 81% for the fourth quarter of 2012 compared with approximately 87% for the fourth quarter of 2011.
Net loss was ($528,000), or ( $. 02) per diluted share, compared with net earnings of $2,120,000, or $. 07 per diluted share for the fourth quarter of 2011.
Net earnings for the year were $4,807,000, or $. 15 per diluted share compared with $5,359,000 or $. 17 per diluted share for 2011.
Denis McGlynn, the Company’s President and Chief Executive Officer, stated: “Gaming expansion in Maryland and Pennsylvania continues to depress gaming revenues in Delaware and we are keeping the Lottery Office and the Administration informed as to the impacts on our business and our ability to maintain current employment levels. We are encouraging a review of the gaming tax structure during the current legislative session.”
“At the same time, we continue to collaborate on a roll out of the nation’s most comprehensive internet gaming program – estimated to commence in the third quarter of 2013. We remain confident that Delaware’s internet casino offerings will be among the first to come online and set the standard for other states. Our goal remains to stay one step ahead of the competition and to continue offering our patrons the region’s finest amenities and richest gaming experiences.”
Given the competitive environment and recent financial results, the Company’s Board of Directors has suspended the quarterly dividend.
This release contains or may contain forward-looking statements based on management’s beliefs and assumptions. Such statements are subject to various risks and uncertainties that could cause results to vary materially. Please refer to the Company’s SEC filings for a discussion of such factors.
Owned by Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE), Dover Downs Hotel & Casino® is a premier gaming and entertainment resort destination in the Mid-Atlantic region. Gaming operations consist of approximately 2,500 slots and a full complement of table games including poker. The AAA-rated Four Diamond hotel is Delaware’s largest with 500 luxurious rooms/suites and amenities including a full-service spa/salon, concert hall and 41,500 sq. ft. of multi-use event space. Live, world-class harness racing is featured November through April, and horse racing is simulcast year-round. Professional football parlay betting is accepted during the season. Additional property amenities include multiple restaurants from fine dining to casual fare, bars/lounges and retail shops. For more information, please visit www.doverdowns.com.
________________________
Gaming revenues from the Company’s slot machine and table game operations include the total win from such operations. The Delaware State Lottery Office collects the win and remits a portion thereof to the Company as its commission for acting as a Licensed Agent. The difference between total win and the amount remitted to the Company is reflected in gaming expenses.
Other operating revenues do not include the retail amount of promotional allowances which are provided to customers on a complimentary basis.
Adjustments to reconcile net earnings to net cash provided by operating activities:
Dover Downs Gaming & Entertainment, Inc.
Timothy R. Horne - Sr. Vice President-Finance
302-857-3292
Source: Dover Downs Gaming & Entertainment, Inc.