Dover Downs Gaming & Entertainment Inc. (DDE, Financial) filed Quarterly Report for the period ended 2009-09-30.
Dover Downs Gaming & Entertainment Inc. is a diversified gaming and entertainment company whose operations consist of Dover Downs Slots an 80000 square foot video lottery (slots) casino complex; the Dover Downs Hotel and Conference Center featuring luxury accommodations with conference banquet fine dining ballroom and concert hall facilities; and the Dover Downs Raceway a harness racing track with pari-mutuel wagering on live and simulcast horse races. Dover Downs Gaming & Entertainment Inc. has a market cap of $157.4 million; its shares were traded at around $4.91 with a P/E ratio of 10.9 and P/S ratio of 0.6. The dividend yield of Dover Downs Gaming & Entertainment Inc. stocks is 4.1%.
Other operating revenues were $14,039,000 in the first nine months of 2009 as compared to $14,470,000 in the first nine months of 2008. Net food and beverage revenues decreased $452,000 to $8,925,000 from $9,377,000 in the first nine months of 2008 due primarily to lower banquet sales, and lower revenues in our fine dining restaurant and our deli, partially offset by the opening of the Dover Downs Fire & Ice Lounge and our Sweet Perks Too coffee shop in July 2008, and to a lesser extent by the opening of our Race & Sports Book restaurant and Frankies Italian restaurant in September 2009. Cash rooms revenue increased $112,000 in the first nine months of 2009 primarily due to the hotel expansion. All other operating revenues decreased $91,000. Other operating revenues do not include the retail amount of promotional allowances which are provided to customers on a complimentary basis of $14,018,000 and $13,787,000 in the first nine months of 2009 and 2008, respectively.
General and administrative expenses increased to $5,187,000 in the first nine months of 2009 as compared to $4,932,000 in the first nine months of 2008, primarily due to increased pension costs and the expensing of a $100,000 loan to UG Entertainment LLC related to the Underground Atlanta project.
Net cash used in financing activities was $15,120,000 for the nine months ended September 30, 2009 compared to net cash provided by financing activities of $10,232,000 for the nine months ended September 30, 2008. During the first nine months of 2009, we repaid $10,250,000 of our credit facility. During the first nine months of 2008, we borrowed an additional $15,650,000 under our credit facility. We repurchased and retired $59,000 of our outstanding common stock during the first nine months of 2009 compared to $1,040,000 during the first nine months of 2008. We paid $4,811,000 and $4,769,000 in cash dividends during the first nine months of 2009 and 2008, respectively.
Based on current business conditions, we expect to make additional capital expenditures of approximately $600,000 during 2009, primarily for renovations to our existing casino facility, casino equipment and improvements in our food and beverage departments, and final payments for our new race and sports book operation. Additionally, we expect to contribute approximately $1,300,000 to our pension plans in 2009, of which $1,000,000 was contributed in the first nine months of 2009.
We have a credit facility with Wilmington Trust Company that expires on April 17, 2012. At September 30, 2009, the maximum borrowing limit under the facility was $125,000,000 which reduces to $100,000,000 on January 1, 2010, to $85,000,000 on January 1, 2011 and to $75,000,000 on January 1, 2012. Interest is based, at our option, upon LIBOR plus a margin that varies between 75 and 125 basis points (125 basis points at September 30, 2009) depending on the ratio of funded debt to earnings before interest, taxes, depreciation and amortization (the leverage ratio) or the base rate (the greater of the prime rate or the federal funds rate plus 0.5%) less a margin that varies between 50 and 100 basis points (50 basis points at September 30, 2009) depending on the leverage ratio. The credit facility has minimum net worth, interest coverage and maximum leverage requirements. Material adverse changes in our results of operations could impact our ability to satisfy these requirements. In addition, the credit agreement also includes a material adverse change clause. The facility is for seasonal funding needs, capital improvements and other general corporate purposes. At September 30, 2009, we were in compliance with all terms of the facility and there was $98,075,000 outstanding at a weighted average interest rate of 1.59%. At September 30, 2009, $26,925,000 was available pursuant to the facility.
Read the The complete ReportDDE is in the portfolios of Private Capital of Private Capital Management.
Dover Downs Gaming & Entertainment Inc. is a diversified gaming and entertainment company whose operations consist of Dover Downs Slots an 80000 square foot video lottery (slots) casino complex; the Dover Downs Hotel and Conference Center featuring luxury accommodations with conference banquet fine dining ballroom and concert hall facilities; and the Dover Downs Raceway a harness racing track with pari-mutuel wagering on live and simulcast horse races. Dover Downs Gaming & Entertainment Inc. has a market cap of $157.4 million; its shares were traded at around $4.91 with a P/E ratio of 10.9 and P/S ratio of 0.6. The dividend yield of Dover Downs Gaming & Entertainment Inc. stocks is 4.1%.
