DOVER, Del., April 24 /PRNewswire-FirstCall/ -- Dover Downs Gaming &Entertainment, Inc. (NYSE: DDE) today reported results for the three monthsended March 31, 2008.
The Company's revenues fell 1.4% to $59,789,000 compared with $60,631,000for the first quarter of 2007. Gaming revenues were lower during the quarter,while other revenues were up 3.6%.
Interest expense increased $411,000 during the quarter, primarily fromborrowings related to share buybacks and the fact that interest related to theDover Downs Hotel expansion is no longer being capitalized. Depreciationexpense increased $639,000, primarily related to the expansion of the DoverDowns Hotel.
Net earnings were $5,321,000 compared with net earnings of $6,881,000 forthe first quarter of 2007. Net earnings per diluted share for the quarter were$.17 compared with $.21 last year.
Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment,Inc. stated, 'The overall state of the economy and the general reticence ofconsumers to spend on discretionary items clearly impacted our business duringthe quarter. We remain confident that our expansion programs will benefit uswhen the economy rebounds.'
Construction remains on budget and on schedule for a summer opening of theColonnade, the Company's Phase VI Casino Expansion, which will add nearly70,000 square feet to the Dover Downs Casino. The expansion will feature astunning new main entrance to the casino, a new gaming floor with room formore than 500 additional slot machines and the new Dover Downs Fire and IceLounge -- an upscale lounge/nightclub that will seat about 200 guests andprovide an exciting venue to see live entertainment or watch sporting events.The Colonnade will also feature three new restaurants -- Public House, DocMagrogan's Oyster House and Marabella's Italian restaurant, as well as fourretail shops including Godiva Chocolatier, Swarovski, Fashions of TheColonnade and The Colonnade Marketplace.
Renovation of the original Dover Downs Hotel was completed after the endof the quarter. The Company had 424 average room nights available during thequarter with occupancy levels of just over 82%.
The Company announced yesterday that its Board of Directors declared aregular quarterly dividend of $.05 per share. The dividend is payable on June10, 2008 to shareholders of record at the close of business on May 10, 2008.
Also during the quarter, the Company repurchased 83,500 shares of commonstock at an average price of $9.34 per share, not including nominal brokeragecommissions.
This release contains or may contain forward-looking statements based onmanagement's beliefs and assumptions. Such statements are subject to variousrisks and uncertainties that could cause results to vary materially. Pleaserefer to the Company's SEC filings for a discussion of such factors.
Dover Downs Gaming & Entertainment, Inc. is a diversified gaming andentertainment company whose operations consist of Dover Downs Slots -- a97,000-square foot video lottery (slots) casino complex; the Dover Downs Hoteland Conference Center -- featuring luxury accommodations with conference,banquet, fine dining, ballroom and concert hall facilities; and Dover DownsRaceway -- a harness racing track with pari-mutuel wagering on live andsimulcast horse races.
DOVER DOWNS GAMING & ENTERTAINMENT, INC.