Dover Motorsports, Inc. (NYSE: DVD) today reported its results
for the three months ended March 31, 2021.
The Company historically reports a loss in the first quarter due
to the seasonality of our motorsports business. No major events
were promoted during the first quarter of 2021 or 2020; therefore,
our revenues were minimal.
Operating and marketing expenses increased to $1,596,000 in the
first quarter of 2021 from $988,000 in the first quarter of 2020,
primarily from increased and earlier advertising expense. This
year’s NASCAR weekends are scheduled for May and June whereas they
were originally scheduled for May and August last year.
General and administrative expenses of $2,255,000 in the first
quarter of 2021 increased from $1,987,000 in the first quarter of
2020, primarily from employee and utility costs related to the
reopening of Nashville Superspeedway.
Depreciation expense was $763,000 in the first quarter of 2021
compared to $768,000 in the first quarter of 2020.
We incurred $341,000 in costs to complete the removal of
grandstand seats in Dover during the first quarter of 2020.
The adjustment for contingent obligation was a benefit of
$34,000 during the first quarter of 2021 compared to an expense of
$369,000 for the first quarter of 2020, primarily due to changes in
the discount rate.
Loss before income taxes was $4,313,000 for the first quarter of
2021 compared to $4,384,000 for the first quarter of 2020.
Net loss for the first quarter of 2021 was $3,202,000 or $.09
per diluted share compared with a loss of $3,140,000 or $.09 per
diluted share in the first quarter of 2020.
Denis McGlynn, the Company’s President and Chief Executive
Officer, stated: “We’re happy to report that officials in Delaware
have given us approval to host up to 20,000 fans at our NASCAR
weekend at Dover International Speedway in May. We anticipate
approval from Tennessee shortly for our race weekend at Nashville
Superspeedway in June. We are happy to be on a path back to
normalcy with actual fans in the stands for both tripleheader
weekends. Our Father’s Day NASCAR Cup Series event will mark the
first time NASCAR’s highest level of racing has been in the
Nashville market since 1984. Title sponsorships for all of our
NASCAR races are in place so, at this point in the season, we are
well positioned.”
The Company’s financial condition remains strong, with no
outstanding borrowings and approximately $10.9 million in available
cash.
The Company announced yesterday that its Board of Directors
declared a semi-annual cash dividend on both classes of common
stock of $.04 per share. The dividend will be payable on June 10,
2021 to shareholders of record at the close of business on May 10,
2021.
This release contains or may contain forward-looking statements
based on management's beliefs and assumptions. Such statements are
subject to various risks and uncertainties which could cause
results to vary materially. Please refer to the Company's SEC
filings for a discussion of such factors.
Dover Motorsports, Inc. is a promoter of NASCAR sanctioned and
other motorsports events in the United States whose subsidiaries
own and operate Dover International Speedway in Dover, Delaware and
Nashville Superspeedway near Nashville, Tennessee. For further
information, log on to dovermotorsports.com.
DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF
OPERATIONS In Thousands, Except Per Share Amounts (Unaudited)
Three Months Ended
March 31,
2021
2020
Revenues: Event-related
$
157
$
204
Expenses: Operating and marketing
1,596
988
General and administrative
2,255
1,987
Depreciation
763
768
Costs to remove long-lived assets
-
341
4,614
4,084
Operating loss
(4,457
)
(3,880
)
Interest (expense) income, net
(15
)
3
Benefit (provision) for contingent obligation
34
(369
)
Other income (expense), net
125
(138
)
Loss before income taxes
(4,313
)
(4,384
)
Income tax benefit
1,111
1,244
Net loss
$
(3,202
)
$
(3,140
)
Net loss per common share: Basic
$
(0.09
)
$
(0.09
)
Diluted
$
(0.09
)
$
(0.09
)
Weighted average shares outstanding: Basic
35,913
35,834
Diluted
35,913
35,834
DOVER MOTORSPORTS, INC. CONSOLIDATED BALANCE SHEETS In
Thousands (Unaudited)
March 31,
March 31,
December 31,
2021
2020
2020
ASSETS Current assets: Cash
$
10,862
$
5,032
$
12,568
Accounts receivable
2,003
777
601
Inventories
18
18
18
Prepaid expenses and other
1,709
1,265
1,557
Income taxes receivable
24
283
24
Assets held for sale
5,844
-
5,844
Total current assets
20,460
7,375
20,612
Property and equipment, net
66,148
70,704
63,075
Right of use asset
207
169
112
Deferred income taxes
2,425
-
2,425
Other assets
1,360
1,033
1,322
Total assets
$
90,600
$
79,281
$
87,546
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable
$
1,623
$
104
$
570
Accrued liabilities
3,504
2,680
3,463
Contract liabilities
7,725
2,909
1,395
Non-refundable deposit
500
-
500
Total current liabilities
13,352
5,693
5,928
Liability for pension benefits
746
939
871
Lease liability
105
93
33
Non-refundable deposit
-
500
-
Provision for contingent obligation
3,184
3,757
3,218
Deferred income taxes
7,370
7,444
8,469
Total liabilities
24,757
18,426
18,519
Stockholders' equity: Common stock
1,793
1,790
1,786
Class A common stock
1,851
1,851
1,851
Additional paid-in capital
101,207
100,984
101,207
Accumulated deficit
(35,234
)
(40,108
)
(32,032
)
Accumulated other comprehensive loss
(3,774
)
(3,662
)
(3,785
)
Total stockholders' equity
65,843
60,855
69,027
Total liabilities and stockholders' equity
$
90,600
$
79,281
$
87,546
DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS In
Thousands (Unaudited)
Three Months Ended
March 31,
2021
2020
Operating activities: Net loss
$
(3,202
)
$
(3,140
)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: Depreciation
763
768
Amortization of credit facility fees
15
14
Stock-based compensation
124
92
Deferred income taxes
(1,111
)
(1,244
)
(Benefit) provision for contingent obligation
(34
)
369
(Gains) losses on equity investments
(19
)
176
Changes in assets and liabilities: Accounts receivable
(1,402
)
(132
)
Prepaid expenses and other
(155
)
(86
)
Accounts payable
(245
)
(15
)
Accrued liabilities
17
(1,030
)
Contract liabilities
6,330
1,933
Liability for pension benefits
(101
)
(37
)
Net cash provided by (used in) operating activities
980
(2,332
)
Investing activities: Capital expenditures
(2,538
)
(115
)
Purchases of equity investments
(4
)
(196
)
Proceeds from sale of equity investments
11
192
Net cash used in investing activities
(2,531
)
(119
)
Financing activities: Borrowings from revolving line of
credit
-
180
Repayments on revolving line of credit
-
(180
)
Repurchase of common stock
(117
)
(94
)
Credit facility fees
(38
)
-
Net cash used in financing activities
(155
)
(94
)
Net decrease in cash
(1,706
)
(2,545
)
Cash, beginning of period
12,568
7,577
Cash, end of period
$
10,862
$
5,032
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210429005222/en/
Timothy R. Horne – Sr. Vice President - Finance (302)
883-6592
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