Attached files
| file | filename |
|---|---|
| 8-K - 8-K - DOVER DOWNS GAMING & ENTERTAINMENT INC | a15-21927_18k.htm |
| EX-99.2 - EX-99.2 - DOVER DOWNS GAMING & ENTERTAINMENT INC | a15-21927_1ex99d2.htm |
Exhibit 99.1
|
FOR IMMEDIATE RELEASE |
For further information, call: |
|
|
Timothy R. Horne - Sr. Vice President-Finance |
|
Dover, Delaware, October 29, 2015 |
(302) 857-3292 |
DOVER DOWNS GAMING & ENTERTAINMENT, INC. REPORTS RESULTS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2015
Dover Downs Gaming & Entertainment, Inc. (NYSE-DDE) today reported results for the three months ended September 30, 2015.
Gaming revenues of $42,012,000 were up 1.6% compared to the third quarter of 2014. The revenue increase was primarily attributable to increased slot machine revenue.
Other operating revenues of $5,184,000 were down compared to the third quarter of 2014, primarily from the fact that there were several large non-recurring conventions in the third quarter of last year and the fact that the fall NASCAR race weekend at Dover International Speedway was held in the fourth quarter of this year compared to the third quarter of last year. Occupancy levels in the Dover Downs Hotel were 92% for the third quarter of this year.
General and administrative costs were down to $1,331,000 for the third quarter compared to $1,468,000 last year.
Interest expense decreased to $259,000 during the quarter from lower interest rates and lower average outstanding borrowings.
Net earnings were $826,000, or $.03 per diluted share compared with $699,000 or $.02 per diluted share for the third quarter of 2014.
Denis McGlynn, the Company’s President and Chief Executive Officer, stated: “The fact that we were able to generate a small Gaming revenue increase for the quarter reflects the value of our assets on-site, especially our 500-room hotel which continues to be our strongest competitive tool. While we continue to benefit from legislation passed in July 2014 by which the State shares in some of our slot machine vendor costs, more comprehensive legislation proposed in the Senate stalled in 2015 and it remains imperative that we impress upon those who regulate and control our destiny that our hotel and restaurants are in need of upgrades in order to remain the critical marketing assets they have historically been.”
* * *
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 EARNINGS (LOSS)
In Thousands, Except Per Share Amounts
(Unaudited)
|
|
|
Three Months Ended |
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Nine Months Ended |
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|
|
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September 30, |
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September 30, |
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|
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2015 |
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2014 |
|
2015 |
|
2014 |
| ||||
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Revenues: |
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|
|
|
|
|
|
| ||||
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Gaming (1) |
|
$ |
42,012 |
|
$ |
41,349 |
|
$ |
118,846 |
|
$ |
120,415 |
|
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Other operating (2) |
|
5,184 |
|
6,639 |
|
17,989 |
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19,256 |
| ||||
|
|
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47,196 |
|
47,988 |
|
136,835 |
|
139,671 |
| ||||
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Expenses: |
|
|
|
|
|
|
|
|
| ||||
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Gaming |
|
39,068 |
|
38,260 |
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111,704 |
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113,626 |
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Other operating |
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3,551 |
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4,638 |
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11,957 |
|
13,691 |
| ||||
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General and administrative |
|
1,331 |
|
1,468 |
|
4,165 |
|
4,284 |
| ||||
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Depreciation |
|
2,030 |
|
2,196 |
|
6,353 |
|
6,764 |
| ||||
|
|
|
45,980 |
|
46,562 |
|
134,179 |
|
138,365 |
| ||||
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|
|
|
|
|
|
|
|
|
| ||||
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Operating earnings |
|
1,216 |
|
1,426 |
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2,656 |
|
1,306 |
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|
|
|
|
|
|
|
|
| ||||
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Interest expense |
|
(259 |
) |
(412 |
) |
(937 |
) |
(1,312 |
) | ||||
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|
|
|
|
|
|
|
|
|
| ||||
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Earnings (loss) before income taxes |
|
957 |
|
1,014 |
|
1,719 |
|
(6 |
) | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
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Income tax expense |
|
(131 |
) |
(315 |
) |
(614 |
) |
(184 |
) | ||||
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|
|
|
|
|
|
|
|
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Net earnings (loss) |
|
$ |
826 |
|
$ |
699 |
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$ |
1,105 |
|
$ |
(190 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
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Net earnings (loss) per common share: |
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|
|
|
|
|
|
|
| ||||
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- Basic |
|
$ |
0.03 |
|
$ |
0.02 |
|
$ |
0.03 |
|
$ |
(0.01 |
) |
|
- Diluted |
|
$ |
0.03 |
|
$ |
0.02 |
|
$ |
0.03 |
|
$ |
(0.01 |
) |
