Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Entity Registrant Name | DOVER DOWNS GAMING & ENTERTAINMENT INC | |
Entity Central Index Key | 1,162,556 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Common Stock | Common Stock | ||
Entity Common Stock, Shares Outstanding | 18,413,587 | |
Common Stock | Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 14,869,623 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Revenues | $ 44,133 | $ 43,141 | $ 87,292 | $ 87,153 |
Expenses: | ||||
General and administrative | 1,342 | 1,333 | 2,727 | 2,708 |
Depreciation | 2,050 | 2,086 | 4,190 | 4,032 |
Total expenses | 43,777 | 42,959 | 87,171 | 86,983 |
Operating earnings | 356 | 182 | 121 | 170 |
Interest expense | (199) | (208) | (408) | (417) |
Other income | 84 | 44 | 167 | 88 |
Earnings (loss) before income taxes | 241 | 18 | (120) | (159) |
Income tax (expense) benefit | (88) | 15 | (4) | |
Net earnings (loss) | 153 | 33 | (120) | (163) |
Change in pension net actuarial loss and prior service cost, net of income taxes | 30 | 30 | 59 | 61 |
Unrealized gain on equity investments, net of income taxes | 3 | 1 | ||
Comprehensive income (loss) | 183 | 66 | (61) | $ (101) |
Net earnings (loss) per common share: | ||||
Basic (in dollars per share) | $ (0.01) | |||
Diluted (in dollars per share) | $ (0.01) | |||
Gaming | ||||
Revenues: | ||||
Revenues | 33,895 | 33,227 | 68,029 | $ 68,533 |
Expenses: | ||||
Total expenses | 32,730 | 32,115 | 65,565 | 65,981 |
Other operating | ||||
Revenues: | ||||
Revenues | 10,238 | 9,914 | 19,263 | 18,620 |
Expenses: | ||||
Total expenses | $ 7,655 | $ 7,425 | $ 14,689 | $ 14,262 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 10,837,000 | $ 10,714,000 |
Accounts receivable | 3,013,000 | 3,557,000 |
Due from State of Delaware | 4,794,000 | 5,720,000 |
Inventories | 1,932,000 | 1,928,000 |
Prepaid expenses and other | 2,847,000 | 2,840,000 |
Receivable from Dover Motorsports, Inc. | 19,000 | 7,000 |
Income taxes receivable | 317,000 | 318,000 |
Total current assets | 23,759,000 | 25,084,000 |
Property and equipment, net | 131,835,000 | 134,527,000 |
Other assets | 370,000 | 564,000 |
Deferred income taxes | 1,765,000 | 1,786,000 |
Total assets | 157,729,000 | 161,961,000 |
Current liabilities: | ||
Accounts payable | 1,949,000 | 2,571,000 |
Purses due horsemen | 4,799,000 | 5,814,000 |
Accrued liabilities | 7,499,000 | 8,111,000 |
Deferred credits | 122,000 | 49,000 |
Contract liabilities | 3,971,000 | 3,724,000 |
Revolving line of credit | 18,000,000 | 19,900,000 |
Total current liabilities | 36,340,000 | 40,169,000 |
Liability for pension benefits | 7,080,000 | 7,483,000 |
Total liabilities | 43,420,000 | 47,652,000 |
Commitments and contingencies (see Notes to the Consolidated Financial Statements) | ||
Stockholders' equity: | ||
Preferred stock, $0.10 par value; 1,000,000 shares authorized; shares issued and outstanding: none | ||
Additional paid-in capital | 5,924,000 | 5,877,000 |
Retained earnings | 109,731,000 | 109,817,000 |
Accumulated other comprehensive loss | (4,674,000) | (4,699,000) |
Total stockholders' equity | 114,309,000 | 114,309,000 |
Total liabilities and stockholders' equity | 157,729,000 | 161,961,000 |
Common Stock | Common Stock | ||
Stockholders' equity: | ||
Common stock | 1,841,000 | 1,827,000 |
Total stockholders' equity | 1,841,000 | 1,827,000 |
Common Stock | Class A Common Stock | ||
Stockholders' equity: | ||
Common stock | 1,487,000 | 1,487,000 |
Total stockholders' equity | $ 1,487,000 | $ 1,487,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock | Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 74,000,000 | 74,000,000 |
Common stock, shares issued | 18,413,587 | 18,272,809 |
Common stock, shares outstanding | 18,413,587 | 18,272,809 |
Common Stock | Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 14,869,623 | 14,869,623 |
Common stock, shares outstanding | 14,869,623 | 14,869,623 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities: | ||
Net loss | $ (120) | $ (163) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 4,190 | 4,032 |
Amortization of credit facility origination fees | 20 | 26 |
Stock-based compensation | 135 | 186 |
Deferred income taxes | (2) | (171) |
Losses on equity investments | 2 | |
Changes in assets and liabilities: | ||
Accounts receivable | 544 | 1,113 |
Due from State of Delaware | 926 | 3,458 |
Inventories | (4) | (277) |
Prepaid expenses and other | (12) | (389) |
Receivable from Dover Motorsports, Inc. | (12) | (26) |
Income taxes receivable | 1 | 124 |
Accounts payable | (547) | (687) |
Purses due horsemen | (1,015) | (3,782) |
Accrued liabilities | (612) | (1,534) |
Deferred credits | 73 | 131 |
Contract liabilities | 247 | 449 |
Liability for pension benefits | (321) | (199) |
Net cash provided by operating activities | 3,493 | 2,291 |
Investing activities: | ||
Capital expenditures | (1,393) | (1,196) |
Purchase of equity investments | (21) | (40) |
Proceeds from sale of equity investments | 18 | 38 |
Net cash used in investing activities | (1,396) | (1,198) |
Financing activities: | ||
Borrowings from revolving line of credit | 29,830 | 46,720 |
Repayments of revolving line of credit | (31,730) | (48,970) |
Repurchase of common stock | (74) | (74) |
Net cash used in financing activities | (1,974) | (2,324) |
Net increase (decrease) in cash | 123 | (1,231) |
Cash, beginning of period | 10,714 | 11,677 |
Cash, end of period | 10,837 | 10,446 |
Supplemental information: | ||
Interest paid | 395 | 390 |
Income tax payments | 51 | |
Change in accounts payable for capital expenditures | $ (75) | $ (177) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Basis of Presentation | |
Basis of Presentation | NOTE 1 — Basis of Presentation References in this document to “we,” “us” and “our” mean Dover Downs Gaming & Entertainment, Inc. and/or its wholly owned subsidiaries, as appropriate. The accompanying consolidated financial statements have been prepared in compliance with Rule 10-01 of Regulation S-X and U.S. generally accepted accounting principles, and accordingly do not include all of the information and disclosures required for audited financial statements. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our latest Annual Report on Form 10-K filed on March 1, 2018. In the opinion of management, these consolidated financial statements include all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of operations, financial position and cash flows for the interim periods presented. Operating results for the three and six-month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. |
Business Operations
Business Operations | 6 Months Ended |
Jun. 30, 2018 | |
Business Operations | |
Business Operations | NOTE 2 - Business Operations We are a premier gaming and entertainment resort destination whose operations consist of: · Dover Downs Casino — a 165,000-square foot casino complex featuring popular table games, including craps, roulette and card games such as blackjack, Spanish 21, baccarat, 3-card and pai gow poker, the latest in slot machine offerings, multi-player electronic table games, a poker room, a Race & Sports Book operation, the Dover Downs’ Fire & Ice Lounge, the Festival Buffet, Frankie’s Italian restaurant, as well as several bars, restaurants and six retail outlets; · Dover Downs Hotel and Conference Center — a 500 room AAA Four Diamond hotel with a fine dining restaurant, full-service spa/salon, conference, banquet, ballroom and concert hall facilities; and · Dover Downs Raceway — a harness racing track with pari-mutuel wagering on live and simulcast horse races. All of our gaming operations are located at our entertainment complex in Dover, the capital of the State of Delaware. On May 14, 2018, a U.S. Supreme Court decision overturned the Professional and Amateur Sports Protection Act. As a result, on June 5, 2018 our Race & Sports Book operation began offering a full range of betting on professional and college sports, including single game wagering on a wide variety of sports, including football, baseball, basketball, boxing, mixed martial arts, hockey and soccer. As previously announced on July 22, 2018, we entered into a definitive merger agreement with Twin River Worldwide Holdings, Inc. The merger contemplates that our stockholders will exchange their stock for Twin River common shares representing 7.225% of the equity in the combined company at closing. Our Common Stock and Class A Common Stock will be treated equally in the merger. The transaction is intended to qualify as a tax-free reorganization (except for cash paid in lieu of fractional shares). We anticipate the transaction will close in early 2019, subject to regulatory approvals and customary closing conditions. Dover Downs, Inc. is authorized to conduct video lottery, sports wagering, table game and internet gaming operations as one of three “Licensed Agents” under the Delaware State Lottery Code. Licensing, administration and control of gaming operations in Delaware is under the Delaware State Lottery Office and Delaware’s Department of Safety and Homeland Security, Division of Gaming Enforcement. Our license from the Delaware Harness Racing Commission (the “Commission”) to hold harness race meetings on our premises and to offer pari-mutuel