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FOR IMMEDIATE RELEASEFor further information,call:
Timothy R.Horne -Sr.Vice President-Finance
Dover, Delaware, January 28, 2016
(302) 857-3292
Dover Downs Gaming & Entertainment, Inc. (NYSE: ODE) today reported results for the fourth quarter and year ended December 31, 2015.
Despite lower gaming revenues, the Company'stotal revenues increased to $46, 111,000for the fourth quarter of 2015 compared with $45,711,000 for the fourth quarter of 2014.
Gaming revenues of $39,076,000 were down 2.3%compared to the fourth quarter of last year, primarily the result of lower slot machinerevenue.
Other operating revenues were $7,035,000 compared to $5,735,000 for the fourth quarter of last year. These other revenues for the quarter benefited from hotel and food and beverage sales
due to the fact that Dover International Speedway's NASCAR weekend fell inthe fourth quarter of this year compared to the third quarter of lastyear. Occupancy levels in the Dover Downs Hotel were approximately 84% and 80% for the fourth quarters of 2015 and 2014, respectively.
General and administrative expenses were down to $1,334,000 for the fourth quarter compared to $1,427,000 last year.
Interest expense decreased to $223,000 during the quarter as a result of lower average outstanding borrowings and lower interest rates compared to last year.
Net earnings were $768,000, or $.02 per diluted share, compared with a net loss of ($516,000), or ($.02) per diluted share for the fourth quarter of 2014.
Denis McGlynn, the Company's President and Chief Executive Officer, stated: "Despitea reduction in gaming revenues, we managed toachieve minor earnings improvement last year through various cost containment measures. We remain focused on the challenges to come.Inaddition to cost increases most businesses are dealing with, such as in healthcare, minimum wage and property taxes, new competition will enter the market later this year in Maryland, and in Pennsylvania in the next couple of years.This means our need to reinvest in our hotel and other amenities, as well as our ability to market and promote, become more important."
"To that end, we expect tosee legislation introduced inthe State Senate shortly to onceagain attempt to restructure the distribution of gaming revenues betweenthe Stateand Delaware's three casinos. It would seek to implement several recommendations fromlastyear's Lottery andGaming Study Commission relative to revenue sharing, licensefees andincentives. Changes would be phased in over the course of the next four years in an effort to minimize any perceived
negative impact on the State's General Fund. We believe that without making these changes, theState will experience a significant long-term decline in contributionsto the General Fund from itsvideo lottery operations."
* * *
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 racingis 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 moreinformation, please visit www.doverdowns.com.
DOVER DOWNS GAMI NG &ENTERTAINMENT,INC. CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
In Thousands, Except Per Share Amounts (Unaudited)
Three Months Ended Years EndedDecember 31, December 31,
2015 2014 2015 2014
Revenues: Gaming 1 > | $ 39,076 | $ 39,976 | $ 157,922 | $ 160,391 |
Other operating 2> | 7,035 | 5 ,735 | 25,024 | 24,991 |
46, 111 | 45 ,711 | 182,946 | 185,382 | |
Expenses: | ||||
Gaming | 36,891 | 37,808 | 148,595 | 151,434 |
Other operating | 4,645 | 4,117 | 16,602 | 17,808 |
Impairment charge | 358 | 358 | ||
General andadministrative | 1,334 | 1,427 | 5,499 | 5,711 |
Depreciation | 2,022 | 2,364 | 8,375 | 9, 128 |
44,892 | 46,074 | 179,071 | 184,439 | |
Operating earnings | 1,219 | (363) | 3,875 | 943 |
Interest expense | (223) | (375) | (1,160) | (1,687) |
Earnings (loss) before income taxes | 996 | (738) | 2,715 | (744) |
Income tax (expense) benefit | (228) | 222 | (842) | 38 |
Net earnings (loss) | $ 768 | $ (516) | $ 1,873 | $ (706) |
Net earnings (loss) per common share: | ||||
- Basic | $ 0.02 | $ (0.02) | $ 0.06 | $ (0.02) |
- Diluted | $ 0.02 | $ (0.02) | $ 0.06 | $ (0.02) |
Weighted average shares outstanding : | ||||
- Basic | 32,086 | 31,962 | 32,085 | 31,961 |
- Diluted | 32,086 | 31,962 | 32,085 | 31,961 |
1
Gaming revenues from the Company's slot machine and table game operations include the total winfrom suchoperations.
The Delaware State Lottery Office collects the win and remits a portion thereof tothe Company as its commissionfor acting
as a Licensed Agent. The difference between total winand the amount remitted tothe Company is reflected in gaming expenses.
2
>Other operating revenues do not include the retail amount of promotional allowances which are provided to customerson a
complimentary basis.
DOVER DOWNS GAMING & ENTERTAINMENT,INC.CONSOLIDATED BALANCESHEETS
In Thousands (Unaudited)
December 31, 2015 | December 31, 2014 | |
ASSETS | ||
Current assets: Cash | $ 10,496 | $ 10,079 |
Accounts receivable | 2,926 | 3,838 |
Due from State of Delaware | 7,952 | 7,258 |
Inventories | 1,912 | 1,783 |
Prepaid expenses and other | 2,530 | 2,324 |
Receivable from Dover Motorsports ,Inc. | 22 | |
Income taxes receivable | 254 | 6 |
Deferred income taxes | 1,308 | 1,243 |
Total current assets | 27,378 | 26,553 |
Property and equipment ,net | 145,425 | 152,107 |
Other assets | 672 | 752 |
Deferred income taxes | 482 | 404 |
Total assets | $ 173,957 | $ 179,816 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: Accounts payable | $ 3,380 | $ 3,975 |
Purses due horsemen | 7,473 | 6,917 |
Accrued liabilities | 8,538 | 8,196 |
Payable to Dover Motorsports,Inc. | 44 | |
Deferred revenue | 408 | 389 |
Revolving line of credit | 31,500 | 39,010 |
Total current liabilities | 51,343 | 58,487 |
Liability for pension benefits | · 7,606 | 8,980 |
Total liabilities | 58,949 | 67,467 |
Stockholders 'equity: | ||
Common stock | 1,799 | 1,788 |
Class A common stock | 1,487 | 1,487 |
Additional paid-in capital | 5,424 | 5,125 |
Retained earnings Accumulated other comprehensive loss | 110,502 {4,204) | 108,629 {4,680) |
Total stockholders'equity | 115,008 | 112,349 |
Total liabilities and stockholders' equity | $ 173,957 | $179,816 |
Dover Downs Gaming & Entertainment Inc. issued this content on 28 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 January 2016 14:20:20 UTC
Original Document: http://www.doverdowns.com/library/Investor%20Relations/Earnings%20Release%20-%20DDE%204Q15.pdf