United States
Securities and Exchange Commission

Washington, D.C.  20549

 

 

Form 10-Q

 

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended June 30, 2003

 

Commission file number      1-16791

 

Dover Downs Gaming & Entertainment, Inc.

(Exact name of registrant as specified in its charter)

 

 

1131 North DuPont Highway, Dover, Delaware  19901

(Address of principal executive offices)

 

(302) 674-4600

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ý   No o

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý   No o

 

As of July 31, 2003, the number of shares of each class of the Registrant’s common stock outstanding is as follows:

 

 

 

Part I – Financial Information

 

Item 1. Financial Statements

 

DOVER DOWNS GAMING & ENTERTAINMENT, INC.

CONSOLIDATED STATEMENT OF EARNINGS

In Thousands, Except Per Share Amounts

(Unaudited)

 

		Three Months Ended June 30,						Six Months Ended June 30,
		2003			2002			2003			2002
Revenues:
Gaming		$	44,292		$	49,622		$	85,849		$	96,760
Other operating		8,286			6,628			15,084			11,200
Gross revenues		52,578			56,250			100,933			107,960
Less – promotional allowances		4,536			3,280			8,692			5,210
		48,042			52,970			92,241			102,750
Expenses:
Gaming		35,011			37,556			67,532			73,691
Other operating		2,750			2,857			5,004			5,791
Depreciation		1,523			1,406			3,025			2,310
General and administrative		1,115			1,217			2,069			2,314
		40,399			43,036			77,630			84,106
Operating earnings		7,643			9,934			14,611			18,644
Interest expense		253			322			467			322
Earnings before income taxes		7,390			9,612			14,144			18,322
Income taxes		3,005			3,909			5,752			7,451
Net earnings		$	4,385		$	5,703		$	8,392		$	10,871
Net earnings per common share (Note 3):
Basic		$	0.17		$	0.21		$	0.32		$	0.41
Diluted		$	0.17		$	0.21		$	0.32		$	0.41

 

The Notes to the Consolidated Financial Statements are an integral part of these consolidated statements.

 

2

 

DOVER DOWNS GAMING & ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEET

In Thousands, Except Share and Per Share Amounts

 

		June 30, 2003			December 31, 2002
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	11,461		$	10,874
Accounts receivable		381			1,105
Due from State of Delaware		4,858			9,624
Inventories		1,353			1,154
Prepaid expenses and other		2,842			1,462
Receivable from Dover Motorsports, Inc.		638			793
Income taxes receivable		96			859
Deferred income taxes		808			539
Total current assets		22,437			26,410
Property and equipment, net		121,211			122,248
Total assets		$	143,648		$	148,658
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	3,842		$	2,364
Purses due horsemen		4,851			9,666
Accrued liabilities		3,711			7,132
Deferred revenue		141			131
Total current liabilities		12,545			19,293
Notes payable to banks		37,625			40,890
Deferred income taxes		4,827			4,036
Commitments and contingencies (see Notes to the Consolidated Financial Statements)