United States Securities and Exchange Commission
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, 2004
Commission file number 1-16791
Dover Downs Gaming & Entertainment, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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51-0414140 |
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(State or Other Jurisdiction of Incorporation) |
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(I.R.S. Employer Identification Number) |
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1131 North DuPont Highway, Dover, Delaware 19901 |
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(Address of principal executive offices) |
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(302) 674-4600 |
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(Registrant’s telephone number, including area code) |
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N/A |
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(Former name, former address and former fiscal year, if changed since last report) |
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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, 2004, the number of shares of each class of the registrant’s common stock outstanding is as follows:
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Common Stock - |
10,455,112 shares |
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Class A Common Stock - |
16,075,059 shares |
Part I – Financial Information
Item 1. Financial Statements
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
In Thousands, Except Per Share Amounts
(Unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues: |
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Gaming |
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$ |
46,959 |
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$ |
44,292 |
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$ |
94,268 |
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$ |
85,849 |
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Other operating |
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8,460 |
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8,286 |
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16,748 |
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15,084 |
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Gross revenues |
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55,419 |
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52,578 |
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111,016 |
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100,933 |
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Less – promotional allowances |
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4,892 |
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4,536 |
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9,929 |
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8,692 |
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50,527 |
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48,042 |
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101,087 |
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92,241 |
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Expenses: |
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Gaming |
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36,913 |
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35,011 |
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74,565 |
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67,532 |
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Other operating |
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3,131 |
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2,750 |
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5,572 |
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5,004 |
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General and administrative |
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1,098 |
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1,115 |
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2,245 |
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2,069 |
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Depreciation |
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1,699 |
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1,523 |
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3,390 |
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3,025 |
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42,841 |
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40,399 |
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85,772 |
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77,630 |
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Operating earnings |
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7,686 |
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7,643 |
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15,315 |
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14,611 |
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Interest expense |
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176 |
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253 |
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329 |
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467 |
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Earnings before income taxes |
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7,510 |
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7,390 |
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14,986 |
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14,144 |
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Income taxes |
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3,052 |
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3,005 |
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6,094 |
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5,752 |
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Net earnings |
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$ |
4,458 |
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$ |
4,385 |
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$ |
8,892 |
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$ |
8,392 |
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Net earnings per common share (Note 3): |
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Basic |
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$ |
0.17 |
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$ |
0.17 |
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$ |
0.34 |
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$ |
0.32 |
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Diluted |
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$ |
0.17 |
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$ |
0.17 |
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$ |
0.33 |
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$ |
0.32 |
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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
(Unaudited)
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June 30, |
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December 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
16,969 |
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$ |
14,138 |
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Accounts receivable |
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2,572 |
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1,914 |
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Due from State of Delaware |
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4,304 |
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8,670 |
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Inventories |
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1,723 |
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1,801 |
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Prepaid expenses and other |
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2,529 |
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2,414 |
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Receivable from Dover Motorsports, Inc. |
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22 |
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— |
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Prepaid income taxes |
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487 |
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— |
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Deferred income taxes |
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895 |
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878 |
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Total current assets |
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29,501 |
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29,815 |
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Property and equipment, net |
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125,493 |
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122,344 |
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Total assets |
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$ |
154,994 |
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$ |
152,159 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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