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 September 30, 2004

 

Commission file number     1-16791

 

Dover Downs Gaming & Entertainment, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware	51-0414140
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification Number)

 

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 October 31, 2004, the number of shares of each class of the registrant’s common stock outstanding is as follows:

 

	Common Stock -		10,404,212 shares
	Class A Common Stock -		16,075,059 shares

 

 

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 September 30,						Nine Months Ended September 30,
		2004			2003			2004			2003
Revenues:
Gaming		$	51,022		$	47,105		$	145,290		$	132,954
Other operating		9,147			8,151			25,895			23,235
Gross revenues		60,169			55,256			171,185			156,189
Less – promotional allowances		5,224			4,957			15,153			13,649
		54,945			50,299			156,032			142,540
Expenses:
Gaming		39,458			36,982			114,023			104,514
Other operating		4,150			2,601			9,722			7,605
General and administrative		1,065			928			3,310			2,997
Depreciation		1,691			1,532			5,081			4,557
		46,364			42,043			132,136			119,673
Operating earnings		8,581			8,256			23,896			22,867
Interest expense		183			196			512			663
Earnings before income taxes		8,398			8,060			23,384			22,204
Income taxes		3,416			3,278			9,510			9,030
Net earnings		$	4,982		$	4,782		$	13,874		$	13,174
Net earnings per common share (Note 3):
Basic		$	0.19		$	0.18		$	0.52		$	0.50
Diluted		$	0.19		$	0.18		$	0.52		$	0.50

 

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)

 

		September 30, 2004			December 31, 2003
ASSETS
Current assets:
Cash and cash equivalents		$	14,957		$	14,138
Accounts receivable		984			1,914
Due from State of Delaware		10,216			8,670
Inventories		2,107			1,801
Prepaid expenses and other		2,869			2,414
Prepaid income taxes		140			—
Deferred income taxes		983			878
Total current assets		32,256			29,815
Property and equipment, net		123,942			122,344
Total assets		$	156,198		$	152,159
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	5,297		$	6,516
Purses due horsemen		9,833			7,957
Accrued liabilities		6,176			6,015
Payable to Dover Motorsports, Inc.		105			96
Income taxes payable		—			53
Deferred revenue		251			261