Dover Downs Gaming & Entertainment, Inc. (NYSE-DDE) today reported results for the three months ended September 30, 2010.
Gaming revenues were up 8.6% compared to the third quarter of 2009. Slightly lower slot win was offset by table game revenue for the quarter, and to a lesser extent, slightly higher harness racing and sports wagering commissions. This was the first full quarter with live table games at the facility. The Company commenced table game operations on June 25, 2010.
Other operating revenues were up 24.2% compared to the third quarter of 2009 from higher cash food and beverage and rooms revenues for the quarter.
General and administrative costs were $1,912,000 compared with $1,679,000 in the third quarter of last year. The increase was primarily from costs related to the proposed merger with Dover Motorsports, Inc. that was terminated in October.
Interest expense increased $291,000 during the quarter with lower average outstanding borrowings offset by higher interest rates.
Net earnings were $2,292,000, or $.07 per diluted share compared with $1,231,000 or $.04 per diluted share for the third quarter of 2009. The Company recorded a non-cash impairment charge in the third quarter of 2009 related to the decision to cancel a previously planned property expansion project. Excluding the impact of that charge, net earnings were $2,523,000 or $.08 per diluted share for the third quarter of 2009.
Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment, Inc. stated, “This quarter saw the successful operational implementation of table games at our facility. Competition is fierce in this market and our focus is on growing this new revenue stream by taking advantage of the complete entertainment destination we have created in Dover.”
The Company announced yesterday that its Board of Directors declared a regular quarterly dividend of $.03 per share. The dividend is payable on December 10, 2010 to shareholders of record at the close of business on November 10, 2010.