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Dover Downs Gaming &
Entertainment, Inc. (NYSE: DDE) today reported results for the three months
ended June 30, 2006.
Net earnings improved 6.7% to $6,022,000 compared with $5,644,000 for
the second quarter of 2005.
Net earnings per diluted share were $.18 compared with $.16 per diluted
share in 2005, a 12.5% improvement as a result of the aforementioned
increase in net earnings and the impact of the shares repurchased through a
self-tender completed during the first quarter of 2006.
The Company's revenues increased to $56,831,000 compared with
$54,674,000 for the second quarter of 2005. Gaming revenues, which include
video lottery win and harness racing commissions, increased 3.5% or
$1,791,000, primarily from increased video lottery win compared with the
second quarter of 2005.
Other operating revenues less other operating expenses improved
$166,000 even with the loss of approximately $150,000 in profit from rental
income from a property sold by the Company in December 2005.
General and administrative expenses increased $454,000. The largest
components of the increase were increased stock compensation expenses of
$161,000, as well as increased pension and legal fees. Interest expense
increased $310,000 primarily from the additional borrowings related to the
self-tender of approximately 10% of the Company's outstanding shares in
January of 2006.
Occupancy levels in the Dover Downs Hotel and Conference Center
remained strong, averaging approximately 98% for the second quarter.
Construction has begun on the previously announced expansion to the Dover
Downs Hotel. The expansion will more than double the number of hotel rooms
to 500 including eleven spa suites and add a luxurious 8,000 square foot
spa to the Dover Downs Hotel.
Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment,
Inc. stated, "We are pleased with the results for the second quarter. Even
with the Easter holiday falling in the second quarter, we were able to grow
our slot win more than 3%. The operating efficiencies we have been able to
realize helped us grow our pretax earnings by 7.5%, and with the most
recent repurchase of our shares, grow our earnings on a per share basis
even faster."
The Company announced yesterday that it has increased its quarterly
dividend by 12.5% to $.045 per share. The dividend is payable on September
10, 2006 to shareholders of record at the close of business on August 10,
2006.
To capitalize on recently enacted legislation allowing for the addition
of up to 1,500 slot machines, the Company opened the Trackview Slots area
on June 30, 2006. This renovated portion of the enclosed harness racing
grandstands currently includes 200 new games, and offers a view of Dover
International Speedway.
The Company has recently engaged architects and engineers to develop a
master plan for the Company's property. The master plan will consider
potential casino expansions, as well as, restaurant and retail offerings to
add to the destination quality of the property.
On June 15, 2006, the Company completed a three-for-two split of both
classes of its outstanding common stock. All share and per share amounts
have been restated to reflect the stock split.
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.
Dover Downs Gaming & Entertainment, Inc. is a diversified gaming and
entertainment company whose operations consist of Dover Downs Slots -- a
95,000-square foot video lottery (slots) casino complex; the Dover Downs
Hotel -- featuring luxury accommodations with conference, banquet, fine
dining, ballroom and concert hall facilities; and Dover Downs Raceway -- a
harness racing track with pari-mutuel wagering on live and simulcast horse
races.
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