wagering on live and simulcast horse races must be renewed on an annual basis. In order to maintain our gaming license, we are required to maintain our harness horse racing license. We have received an annual license from the Commission for the past 49 consecutive years and management believes that our relationship with the Commission remains good. Due to the nature of our business activities, we are subject to various federal, state and local regulations. As part of our license arrangements, we are subject to various taxes and fees which are subject to change by the Delaware legislature. In recent years, the mid-Atlantic region has experienced a significant expansion in gaming venues and gaming offerings. This has had a significant adverse effect on our visitation numbers, our revenues and our profitability. Management has estimated that approximately 27% of our gaming win comes from Maryland patrons and approximately 59% of our Capital Club® member gaming win comes from out of state patrons. In June 2018, after several years of effort, legislation providing relief to the State’s gaming industry was enacted. Senate Substitute No. 1 to Senate Bill 144, which passed with broad support in both the House and Senate, was signed by the Governor on June 30, 2018. Effective July 1, 2018, the Bill revises the State’s share of gross table game revenues from 29% to 15.5%; eliminates the table game license fee for each video lottery agent, provided that the agent increase certain expenditures on marketing, wages and benefits; reduces the State’s share of gross slot machine revenues by 1%, with a further 2% reduction possible, beginning July 1, 2019, for each video lottery agent, provided that the agent make certain qualified capital expenditures; and increases purses to horsemen by 0.6% (over two years). The Bill also removes the prohibition against video lottery agents operating on Christmas or Easter. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | NOTE 3 - Summary of Significant Accounting Policies Property and equipment— Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the asset’s estimated useful life. Accumulated depreciation was $148,077,000 and $144,147,000 as of June 30, 2018 and December 31, 2017, respectively. We perform reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be measured as the amount by which the carrying amount of the asset exceeds its fair value. Generally, fair value will be determined using valuation techniques such as the present value of future cash flows. Revenue and expense recognition— Our revenue contracts with customers consist of gaming wagers, hotel room sales, food and beverage sales, and miscellaneous other transactions. Gaming revenues represent (i) the net win from slot machine, table games, internet gaming and sports wagering and (ii) commissions from pari-mutuel wagering. The difference between the amount wagered by bettors and the amount paid out to bettors is referred to as the win. The Delaware State Lottery Office sweeps the win from the casino operations, collects the State’s share of the win and the amount due to the vendors under contract with the State who provide the slot machines and associated computer systems, collects the amount allocable to purses for harness horse racing and remits the remainder to us as our commission for acting as a Licensed Agent. Gaming expenses include the amounts collected by the State (i) for the State’s share of the win, (ii) for remittance to the providers of the slot machines and associated computer systems, and (iii) for harness horse racing purses. We recognize revenues from sports wagering commissions, and pari-mutuel commissions earned from live harness horse racing and importing of simulcast signals from other race tracks when the event occurs. For casino wager contracts that include complimentary goods and services provided by us to gaming patrons on a discretionary basis to incentivize gaming, we allocate a portion of the net win to the complimentary goods or services delivered based upon the estimated standalone selling price. For casino wager contracts that include incentives earned by customers under our loyalty programs, we allocate a portion of net win based upon the estimated standalone selling price of such incentive. This allocation is deferred and recognized as revenue when the customer redeems the incentive. When redeemed, revenue is recognized in the department that provides the goods or service. After allocating revenue to other goods and services provided as part of casino wager contracts, we record the residual amount to casino revenue. Revenues from hotel room sales, food and beverage sales and other miscellaneous sources are recognized at the time the service is provided and include actual amounts paid for such services, the value of loyalty points redeemed for such services, and the portion of gaming win allocated to complimentary goods and services. Amounts received in advance for hotel rooms, convention bookings and advance ticket sales are recorded as contract liabilities until the services are provided to the customer, at which point revenue is recognized. Our revenues disaggregated by type are as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Gaming $ $ $ $ Other operating: Rooms Food and beverage Other Total revenues $ $ $ $ We currently have a point loyalty program for our customers which allows them to earn points based on the volume of their gaming activity. Prior to the adoption of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, the estimated amount of points redeemable for cash was recorded as a reduction of gaming revenue and the estimated cost of points redeemable for services and merchandise was recorded as gaming expense. Our liability for unredeemed points was based on the estimated costs of services or merchandise to be provided and estimated redemption rates. Under the new standard effective January 1, 2018, points awarded under our point loyalty program are considered a material right given to customers based on their gaming play and are accounted for as a separate performance obligation. The new standard requires us to allocate revenues associated with the customers’ gaming activity between gaming revenue and the value of the points earned after factoring in the likelihood of redemption. As a result, gaming revenues are reduced with a corresponding increase to other operating revenues or our point liability. The value of the unredeemed points is now determined based on the estimated standalone selling price of the points earned. The revenue associated with the points earned is recognized in the period in which they are redeemed. As a result of applying the new standard, our point liability increased and our retained earnings balance decreased by $559,000 ($403,000 after income taxes) at December 31, 2017. See NOTE 6 — Stockholders’ Equity. Additionally, we have recast the prior period consolidated statement of earnings (loss) which resulted in additional earnings (loss) of $3,000 (($1,000) after income taxes) and ($17,000) (($11,000) after income taxes) for the three and six-month periods ended June 30, 2017. We have the following receivables related to contracts with customers; marker balances and other amounts due from gaming activities, billings for banquets and conventions, amounts due for hotel stays, and amounts due from exporting our live harness racing signals to other race tracks. As of June 30, 2018 and December 31, 2017, our contract receivables were $1,285,000 and $1,537,000, respectively. We have the following liabilities related to contracts with customers; liabilities for our point loyalty program, deposits made in advance for goods and services yet to be provided, and unpaid wagers. All of our contract liabilities are short term in nature. Loyalty points earned by customers are typically redeemed within one year from when they are earned and expire if a customer’s account is inactive for twelve months; therefore, the majority of points outstanding at the end of a period will either be redeemed or expire within the next year. Additionally, our liability for unredeemed points does not change significantly from period to period. During the three and six-month periods ended June 30, 2018, we recognized approximately $724,000 and $1,412,000 of revenues related to loyalty point redemptions and our liability at June 30, 2018 was $2,355,000. Advance deposits are typically for future banquet events and to reserve hotel rooms. These deposits are usually received weeks or months in advance of the event or hotel stay. Unpaid wagers not claimed within twelve months by the customer who earned them are escheated to the state. Prior to the adoption of ASU 2014-09, other operating revenues did not include the retail amount of hotel rooms, food and beverage and other miscellaneous goods and services provided on a complimentary basis or through our point loyalty program to customers as promotional items. The estimated direct cost of providing these items was charged to the casino through interdepartmental allocations and included in gaming marketing expenses. The new standard requires the complimentary items to be considered a separate performance obligation, which requires us to allocate a portion of revenue from a gaming