Dover Downs Gaming & Entertainment, Inc. ended up in the black in 2015 and the fourth quarter, thanks to cost cutting
The company’s company’s total revenues increased to $46,111,000 for 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 percent compared to the fourth quarter of last year, primarily the result of lower slot machine revenue.
Other operating revenues were $7,035,000 compared to $5,735,000 for the fourth quarter of last year.
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 in the fourth quarter of this year compared to the third quarter of last year.
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. The one-casino company trimmed employment and was able to cut interest costs that led to previous losses.
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, for the fourth quarter of 2014.
Denis McGlynn, the Company’s President and Chief Executive Officer, stated: “Despite a reduction in gaming revenues, we managed to achieve minor earnings improvement last year through various cost containment measures. We remain focused on the challenges to come. In addition 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 to see legislation introduced in the State Senate shortly to once again attempt to restructure the distribution of gaming revenues between the State and Delaware’s three casinos. It would seek to implement several recommendations from last year’s Lottery and Gaming Study Commission relative to revenue sharing, license fees and incentives. 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, the State will experience a significant long-term decline in contributions to the General Fund from its video lottery operations.”
