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Dover Downs releases results for second quarter 201530 July 2015(PRESS RELEASE) -- Dover Downs Gaming & Entertainment today reported results for the three months ended June 30, 2015. Net earnings were $631,000 compared with $164,000 for the second quarter of 2014. Earnings per diluted share were $.02 compared with $.01 for the second quarter of 2014. The Company’s revenues for the second quarter of 2015 were $45,301,000 compared with $46,206,000 for the second quarter of 2014. Gaming revenues were $38,058,000 compared to $39,284,000 for the second quarter of last year. The decline is primarily attributable to the competitive environment in the mid-Atlantic gaming market and a lower table game hold percentage in the second quarter of this year. Other operating revenues increased to $7,243,000 compared to $6,922,000 for the second quarter of 2014 from higher cash rooms revenue and revenue associated with the Company taking over certain retail operations in the casino. Occupancy levels in the Dover Downs Hotel were approximately 85% for the second quarter of 2015 compared with 88% during the second quarter last year. General and administrative, depreciation and interest expenses were each down slightly compared to the second quarter of 2014. “Historically, the spring and summer months are stronger months for the company and that held true during our second quarter,” said Denis McGlynn, president and CEO. “We benefited from growth in hotel rooms revenue and a decision to take on-site retail operations in-house. Unfortunately, we also had to engage in another round of expense reductions which included the elimination of 72 jobs so far this year. We’re hopeful that the legislature will act on the recommendations of its own appointed study commission when the next session convenes in January and provide the gaming tax relief that was recommended.” 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, 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 the Dover Downs website. DOVER DOWNS GAMING & ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) In Thousands, Except Per Share Amounts (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Revenues: Gaming (1) $38,058 $39,284 $76,834 $79,066 Other operating (2) 7,243 6,922 12,805 12,617 45,301 46,206 89,639 91,683 Expenses: Gaming 35,874 37,012 72,636 75,366 Other operating 4,519 4,657 8,406 9,053 General and administrative 1,338 1,423 2,834 2,816 Depreciation 2,171 2,273 4,323 4,568 43,902 45,365 88,199 91,803 Operating earnings (loss) 1,399 841 1,440 (120) Interest expense (330) (440) (678) (900) Earnings (loss) before income taxes 1,069 401 762 (1,020) Income tax (expense) benefit (438) (237) (483) 131 Net earnings (loss) $631 $164 $279 $(889) Net earnings (loss) per common share: - Basic $0.02 $0.01 $0.01 $(0.03) - Diluted $0.02 $0.01 $0.01 $(0.03) Weighted average shares outstanding: - Basic 32,086 31,962 32,084 31,961 - Diluted 32,086 31,962 32,084 31,961 _________________________ (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) June 30, December 31, 2015 2014 ASSETS Current assets: Cash $11,224 $10,079 Accounts receivable 3,361 3,838 Due from State of Delaware 4,618 7,258 Inventories 1,846 1,783 Prepaid expenses and other 3,074 2,324 Receivable from Dover Motorsports, Inc. 22 2 Income taxes receivable - 6 Deferred income taxes 1,284 1,243 Total current assets 25,429 26,553 Property and equipment, net 148,699 152,107 Other assets 683 752 Deferred income taxes 658 404 Total assets $175,469 $179,816 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $3,771 $3,975 Purses due horsemen 4,621 6,917 Accrued liabilities 9,733 8,196 Income taxes payable 231 - Deferred revenue 666 389 Revolving line of credit 34,900 39,010 Total current liabilities 53,922 58,487 Liability for pension benefits 8,742 8,980 Total liabilities 62,664 67,467 Stockholders’ equity: Common stock 1,799 1,788 Class A common stock 1,487 1,487 Additional paid-in capital 5,244 5,125 Retained earnings 108,908 108,629 Accumulated other comprehensive loss (4,633) (4,680) Total stockholders’ equity 112,805 112,349 Total liabilities and stockholders’ equity $175,469 $179,816 DOVER DOWNS GAMING & ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands (Unaudited) Six Months Ended June 30, 2015 2014 Operating activities: Net earnings (loss) $279 $(889) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation 4,323 4,568 Amortization of credit facility origination fees 54 91 Stock-based compensation 195 301 Deferred income taxes (325) (163) Changes in assets and liabilities: Accounts receivable 477 476 Due from State of Delaware 2,640 3,740 Inventories (63) 138 Prepaid expenses and other (730) (987) Receivable from/payable to Dover Motorsports, Inc. - (43) Accounts payable (204) (1,562) Purses due horsemen (2,296) (3,448) Accrued liabilities 1,537 (505) Income taxes payable/receivable 236 5 Deferred revenue 277 (137) Liability for pension benefits (163) (214) Net cash provided by operating activities6,237 1,371 Investing activities: Capital expenditures (915) (521) Purchase of available-for-sale securities(3) (15) Proceeds from sale of available-for-sale securities 1 14 Net cash used in investing activities (917) (522) Financing activities: Borrowings from revolving line of credit36,450 58,510 Repayments of revolving line of credit (40,560) (61,840) Repurchase of common stock (65) (104) Net cash used in financing activities (4,175) (3,434) Net increase (decrease) in cash 1,145 (2,585) Cash, beginning of period 10,079 12,950 Cash, end of period $11,224 $10,365
Dover Downs releases results for second quarter 2015
is republished from Online.CasinoCity.com.
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