Web Site
Google Finance
SEC Filing
02 14, 2012
2011 Data
Check list:
1.Major Business.
One casino (90% of revenue ). One 500 room hotel and horse racing(10% of revenue).
2.Balance sheet.
Recent Price: $2.43, Tangible book value:$3.47, Share outstanding: 32.40m shares, Market Cap:$79m.
Current asset: $39m, Current liability:$26m, Debt: $69m, Cash:$18.6m.
Current ratio = 1.5.
3.Credit facility.
Principle at Mar. 2012: $85m. Mar. 2013:$80m. Mar. 2014: 75m. Expire at June.2014.
Outstanding at Dec.31. 2011: $69m. Rate LIBOR+2.75.
4.Financial data by years.
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | ||
---|---|---|---|---|---|---|---|---|---|---|
Revenue | 240 | 238 | 233 | 239 | 242 | 236 | 216 | 207 | 188 | |
OP Income | 12.1 | 14.7 | 21.5 | 36.5 | 46.9 | 45.9 | 40 | 28.3 | 29.9 | |
Net Income | 5.4 | 6.7 | 11.3 | 19.5 | 26.1 | 25.3 | 26* | 16.3 | 17.2 | |
CF-WC | 17.6 | 20 | 26.6 | 31.1 | 34.5 | 31.5 | 27.1 | 23.5 | 24.7 | |
CAPX | 1.9 | 5.6 | 4.5 | 40.2 | 52.1 | 22.1 | 5.5 | 6.3 | 6.4 | |
Cash | 18.6 | 18.8 | 21.4 | 17.9 | 22.5 | 20 | 20 | 17.7 | 14.1 | |
Debt | 69 | 78.6 | 95.1 | 108.3 | 92.4 | 59.4 | 24 | 51.9 | 31 | |
Dividend/s | 0.12 | 0.12 | 0.20 | 0.20 | 0.19 | 0.175 | 0.16 | 0.15 | 0.13 |
*Including gains on property sales pre-tax $5.8m.
5.Cost structure
6.Insider holding, options, Insider trading info, share buy back.
Common share: 15.8m. A share: 16.6m.
Henry Tippie(Chairman): 9.75m A share. (include 1.5m from Randall Rollins and some from Michele Rollins).
Randall Rollins: 2.1m A share
Jeffrey Rollins: 1m A share
Gary Rollins:2.1m A share
Eugene Weaver: 1.7m A share
Denis McGlynn(CEO): 860k
Total insider hold 72% of A share and 8% of common share.
It seems Henry Tippie(Age 85) and Randall Rollins(Age: 80) are the original partner and both hold around 6m-7m A share. While Randall distribute around 5m to his wife and two sons.
7.Management compensation.
CEO 300k/year and remain the same since 2008. other compensation small. Kind of pretty low.
Options are all higher than current price.
8.Employee numbers. Revenue/Employee. Compensation/Employee.
Around 1300.
9.Industry comparison.
Other two in Delaware:
Delaware Park, and Harrington Raceway.
Two new casinos will be opened at Maryland.
10.Auditor
KPMG
11.Major events.
(1)At 2002, its a spin off from Dover Motorsports(NYSE:DVD).
(2)At 2010, there is plan to merge DVD and DDE. Then dropped because of lawsuit.
12.Comments.
(1) Game tax burden: 2011 unknown. 2010 increased by $5.6m compare to 2009. 2009 increased by $10m compare to 2008.
At 2009 there is a deal to legalize table games for exchange of tax for slot machine is 43.5% at 2010. (might be 37% previously) Table game: 29.4% + 13m(or 6.75m at 2011) license fee/year.
It seems the tax rate won't go higher since it is already very high compare to neighbourhood states.
(2) New casino's: Since Maryland's customer accounts for 40% of its revenue.
"The projected June 2012 opening of a large casino at Anne Arundel Mills in Maryland is expected to have a significant adverse affect on our visitation numbers, our employee headcount, our revenues and our profitability."
(3)Seems a capable management with low compensation. While the chairman now is 85 which comes as a risk.
(4)Need to wait to see how the tax and new casino affect this company.
Links:
http://ggbmagazine.com/issue/vol-10-no-7-july-2011/article/delaware-dilemma
http://casinoconnectionac.com/issue/vol-8-no-10-october-2011/article/delaware-considers-slashing-gaming-tax
http://www.delawarefirst.org/1415-subtraction-by-addition-delawares-casino-expansion-battle/