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Dover Downs Gaming & Entertainment Inc. (DDE) filed Quarterly Report for the period ended 2011-06-30.
Dover Downs Gaming & Entertainment has a market cap of $92.4 million; its shares were traded at around $2.8533 with a P/E ratio of 21.9 and P/S ratio of 0.4. The dividend yield of Dover Downs Gaming & Entertainment stocks is 4.2%. Dover Downs Gaming & Entertainment had an annual average earning growth of 0.9% over the past 10 years.
This is the annual revenues and earnings per share of DDE over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DDE.
Highlight of Business Operations:
Other operating revenues were $5,686,000 in the second quarter of 2011 as compared to $5,736,000 in the second quarter of 2010. Despite higher occupancy rates, rooms revenue decreased $110,000 to $1,130,000 in the second quarter of 2011 from $1,240,000 in the second quarter of 2010 primarily due to lower revenues from convention sales. Food and beverage revenues remained consistent at $3,641,000 in the second quarter of 2011 compared to $3,670,000 in the second quarter of 2010. Partially offsetting these decreases was higher revenue from promoting an additional boxing event during the second quarter of 2011 as compared to the second quarter of 2010. Other operating revenues do not include the retail amount of promotional allowances which are provided to customers on a complimentary basis of $5,128,000 and $4,269,000 in the second quarter of 2011 and 2010, respectively.
Other operating revenues were $10,760,000 in the first six months of 2011 as compared to $10,090,000 in the first six months of 2010. Despite higher occupancy rates, rooms revenue decreased $96,000 from $1,926,000 in the first six months of 2010 to $1,830,000 in the first six months of 2011 primarily due to lower revenues from convention sales. Food and beverage revenues increased $523,000 to $7,066,000 from $6,543,000 in the first six months of 2010 due primarily to higher revenues in our buffet and increased beverage sales on the casino floor. Additionally, higher ticket sales for our live concert and boxing events contributed to the increase. Other operating revenues do not include the retail amount of promotional allowances which are provided to customers on a complimentary basis of $10,116,000 and $8,278,000 in the first six months of 2011 and 2010, respectively.
Net cash used in financing activities was $5,862,000 for the six months ended June 30, 2011 compared to $12,153,000 for the six months ended June 30, 2010. During the first six months of 2011, we repaid $3,500,000 of our credit facility compared to $10,100,000 during the first six months of 2010. We paid $1,944,000 and $1,936,000 in cash dividends during the first six months of 2011 and 2010, respectively. We repurchased and retired $150,000
Based on current business conditions, we expect to make capital expenditures of approximately $1,000,000 to $1,500,000 during the remainder of 2011. Additionally, we contributed $799,000 to our pension plans through the first six months of 2011. We expect to contribute approximately $2,400,000 to our pension plans in 2011.
On June 17, 2011, we entered into a $90,000,000 credit agreement with a new bank group. The maximum borrowing limit under the facility reduces to $85,000,000 as of March 31, 2012, $80,000,000 as of March 31, 2013 and $75,000,000 as of March 31, 2014 and the facility expires June 17, 2014. Interest is based upon LIBOR plus a margin that varies between 150 and 225 basis points (225 basis points at June 30, 2011) depending on the ratio of funded debt to earnings before interest, taxes, depreciation and amortization (the “leverage ratio”). The credit facility contains certain covenants including minimum interest coverage, maximum funded debt to earnings before interest, taxes, depreciation and amortization and minimum tangible net worth. Material adverse changes in our results of operations could impact our ability to satisfy these requirements. In addition, the credit agreement includes a material adverse change clause and provides that if we default under any other loan agreement, that would be a default under this facility. The credit facility provides for seasonal funding needs, capital improvements and other general corporate purposes. At June 30, 2011, we were in compliance with all terms of the facility and there was $75,100,000 outstanding at a weighted average interest rate of 2.44%. At June 30, 2011, $14,900,000 was available pursuant to the facility; however, in order to maintain compliance with the required quarterly debt covenant calculations as of June 30, 2011 $7,325,000 could have been borrowed as of that date.
(c) We expect to contribute approximately $2,400,000 to our pension plans for 2011, of which $799,000 was contributed in the first six months of 2011. Effective July 31, 2011, we froze our pension plans which will result in reduced contributions after 2011.
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