Dover Motorsports, Inc. (NYSE: DVD) today reported results for
the three months ended June 30, 2021.
The Company held a NASCAR triple-header weekend at Dover
International Speedway in May and a NASCAR triple-header weekend,
which included the return of NASCAR Cup Series racing to the
Nashville market, at Nashville Superspeedway in June.
No events were held during the second quarter of 2020 as the
COVID-19 pandemic caused the postponement of the Company’s
scheduled May NASCAR weekend and the cancelation of the Firefly
Music Festival. The three NASCAR events originally scheduled to be
held in May 2020 were held without fans in combination with the
August 2020 NASCAR weekend events. Accordingly, the results for the
second quarter are not comparable to last year.
Revenues for the second quarter of 2021 increased to $49,896,000
from $110,000 for the second quarter of 2020, reflecting the timing
of events described above.
The quarter was highlighted by our reopening of Nashville
Superspeedway with a Father’s Day sellout crowd, which required
temporary grandstands to accommodate. It was the first full
grandstand sellout for NASCAR this year. Broadcast ratings for the
ALLY 400 were 22% higher for NBCSN’s telecast compared with the
previous year’s same date event and it was the second highest rated
sports event on cable that week behind the NBA playoffs. Denis
McGlynn, the Company’s President and Chief Executive Officer,
stated: “There was an overwhelmingly positive response to the
Nashville events from fans, race teams, sponsors and media
representatives and we are looking forward to hosting another
NASCAR weekend in Nashville next year.”
Dover International Speedway’s admissions and per cap related
revenues were impacted by state-mandated restrictions that limited
attendance to 20,000 patrons. The event was an operational success
and had strong corporate sponsorship and contracted increases in
broadcast revenue.
Operating and marketing expenses were $29,405,000 in the second
quarter of 2021 compared to $812,000 in the second quarter of
2020.
General and administrative expenses were $2,203,000 in the
second quarter of 2021 compared to $1,877,000 in the second quarter
of 2020.
Depreciation expense increased to $809,000 for the second
quarter of 2021 compared to $765,000 for the second quarter of
2020, primarily from depreciation for the capital expenditures
related to the reopening of Nashville Superspeedway.
On May 26, 2021, we closed on the sale of approximately 350
acres of property near Nashville Superspeedway. Proceeds from the
sale, less closing costs, were approximately $14,300,000, resulting
in a gain of $8,510,000. The purchaser had previously paid a
$500,000 deposit that was credited to the purchase price.
The adjustment to the contingent obligation relating to the
Tennessee revenue bonds was a benefit of $500,000 in the second
quarter of 2021, primarily from higher than anticipated sales taxes
collected available for debt service. The benefit of $353,000 in
the second quarter of 2020 was primarily from changed sales tax
assumptions associated with the planned reopening of Nashville
Superspeedway.
Earnings before income taxes for the second quarter of 2021 were
$26,627,000 compared to a loss before income taxes for the second
quarter of 2020 of ($2,844,000).
The Company’s effective income tax rate was an expense of 25.8%
compared to a benefit of 75.8% in the second quarter of 2020. The
2020 benefit was the result of reversing a portion of a previously
recorded valuation allowance on Tennessee state deferred tax assets
as a result of the reopening of the Nashville Superspeedway.
Net earnings for the second quarter of 2021 were $19,745,000, or
$0.54 per diluted share, compared to a net loss for the second
quarter of 2020 of ($689,000) or ($0.02) per diluted share.
At June 30, 2021, the Company had no outstanding indebtedness
and approximately $18.6 million in available cash.