transaction to other operating revenue based on the estimated standalone selling prices of the promotional items provided. For example, when a casino customer is given a complimentary room, we are now required to allocate a portion of the casino revenue earned from the customer to rooms revenue based on the estimated standalone selling price of the room. The estimated standalone selling price of hotel rooms is determined based on observable prices. The standalone selling price of food and beverage, and other miscellaneous goods and services is determined based upon the actual retail prices charged customers for those items. Revenue is recognized in the period the goods or service is provided. As a result of applying the new standard, gaming revenues and expenses decreased significantly and other operating revenues and expenses increased. Gaming revenues allocated to rooms, food and beverage, and other revenues were as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Rooms $ $ $ $ Food and beverage Other $ $ $ $ Advertising costs— Advertising costs are charged to operations as incurred. Advertising expenses were $561,000 and $984,000, and $518,000 and $967,000 for the three and six-month periods ended June 30, 2018 and 2017, respectively. Net earnings (loss) per common share— Nonvested share-based payment awards that include rights to dividends or dividend equivalents, whether paid or unpaid, are considered participating securities, and the two-class method of computing basic and diluted net earnings (loss) per common share (“EPS”) is applied for all periods presented. The following table sets forth the computation of EPS (in thousands, except per share amounts): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net earnings (loss) per common share — basic and diluted: Net earnings (loss) $ $ $ ) $ ) Allocation to nonvested restricted stock awards — — Net earnings (loss) available to common stockholders $ $ $ ) $ ) Weighted-average shares outstanding — basic and diluted Net earnings (loss) per common share — basic and diluted $ — $ — $ — $ ) There were no options outstanding and we paid no dividends during the six months ended June 30, 2018 or 2017. Accounting for stock-based compensation— We recorded total stock-based compensation expense for our restricted stock awards of $53,000 and $135,000, and $58,000 and $186,000 as general and administrative expenses for the three and six-month periods ended June 30, 2018 and 2017, respectively. We recorded income tax benefits of $14,000 and $10,000, and $23,000 and $3,000 for the three and six-month periods ended June 30, 2018 and 2017, respectively, related to vesting of our restricted stock awards. Recent accounting pronouncements —In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which provides the option to reclassify certain income tax effects related to the Tax Cuts and Jobs Act passed in December of 2017 between accumulated other comprehensive income and retained earnings and also requires additional disclosures. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this ASU is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the tax laws or rates were recognized. We are currently analyzing the impact of this ASU and, at this time, we have not yet determined whether we will elect to make this optional reclassification. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715) . ASU 2017-07 provides guidance on the presentation of the service cost component and the other components of net period pension cost in the consolidated statements of earnings (loss). The standard is effective for annual and interim reporting periods beginning after December 15, 2017 and requires retrospective adoption. We adopted this ASU effective January 1, 2018, which resulted in a reclassification of $44,000 and $88,000 of pension benefit from general and administrative expenses to other income in our consolidated statements of earnings (loss) for the three and six-month periods ended June 30, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. Early adoption is permitted. We are currently analyzing the impact of this ASU and, at this time, we are unable to determine the impact of the new standard on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Some of the amendments include the following: 1) Require certain equity investments to be measured at fair value with changes in fair value recognized in net income; 2) Simplify the impairment assessment of equity investment’s without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) Require public business entities to use exit price notion when measuring fair value of financial instruments for disclosure purposes; 4) Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting in a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others. The update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this standard effective January 1, 2018. In accordance with the standard, we reclassified $34,000, net of income taxes, of unrealized gains from accumulated other comprehensive loss to retained earnings as of January 1, 2018. See NOTE 6 — Stockholders’ Equity. Additionally, changes in fair value of equity investments are now included in other income in our consolidated statements of earnings (loss). See NOTE 7 — Fair Value Measurements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which supersedes nearly all existing revenue recognition guidance under accounting principles generally accepted in the United States of America. The FASB has issued several amendments to the standard, including clarification on accounting for and identifying performance obligations. The standard can be applied using the full retrospective method or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this standard effective January 1, 2018 using the full retrospective method. See Revenue and expense recognition above for further discussion. The cumulative effect of the changes made to our December 31, 2017 consolidated balance sheet for the adoption of ASU 2014-09, Revenue from Contracts with Customers, were as follows (in thousands): As Reported Adjustments Revised Assets Deferred income taxes $ $ $ Liabilities Accounts payable ) Accrued liabilities ) Deferred credits ) Contract liabilities — Stockholders’ equity Retained earnings ) Reclassifications— Certain amounts in the prior year financial statements have been reclassified to conform to the current-year presentation. The impact of the reclassifications made to prior year amounts are not material and did not affect net earnings (loss). |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2018 | |
Credit Facility. | |
Credit Facility | NOTE 4 — Credit Facility At June 30, 2018, we had a $32,500,000 credit agreement with our bank group. The credit facility expires on September 30, 2018. Interest is based upon LIBOR plus a margin that varies between 150 and 350 basis points (175 basis points at June 30, 2018) depending on the leverage ratio. The credit facility is secured by a mortgage on and security interest in all real and personal property owned by our wholly owned subsidiary Dover Downs, Inc. The credit facility contains certain covenants including maximum ratio of funded debt to earnings before interest, taxes, depreciation and amortization (the “leverage ratio”), and a minimum fixed charge coverage ratio. Material adverse changes in our results of operations could impact our ability to satisfy these requirements. In addition, the credit agreement includes a material adverse change clause and prohibits the payment of dividends. The credit facility provides for seasonal funding needs, capital improvements and other general corporate purposes. At June 30, 2018, there was $18,000,000 outstanding at an interest rate of 3.84% and $14,500,000 was available pursuant to the facility. Additionally, we were in compliance with all terms of the facility at June 30, 2018 and we expect to be in compliance with the financial covenants, and all other covenants, for all measurement periods through September 30, 2018, the expiration date of the facility. The credit facility is classified as a current liability as of June 30, 2018 in our consolidated balance sheets as the facility expires on September 30, 2018. We are currently seeking to refinance or extend the maturity of this obligation prior to its expiration date; however, there is no assurance that we will be able to execute this refinancing or extension or, if we are able to refinance or extend this obligation, that the terms of such refinancing or extension would be as favorable as the terms of our existing credit facility. These factors raise substantial doubt about our ability to continue as a going concern. The accompanying financial statements have been prepared assuming that we will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. |
Pension Plans
Pension Plans | 6 Months Ended |
Jun. 30, 2018 | |
Pension Plans | |
