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Dover Downs Gaming & Entertainment, Inc. (NYSE-DDE) today reported results for the three months ended September 30, 2012.
Gaming revenues of $49,001,000 were down 10.8 % compared to the third quarter of 2011. The revenue decline was primarily attributable to increased competition in the region.
Other operating revenues of $5,913,000 were up 14.4% compared to the third quarter of 2011. The improvement was from increased food and beverage revenue related to catering services for the NASCAR weekend in Dover which was held in the third quarter of this year compared to the fourth quarter of last year. Rooms revenue also improved as occupancy levels in the Dover Downs Hotel were approximately 94% for the third quarter.
General and administrative costs of $1,464,000 for the third quarter were almost identical to last year.
Interest expense decreased $241,000 during the quarter as a result of lower average outstanding borrowings and lower interest rates.
Net earnings were $1,147,000, or $.04 per diluted share compared with $2,039,000 or $.06 per diluted share for the third quarter of 2011.
Denis McGlynn, the Company's President and Chief Executive Officer, stated: "Gaming expansion in Maryland is having a significant impact on us – but it is simply part of a new reality that we need to address head on. Earlier in the year, we worked with the Administration and the Legislature to pass the only comprehensive internet gaming legislation on the East Coast. Our goal is to stay one step ahead of the competition and to continue offering our patrons the region’s finest amenities and richest gaming experiences. We look forward to continued cooperation with the State as we roll out our internet gaming offerings early next year and make our case for a review of revenue distribution when the legislature reconvenes in January.”
The Company announced yesterday that its Board of Directors declared a reduced regular quarterly dividend of $.02 per share. The dividend is payable on December 10, 2012 to shareholders of record at the close of business on November 10, 2012.