The Firefly Music Festival is scheduled to return to the
Woodlands at Dover International Speedway from September 23-26,
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 EARNINGS In
Thousands, Except Per Share Amounts (Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Revenues: Admissions
$
5,786
$
-
$
5,786
$
-
Event-related
7,040
110
7,197
314
Broadcasting
37,039
-
37,039
-
Other
31
-
31
-
49,896
110
50,053
314
Expenses:
Operating and marketing
29,405
812
31,001
1,800
General and administrative
2,203
1,877
4,458
3,864
Depreciation
809
765
1,572
1,533
Cost to remove long-lived assets
-
-
-
341
32,417
3,454
37,031
7,538
Gain on sale of land
8,510
-
8,510
-
Operating earnings (loss)
25,989
(3,344
)
21,532
(7,224
)
Interest expense, net
(17
)
(16
)
(32
)
(13
)
Benefit (provision) for contingent obligation
500
353
534
(16
)
Other income, net
155
163
280
25
Earnings (loss) before income
taxes
26,627
(2,844
)
22,314
(7,228
)
Income tax (expense) benefit
(6,882
)
2,155
(5,771
)
3,399
Net earnings (loss)
$
19,745
$
(689
)
$
16,543
$
(3,829
)
Net earnings (loss) per common
share: Basic
$
0.54
$
(0.02
)
$
0.45
$
(0.11
)
Diluted
$
0.54
$
(0.02
)
$
0.45
$
(0.11
)
Weighted average shares
outstanding: Basic
35,914
35,836
35,914
35,835
Diluted
35,914
35,836
35,914
35,835
DOVER MOTORSPORTS, INC. CONSOLIDATED BALANCE SHEETS In Thousands
(Unaudited)
June 30,
June 30,
December 31,
2021
2020
2020
ASSETS Current assets: Cash
$
18,636
$
2,886
$
12,568
Accounts receivable
17,999
1,035
601
Inventories
24
18
18
Prepaid expenses and other
798
1,493
1,557
Income taxes receivable
-
353
24
Assets held for sale
-
1,622
5,844
Total current assets
37,457
7,407
20,612
Property and equipment, net
70,038
68,398
63,075
Right of use asset
182
150
112
Deferred income taxes
1,208
-
2,425
Other assets
1,474
1,156
1,322
Total assets
$
110,359
$
77,111
$
87,546
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable
$
2,493
$
26
$
570
Accrued liabilities
6,418
2,948
3,463
Income taxes payable
4,115
-
-
Contract liabilities
857
3,676
1,395
Non-refundable deposit
-
500
500
Total current liabilities
13,883
7,150
5,928
Liability for pension benefits
621
863
871
Lease liability
85
73
33
Provision for contingent obligation
2,684
3,404
3,218
Deferred income taxes
8,874
5,300
8,469
Total liabilities
26,147
16,790
18,519
Stockholders' equity: Common stock
1,793
1,788
1,786
Class A common stock
1,851
1,851
1,851
Additional paid-in capital
101,258
101,112
101,207
Accumulated deficit
(16,947
)
(40,797
)
(32,032
)
Accumulated other comprehensive loss
(3,743
)
(3,633
)
(3,785
)
Total stockholders' equity
84,212
60,321
69,027
Total liabilities and stockholders' equity
$
110,359
$
77,111
$
87,546
DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS In
Thousands (Unaudited)
Six Months Ended
June 30,
2021
2020
Operating activities: Net
earnings (loss)
$
16,543
$
(3,829
)
Adjustments to reconcile net earnings (loss) to net cash provided
by (used in) operating activities: Depreciation
1,572
1,533
Amortization of credit facility fees
31
28
Stock-based compensation
175
218
Deferred income taxes
1,599
(3,399
)
Provision for contingent obligation
(534
)
16
(Gains) losses on equity securities
(92
)
50
Gain on sale of land
(8,510
)
-
Changes in assets and liabilities: Accounts
receivable
(17,398
)
(390
)
Inventories
(6
)
-
Prepaid expenses and other
701
(321
)
Accounts payable
641
(93
)
Accrued liabilities
2,964
(762
)
Income taxes payable/receivable
4,139
(70
)
Contract liabilities
(538
)
2,700
Liability for pension benefits
(184
)
(73
)
Net cash provided by (used in) operating activities
1,103
(4,392
)
Investing activities: Capital
expenditures
(7,253
)
(196
)
Proceeds from sale of land and equipment, net
13,826
-
Purchases of equity securities
(8
)
(240
)
Proceeds from sale of equity securities
13
231
Net cash provided by (used in) investing activities
6,578
(205
)
Financing activities: Borrowings
from revolving line of credit
-
180
Repayments on revolving line of credit
-
(180
)
Dividends paid
(1,458
)
-
Repurchase of common stock
(117
)
(94
)
Credit facility fees
(38
)
-
Net cash used in financing activities
(1,613
)
(94
)
Net increase (decrease) in cash
6,068
(4,691
)
Cash, beginning of period
12,568
7,577
Cash, end of period
$
18,636
$
2,886
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210729005251/en/
Timothy R. Horne – Sr. Vice President - Finance (302)
883-6592
Dover Motorsports (NYSE:DVD)
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