This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Dover Downs Gaming & Entertainment, Inc. Reports Results For The Fourth Quarter And Year Ended December 31, 2012

Stocks in this article: DDE

Given the competitive environment and recent financial results, the Company’s Board of Directors has suspended the quarterly dividend.

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.

Owned by Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE), Dover Downs Hotel & Casino ® is a premier gaming and entertainment resort destination in the Mid-Atlantic region. Gaming operations consist of approximately 2,500 slots and a full complement of table games including poker. The AAA-rated Four Diamond hotel is Delaware’s largest with 500 luxurious rooms/suites and amenities including a full-service spa/salon, concert hall and 41,500 sq. ft. of multi-use event space. Live, world-class harness racing is featured November through April, and horse racing is simulcast year-round. Professional football parlay betting is accepted during the season. Additional property amenities include multiple restaurants from fine dining to casual fare, bars/lounges and retail shops. For more information, please visit www.doverdowns.com.

       
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
In Thousands, Except Per Share Amounts
(Unaudited)
 
 
Three Months Ended Years Ended
December 31, December 31,
2012 2011 2012 2011
Revenues:
Gaming (1) $ 43,249 $ 55,019 $ 203,055 $ 217,415
Other operating (2)   5,310     6,600   22,857   22,527
  48,559     61,619   225,912   239,942
Expenses:
Gaming 41,000 48,468 182,951 193,392
Other operating 4,009 4,785 16,359 16,510
General and administrative 1,506 1,434 6,034 6,288
Depreciation   2,528     2,797   10,297   11,665
  49,043     57,484   215,641   227,855
 
Operating (loss) earnings (484 ) 4,135 10,271 12,087
 
Loss on extinguishment of debt - - - 45
Interest expense   388     625   1,805   2,872
 
(Loss) earnings before income taxes (872 ) 3,510 8,466 9,170
 
Income taxes   (344 )   1,390   3,659   3,811
 
Net (loss) earnings $ (528 ) $ 2,120 $ 4,807 $ 5,359
 
Net (loss) earnings per common share:
- Basic $ (0.02 ) $ 0.07 $ 0.15 $ 0.17
- Diluted $ (0.02 ) $ 0.07 $ 0.15 $ 0.17
 
Weighted average shares outstanding:
- Basic 31,745 31,646 31,745 31,645
- Diluted 31,745 31,646 31,745 31,645
 

________________________

(1)  

Gaming revenues from the Company’s slot machine and table game operations include the total win from such operations. The Delaware State Lottery Office collects the win and remits a portion thereof to the Company as its commission for acting as a Licensed Agent. The difference between total win and the amount remitted to the Company is reflected in gaming expenses.

(2)

Other operating revenues do not include the retail amount of promotional allowances which are provided to customers on a complimentary basis.

 
   
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
 
 
December 31, December 31,
2012 2011
ASSETS
 
Current assets:
Cash $ 14,993 $ 18,634
Accounts receivable 4,093 3,982
Due from State of Delaware 9,708 9,440
Inventories 1,921 1,860
Prepaid expenses and other 3,207 3,659
Income taxes receivable 155 -
Deferred income taxes   1,284     1,317  
Total current assets 35,361 38,892
 
Property and equipment, net 168,963 176,415
Other assets   938     877  
Total assets $ 205,262   $ 216,184  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current liabilities:
Accounts payable $ 3,785 $ 4,035
Purses due horsemen 9,833 9,004
Accrued liabilities 10,361 11,912
Payable to Dover Motorsports, Inc. - 11
Income taxes payable - 444
Deferred revenue   346     254  
Total current liabilities 24,325 25,660
 
Revolving line of credit 58,500 69,000
Liability for pension benefits 6,983 5,570
Other liabilities - 147
Deferred income taxes   1,994     3,301  
Total liabilities   91,802     103,678  
 
Stockholders’ equity:
Common stock 1,590 1,576
Class A common stock 1,660 1,660
Additional paid-in capital 4,136 3,464
Retained earnings 109,322 108,090
Accumulated other comprehensive loss   (3,248 )   (2,284 )
Total stockholders’ equity   113,460     112,506  
Total liabilities and stockholders’ equity $ 205,262   $ 216,184  
 
   
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
 
Years Ended
December 31,
2012 2011
 
Operating activities:
Net earnings $ 4,807 $ 5,359

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation 10,297 11,665
Amortization of credit facility origination fees 101 90
Stock-based compensation 793 905
Deferred income taxes (318 ) (389 )
Loss on extinguishment of debt - 45
Changes in assets and liabilities:
Accounts receivable (111 ) (884 )
Due from State of Delaware (268 ) 389
Inventories (61 ) 129
Prepaid expenses and other 310 (995 )
Income taxes receivable/payable (928 ) 869
Accounts payable (470 ) 604
Purses due horsemen 829 (825 )
Accrued liabilities (1,571 ) (374 )
Payable to Dover Motorsports, Inc. (11 ) 29
Deferred revenue 92 (53 )
Other liabilities   (325 )   (913 )
Net cash provided by operating activities   13,166     15,651  
 
Investing activities:
Capital expenditures (2,625 ) (1,853 )
Proceeds from sale of available-for-sale securities - 214
Purchase of available-for-sale securities   -     (291 )
Net cash used in investing activities   (2,625 )   (1,930 )
 
Financing activities:
Borrowings from revolving line of credit 19,620 180,683
Repayments of revolving line of credit (30,120 ) (190,283 )
Dividends paid (3,575 ) (3,888 )
Repurchase of common stock (107 ) (150 )
Credit facility fees   -     (268 )
Net cash used in financing activities   (14,182 )   (13,906 )
 
Net decrease in cash (3,641 ) (185 )
Cash, beginning of period   18,634     18,819  
Cash, end of period $ 14,993   $ 18,634  
 




2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,974.31 -31.44 -0.18%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,549.2260 -15.0680 -0.33%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs