Monday, Dover Downs Gaming & Entertainment Inc. (DDE), reported a decline in its fourth-quarter earnings, hurt by a dip in consumer spending during the quarter.
The Dover, Delaware-based company's fourth-quarter net income decreased to $3.50 million or $0.11 per share from $5.37 million or $0.17 per share in the last-year quarter.
Five analysts polled by First Call/Thomson Financial expected earnings of $0.13 for the quarter. Analysts' estimates usually exclude one-time items.
Revenues for the quarter fell 6.5% to $55.44 million from $59.30 million in the prior-year quarter. Gaming revenues declined by 7.3% to $50.66 million from $54.62 million. Analysts expected revenue of $56.25 million for the quarter.
Operating earnings declined to $6.84 million from $10.09 million in the year ago quarter.
Expenses for the quarter decreased to $48.60 million from $49.21 million last year. Gaming expenses were higher from increased gaming taxes and slot machine fees that resulted from legislation passed in June of 2008 that became effective on July 1, 2008.
The company said it also incurred approximately $0.5 million in other operating expenses during the quarter related to the termination of two restaurant leases on our property. Additionally, depreciation expense increased by $0.79 million due primarily to the casino expansion completed earlier in the year.
For the full year, net income declined to $19.51 million or $0.62 per share from $26.09 million or $0.80 per share during the last year. Revenues decreased to $219.88 million from $224.76 million in the previous year.
President and chief executive officer, Denis McGlynn stated, "It is now well known that the decline in consumer spending accelerated during the fourth quarter. And though our facility was not immune to this, our continued expansions along with our commitment to keeping our property new and exciting and delivering exceptional customer service helped us grow our market share during a challenging quarter."
DDE closed Friday's trading session at $3.19 on the NYSE.
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