Dover Downs facing competition

Jan 30, 2007 4:33 AM

Faced with growing competition from Pennsylvania which is in the middle of a major development of slot machine fixtures, Dover Downs Gaming & Entertainment Inc. (DDE), one of the country’s first "racinos" plans to fight the competition with a plan for growth.

The plan, underway for the past several months, paid early dividends during the quarter that ended on Dec. 31 with net earnings improving by 18.9% to $0.19 per share compared to the previous year’s $0.16 per share.

The company’s revenues during the period increased to $58,667.000 compared to $54,015,000 recorded in the fourth quarter of 2005. Net earnings were $6,081,000 compared to $5,761,000 in the previous year.

Actually, in the fourth quarter of 2005, the company had earnings of $0.26 per share but that was due to the gain on the sale of a shopping center.

Dennis McGlynn, president and CEO, said he was particularly pleased with the slot win growth during the period and noted that the expansion of Dover Downs Hotel, which will increase the total number of available rooms from 232 to 500, is scheduled to open in the latter part of 2007.

Following the earnings call, the company announced that the board of directors had declared a regular quarterly dividend of $0.045 per share, paying on March 10 to shareholders of record on Feb. 10.