SEARCH NEWS:

 

Dover Downs reports results

DOVER, Delaware -- (PRESS RELEASE) -- Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today reported results for the three months and year ended December 31, 2007.

Net earnings per diluted share for the quarter ended December 31, 2007 were $.17 compared with $.19 per diluted share for the same period in 2006.

The Company's revenues increased to $59,301,000 compared with $58,667,000 for the fourth quarter of 2006. Gaming revenues, which include video lottery win and harness racing commissions, were essentially flat compared with the fourth quarter of 2006, primarily from a slightly higher video lottery win offset by a decline in horse racing revenues.

Other revenues increased from the opening of the Company's hotel expansion and from increased cash food and beverage business.

General and administrative expenses for the quarter increased $308,000, but include $211,000 of losses on disposals of assets related to the renovation of the Company's original hotel tower.

Net earnings for the quarter were $5,365,000 compared with net earnings of $6,081,000 for the fourth quarter of 2006. Depreciation expense for the quarter increased by $440,000, primarily because the Company's hotel expansion was operational for the fourth quarter. Higher debt levels as a result of the expansion combined with the fact that the capitalization of interest was also limited as a result of the hotel opening, led to an increase in interest expense of $344,000 for the quarter compared to last year.

For the year ended December 31, 2007, net earnings per diluted share improved to $.80 from $.77 last year. Net earnings improved 3% to $26,085,000 compared to net earnings of $25,328,000 in 2006.

Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment, Inc. stated, "This was a challenging quarter for just about every casino operator in the region due to competitive and economic conditions. By comparison we did better than most, and we remain confident that our ongoing property expansion plans will be well received by our customers."

Construction continues on the "Colonnade," the Phase VI casino expansion that will add approximately 70,000 square feet of additional space to house 500 additional slot machines, three new restaurants, retail shops, an upscale nightclub, a coffee shop and a new casino grand entrance. The $56 million expansion is expected to open in August of 2008.

Also during the quarter, the Company repurchased 916,900 shares of common stock at an average price of $10.72 per share, not including nominal brokerage commissions.

The Company announced yesterday that its Board of Directors declared a regular quarterly dividend of $.05 per share. The dividend is payable on March 10, 2008 to shareholders of record at the close of business on February 10, 2008.

< Gaming News