Friday, January 27, 2012

Dover Downs 2011 Profits Down 20%


Delaware Online by Aaron Nathans

View Original Article HERE


Dover Downs reported a bump in casino and hotel profits during the fourth quarter, due to better weather and a shuffling of the NASCAR schedule.

But the gambling company’s profits were down for the year.

Profits for the fourth quarter of 2011 were $2.1 million, or 7 cents per diluted share, compared with $501,000, or 2 cents per diluted share for the fourth quarter of 2010.

It helped, the company reported, that there were more rooms in the hotel, which boosted food and beverage revenues during the quarter. There was more convention business, too, the company said.

Dover Motorsports' fall NASCAR race weekend was held in October this year; it was held in September, which falls in the third quarter, last year.

Profits for the full year declined 20 percent, to $5.4 million, or 17 cents per diluted share, compared with $6.7 million, or 21 cents per diluted share for 2010.

Gambling revenue for the full year was up just $148,000. Expenses were $4.4 million higher for the year.

“Our year-end results emphasize that increasing competitive challenges and high taxes will require us to continue to find efficiencies -- a formidable task considering that we are in a customer centric business that necessitates continued investment in our facility and in our promotions and marketing initiatives,” said Denis McGlynn, Dover Downs president and CEO.

Because of the NASCAR schedule shift, Dover Downs Motorsports reported fourth-quarter profits of $8.6 million, compared to a loss of $6.6 million during the same quarter in 2010.

The company’s net loss for the year was $9.2 million, compared to a net loss of $8.2 million in 2010.

Adjusted for discontinued operations, including raceways in Memphis, Tenn. and near St. Louis, the company made profits of $2.4 million, or 7 cents per share, in 2011, compared to $1.2 million, or 3 cents, in 2010.

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