Attached files
| file | filename |
|---|---|
| 8-K - 8-K - DOVER DOWNS GAMING & ENTERTAINMENT INC | a13-10754_18k.htm |
| EX-99.2 - EX-99.2 - DOVER DOWNS GAMING & ENTERTAINMENT INC | a13-10754_1ex99d2.htm |
Exhibit 99.1
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FOR IMMEDIATE RELEASE |
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For further information, call: |
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Timothy R. Horne - Sr. Vice President-Finance |
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Dover, Delaware, April 25, 2013 |
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(302) 857-3292 |
DOVER DOWNS GAMING & ENTERTAINMENT, INC. REPORTS
LOSS FOR THE FIRST QUARTER ENDED MARCH 31, 2013
Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today reported results for the three months ended March 31, 2013.
The Company’s revenues for the first quarter of 2013 were $50,518,000 compared with $64,084,000 for the first quarter of 2012.
Gaming revenues declined 22.5% compared to the first quarter of 2012, primarily as a result of increased competition in the region.
Other operating revenues were down 7% compared to last year to $5,215,000. Occupancy levels in the Dover Downs Hotel were approximately 84% for the first quarter of 2013 compared with approximately 89% for the first quarter of 2012.
General and administrative expenses of $1,529,000 and depreciation expense of $2,509,000 were both down slightly compared to last year.
Interest expense decreased $184,000 during the quarter compared to the first quarter of 2012 due to lower interest rates and lower outstanding borrowings.
Net loss was ($283,000), or ($.01) per diluted share, compared with net earnings of $2,371,000, or $.07 per diluted share for the first quarter of 2012.
Denis McGlynn, the Company’s President and Chief Executive Officer, stated: “We are continuing our dialogue with the Lottery and the Administration relative to a gaming tax structure and regulatory environment that is sustainable on a long-term basis. The gaming industry as a whole is a significant contributor to the State’s General Fund, represents one of the larger employers in the State and is a critical component of the State’s tourism industry. A business model that addresses the current competitive environment is in the best interest of all stakeholders and this is the message we’re delivering as we continue our communications.”
“We continue to move forward on the iGaming front. The size of this new market and what it will mean to us financially remains to be seen, but judging from the response to the State’s RFP, there are a lot of iGaming providers extremely anxious to do business in Delaware. We are pleased to see that the State remains on its timetable and we expect to begin our first online offerings on or about the end of September.”
* * *
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 OPERATIONS
In Thousands, Except Per Share Amounts
(Unaudited)
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Three Months Ended |
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March 31, |
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2013 |
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2012 |
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Revenues: |
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Gaming (1) |
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$ |
45,303 |
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$ |
58,474 |
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Other operating (2) |
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5,215 |
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5,610 |
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50,518 |
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64,084 |
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Expenses: |
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Gaming |
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42,189 |
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50,964 |
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Other operating |
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4,018 |
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3,900 |
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General and administrative |
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1,529 |
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1,556 |
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Depreciation |
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2,509 |
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2,680 |
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50,245 |
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59,100 |
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Operating earnings |
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273 |
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4,984 |
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Interest expense |
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402 |
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586 |
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(Loss) earnings before income taxes |
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(129 |
) |
4,398 |
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Income tax expense |
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(154 |
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(2,027 |
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Net (loss) earnings |
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$ |
(283 |
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$ |
2,371 |
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Net (loss) earnings per common share: |
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- Basic |
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$ |
(0.01 |
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$ |
0.07 |
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- Diluted |
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$ |
(0.01 |
) |
$ |
0.07 |
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Weighted average shares outstanding: |
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- Basic |
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31,846 |
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31,743 |
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- Diluted |
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31,846 |
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31,743 |
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(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)
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March 31, |
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December 31, |
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2013 |
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2012 |
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ASSETS |
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Current assets: |
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Cash |
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$ |
14,640 |
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$ |
14,993 |
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Accounts receivable |
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3,939 |
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4,093 |
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Due from State of Delaware |
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2,549 |
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9,708 |
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Inventories |
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1,960 |
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1,921 |
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Prepaid expenses and other |
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2,757 |
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3,207 |
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Income taxes receivable |
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57 |
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155 |
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Deferred income taxes |
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1,331 |
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1,284 |
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Total current assets |
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27,233 |
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35,361 |
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Property and equipment, net |
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166,949 |
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168,963 |
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Other assets |
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1,020 |
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938 |
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Total assets |
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$ |
195,202 |
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$ |
205,262 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
3,918 |
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$ |
3,785 |
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Purses due horsemen |
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2,641 |
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9,833 |
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Accrued liabilities |
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9,667 |
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10,361 |
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Deferred revenue |
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236 |
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346 |
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Total current liabilities |
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16,462 |
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24,325 |
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Revolving line of credit |
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56,500 |
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58,500 |
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Liability for pension benefits |
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6,878 |
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6,983 |
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Deferred income taxes |
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2,112 |
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1,994 |
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Total liabilities |
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81,952 |
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91,802 |
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Stockholders’ equity: |
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Common stock |
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1,776 |
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1,590 |
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Class A common stock |
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1,487 |
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1,660 |
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Additional paid-in capital |
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4,175 |
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4,136 |
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Retained earnings |
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109,039 |
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109,322 |
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Accumulated other comprehensive loss |
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(3,227 |
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(3,248 |
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Total stockholders’ equity |
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113,250 |
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113,460 |
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Total liabilities and stockholders’ equity |
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$ |
195,202 |
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$ |
205,262 |
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DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
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Three Months Ended |
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March 31, |
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2013 |
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2012 |
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Operating activities: |
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Net (loss) earnings |
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$ |
(283 |
) |
$ |
2,371 |
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Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: |
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Depreciation |
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2,509 |
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2,680 |
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Amortization of credit facility origination fees |
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54 |
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23 |
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Stock-based compensation |
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196 |
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215 |
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Deferred income taxes |
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57 |
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116 |
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Changes in assets and liabilities: |
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Accounts receivable |
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154 |
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229 |
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Due from State of Delaware |
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7,159 |
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5,833 |
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Inventories |
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(39 |
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(48 |
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Prepaid expenses and other |
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386 |
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66 |
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Receivable from/payable to Dover Motorsports, Inc. |
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— |
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(12 |
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Income taxes receivable/payable |
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98 |
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1,661 |
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Accounts payable |
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215 |
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(165 |
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Purses due horsemen |
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(7,192 |
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(5,303 |
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Accrued liabilities |
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(694 |
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(1,521 |
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Deferred revenue |
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(110 |
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16 |
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Other liabilities |
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(80 |
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(176 |
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Net cash provided by operating activities |
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2,430 |
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5,985 |
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Investing activities: |
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Capital expenditures |
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(569 |
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(527 |
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Net cash used in investing activities |
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(569 |
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(527 |
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Financing activities: |
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Borrowings from revolving line of credit |
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29,690 |
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4,230 |
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Repayments of revolving line of credit |
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(31,690 |
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(8,730 |
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Dividends paid |
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— |
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(975 |
) | ||
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Repurchase of common stock |
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(144 |
) |
(107 |
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Credit facility fees |
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(70 |
) |
— |
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Net cash used in financing activities |
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(2,214 |
) |
(5,582 |
) | ||
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|
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Net decrease in cash |
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(353 |
) |
(124 |
) | ||
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Cash, beginning of period |
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14,993 |
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18,634 |
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Cash, end of period |
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$ |
14,640 |
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$ |
18,510 |
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