Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today reported results for the three months ended September 30, 2011.
Gaming revenues of $54,935,000 were down 8.3% compared to the third quarter of 2010. Lower slot win was offset to some extent by higher table game revenue for the quarter. Hurricane Irene forced the closure of the Company’s facility for almost an entire weekend in August contributing to the decline.
Other operating revenues of $5,167,000 were down 10.4% compared to the third quarter of 2010. The majority of that decline is related to the catering services provided to Dover Motorsports for their NASCAR weekend which was held in the fourth quarter of this year as compared to the third quarter of last year. Occupancy levels in the Dover Downs Hotel were approximately 95% for the third quarter of both years.
General and administrative costs were $1,461,000 compared with $1,912,000 in the third quarter of last year. The decline was related to cost savings from the freezing of the Company’s defined benefit pension plan and from legal and banking costs that were incurred in the third quarter last year.Interest expense decreased $214,000 during the quarter as a result of lower average outstanding borrowings and lower interest rates. Net earnings were $2,039,000, or $.06 per diluted share compared with $2,292,000 or $.07 per diluted share for the third quarter of 2010. 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, 2011 to shareholders of record at the close of business on November 10, 2011. 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.