- spam991 / Foter / CC BY-NC-ND
Cost cutting that included more than 70 layoffs helped Dover Downs Gaming and Entertainment stay in the black and the second quarter and first half of 2015.
In trading on Thursday, shares of Dover Downs gaming were trading at 92 cents each. The company recently received a notice from the New York Stock Exchange that requires a plan to raise the price to the minimum figure of $1 a share.
Net income in the second quarter $631,000 compared to $164,000 for the second quarter of 2014. For the first half the company eked out a profit of $279,000, compared to an $889,000 loss a year earlier.
Revenue for the second quarter of 2015 was $45,301,000 compared to $46,206,000 for the second quarter of 2014.
Second quarter gaming revenues were $38,058,000 compared to $39,284,000 for the second quarter of last year.
The decline in gaming proceeds is primarily attributable to the saturated market in the mid-Atlantic gaming market and a lower table game hold percentage in the second quarter of this year, a release stated.
Other operating revenues increased to $7,243,000 compared to $6,922,000 for the second quarter of 2014 from higher cash rooms revenue and revenue associated with the Company taking over certain retail operations in the casino. Occupancy levels in the Dover Downs Hotel were approximately 85 percent for the second quarter of 2015 compared with 88 percent during the second quarter last year.
General and administrative, depreciation and interest expenses were each down slightly compared to the second quarter of 2014. The company has not ruled out further expense cuts.
“Historically, the spring and summer months are stronger months for the company and that held true during our second quarter,” said Denis McGlynn CEO.
“We benefitted from growth in hotel rooms revenue and a decision to take on-site retail operations in-house. Unfortunately, we also had to engage in another round of expense reductions which included the elimination of 72 jobs so far this year. We’re hopeful that the legislature will act on the recommendations of its own appointed study commission when the next session convenes in January and provide the gaming tax relief that was recommended.”
Dover Downs’ gaming operations consist of approximately 2,500 slots and table games including poker. The hotel is Delaware’s largest with 500 l rooms/suites, including a full-service spa/salon, concert hall and 41,500 square feet of multi-use event space. Live harness racing is featured November through April. Additional property amenities include multiple restaurants from fine dining to casual fare, bars/lounges and retail shops.