Pension Plans | NOTE 5 — Pension Plans We maintain a non-contributory, tax qualified defined benefit pension plan that has been frozen since July 2011. All of our full time employees were eligible to participate in this qualified pension plan. Benefits provided by our qualified pension plan were based on years of service and employees’ remuneration over their term of employment. Compensation earned by employees up to July 31, 2011 is used for purposes of calculating benefits under our pension plan with no future benefit accruals after this date. We also maintain a non-qualified, non-contributory defined benefit pension plan, the excess plan, for certain employees that has been frozen since July 2011. This excess plan provided benefits that would otherwise be provided under the qualified pension plan but for maximum benefit and compensation limits applicable under federal tax law. The cost associated with the excess plan is determined using the same actuarial methods and assumptions as those used for our qualified pension plan. The assets for the excess plan aggregate $345,000 and $344,000 as of June 30, 2018 and December 31, 2017, respectively, and are recorded in other assets in our consolidated balance sheets (see NOTE 7 — Fair Value Measurements). The components of net periodic pension benefit for our defined benefit pension plans are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Interest cost $ $ $ $ Expected return on plan assets ) ) ) ) Recognized net actuarial loss $ ) $ ) $ ) $ ) The net periodic pension benefit is included in other income in our consolidated statements of earnings (loss). We contributed $93,000 and $154,000, and $61,000 and $111,000 to our defined benefit pension plans during the three and six-month periods ended June 30, 2018 and 2017, respectively. We expect to contribute $336,000 to our defined benefit pension plans during the remainder of 2018. We also maintain a non-elective, non-qualified supplemental executive retirement plan (“SERP”) which provides deferred compensation to certain highly compensated employees that approximates the value of benefits lost by the freezing of the pension plan which are not offset by our enhanced matching contribution in our 401(k) plan. The SERP is a discretionary defined contribution plan and contributions made to the SERP in any given year are not guaranteed and will be at the sole discretion of our Compensation and Stock Incentive Committee. During each of the three and six-month periods ended June 30, 2018 and 2017, we recorded expenses of $30,000 and $60,000, respectively, related to the SERP. During the three and six-month periods ended June 30, 2018 and 2017, we contributed $0 and $84,000, and $0 and $122,000 to the plan, respectively. The liability for SERP pension benefits was $96,000 and $120,000 as of June 30, 2018 and December 31, 2017, respectively, and is included in accrued liabilities in our consolidated balance sheets. We maintain a defined contribution 401(k) plan which permits participation by substantially all employees. Our matching contributions to the 401(k) plan were $220,000 and $415,000, and $223,000 and $432,000 for the three and six-month periods ended June 30, 2018 and 2017, respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity | |
Stockholders' Equity | NOTE 6 — Stockholders’ Equity Changes in the components of stockholders’ equity are as follows (in thousands, except per share amounts): Common Class A Additional Retained Accumulated Balance at December 31, 2017- as reported $ $ $ $ $ ) Adoption of ASU 2014-09 (see NOTE 3) — — — ) — Balance at December 31, 2017- revised ) Adoption of ASU 2016-01 (see NOTE 3) — — — ) Net loss — — — ) — Issuance of restricted stock awards, net of forfeitures 21 — ) — — Stock-based compensation — — — — Change in net actuarial loss and prior service cost, net of income tax expense of $23 — — — — Repurchase and retirement of common stock ) — ) — — Balance at June 30, 2018 $ $ $ $ $ ) As of June 30, 2018 and December 31, 2017, accumulated other comprehensive loss consists of the following: June 30, 2018 December 31, 2017 Net actuarial loss and prior service cost not yet recognized in net periodic benefit cost, net of income tax benefit of $3,129,000 and $3,152,000, respectively $ ) $ ) Accumulated unrealized gain on available-for-sale securities, net of income tax expense of $23,000 — 34,000 Accumulated other comprehensive loss $ ) $ ) On January 23, 2013, our Board of Directors suspended the quarterly dividend. In addition, our credit facility prohibits the payment of dividends. See NOTE 4 — Credit Facility. On October 23, 2002, our Board of Directors authorized the repurchase of up to 3,000,000 shares of our outstanding common stock. The purchases may be made in the open market or in privately negotiated transactions as conditions warrant. The repurchase authorization has no expiration date, does not obligate us to acquire any specific number of shares and may be suspended at any time. No purchases of our equity securities were made pursuant to this authorization during the first six months of 2018 or 2017. At June 30, 2018, we had remaining repurchase authority of 1,653,333 shares. At present we are not permitted to make such purchases under our credit facility. We have a stock incentive plan which provides for the grant of up to 2,000,000 shares of common stock to our officers and key employees through stock options and/or awards valued in whole or in part by reference to our common stock, such as nonvested restricted stock awards. Under the plan, nonvested restricted stock vests an aggregate of twenty percent each year beginning on the second anniversary date of the grant. The aggregate market value of the nonvested restricted stock at the date of issuance is being amortized on a straight-line basis over the six-year period. We granted 213,500 and 208,500 stock awards under this plan during the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, there were 911,278 shares available for granting options or stock awards. During the six months ended June 30, 2018 and 2017, we purchased and retired 72,722 and 70,483 shares of our outstanding common stock for $74,000 and $74,000, respectively. These purchases were made from employees in connection with the vesting of restricted stock awards under our stock incentive plan and were not pursuant to the aforementioned repurchase authorization. Since the vesting of a restricted stock award is a taxable event to our employees for which income tax withholding is required, the plan allows employees to surrender to us some of the shares that would otherwise have transferred to the employee in satisfaction of their tax liability. The surrender of these shares is treated by us as a purchase of the shares. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 7 — Fair Value Measurements Our financial instruments are classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following table summarizes the valuation of our financial instrument pricing levels as of June 30, 2018 and December 31, 2017: Total Level 1 Level 2 Level 3 June 30, 2018 Equity investments $ $ $ — $ — December 31, 2017 Equity investments $ $ $ — $ — Our equity investments consist of mutual funds. These investments are included in other assets in our consolidated balance sheets. Gains and losses on our equity investments are as follows: Three Months Six Months Net gains (losses) recognized during the period on equity investments $ $ ) Less: net gains recognized during the period on equity investments sold during the period ) ) Unrealized gains (losses) recognized during the period on equity investments still held at period end $ $ ) The carrying amounts of other financial instruments reported in our consolidated balance sheets for current assets and current liabilities approximates their fair values because of the short maturity of these instruments. At June 30, 2018 and December 31, 2017, there was $18,000,000 and $19,900,000, respectively, outstanding under our revolving credit agreement. The borrowings under our revolving credit agreement bear interest at the variable rate described in NOTE 4 — Credit Facility and therefore we believe approximate fair value. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions | |
Related Party Transactions | NOTE 8 - Related Party Transactions During the three and six-month periods ended June 30, 2018 and 2017, we allocated costs of $471,000 and $885,000, and $516,000 and $969,000, respectively to DVD, a company related through common ownership, for certain administrative and operating services, including leased space. DVD allocated certain administrative and operating service costs of $34,000 and $140,000, and $109,000 and $140,000, respectively, to us for the three and six-month periods ended June 30, 2018 and 2017. The allocations were based on an analysis of each company’s share of the costs. In connection with DVD’s 2018 and 2017 spring NASCAR event weekends at Dover International Speedway, we provided certain services, primarily catering, for which DVD was invoiced $391,000 and $460,000 during the three and six-month periods ended June 30, 2018 and 2017, respectively. Additionally, DVD invoiced us $115,000 and $107,000 during the three and six-month periods ended June 30, 2018 and 2017, respectively, for tickets, their commission for suite catering and other services to the NASCAR events. As of June 30, 2018 and December 31, 2017, respectively, our consolidated balance sheets included $19,000 and $7,000 of receivables from DVD for the aforementioned items. We settled these items in July and January of 2018. The net costs incurred by each company for these services are not necessarily indicative of the costs that would have been incurred if the companies had been unrelated entities and/or had otherwise independently managed these functions; however, management believes that these costs are reasonable. Prior to our spin-off from DVD in 2002, both companies shared certain real property in Dover, Delaware. At the time of the spin-off, some of this real property was transferred to us to ensure that the real property holdings of each company was aligned with its past uses and future business needs. During our harness racing season, we have historically used the 5/8-mile harness racing track that is located on DVD’s property and is on the inside of its one-mile motorsports superspeedway. In order to continue this historic use, DVD granted a perpetual easement to the harness track to us at the time of the spin-off. This perpetual easement allows us to have exclusive use of the harness track during the period beginning November 1 of each year and ending April 30 of the following year, together with set up and tear down rights for the two weeks before and after such period. The easement requires that we maintain the harness track but does not require the payment of any rent. Various easements and agreements relative to access, utilities and parking have also been entered into between us and DVD relative to our respective Dover, Delaware facilities. DVD pays rent to us for the lease of its principal executive office space. We also allow DVD to use our indoor grandstands in connection with DVD’s two annual motorsports weekends. We do not assess rent for this nominal use and may discontinue the use at our discretion. Henry B. Tippie, Chairman of our Board of Directors, controls in excess of fifty percent of our voting power. Mr. Tippie’s voting control emanates from his direct and indirect holdings of common stock and Class A common stock, from his status as a trustee of the RMT Trust, our largest stockholder, and from certain shares as to which he has voting rights pursuant to a voting agreement with R. Randall Rollins, one of our directors. This means that Mr. Tippie has the ability to determine the outcome of our election of directors and to determine the outcome of many significant corporate transactions, many of which only require the approval of a majority of our voting power. Patrick J. Bagley, Timothy R. Horne, Denis McGlynn, Jeffrey W. Rollins, R. Randall Rollins and Henry B. Tippie are all Directors of ours and DVD. Denis McGlynn is the President and Chief Executive Officer of both companies, Klaus M. Belohoubek is the Senior Vice President — General Counsel and Secretary of both companies and Timothy R. Horne is the Senior Vice President — Finance and Chief Financial Officer of both companies. Mr. Tippie controls in excess of fifty percent of the voting power of DVD. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies | |
Commitments and Contingencies | NOTE 9 — Commitments and Contingencies We are a party to ordinary routine litigation incidental to our business. Management does not believe that the resolution of any of these matters is likely to have a material adverse effect on our results of operations, financial position or cash flows. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies | |
Property and equipment | Property and equipment— Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the asset’s estimated useful life. Accumulated depreciation was $148,077,000 and $144,147,000 as of June 30, 2018 and December 31, 2017, respectively. We perform reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be measured as the amount by which the carrying amount of the asset exceeds its fair value. Generally, fair value will be determined using valuation techniques such as the present value of future cash flows. |
Revenue and expense recognition | Revenue and expense recognition— Our revenue contracts with customers consist of gaming wagers, hotel room sales, food and beverage sales, and miscellaneous other transactions. Gaming revenues represent (i) the net win from slot machine, table games, internet gaming and sports wagering and (ii) commissions from pari-mutuel wagering. The difference between the amount wagered by bettors and the amount paid out to bettors is referred to as the win. The Delaware State Lottery Office sweeps the win from the casino operations, collects the State’s share of the win and the amount due to the vendors under contract with the State who provide the slot machines and associated computer systems, collects the amount allocable to purses for harness horse racing and remits the remainder to us as our commission for acting as a Licensed Agent. Gaming expenses include the amounts collected by the State (i) for the State’s share of the win, (ii) for remittance to the providers of the slot machines and associated computer systems, and (iii) for harness horse racing purses. We recognize revenues from sports wagering commissions, and pari-mutuel commissions earned from live harness horse racing and importing of simulcast signals from other race tracks when the event occurs. For casino wager contracts that include complimentary goods and services provided by us to gaming patrons on a discretionary basis to incentivize gaming, we allocate a portion of the net win to the complimentary goods or services delivered based upon the estimated standalone selling price. For casino wager contracts that include incentives earned by customers under our loyalty programs, we allocate a portion of net win based upon the estimated standalone selling price of such incentive. This allocation is deferred and recognized as revenue when the customer redeems the incentive. When redeemed, revenue is recognized in the department that provides the goods or service. After allocating revenue to other goods and services provided as part of casino wager contracts, we record the residual amount to casino revenue. Revenues from hotel room sales, food and beverage sales and other miscellaneous sources are recognized at the time the service is provided and include actual amounts paid for such services, the value of loyalty points redeemed for such services, and the portion of gaming win allocated to complimentary goods and services. Amounts received in advance for hotel rooms, convention bookings and advance ticket sales are recorded as contract liabilities until the services are provided to the customer, at which point revenue is recognized. Our revenues disaggregated by type are as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Gaming $ $ $ $ Other operating: Rooms Food and beverage Other Total revenues $ $ $ $ We currently have a point loyalty program for our customers which allows them to earn points based on the volume of their gaming activity. Prior to the adoption of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, the estimated amount of points redeemable for cash was recorded as a reduction of gaming revenue and the estimated cost of points redeemable for services and merchandise was recorded as gaming expense. Our liability for unredeemed points was based on the estimated costs of services or merchandise to be provided and estimated redemption rates. Under the new standard effective January 1, 2018, points awarded under our point loyalty program are considered a material right given to customers based on their gaming play and are accounted for as a separate performance obligation. The new standard requires us to allocate revenues associated with the customers’ gaming activity between gaming revenue and the value of the points earned after factoring in the likelihood of redemption. As a result, gaming revenues are reduced with a corresponding increase to other operating revenues or our point liability. The value of the unredeemed points is now determined based on the estimated standalone selling price of the points earned. The revenue associated with the points earned is recognized in the period in which they are redeemed. As a result of applying the new standard, our point liability increased and our retained earnings balance decreased by $559,000 ($403,000 after income taxes) at December 31, 2017. See NOTE 6 — Stockholders’ Equity. Additionally, we have recast the prior period consolidated statement of earnings (loss) which resulted in additional earnings (loss) of $3,000 (($1,000) after income taxes) and ($17,000) (($11,000) after income taxes) for the three and six-month periods ended June 30, 2017. We have the following receivables related to contracts with customers; marker balances and other amounts due from gaming activities, billings for banquets and conventions, amounts due for hotel stays, and amounts due from exporting our live harness racing signals to other race tracks. As of June 30, 2018 and December 31, 2017, our contract receivables were $1,285,000 and $1,537,000, respectively. We have the following liabilities related to contracts with customers; liabilities for our point loyalty program, deposits made in advance for goods and services yet to be provided, and unpaid wagers. All of our contract liabilities are short term in nature. Loyalty points earned by customers are typically redeemed within one year from when they are earned and expire if a customer’s