Highlight of Business Operations:
Other operating revenues were $4,642,000 in the third quarter of 2009 as compared to $5,353,000 in the third quarter of 2008. Net food and beverage revenues decreased $246,000 to $2,957,000 from $3,203,000 in the third quarter of 2008 due primarily to lower banquet sales. These decreases were partially offset by the opening of our Race & Sports Book restaurant and Frankies Italian restaurant in September 2009. Cash rooms revenue decreased $226,000 in the third quarter of 2009 mainly due to us providing more rooms free of charge to our customers as well as lower convention and transient sales. All other operating revenues decreased $239,000 primarily as a result of a decrease in revenues from our hotel retail shop since we no longer operate this outlet ourselves and have rented the space to a third party. Other operating revenues do not include the retail amount of promotional allowances which are provided to customers on a complimentary basis of $5,251,000 and $4,965,000 in the third quarter of 2009 and 2008, respectively.Other operating revenues were $14,039,000 in the first nine months of 2009 as compared to $14,470,000 in the first nine months of 2008. Net food and beverage revenues decreased $452,000 to $8,925,000 from $9,377,000 in the first nine months of 2008 due primarily to lower banquet sales, and lower revenues in our fine dining restaurant and our deli, partially offset by the opening of the Dover Downs Fire & Ice Lounge and our Sweet Perks Too coffee shop in July 2008, and to a lesser extent by the opening of our Race & Sports Book restaurant and Frankies Italian restaurant in September 2009. Cash rooms revenue increased $112,000 in the first nine months of 2009 primarily due to the hotel expansion. All other operating revenues decreased $91,000. Other operating revenues do not include the retail amount of promotional allowances which are provided to customers on a complimentary basis of $14,018,000 and $13,787,000 in the first nine months of 2009 and 2008, respectively.
General and administrative expenses increased to $5,187,000 in the first nine months of 2009 as compared to $4,932,000 in the first nine months of 2008, primarily due to increased pension costs and the expensing of a $100,000 loan to UG Entertainment LLC related to the Underground Atlanta project.
Net cash used in financing activities was $15,120,000 for the nine months ended September 30, 2009 compared to net cash provided by financing activities of $10,232,000 for the nine months ended September 30, 2008. During the first nine months of 2009, we repaid $10,250,000 of our credit facility. During the first nine months of 2008, we borrowed an additional $15,650,000 under our credit facility. We repurchased and retired $59,000 of our outstanding common stock during the first nine months of 2009 compared to $1,040,000 during the first nine months of 2008. We paid $4,811,000 and $4,769,000 in cash dividends during the first nine months of 2009 and 2008, respectively.
Based on current business conditions, we expect to make additional capital expenditures of approximately $600,000 during 2009, primarily for renovations to our existing casino facility, casino equipment and improvements in our food and beverage departments, and final payments for our new race and sports book operation. Additionally, we expect to contribute approximately $1,300,000 to our pension plans in 2009, of which $1,000,000 was contributed in the first nine months of 2009.
We have a credit facility with Wilmington Trust Company that expires on April 17, 2012. At September 30, 2009, the maximum borrowing limit under the facility was $125,000,000 which reduces to $100,000,000 on January 1, 2010, to $85,000,000 on January 1, 2011 and to $75,000,000 on January 1, 2012. Interest is based, at our option, upon LIBOR plus a margin that varies between 75 and 125 basis points (125 basis points at September 30, 2009) depending on the ratio of funded debt to earnings before interest, taxes, depreciation and amortization (the leverage ratio) or the base rate (the greater of the prime rate or the federal funds rate plus 0.5%) less a margin that varies between 50 and 100 basis points (50 basis points at September 30, 2009) depending on the leverage ratio. The credit facility has minimum net worth, interest coverage and maximum leverage requirements. Material adverse changes in our results of operations could impact our ability to satisfy these requirements. In addition, the credit agreement also includes a material adverse change clause. The facility is for seasonal funding needs, capital improvements and other general corporate purposes. At September 30, 2009, we were in compliance with all terms of the facility and there was $98,075,000 outstanding at a weighted average interest rate of 1.59%. At September 30, 2009, $26,925,000 was available pursuant to the facility.
Read the The complete ReportDDE is in the portfolios of Private Capital of Private Capital Management.
