EX-99.1 2 a17-11966_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

For further information, call:

 

 

Timothy R. Horne - Sr. Vice President-Finance

Dover, Delaware, April 27, 2017

 

(302) 857-3292

 

DOVER DOWNS GAMING & ENTERTAINMENT, INC. REPORTS

RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2017

 

Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today reported results for the three months ended March 31, 2017.

 

The Company’s revenues for the first quarter of 2017 were $44,148,000 compared with $44,717,000 for the first quarter of 2016.

 

Gaming revenues of $38,647,000 were down 1.8% compared to the first quarter of last year, primarily from lower horse racing revenue and a lower table game hold percentage.

 

Other operating revenues were $5,501,000 compared to $5,359,000 last year.  Occupancy levels in the Dover Downs Hotel were approximately 74% for the first quarter of 2017 and 2016.

 

General and administrative expenses of $1,331,000 were consistent with last year.

 

Depreciation expense increased to $1,946,000 from $1,887,000 last year.

 

Interest expense decreased to $209,000 during the quarter as a result of lower outstanding borrowings partially offset by slightly higher rates.

 

Net loss was ($184,000), or ($.01) per diluted share, compared with net loss of ($239,000), or ($.01) per diluted share for the first quarter of 2016.

 

* * *

 

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 2,300 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

 

 

 

March 31,

 

 

 

2017

 

2016

 

Revenues:

 

 

 

 

 

Gaming (1)

 

$

38,647

 

$

39,358

 

Other operating (2)

 

5,501

 

5,359

 

 

 

44,148

 

44,717

 

Expenses:

 

 

 

 

 

Gaming

 

36,869

 

37,495

 

Other operating

 

3,950

 

3,973

 

General and administrative

 

1,331

 

1,328

 

Depreciation

 

1,946

 

1,887

 

 

 

44,096

 

44,683

 

 

 

 

 

 

 

Operating earnings

 

52

 

34

 

 

 

 

 

 

 

Interest expense

 

(209

)

(229

)

 

 

 

 

 

 

Loss before income taxes

 

(157

)

(195

)

 

 

 

 

 

 

Income tax expense

 

(27

)

(44

)

 

 

 

 

 

 

Net loss

 

$

(184

)

$

(239

)

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

- Basic

 

$

(0.01

)

$

(0.01

)

- Diluted

 

$

(0.01

)

$

(0.01

)

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

- Basic

 

32,319

 

32,199

 

- Diluted

 

32,319

 

32,199

 

 

(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)

 

 

 

March 31,

 

December 31,

 

 

 

2017

 

2016

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash

 

$

10,802

 

$

11,677

 

Accounts receivable

 

2,815

 

3,507

 

Due from State of Delaware

 

1,889

 

7,285

 

Inventories

 

2,107

 

1,910

 

Prepaid expenses and other

 

2,134

 

2,365

 

Receivable from Dover Motorsports, Inc.

 

8

 

7

 

Income taxes receivable

 

242

 

221

 

Total current assets

 

19,997

 

26,972

 

 

 

 

 

 

 

Property and equipment, net

 

139,155

 

140,714

 

Other assets

 

584

 

594

 

Deferred income taxes

 

2,004

 

2,020

 

Total assets

 

$

161,740

 

$

170,300

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

3,932

 

$

3,749

 

Purses due horsemen

 

2,084

 

7,649

 

Accrued liabilities

 

8,018

 

9,732

 

Deferred revenue

 

485

 

361

 

Revolving line of credit

 

24,000

 

25,250

 

Total current liabilities

 

38,519

 

46,741

 

 

 

 

 

 

 

Liability for pension benefits

 

7,660

 

7,897

 

Total liabilities

 

46,179

 

54,638

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

1,828

 

1,814

 

Class A common stock

 

1,487

 

1,487

 

Additional paid-in capital

 

5,709

 

5,669

 

Retained earnings

 

111,104

 

111,288

 

Accumulated other comprehensive loss

 

(4,567

)

(4,596

)

Total stockholders’ equity

 

115,561

 

115,662

 

Total liabilities and stockholders’ equity

 

$

161,740

 

$

170,300

 

 


 

DOVER DOWNS GAMING & ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

In Thousands

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2017

 

2016

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

Net loss

 

$

(184

)

$

(239

)

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

 

 

 

 

 

Depreciation

 

1,946

 

1,887

 

Amortization of credit facility origination fees

 

13

 

26

 

Stock-based compensation

 

128

 

103

 

Deferred income taxes

 

(3

)

46

 

Changes in assets and liabilities:

 

 

 

 

 

Accounts receivable

 

692

 

(129

)

Due from State of Delaware

 

5,396

 

5,289

 

Inventories

 

(197

)

(26

)

Prepaid expenses and other

 

226

 

559

 

Receivable from/payable to Dover Motorsports, Inc.

 

(1

)

(54

)

Income taxes receivable

 

(21

)

28

 

Accounts payable

 

370

 

562

 

Purses due horsemen

 

(5,565

)

(4,723

)

Accrued liabilities

 

(1,714

)

(848

)

Deferred revenue

 

124

 

95

 

Liability for pension benefits

 

(186

)

(149

)

Net cash provided by operating activities

 

1,024

 

2,427

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Capital expenditures

 

(574

)

(1,279

)

Purchase of available-for-sale securities

 

(31

)

(1

)

Proceeds from sale of available-for-sale securities

 

30

 

—

 

Net cash used in investing activities

 

(575

)

(1,280

)

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Borrowings from revolving line of credit

 

29,730

 

15,450

 

Repayments of revolving line of credit

 

(30,980

)

(15,950

)

Repurchase of common stock

 

(74

)

(66

)

Net cash used in financing activities

 

(1,324

)

(566

)

 

 

 

 

 

 

Net (decrease) increase in cash

 

(875

)

581

 

Cash, beginning of period

 

11,677

 

10,496

 

Cash, end of period

 

$

10,802

 

$

11,077