account is inactive for twelve months; therefore, the majority of points outstanding at the end of a period will either be redeemed or expire within the next year. Additionally, our liability for unredeemed points does not change significantly from period to period. During the three and six-month periods ended June 30, 2018, we recognized approximately $724,000 and $1,412,000 of revenues related to loyalty point redemptions and our liability at June 30, 2018 was $2,355,000. Advance deposits are typically for future banquet events and to reserve hotel rooms. These deposits are usually received weeks or months in advance of the event or hotel stay. Unpaid wagers not claimed within twelve months by the customer who earned them are escheated to the state. Prior to the adoption of ASU 2014-09, other operating revenues did not include the retail amount of hotel rooms, food and beverage and other miscellaneous goods and services provided on a complimentary basis or through our point loyalty program to customers as promotional items. The estimated direct cost of providing these items was charged to the casino through interdepartmental allocations and included in gaming marketing expenses. The new standard requires the complimentary items to be considered a separate performance obligation, which requires us to allocate a portion of revenue from a gaming transaction to other operating revenue based on the estimated standalone selling prices of the promotional items provided. For example, when a casino customer is given a complimentary room, we are now required to allocate a portion of the casino revenue earned from the customer to rooms revenue based on the estimated standalone selling price of the room. The estimated standalone selling price of hotel rooms is determined based on observable prices. The standalone selling price of food and beverage, and other miscellaneous goods and services is determined based upon the actual retail prices charged customers for those items. Revenue is recognized in the period the goods or service is provided. As a result of applying the new standard, gaming revenues and expenses decreased significantly and other operating revenues and expenses increased. Gaming revenues allocated to rooms, food and beverage, and other revenues were as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Rooms $ $ $ $ Food and beverage Other $ $ $ $ |
Advertising costs | Advertising costs— Advertising costs are charged to operations as incurred. Advertising expenses were $561,000 and $984,000, and $518,000 and $967,000 for the three and six-month periods ended June 30, 2018 and 2017, respectively. |
Net earnings (loss) per common share | Net earnings (loss) per common share— Nonvested share-based payment awards that include rights to dividends or dividend equivalents, whether paid or unpaid, are considered participating securities, and the two-class method of computing basic and diluted net earnings (loss) per common share (“EPS”) is applied for all periods presented. The following table sets forth the computation of EPS (in thousands, except per share amounts): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net earnings (loss) per common share — basic and diluted: Net earnings (loss) $ $ $ ) $ ) Allocation to nonvested restricted stock awards — — Net earnings (loss) available to common stockholders $ $ $ ) $ ) Weighted-average shares outstanding — basic and diluted Net earnings (loss) per common share — basic and diluted $ — $ — $ — $ ) There were no options outstanding and we paid no dividends during the six months ended June 30, 2018 or 2017. |
Accounting for stock-based compensation | Accounting for stock-based compensation— We recorded total stock-based compensation expense for our restricted stock awards of $53,000 and $135,000, and $58,000 and $186,000 as general and administrative expenses for the three and six-month periods ended June 30, 2018 and 2017, respectively. We recorded income tax benefits of $14,000 and $10,000, and $23,000 and $3,000 for the three and six-month periods ended June 30, 2018 and 2017, respectively, related to vesting of our restricted stock awards. |
Recent accounting pronouncements | Recent accounting pronouncements —In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which provides the option to reclassify certain income tax effects related to the Tax Cuts and Jobs Act passed in December of 2017 between accumulated other comprehensive income and retained earnings and also requires additional disclosures. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this ASU is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the tax laws or rates were recognized. We are currently analyzing the impact of this ASU and, at this time, we have not yet determined whether we will elect to make this optional reclassification. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715) . ASU 2017-07 provides guidance on the presentation of the service cost component and the other components of net period pension cost in the consolidated statements of earnings (loss). The standard is effective for annual and interim reporting periods beginning after December 15, 2017 and requires retrospective adoption. We adopted this ASU effective January 1, 2018, which resulted in a reclassification of $44,000 and $88,000 of pension benefit from general and administrative expenses to other income in our consolidated statements of earnings (loss) for the three and six-month periods ended June 30, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. Early adoption is permitted. We are currently analyzing the impact of this ASU and, at this time, we are unable to determine the impact of the new standard on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which enhances the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Some of the amendments include the following: 1) Require certain equity investments to be measured at fair value with changes in fair value recognized in net income; 2) Simplify the impairment assessment of equity investment’s without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) Require public business entities to use exit price notion when measuring fair value of financial instruments for disclosure purposes; 4) Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting in a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others. The update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this standard effective January 1, 2018. In accordance with the standard, we reclassified $34,000, net of income taxes, of unrealized gains from accumulated other comprehensive loss to retained earnings as of January 1, 2018. See NOTE 6 — Stockholders’ Equity. Additionally, changes in fair value of equity investments are now included in other income in our consolidated statements of earnings (loss). See NOTE 7 — Fair Value Measurements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which supersedes nearly all existing revenue recognition guidance under accounting principles generally accepted in the United States of America. The FASB has issued several amendments to the standard, including clarification on accounting for and identifying performance obligations. The standard can be applied using the full retrospective method or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this standard effective January 1, 2018 using the full retrospective method. See Revenue and expense recognition above for further discussion. The cumulative effect of the changes made to our December 31, 2017 consolidated balance sheet for the adoption of ASU 2014-09, Revenue from Contracts with Customers, were as follows (in thousands): As Reported Adjustments Revised Assets Deferred income taxes $ $ $ Liabilities Accounts payable ) Accrued liabilities ) Deferred credits ) Contract liabilities — Stockholders’ equity Retained earnings ) |
Reclassifications | Reclassifications— Certain amounts in the prior year financial statements have been reclassified to conform to the current-year presentation. The impact of the reclassifications made to prior year amounts are not material and did not affect net earnings (loss). |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies | |
Schedule of revenues disaggregated by type | Our revenues disaggregated by type are as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Gaming $ $ $ $ Other operating: Rooms Food and beverage Other Total revenues $ $ $ $ |
Schedule of allocation of gaming revenues | Gaming revenues allocated to rooms, food and beverage, and other revenues were as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Rooms $ $ $ $ Food and beverage Other $ $ $ $ |
Schedule of the computation of EPS | The following table sets forth the computation of EPS (in thousands, except per share amounts): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net earnings (loss) per common share — basic and diluted: Net earnings (loss) $ $ $ ) $ ) Allocation to nonvested restricted stock awards — — Net earnings (loss) available to common stockholders $ $ $ ) $ ) Weighted-average shares outstanding — basic and diluted Net earnings (loss) per common share — basic and diluted $ — $ — $ — $ ) |
