- Pays: $18.1 Million to State and
Horsemen
- Loses: $361,000 for the
Quarter
Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today
reported results for the three months ended March 31, 2018.
The Company’s revenues for the first quarter of 2018 were
$43,159,000 compared with $44,012,000 for the first quarter of
2017.
Gaming revenues of $34,134,000 were down 3.3% compared to the
first quarter of last year, primarily from lower slot machine
win.
Other operating revenues increased to $9,025,000 compared to
$8,706,000 last year. Occupancy levels in the Dover Downs Hotel
were approximately 73% for the first quarter of 2018 compared with
74% for the first quarter of 2017.
General and administrative expenses were consistent with last
year.
Depreciation expense increased to $2,140,000 from $1,946,000
last year.
Net loss was ($273,000), or ($.01) per diluted share, compared
with net loss of ($196,000), or ($.01) per diluted share for the
first quarter of 2017.
Denis McGlynn, the Company's President and Chief Executive
Officer, stated: “Once again the Company demonstrated substantial
gaming operational profitability which once again was totally wiped
out by an unfair and outdated gaming revenue sharing formula.
“Legislation has been introduced to implement a more fair and
realistic formula and we hope the Delaware Legislature and
Administration will act favorably on it.”
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 2,300 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)
Three Months Ended March 31, 2018 2017 * Revenues: Gaming $
34,134 $ 35,306 Other operating
9,025
8,706 43,159
44,012 Expenses: Gaming 32,835 33,866
Other operating 7,034 6,837 General and administrative 1,385 1,375
Depreciation
2,140
1,946 43,394
44,024 Operating loss (235 ) (12 )
Interest expense (209 ) (209 ) Other income
83 44 Loss
before income taxes (361 ) (177 ) Income tax benefit
(expense)
88 (19
) Net loss
$ (273
) $ (196 )
Net loss per common share: - Basic
$
(0.01 ) $ (0.01
) - Diluted
$ (0.01
) $ (0.01 )
Weighted average shares outstanding: - Basic 32,444 32,319 -
Diluted 32,444 32,319
_________________________
*
Prior-period information has been restated
for the adoption of Accounting Standards Update (“ASU”) No.
2014-09, Revenue from
Contracts with Customers, and ASU No.
2017-07, Improving the Presentation of Net Periodic Pension Cost
and Net Periodic
Postretirement Benefit Cost, which we
adopted on January 1, 2018.
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS In Thousands (Unaudited)
March 31, December 31, 2018 2017 * ASSETS Current
assets: Cash $ 11,520 $ 10,714 Accounts receivable 3,463 3,557 Due
from State of Delaware 1,866 5,720 Inventories 1,954 1,928 Prepaid
expenses and other 2,178 2,840 Receivable from Dover Motorsports,
Inc. 12 7
Income taxes receivable
318 318 Total
current assets 21,311 25,084 Property and equipment, net
133,274 134,527 Other assets 373 564 Deferred income taxes
1,862 1,786 Total
assets
$ 156,820 $
161,961 LIABILITIES AND STOCKHOLDERS’
EQUITY Current liabilities: Accounts payable $ 2,709 $ 2,571
Purses due horsemen 1,889 5,814 Accrued liabilities 7,268 8,111
Deferred credits 170 49 Contract liabilities 3,913 3,724 Revolving
line of credit
19,500
19,900 Total current liabilities 35,449 40,169
Liability for pension benefits
7,298
7,483
Total liabilities
42,747 47,652
Stockholders’ equity: Common stock 1,841 1,827 Class A
common stock 1,487 1,487 Additional paid-in capital 5,871 5,877
Retained earnings 109,578 109,817 Accumulated other comprehensive
loss
(4,704 )
(4,699 ) Total stockholders’ equity
114,073 114,309
Total liabilities and stockholders’ equity
$
156,820 $ 161,961
_________________________ *
Prior-period information has been restated
for the adoption of ASU No. 2014-09,
Revenue from Contracts with Customers,
which we adopted on January 1, 2018.
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands (Unaudited)
Three Months Ended March 31, 2018 2017 *
Operating activities: Net loss $ (273 ) $ (196 )
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation 2,140 1,946 Amortization of credit facility
origination fees 10 13 Stock-based compensation 82 128 Deferred
income taxes (88 ) (10 ) Losses on equity investments 5 - Changes
in assets and liabilities: Accounts receivable 94 692 Due from
State of Delaware 3,854 5,396 Inventories (26 ) (197 ) Prepaid
expenses and other 659 226 Receivable from Dover Motorsports, Inc.
(5 ) (1 ) Income taxes receivable - (21 ) Accounts payable 213 (94
) Purses due horsemen (3,925 ) (5,565 ) Accrued liabilities (843 )
(1,827 ) Deferred credits 121 156 Contract liabilities 189 472
Liability for pension benefits
(144
) (94 ) Net cash
provided by operating activities
2,063
1,024 Investing activities:
Capital expenditures (782 ) (574 ) Purchase of equity investments
(11 ) (31 )
Proceeds from sale of equity
investments
10 30 Net
cash used in investing activities
(783
) (575 )
Financing activities:
Borrowings from revolving line of credit 24,760 29,730 Repayments
of revolving line of credit (25,160 ) (30,980 ) Repurchase of
common stock
(74 )
(74 ) Net cash used in financing
activities
(474 )
(1,324 ) Net increase (decrease)
in cash 806 (875 ) Cash, beginning of period
10,714 11,677 Cash,
end of period
$ 11,520
$ 10,802
_________________________ *
Prior-period information has been restated
for the adoption of ASU No. 2014-09,
Revenue from Contracts with Customers,
which we adopted on January 1, 2018.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180426005311/en/
Dover Downs Gaming & Entertainment, Inc.Timothy R. Horne -
Sr. Vice President-Finance302-857-3292
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