Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today reported results for the three months ended March 31, 2012.
Unseasonably mild winter weather and an extra day due to leap year contributed to an improved first quarter. The Company’s revenues for the first quarter of 2012 were $64,084,000 compared with $59,406,000 for the first quarter of 2011. Gaming revenues increased 7.6% compared to the first quarter of last year. Slot machine revenue improved approximately 6% compared to last year while table game revenue improved approximately 24%.
Gaming profits were also higher compared to the first quarter of last year as a result of the improved revenue and lower marketing and other costs.
Other operating revenues increased 10.6% from higher hotel, food and beverage revenues. Occupancy levels in the Dover Downs Hotel were approximately 89% for the first quarter of 2012 compared with approximately 85% for the first quarter of 2011.General and administrative expenses decreased $223,000 during the quarter primarily from the freezing of the Company’s defined benefit pension plan in July 2011. Interest expense decreased $225,000 during the quarter compared to the first quarter of 2011 due to lower interest rates and lower outstanding borrowings. Net earnings were $2,371,000, or $.07 per diluted share, compared with a loss of $38,000, or $.00 per diluted share for the first quarter of 2011. Denis McGlynn, the Company's President and Chief Executive Officer, stated: "While we may be seeing a slightly more confident consumer, warm weather and a favorable calendar were clearly big contributors to our year-over-year improvement for the quarter. Our investment in amenities has again allowed us to grow our market share during the quarter. We still face competitive challenges later this year and we are focusing on continuing to provide unmatched service to our customers while operating as efficiently as possible."