Dover Downs reports Q2 results

24 Jul 2008

DOVER, Delaware -- (PRESS RELEASE) -- Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE - News) today reported results for the three months ended June 30, 2008.

The Company's revenues increased 3.6% to $59,971,000 compared with $57,868,000 for the second quarter of 2007. Gaming revenues improved 2.5% compared to the second quarter of 2007, primarily the result of increased slot win. Other operating revenues improved 16.7% from higher room revenue resulting from the Company's expanded hotel and from higher food and beverage revenues. Occupancy levels in the Dover Downs Hotel were approximately 81% for the second quarter of 2008.

Gaming expenses were higher from the increased revenue, as well as from certain one time expenses incurred during the quarter due to special legislation enacted in June 2007 applicable to the State of Delaware's fiscal year ended June 2008 only. These non-recurring gaming expenses were approximately $550,000 in the quarter and related to a guaranteed tax that the Company was obligated to pay and a tax on promotional slot play in excess of a legislative limit for the period.

Interest expense increased $180,000 to $631,000 during the quarter, primarily from borrowings related to share buybacks. In addition, interest related to the Dover Downs Hotel expansion ceased being capitalized upon its opening in October of 2007. Depreciation expense increased $744,000, primarily related to the expansion of the Dover Downs Hotel.

Net earnings were $5,698,000 compared with $6,404,000 for the second quarter of 2007. Net earnings per diluted share were $.18 for the quarter compared with $.20 per diluted share in 2007.

Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment, Inc. stated, "We are pleased with our results for the second quarter, especially given the tenuous economic environment. We were able to grow our slot win and overall revenues during a challenging quarter, and believe our recent expansion projects will continue to help us grow."

The Company's Phase VI casino expansion, The Colonnade, was partially opened to the public on July 10 with Doc Magrogan's Oyster House, Sweet Perks Too, the Dover Downs' Fire & Ice Lounge and more than 500 slot machines debuting. Two more restaurants and four retail outlets are scheduled to open in late summer.

The Company announced yesterday that its Board of Directors declared a regular quarterly dividend of $.05 per share. The dividend is payable on September 10, 2008 to shareholders of record at the close of business on August 10, 2008.

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	Dover Downs reports Q2 results 24 Jul 2008 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> DOVER, Delaware -- (PRESS RELEASE) -- Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE - News) today reported results for the three months ended June 30, 2008. The Company's revenues increased 3.6% to $59,971,000 compared with $57,868,000 for the second quarter of 2007. Gaming revenues improved 2.5% compared to the second quarter of 2007, primarily the result of increased slot win. Other operating revenues improved 16.7% from higher room revenue resulting from the Company's expanded hotel and from higher food and beverage revenues. Occupancy levels in the Dover Downs Hotel were approximately 81% for the second quarter of 2008. Gaming expenses were higher from the increased revenue, as well as from certain one time expenses incurred during the quarter due to special legislation enacted in June 2007 applicable to the State of Delaware's fiscal year ended June 2008 only. These non-recurring gaming expenses were approximately $550,000 in the quarter and related to a guaranteed tax that the Company was obligated to pay and a tax on promotional slot play in excess of a legislative limit for the period. Interest expense increased $180,000 to $631,000 during the quarter, primarily from borrowings related to share buybacks. In addition, interest related to the Dover Downs Hotel expansion ceased being capitalized upon its opening in October of 2007. Depreciation expense increased $744,000, primarily related to the expansion of the Dover Downs Hotel. Net earnings were $5,698,000 compared with $6,404,000 for the second quarter of 2007. Net earnings per diluted share were $.18 for the quarter compared with $.20 per diluted share in 2007. Denis McGlynn, President and CEO of Dover Downs Gaming & Entertainment, Inc. stated, "We are pleased with our results for the second quarter, especially given the tenuous economic environment. We were able to grow our slot win and overall revenues during a challenging quarter, and believe our recent expansion projects will continue to help us grow." The Company's Phase VI casino expansion, The Colonnade, was partially opened to the public on July 10 with Doc Magrogan's Oyster House, Sweet Perks Too, the Dover Downs' Fire & Ice Lounge and more than 500 slot machines debuting. Two more restaurants and four retail outlets are scheduled to open in late summer. The Company announced yesterday that its Board of Directors declared a regular quarterly dividend of $.05 per share. The dividend is payable on September 10, 2008 to shareholders of record at the close of business on August 10, 2008.