Dover Downs Gaming & Entertainment on Thursday reported results for the fourth quarter and year ended December 31, 2016.
The company’s total revenues were $44,241,000 for the fourth quarter of 2016 compared with $46,111,000 for the fourth quarter of 2015.
Gaming revenues of $37,515,000 were down 4 percent compared to the fourth quarter of last year, primarily the result of lower table game and sports betting hold percentages.
Other operating revenues were $6,726,000 compared to $7,035,000 for the fourth quarter of last year. The decrease was primarily from lower rooms and food and beverage revenues, and partially related to the fact that a portion of Dover International Speedway’s NASCAR weekend was held during the third quarter of this year compared to the fourth quarter of last year. Additionally, convention rooms and related revenues were slightly lower this year. Occupancy levels in the Dover Downs Hotel were approximately 81% and 84% for the fourth quarters of 2016 and 2015, respectively.
General and administrative expenses were up to $1,524,000 for the fourth quarter compared to $1,334,000 last year, from higher employee related costs.
Interest expense decreased to $202,000 during the quarter as a result of lower average outstanding borrowings offset by slightly higher interest rates compared to last year.
Net loss was ($291,000), or ($0.01) per diluted share, compared with net earnings of $768,000, or $0.02 per diluted share for the fourth quarter of 2015.
For the year as a whole, total revenues were $182,292,000 for 2016 compared with $182,946,000 for 2015.
Gaming revenues were fairly consistent from year to year, however, marketing and promotional costs were higher given the increasingly competitive nature of the regional gaming market.
Other operating revenues for the year were almost identical to 2015, while other operating expenses increased primarily from higher health care costs compared to last year. Occupancy levels in the Dover Downs Hotel were approximately 84% for both annual periods.
Net earnings were $786,000, or $0.02 per diluted share, compared with $1,873,000, or $.06 per diluted share for 2015.
Denis McGlynn, the company’s president and chief executive officer, said: “Our results for the fourth quarter and for the year reflect the continuing challenges the company, and our fellow Delaware casinos face with the formula for gaming revenue distribution within the state.
“In 2016, Dover Downs generated $77 million for the state and the horsemen, while the company carried more than $180 million in expenses and was left with less than one half of one percent profit margin.
“Exacerbating the state’s unbalanced gaming revenue sharing formula is the astounding increase in health care costs most employers are dealing with.
“The Delaware Gaming Industry has generated $3.8 billion that has gone directly to the state’s General Fund over the years and has become an employer of 4,500 mostly Delaware citizens.
“It’s our hope that a restructuring of the relationship with the state will be undertaken during the current legislative session to protect this valuable contribution of revenue and employment for the state.”