DOVER DOWNS GAMING & ENTERTAINMENT, INC. G·arning &Entertainnu nt,I nc.
FOR IMMEDIATE RELEASE For further information, call:Timothy R.Horne - Sr. Vice President-Finance
Dover, Delaware, January 26, 2017
(302) 857-3292
DOVER DOWNS GAMING & ENTERTAINMENT, INC. REPORTS RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2016Dover Downs Gaming & Entertainment, Inc. (NYSE: DOE)today reported results for the fourth quarter and year ended December 31, 2016.
The Company's total revenues were $44,241,000 for the fourth quarter of 2016 compared with
$46, 111,000 for the fourth quarter of 2015.
Gaming revenues of $37,515,000 were down 4.0% compared to the fourth quarter oflast year, primarily the result of lower table game and sports betting hold percentages.
Other operating revenues were $6,726,000 compared to $7,035,000 for the fourth quarter oflast year.The decrease was primarily from lower rooms and food and beverage revenues,and partially related to the fact that a portion of Dover International Speedway's NASCAR weekend was held during the third quarter of this year compared to the fourth quarter of last year.
Additionally, convention rooms and related revenues were slightly lower this year. Occupancy levels in the Dover Downs Hotel were approximately 81% and 84% for the fourth quarters of 2016and 2015, respectively.
General and administrative expenses were up to $1,524,000 for the fourth quarter compared to
$1,334,000 last year, from higher employee related costs.
Interest expense decreased to $202,000 during the quarter as a result of lower average outstanding borrowings offset by slightly higher interest rates compared to last year.
Net loss was ($291,000), or ($.01) per diluted share, compared with net earnings of $768,000, or
$.02 per diluted share for the fourth quarter of 2015.
For the year as a whole, total revenues were $182,292,000 for 2016 compared with
$182,946,000 for 2015.
Gaming revenues were fairly consistent from year to year, however, marketing and promotional costs were higher given the increasingly competitive nature of the regional gaming market.
Other operating revenues for the year were almost identical to 2015, while other operating expenses increased primarily from higher health care costs compared to last year. Occupancy levels in the Dover Downs Hotel were approximately 84% for both annual periods.
Net earningswere $786,000 ,or $.02per diluted share, compared with $1,873,000, or$.06per diluted share for 2015.
Denis McGlynn, the Company's Presidentand Chief Executive Officer, stated: "Our results for the fourth quarter and for the year reflect the continuing challengesthe company, and our fellow Delaware casinos face with the formula for gaming revenue distribution withinthe state.
"In 2016, Dover Downs generated $77 million for the state and the horsemen, while the company carriedmore than $180 million in expenses and was left with less than one half of one percent profit margin.
"Exacerbating the state's unbalanced gaming revenue sharing formula is the astounding increase in health care costs most employers are dealing with.
"The Delaware Gaming lndustr;y has generated $3.8 billion that has gone directly to the State's General Fund over the years and has become an employer of 4,500 mostly Delaware citizens.
It's our hope that a restructuring of the relationship with the State will be undertaken during the current legislative session to protect this valuable contribution of revenue and employment for the State."
* * *
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 discussionof such factors.
Owned by Dover Downs Gaming &Entertainment, Inc.(NYSE: DOE), Dover Downs Hotel &Casino®is a premier gaming and entertainment resort destination in the Mid-Atlantic region. Gaming operations consistof 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-servicespa/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 parlaybetting is accepted during the season.Additional property amenities include multiple restaurants from fine diningto casual fare, bars/lounges and retail shops. For more information, please visit
www.doverdowns .com.
DOVER DOWNSGAMING & ENTERTAINMENT,INC.CONSOLIDATED STATEMENTSOF (LOSS) EARNINGS
In Thousands, ExceptPer Share Amounts (Unaudited)
Three MonthsEnded Years Ended December31,December 31,
2016 | 2015 | 2016 | 2015 | |
Revenues: Gaming(1 ) | $ 37,515 | $ 39,076 | $ 157,226 | $ 157,922 |
Other operating2l | 6,726 | 7,035 | 25,066 | 25 ,024 |
44,241 | 46, 111 | 182,292 | 182,946 | |
Expenses: | ||||
Gaming | 36,326 | 36,891 | 149,577 | 148,595 |
Other operating | 4,722 | 4,645 | 17,316 | 16,602 |
General and administrative | 1,524 | 1,334 | 5,375 | 5,499 |
Depreciation | 1,944 | 2,022 | 7,743 | 8,375 |
44,516 | 44,892 | 180,011 | 179,071 | |
Operating (loss) earnings | (275) | 1,219 | 2,281 | 3,875 |
Interest expense | (202) | (223) | (863) | (1,160) |
(Loss) earnings before income taxes | (477) | 996 | 1,418 | 2,715 |
Income tax benefit (expense) | 186 | (228) | (632) | (842) |
Net (loss) earnings | $ (291) | $ 768 | $ 786 | $ 1,873 |
Net (loss) earnings per common share: | ||||
- Basic | $ (0.01) | $ 0.02 | $ 0.02 | $0.06 |
- Diluted | $ (0 .01) | $0.02 | $0 .02 | $0 .06 |
Weighted average shares outstanding: | ||||
- Basic | 32,202 | 32,086 | 32,201 | 32,085 |
- Diluted | 32,202 | 32,086 | 32,201 | 32,085 |
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 isreflected ingaming expenses .
2
)Other operating revenues do not include the retail amount of promotional allowances which are provided to customers on a
complimentary basis.
DOVER DOWNSGAMING &ENTERTAINMENT, INC. CONSOLIDATED BALANCESHEETS
In Thousands(Unaudited)
December 31, 2016 | December 31, 2015 | |
ASSETS | ||
Current assets: Cash | $ 11,677 | $ 10.496 |
Accounts receivable | 3,507 | 2,926 |
Due from State of Delaware | 7,285 | 7,952 |
Inventories | 1,910 | 1,912 |
Prepaid expenses and other | 2,365 | 2,530 |
Receivable from Dover Motorsports. Inc. | 7 | |
Income taxes receivable | 221 | 254 |
Deferred income taxes | 1,308 | |
Total current assets | 26,972 | 27,378 |
Property and equipment. net | 140,714 | 145.425 |
Other assets | 594 | 672 |
Deferred incometaxes | 2,020 | 482 |
Total assets | $ 170,300 | $ 173,957 |
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable | $ 3.749 | $3,380 |
Purses due horsemen | 7,649 | 7.473 |
Accrued liabilities | 9,732 | 8,538 |
Payable to Dover Motorsports, Inc. | 44 | |
Deferred revenue | 361 | 408 |
Revolving line of credit | 25,250 | 31,500 |
Total current liabilities | 46,741 | 51,343 |
Liability for pension benefits | ·7,897 | 7,606 |
Total liabilities | 54,638 | 58,949 |
Stockholders' equity: | ||
Common stock | 1,814 | 1,799 |
Class A common stock | 1.487 | 1.487 |
Additional paid-in capital | 5,669 | 5.424 |
Retained earnings Accumulated other comprehensive loss | 111,288 {4,596) | 110,502 {4,204) |
Total stockholders' equity | 115,662 | 115,008 |
Total liabilities and stockholders' equity | $ 170,300 | $ 173,957 |
Dover Downs Gaming & Entertainment Inc. published this content on 26 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 January 2017 19:55:04 UTC.
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