Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) today reported results for the fourth quarter and year ended December 31, 2011.
The Company’s revenues were $61,619,000 compared with $57,941,000 for the fourth quarter of 2010. As a result of better weather compared to 2010, gaming revenue increased 4.0% compared to the fourth quarter of last year from higher slot win and table game revenue for the quarter.
Gaming profits were higher compared to the fourth quarter of last year as a result of the revenue increases and from various cost cutting programs implemented during the year.
Other operating revenues improved to $6,600,000 from $5,026,000 due to increased rooms and food and beverage business attributable to the timing of Dover Motorsports’ fall NASCAR race weekend held in October this year vs. September last year and from increased convention business. Occupancy levels in the Dover Downs Hotel were approximately 87% for the fourth quarter of 2011 compared with approximately 83% for the fourth quarter of 2010.Net earnings were $2,120,000, or $.07 per diluted share, compared with $501,000, or $.02 per diluted share for the fourth quarter of 2010. Net earnings for the year declined 20% to $5,359,000, or $.17 per diluted share compared with $6,743,000 or $.21 per diluted share for 2010. Denis McGlynn, the Company's President and Chief Executive Officer, stated: "Compared to last year, casinos in our region benefited from mild weather in the fourth quarter this year, especially in December. Additionally, our non-gaming activity was strong in the fourth quarter, in large part due to the October NASCAR race. Our year end results emphasize that increasing competitive challenges and high taxes will require us to continue to find efficiencies – a formidable task considering that we are in a customer centric business that necessitates continued investment in our facility and in our promotions and marketing initiatives."