Dover Downs Earnings Plunge To $13K In 2013 - 47 ABC - Delmarva's Choice

Dover Downs Earnings Plunge To $13K In 2013

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DOVER, Del. - A massive plunge in revenue for Dover Downs Gaming and Entertainment.  Thursday morning, the company reported numbers for its fourth quarter and year end December 31, 2013.

The Dover Downs reported a net-revenue of just $13,000 in 2013, compared to $4,807,000 for 2012.

CEO Denis McGlynn tells WMDT, this wasn't a surprise to anyone at the company, saying "as the surrounding states who possess the biggest populations that used to come to Delaware open up mega casinos in their own backyards, basically alleviating the need for any of those people to travel to Delaware anymore."

The McGlynn says he would like to see gaming taxes eased on Delaware casinos to help them hold on to revenue.

This report comes just one day before the Delaware Lottery and Gaming Study Commission is set to submit suggestions to lawmakers on how to best help the states casinos, in an effort to make them more competitive with other states.

Below, see full report, from http://www.companyspotlight.com/15335/Dover-Downs-Gaming--Entertainment-Inc#

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,


2013
2012
2013
2012
Revenues:







Gaming (1)
$ 40,775

$ 43,249

$ 172,991

$ 203,055
Other operating (2)
  5,817  
  5,310  
  24,240  
  22,857  


  46,592  
  48,559  
  197,231  
  225,912  
Expenses:







Gaming

38,868


41,000


162,398


182,951
Other operating

4,275


4,009


17,314


16,359
General and administrative

1,335


1,506


5,645


6,034
Depreciation
  2,315  
  2,528  
  9,726  
  10,297  


  46,793  
  49,043  
  195,083  
  215,641  








 
Operating (loss) earnings

(201 )

(484 )

2,148


10,271








 
Interest expense
  (485 )
  (388 )
  (1,752 )
  (1,805 )








 
(Loss) earnings before income taxes

(686 )

(872 )

396


8,466








 
Income tax benefit (expense)
  268  
  344  
  (383 )
  (3,659 )








 
Net (loss) earnings
$ (418 )
$ (528 )
$ 13  
$ 4,807  








 
Net (loss) earnings per common share:







- Basic
$ (0.01 )
$ (0.02 )
$ -  
$ 0.15  
- Diluted
$ (0.01 )
$ (0.02 )
$ -  
$ 0.15  








 
Weighted average shares outstanding:







- Basic

31,849


31,745


31,849


31,745
- Diluted

31,849


31,745


31,849


31,745

 









(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,


2013
2012
ASSETS







 
Current assets:



Cash
$ 12,950

$ 14,993
Accounts receivable

4,248


4,093
Due from State of Delaware

8,225


9,708
Inventories

1,957


1,921
Prepaid expenses and other

2,432


3,207
Income taxes receivable

138


155
Deferred income taxes
  1,268  
  1,284  
Total current assets

31,218


35,361




 
Property and equipment, net

160,570


168,963
Other assets
  932  
  938  
Total assets
$ 192,720  
$ 205,262  




 
LIABILITIES AND STOCKHOLDERS' EQUITY







 
Current liabilities:



Accounts payable
$ 4,480

$ 3,785
Purses due horsemen

7,978


9,833
Accrued liabilities

10,513


10,361
Payable to Dover Motorsports, Inc.

4


-
Deferred revenue

463


346
Revolving line of credit
  47,040  
  -  
Total current liabilities

70,478


24,325




 
Revolving line of credit

-


58,500
Liability for pension benefits

3,353


6,983
Deferred income taxes
  2,725  
  1,994  
Total liabilities
  76,556  
  91,802  




 
Stockholders' equity:



Common stock

1,774


1,590
Class A common stock

1,487


1,660
Additional paid-in capital

4,663


4,136
Retained earnings

109,335


109,322
Accumulated other comprehensive loss
  (1,095 )
  (3,248 )
Total stockholders' equity
  116,164  
  113,460  
Total liabilities and stockholders' equity
$ 192,720  
$ 205,262  




 
 
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
 

  Years Ended


December 31,


2013   2012




 
Operating activities:



Net earnings
$ 13

$ 4,807

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





Depreciation

9,726


10,297
Amortization of credit facility origination fees

183


101
Stock-based compensation

682


793
Deferred income taxes

(519 )

(318 )
Gain from insurance settlement

(22 )

-
Changes in assets and liabilities:



Accounts receivable

(155 )

(111 )
Due from State of Delaware

1,483


(268 )
Inventories

(36 )

(61 )
Prepaid expenses and other

662


310
Income taxes receivable/payable

(138 )

(928 )
Accounts payable

915


(470 )
Purses due horsemen

(1,855 )

829
Accrued liabilities

152


(1,571 )
Payable to Dover Motorsports, Inc.

4


(11 )
Deferred revenue

117


92
Other liabilities
  (75 )
  (325 )
Net cash provided by operating activities
  11,137  
  13,166  




 
Investing activities:



Capital expenditures

(1,574 )

(2,625 )
Insurance proceeds

74


-
Purchase of available-for-sale securities

(37 )

-
Proceeds from sale of available-for-sale securities
  31  
  -  
Net cash used in investing activities
  (1,506 )
  (2,625 )




 
Financing activities:



Borrowings from revolving line of credit

72,160


19,620
Repayments of revolving line of credit

(83,620 )

(30,120 )
Dividends paid

-


(3,575 )
Repurchase of common stock

(144 )

(107 )
Credit facility fees
  (70 )
  -  
Net cash used in financing activities
  (11,674 )
  (14,182 )




 
Net decrease in cash

(2,043 )

(3,641 )
Cash, beginning of year
  14,993  
  18,634  
Cash, end of year
$ 12,950  
$ 14,993  
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