Dover Downs Gaming & Entertainment, Inc (DDE) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.29 million, or $ 0.01 a share in the quarter, against a net profit of $0.77 million, or $0.02 a share in the last year period. Revenue during the quarter dropped 4.06 percent to $44.24 million from $46.11 million in the previous year period. Gross margin for the quarter contracted 270 basis points over the previous year period to 7.22 percent. Operating margin for the quarter stood at negative 0.62 percent as compared to a positive 2.64 percent for the previous year period.
Operating loss for the quarter was $0.28 million, compared with an operating income of $1.22 million in the previous year period.
Denis McGlynn, the Company’s President and Chief Executive Officer, stated: “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.
Operating cash flow improves
Dover Downs Gaming & Entertainment, Inc has generated cash of $10.36 million from operating activities during the year, up 6.54 percent or $0.64 million, when compared with the last year. The company has spent $2.82 million cash to meet investing activities during the year as against cash outgo of $1.63 million in the last year.
The company has spent $6.36 million cash to carry out financing activities during the year as against cash outgo of $7.67 million in the last year period.
Cash and cash equivalents stood at $11.68 million as on Dec. 31, 2016, up 11.25 percent or $1.18 million from $10.50 million on Dec. 31, 2015.
Debt comes down
Dover Downs Gaming & Entertainment, Inc has recorded a decline in total debt over the last one year. It stood at $25.25 million as on Dec. 31, 2016, down 19.84 percent or $6.25 million from $31.50 million on Dec. 31, 2015. Dover Downs Gaming & Entertainment has recorded a decline in short-term debt over the last one year. It stood at $25.25 million as on Dec. 31, 2016, down 19.84 percent or $6.25 million from $31.50 million on Dec. 31, 2015.
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