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|
|
|
|
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|
|
|
| ||||
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Weighted average shares outstanding: |
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|
|
|
|
|
|
|
| ||||
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- Basic |
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32,086 |
|
31,962 |
|
32,085 |
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31,961 |
| ||||
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- Diluted |
|
32,086 |
|
31,962 |
|
32,085 |
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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)
|
|
|
September 30, |
|
December 31, |
| ||
|
|
|
2015 |
|
2014 |
| ||
|
ASSETS |
|
|
|
|
| ||
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|
|
|
|
|
| ||
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Current assets: |
|
|
|
|
| ||
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Cash |
|
$ |
8,787 |
|
$ |
10,079 |
|
|
Accounts receivable |
|
2,793 |
|
3,838 |
| ||
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Due from State of Delaware |
|
8,758 |
|
7,258 |
| ||
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Inventories |
|
1,935 |
|
1,783 |
| ||
|
Prepaid expenses and other |
|
3,632 |
|
2,324 |
| ||
|
Receivable from Dover Motorsports, Inc. |
|
11 |
|
22 |
| ||
|
Income taxes receivable |
|
162 |
|
6 |
| ||
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Deferred income taxes |
|
1,395 |
|
1,243 |
| ||
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Total current assets |
|
27,473 |
|
26,553 |
| ||
|
|
|
|
|
|
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Property and equipment, net |
|
146,873 |
|
152,107 |
| ||
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Other assets |
|
711 |
|
752 |
| ||
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Deferred income taxes |
|
732 |
|
404 |
| ||
|
Total assets |
|
$ |
175,789 |
|
$ |
179,816 |
|
|
|
|
|
|
|
| ||
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
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|
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Current liabilities: |
|
|
|
|
| ||
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Accounts payable |
|
$ |
3,301 |
|
$ |
3,975 |
|
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Purses due horsemen |
|
8,761 |
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6,917 |
| ||
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Accrued liabilities |
|
7,398 |
|
8,196 |
| ||
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Deferred revenue |
|
501 |
|
389 |
| ||
|
Revolving line of credit |
|
33,660 |
|
39,010 |
| ||
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Total current liabilities |
|
53,621 |
|
58,487 |
| ||
|
|
|
|
|
|
| ||
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Liability for pension benefits |
|
8,435 |
|
8,980 |
| ||
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Total liabilities |
|
62,056 |
|
67,467 |
| ||
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Stockholders’ equity: |
|
|
|
|
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Common stock |
|
1,799 |
|
1,788 |
| ||
|
Class A common stock |
|
1,487 |
|
1,487 |
| ||
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Additional paid-in capital |
|
5,334 |
|
5,125 |
| ||
|
Retained earnings |
|
109,734 |
|
108,629 |
| ||
|
Accumulated other comprehensive loss |
|
(4,621 |
) |
(4,680 |
) | ||
|
Total stockholders’ equity |
|
113,733 |
|
112,349 |
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
175,789 |
|
$ |
179,816 |
|
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
|
|
|
Nine Months Ended |
| ||||
|
|
|
September 30, |
| ||||
|
|
|
2015 |
|
2014 |
| ||
|
|
|
|
|
|
| ||
|
Operating activities: |
|
|
|
|
| ||
|
Net earnings (loss) |
|
$ |
1,105 |
|
$ |
(190 |
) |
|
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: |
|
|
|
|
| ||
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Depreciation |
|
6,353 |
|
6,764 |
| ||
|
Amortization of credit facility origination fees |
|
85 |
|
106 |
| ||
|
Stock-based compensation |
|
285 |
|
441 |
| ||
|
Deferred income taxes |
|
(571 |
) |
(435 |
) | ||
|
Changes in assets and liabilities: |
|
|
|
|
| ||
|
Accounts receivable |
|
1,045 |
|
748 |
| ||
|
Due from State of Delaware |
|
(1,500 |
) |
(343 |
) | ||
|
Inventories |
|
(152 |
) |
25 |
| ||
|
Prepaid expenses and other |
|
(1,269 |
) |
(934 |
) | ||
|
Receivable from/payable to Dover Motorsports, Inc. |
|
11 |
|
(33 |
) | ||
|
Income taxes receivable/payable |
|
(104 |
) |
443 |
| ||
|
Accounts payable |
|
(674 |
) |
(1,393 |
) | ||
|
Purses due horsemen |
|
1,844 |
|
629 |
| ||
|
Accrued liabilities |
|
(798 |
) |
39 |
| ||
|
Deferred revenue |
|
112 |
|
(13 |
) | ||
|
Liability for pension benefits |
|
(435 |
) |
(335 |
) | ||
|
Net cash provided by operating activities |
|
5,337 |
|
5,519 |
| ||
|
|
|
|
|
|
| ||
|
Investing activities: |
|
|
|
|
| ||
|
Capital expenditures |
|
(1,118 |
) |
(640 |
) | ||
|
Purchase of available-for-sale securities |
|
(8 |
) |
(28 |
) | ||
|
Proceeds from sale of available-for-sale securities |
|
5 |
|
26 |
| ||
|
Net cash used in investing activities |
|
(1,121 |
) |
(642 |
) | ||
|
|
|
|
|
|
| ||
|
Financing activities: |
|
|
|
|
| ||
|
Borrowings from revolving line of credit |
|
46,130 |
|
81,470 |
| ||
|
Repayments of revolving line of credit |
|
(51,480 |
) |
(88,010 |
) | ||
|
Repurchase of common stock |
|
(65 |
) |
(104 |
) | ||
|
Credit facility fees |
|
(93 |
) |
(108 |
) | ||
|
Net cash used in financing activities |
|
(5,508 |
) |
(6,752 |
) | ||
|
|
|
|
|
|
| ||
|
Net decrease in cash |
|
(1,292 |
) |
(1,875 |
) | ||
|
Cash, beginning of period |
|
10,079 |
|
12,950 |
| ||
|
Cash, end of period |
|
$ |
8,787 |
|
$ |
11,075 |
|