Schedule of cumulative effect of changes made to consolidated balance sheet for the adoption of ASU 2016-01 and ASU 2014-09 | The cumulative effect of the changes made to our December 31, 2017 consolidated balance sheet for the adoption of ASU 2014-09, Revenue from Contracts with Customers, were as follows (in thousands): As Reported Adjustments Revised Assets Deferred income taxes $ $ $ Liabilities Accounts payable ) Accrued liabilities ) Deferred credits ) Contract liabilities — Stockholders’ equity Retained earnings ) |
Pension Plans (Tables)
Pension Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Pension Plans | |
Schedule of components of net periodic pension benefit for defined benefit pension plans | Three Months Ended Six Months Ended 2018 2017 2018 2017 Interest cost $ $ $ $ Expected return on plan assets ) ) ) ) Recognized net actuarial loss $ ) $ ) $ ) $ ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity | |
Schedule of changes in the components of stockholders' equity | Changes in the components of stockholders’ equity are as follows (in thousands, except per share amounts): Common Class A Additional Retained Accumulated Balance at December 31, 2017- as reported $ $ $ $ $ ) Adoption of ASU 2014-09 (see NOTE 3) — — — ) — Balance at December 31, 2017- revised ) Adoption of ASU 2016-01 (see NOTE 3) — — — ) Net loss — — — ) — Issuance of restricted stock awards, net of forfeitures 21 — ) — — Stock-based compensation — — — — Change in net actuarial loss and prior service cost, net of income tax expense of $23 — — — — Repurchase and retirement of common stock ) — ) — — Balance at June 30, 2018 $ $ $ $ $ ) |
Schedule of accumulated other comprehensive loss | June 30, 2018 December 31, 2017 Net actuarial loss and prior service cost not yet recognized in net periodic benefit cost, net of income tax benefit of $3,129,000 and $3,152,000, respectively $ ) $ ) Accumulated unrealized gain on available-for-sale securities, net of income tax expense of $23,000 — 34,000 Accumulated other comprehensive loss $ ) $ ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements | |
Summary of valuation of financial instrument pricing levels | Total Level 1 Level 2 Level 3 June 30, 2018 Equity investments $ $ $ — $ — December 31, 2017 Equity investments $ $ $ — $ — |
Schedule of gains and losses on equity investments | Three Months Six Months Net gains (losses) recognized during the period on equity investments $ $ ) Less: net gains recognized during the period on equity investments sold during the period ) ) Unrealized gains (losses) recognized during the period on equity investments still held at period end $ $ ) |
Business Operations (Details)
Business Operations (Details) | Jul. 01, 2019 | Jun. 30, 2018ft²storeroomitem | Jul. 22, 2018 | Jul. 01, 2018 |
Business Operations | ||||
Area (in square feet) | ft² | 165,000 | |||
Number of retail outlets | store | 6 | |||
Number of rooms | room | 500 | |||
Number of Licensed Agents under Delaware State Lottery Code | item | 3 | |||
Number of consecutive years for which annual license has been received from the Harness Racing Commission | 49 years | |||
Risks and Uncertainties | ||||
State's share in gross table game revenues (as a percent) | 29.00% | 15.50% | ||
Reduction in the State's share of gross slot machine revenues (as a percent) | 1.00% | |||
Increase of purses to horsemen (as a percent) | 0.60% | |||
Number of years increases purses to horsemen | 2 years | |||
Expected | ||||
Risks and Uncertainties | ||||
Reduction in the State's share of gross slot machine revenues (as a percent) | 2.00% | |||
Gaming win | Geographic concentration risk | Maryland patrons | ||||
Risks and Uncertainties | ||||
Allocation of gaming win by patron location (in percent) | 27.00% | |||
Capital Club member gaming win | Geographic concentration risk | Out of state patrons | ||||
Risks and Uncertainties | ||||
Allocation of gaming win by patron location (in percent) | 59.00% | |||
Twin River Worldwide Holdings, Inc. | Dover Downs Gaming & Entertainment, Inc. | ||||
Business Operations | ||||
Percentage of common shares in equity | 7.225% |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Property and equipment (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Summary of Significant Accounting Policies | ||
Accumulated depreciation | $ 148,077,000 | $ 144,147,000 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Revenues disaggregation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | $ 44,133,000 | $ 43,141,000 | $ 87,292,000 | $ 87,153,000 | |
Point expiration period | 12 months | ||||
Earnings (loss) | (356,000) | (182,000) | $ (121,000) | (170,000) | |
Net loss after income taxes | (153,000) | (33,000) | 120,000 | 163,000 | |
Contract receivables | 1,285,000 | 1,285,000 | $ 1,537,000 | ||
Contract liabilities | 3,971,000 | 3,971,000 | 3,724,000 | ||
ASU 2014-09 | |||||
Disaggregation of Revenue [Line Items] | |||||
Change in retained earnings | (559,000) | ||||
Change in retained earnings after income taxes | $ (403,000) | ||||
Earnings (loss) | 3,000 | (17,000) | |||
Net loss after income taxes | (1,000) | (11,000) | |||
Gaming | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | 33,895,000 | 33,227,000 | 68,029,000 | 68,533,000 | |
Point Loyalty Program | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues Recognized | 724,000 | 1,412,000 | |||
Contract liabilities | 2,355,000 | 2,355,000 | |||
Other operating | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | 10,238,000 | 9,914,000 | 19,263,000 | 18,620,000 | |
Other operating | ASU 2014-09 | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | 3,255,000 | 3,067,000 | 6,588,000 | 6,316,000 | |
Rooms | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | 3,238,000 | 3,076,000 | 5,457,000 | 5,232,000 | |
Rooms | ASU 2014-09 | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | 1,125,000 | 1,155,000 | 2,289,000 | 2,335,000 | |
Food and beverage | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | 5,668,000 | 5,480,000 | 11,255,000 | 10,655,000 | |
Food and beverage | ASU 2014-09 | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | 1,884,000 | 1,658,000 | 3,822,000 | 3,432,000 | |
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | 1,332,000 | 1,358,000 | 2,551,000 | 2,733,000 | |
Other | ASU 2014-09 | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Revenues | $ 246,000 | $ 254,000 | $ 477,000 | $ 549,000 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Advertising costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Advertising costs | ||||
Advertising expenses | $ 561,000 | $ 518,000 | $ 984,000 | $ 967,000 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - EPS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net earnings (loss) per common share - basic and diluted: | ||||
Net earnings (loss) | $ 153,000 | $ 33,000 | $ (120,000) | $ (163,000) |
Allocation to nonvested restricted stock awards | 3,000 | 1,000 | ||
Net earnings (loss) available to common stockholders | $ 150,000 | $ 34,000 | $ (120,000) | $ (163,000) |
Weighted-average shares outstanding - basic and diluted | 32,447,000 | 32,322,000 | 32,445,000 | 32,321,000 |
Net earnings (loss) per common share - basic and diluted | $ (0.01) | |||
Options outstanding (in shares) | 0 | 0 | 0 | 0 |
Dividends paid | $ 0 | $ 0 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Accounting for stock-based compensation (Details) - Nonvested restricted stock - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting for stock-based compensation | ||||
Stock-based compensation expense | $ 53,000 | $ 58,000 | $ 135,000 | $ 186,000 |
Income tax benefits related to restricted stock awards | $ 14,000 | $ 23,000 | $ 10,000 | $ 3,000 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - ASU 2017-07 (Details) - Scenario, adjustment - ASU 2017-07 - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Recent accounting pronouncements | ||
General and administrative expense | $ 44,000 | $ 88,000 |
Other income | $ 44,000 | $ 88,000 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Recent accounting pronouncements (Details) - USD ($) | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Deferred income taxes | $ 1,765,000 | $ 1,786,000 | |
Liabilities | |||
Accounts payable | 1,949,000 | 2,571,000 | |
Accrued liabilities | 7,499,000 | 8,111,000 | |
Deferred credits | 122,000 | 49,000 | |
Contract liabilities | 3,971,000 | 3,724,000 | |
Stockholders' equity | |||
Retained earnings | $ 109,731,000 | 109,817,000 | |
ASU 2016-01 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Reclassification from accumulated other comprehensive loss to retained earnings, net of tax | $ 34,000 | ||
As Reported | ASU 2014-09 | |||
Assets | |||
Deferred income taxes | 1,630,000 | ||
Liabilities | |||
Accounts payable | 3,769,000 | ||
Accrued liabilities | 9,811,000 | ||
Deferred credits | 316,000 | ||
Stockholders' equity | |||
Retained earnings | 110,220,000 | ||
Adjustments Due to ASU 2014-09 | ASU 2014-09 | |||
Assets | |||
Deferred income taxes | 156,000 | ||
Liabilities | |||
Accounts payable | (1,198,000) | ||
Accrued liabilities | (1,700,000) | ||
Deferred credits | (267,000) | ||
Contract liabilities | 3,724,000 | ||
Stockholders' equity | |||
Retained earnings | $ (403,000) |
Credit Facility (Details)
Credit Facility (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Credit Facility | ||
Outstanding borrowings | $ 18,000,000 | $ 19,900,000 |
Credit facility | ||
Credit Facility | ||
Maximum borrowing capacity | 32,500,000 | |
Outstanding borrowings | $ 18,000,000 | |
Interest rate on the amount outstanding (as a percent) | 3.84% | |
Amount available for borrowing pursuant to the facility | $ 14,500,000 | |
Credit facility | LIBOR | ||
Credit Facility | ||
Percentage points added to the reference rate | 1.75% | |
Credit facility | LIBOR | Minimum | ||
Credit Facility | ||
Percentage points added to the reference rate | 1.50% | |
Credit facility | LIBOR | Maximum | ||
Credit Facility | ||
Percentage points added to the reference rate | 3.50% |
Pension Plans - Fair value of p
Pension Plans - Fair value of pension assets (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Excess plan | Other assets | ||
Pension Plans | ||
Fair values of pension assets | $ 345,000 | $ 344,000 |
Pension Plans - Defined benefit
Pension Plans - Defined benefit pension plans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Components of net periodic pension benefit | ||||
Interest cost | $ 214,000 | $ 206,000 | $ 428,000 | $ 412,000 |
Expected return on plan assets | (339,000) | (301,000) | (677,000) | (602,000) |
Recognized net actuarial loss | 41,000 | 51,000 | 82,000 | 102,000 |
Total net periodic pension benefit | (84,000) | (44,000) | (167,000) | (88,000) |
Employer contribution | 93,000 | $ 61,000 | 154,000 | $ 111,000 |
Expected additional contributions during the remainder of 2018 | $ 336,000 | $ 336,000 |
Pension Plans - SERP (Details)
Pension Plans - SERP (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
SERP | |||||
Defined contribution plan | |||||
Expense recorded | $ 30,000 | $ 30,000 | $ 60,000 | $ 60,000 | |
Employer contributions | 0 | 0 | 84,000 | 122,000 | |
Liability for SERP pension benefits | 96,000 | 96,000 | $ 120,000 | ||
401(k) plan | |||||
Defined contribution plan | |||||
Expense recorded | $ 220,000 | $ 223,000 | $ 415,000 | $ 432,000 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of stockholders' equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | $ 114,309,000 | ||||
Net loss | $ 153,000 | $ 33,000 | (120,000) | $ (163,000) | |
Repurchase and retirement of common stock | (74,000) | (74,000) | |||
Balance at the end of the period | 114,309,000 | 114,309,000 | |||
ASU 2014-09 | |||||
Changes in the components of stockholders' equity | |||||
Net loss | $ 1,000 | $ 11,000 | |||
Common Stock | Common Stock | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | 1,827,000 | ||||
Issuance of restricted stock awards, net of forfeitures | 21,000 | ||||
Repurchase and retirement of common stock | (7,000) | ||||
Balance at the end of the period | 1,841,000 | 1,841,000 | |||
Common Stock | Common Stock | Previously Reported | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | 1,827,000 | ||||
Common Stock | Class A Common Stock | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | 1,487,000 | ||||
Balance at the end of the period | 1,487,000 | 1,487,000 | |||
Common Stock | Class A Common Stock | Previously Reported | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | 1,487,000 | ||||
Additional Paid-in Capital | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | 5,877,000 | ||||
Issuance of restricted stock awards, net of forfeitures | (21,000) | ||||
Stock-based compensation | 135,000 | ||||
Repurchase and retirement of common stock | (67,000) | ||||
Balance at the end of the period | 5,924,000 | 5,924,000 | |||
Additional Paid-in Capital | Previously Reported | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | 5,877,000 | ||||
Retained Earnings | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | 109,817,000 | ||||
Net loss | (120,000) | ||||
Balance at the end of the period | 109,731,000 | 109,731,000 | |||
Retained Earnings | ASU 2014-09 | |||||
Changes in the components of stockholders' equity | |||||
Adoption of ASU | $ (403,000) | ||||
Retained Earnings | ASU 2016-01 | |||||
Changes in the components of stockholders' equity | |||||
Adoption of ASU | 34,000 | ||||
Retained Earnings | Previously Reported | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | 110,220,000 | ||||
Accumulated Other Comprehensive Loss | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | (4,699,000) | ||||
Change in net actuarial loss and prior service cost, net of income tax expense of $23 | 59,000 | ||||
Balance at the end of the period | $ (4,674,000) | (4,674,000) | |||
Income tax expense (benefit) on change in pension net actuarial loss and prior service cost | 23,000 | ||||
Accumulated Other Comprehensive Loss | ASU 2016-01 | |||||
Changes in the components of stockholders' equity | |||||
Adoption of ASU | $ (34,000) | ||||
Accumulated Other Comprehensive Loss | Previously Reported | |||||
Changes in the components of stockholders' equity | |||||
Balance at the beginning of the period | $ (4,699,000) |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated other comprehensive loss (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated other comprehensive loss | ||
Net actuarial loss and prior service cost not yet recognized in net periodic benefit cost, net of income tax benefit of $3,129,000 and $3,152,000, respectively | $ (4,674,000) | $ (4,733,000) |
Accumulated unrealized gain on available-for-sale securities, net of income tax expense of $23,000 | 34,000 | |
Accumulated other comprehensive loss | (4,674,000) | (4,699,000) |
Income tax benefit of net actuarial loss and prior service cost not yet recognized in net periodic benefit cost | $ 3,129,000 | 3,152,000 |
Income tax expense of accumulated unrealized gain on available-for-sale securities | $ 23,000 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase (Details) - shares | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Oct. 23, 2002 | |
Class of Stock Disclosures | |||
Number of shares of outstanding common stock authorized to be repurchased | 3,000,000 | ||
Purchases made pursuant to repurchase authorization (in shares) | 0 | 0 | |
Number of remaining shares of common stock authorized to be repurchased | 1,653,333 |
Stockholders' Equity - Stock in
Stockholders' Equity - Stock incentive plan (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Stockholders' Equity | ||
Options granted (in shares) | 213,500 | 208,500 |
Shares available for granting options or stock awards | 911,278 | |
Number of common stock shares purchased and retired | 72,722 | 70,483 |
Amount of common stock purchased and retired | $ 74,000 | $ 74,000 |
Maximum | ||
Stockholders' Equity | ||
Common stock shares reserved for issuance under the 2012 Stock Incentive Plan | 2,000,000 | |
Nonvested restricted stock | ||
Stockholders' Equity | ||
Vesting percentage on each anniversary of the grant date | 20.00% | |
Period to amortize aggregate market value | 6 years |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Measurements | ||
Equity investments | $ 345,000 | $ 344,000 |
Level 1 | ||
Fair Value Measurements | ||
Equity investments | $ 345,000 | $ 344,000 |
Fair Value Measurements - Gains
Fair Value Measurements - Gains and losses of equity investments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Equity investments | |||
Net gains (losses) recognized during the period on equity investments | $ 3,000 | $ (2,000) | |
Less: net gains recognized during the period on equity investments sold during the period | (1,000) | (4,000) | |
Unrealized gains (losses) recognized during the period on equity investments still held at period end | 2,000 | (6,000) | |
Credit facility | |||
Equity investments | |||
Amount outstanding under revolving credit agreement | $ 18,000,000 | $ 18,000,000 | $ 19,900,000 |
Related Party Transactions (Det
Related Party Transactions (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)itemmi | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)itemmi | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transactions | |||||
Receivable from Dover Motorsports, Inc. | $ 19,000 | $ 19,000 | $ 7,000 | ||
Dover Motorsports, Inc. (DVD) | |||||
Related Party Transactions | |||||
Harness racing track length (in miles) | mi | 0.625 | 0.625 | |||
Motorsports superspeedway length (in miles) | mi | 1 | 1 | |||
Period for set up and tear down rights | 14 days | ||||
Number of annual motorsports weekends | item | 2 | 2 | |||
Dover Motorsports, Inc. (DVD) | Certain administrative and operating service costs | |||||
Related Party Transactions | |||||
Allocations and invoicing to Dover Motorsports, Inc. | $ 471,000 | $ 516,000 | $ 885,000 | $ 969,000 | |
Allocations and invoicing from Dover Motorsports, Inc. | 34,000 | 109,000 | 140,000 | 140,000 | |
Dover Motorsports, Inc. (DVD) | NASCAR event at Dover International Speedway | |||||
Related Party Transactions | |||||
Due from related party | 391,000 | 460,000 | 391,000 | 460,000 | |
Allocations and invoicing from Dover Motorsports, Inc. | 115,000 | $ 107,000 | 115,000 | $ 107,000 | |
Receivable from Dover Motorsports, Inc. | $ 19,000 | $ 19,000 | $ 7,000 | ||
Board of Directors Chairman | |||||
Related Party Transactions | |||||
Minimum percentage of voting power controlled by related party | 50.00% | 50.00% | |||
Minimum percentage of voting power of Gaming controlled by other related party | 50.00% | 50.00% |