Attached files
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| 8-K - 8-K - DOVER MOTORSPORTS INC | d573392d8k.htm |
Exhibit 99.1
| FOR IMMEDIATE RELEASE | For further information, call: | |
| Timothy R. Horne – Sr. Vice President - Finance | ||
| Dover, Delaware, July 25, 2013 | (302) 857-3292 |
DOVER MOTORSPORTS, INC.
REPORTS RESULTS FOR THE SECOND QUARTER OF 2013
Dover Motorsports, Inc. (NYSE: DVD) today reported results for the three months ended June 30, 2013.
The Company promoted a NASCAR triple-header in Dover during the second quarter of 2013 and 2012. The Company also hosted the second annual Firefly Music Festival from June 21-23, 2013 on the Company’s parking grounds. The Company’s involvement included renting the land to the promoter, providing logistical assistance and handling certain concessions for which the Company retained a certain percent of the gross sales. The inaugural Firefly Music Festival was held in the third quarter of 2012.
Revenues for the second quarter of 2013 were $24,465,000 compared with $23,719,000 in the second quarter of 2012. The increase in revenues was primarily due to the contracted increase in broadcasting revenue and revenue from the Firefly Music Festival offset by lower admissions revenue from lower attendance for the Dover NASCAR weekend.
Operating and marketing expenses were $13,123,000 in the second quarter of 2013 compared to $12,528,000 in the second quarter of 2012. The increase was primarily due to the scheduled increase in purse and sanction fees and increased promotion and security costs during the Dover NASCAR weekend, as well as from costs related to the Firefly Festival.
General and administrative expenses increased slightly to $1,839,000 in the second quarter of 2013 from $1,765,000 in the second quarter of 2012.
Net interest expense decreased to $275,000 in the second quarter of 2013 from $372,000 for the second quarter of 2012. The decrease was due to lower borrowing costs and lower average outstanding borrowings in the second quarter of 2013 compared to 2012.
Earnings from operations before income tax expense for the second quarter of 2013 were $8,391,000 compared with $8,477,000 in the second quarter of 2012.
Net earnings for the second quarter of 2013 decreased slightly to $4,903,000 or $0.13 per diluted share compared to $5,018,000 or $.14 per diluted share for the second quarter of 2012.
During the second quarter of 2013, the Company repurchased 79,896 shares of its common stock on the open market at prices ranging from approximately $2.05 to $2.18 per share.
* * *
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 leading promoter of NASCAR sanctioned motorsports events whose subsidiaries own and operate Dover International Speedway in Dover, Delaware and own Nashville Superspeedway near Nashville, Tennessee. For further information, log on to www.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, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenues: |
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| Admissions |
$ | 4,864 | $ | 5,323 | $ | 4,864 | $ | 5,323 | ||||||||
| Event-related |
4,531 | 3,962 | 4,640 | 4,081 | ||||||||||||
| Broadcasting |
15,066 | 14,434 | 15,066 | 14,434 | ||||||||||||
| Other |
4 | - | 11 | 7 | ||||||||||||
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| 24,465 | 23,719 | 24,581 | 23,845 | |||||||||||||
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| Expenses: |
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| Operating and marketing |
13,123 | 12,528 | 14,177 | 13,628 | ||||||||||||
| General and administrative |
1,839 | 1,765 | 3,750 | 3,735 | ||||||||||||
| Depreciation |
824 | 830 | 1,649 | 1,667 | ||||||||||||
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| 15,786 | 15,123 | 19,576 | 19,030 | |||||||||||||
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| Operating earnings |
8,679 | 8,596 | 5,005 | 4,815 | ||||||||||||
| Interest expense, net |
(275 | ) | (372 | ) | (550 | ) | (773 | ) | ||||||||
| Provision for contingent obligation |
(19 | ) | 249 | 3 | 289 | |||||||||||
| Other income |
6 | 4 | 145 | 4 | ||||||||||||
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| Earnings before income taxes |
8,391 | 8,477 | 4,603 | 4,335 | ||||||||||||
| Income tax expense |
3,488 | 3,459 | 1,979 | 1,940 | ||||||||||||
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| Net earnings |
$ | 4,903 | $ | 5,018 | $ | 2,624 | $ | 2,395 | ||||||||
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| Net earnings per common share: |
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| Basic |
$ | 0.13 | $ | 0.14 | $ | 0.07 | $ | 0.06 | ||||||||
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| Diluted |
$ | 0.13 | $ | 0.14 | $ | 0.07 | $ | 0.06 | ||||||||
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| Weighted average shares outstanding: |
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| Basic |
36,373 | 36,300 | 36,385 | 36,299 | ||||||||||||
| Diluted |
36,373 | 36,300 | 36,385 | 36,299 | ||||||||||||
DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
| June 30, | June 30, | December 31, | ||||||||||
| 2013 | 2012 | 2012 | ||||||||||
| ASSETS |
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| Current assets: |
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| Cash |
$ | 16 | $ | 7 | $ | 15 | ||||||
| Accounts receivable |
12,430 | 11,727 | 224 | |||||||||
| Inventories |
183 | 134 | 124 | |||||||||
| Prepaid expenses and other |
1,138 | 1,233 | 1,222 | |||||||||
| Receivable from Dover Downs Gaming & Entertainment, Inc. |
57 | - | - | |||||||||
| Prepaid income taxes |
- | 7 | - | |||||||||
| Deferred income taxes |
83 | 70 | 78 | |||||||||
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| Total current assets |
13,907 | 13,178 | 1,663 | |||||||||
| Property and equipment, net |
91,454 | 94,933 | 92,896 | |||||||||
| Other assets |
826 | 710 | 738 | |||||||||
| Deferred income taxes |
464 | 439 | 490 | |||||||||
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| Total assets |
$ | 106,651 | $ | 109,260 | $ | 95,787 | ||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 284 | 470 | $ | 145 | |||||||
| Accrued liabilities |
3,918 | 2,674 | 2,903 | |||||||||
| Payable to Dover Downs Gaming & Entertainment, Inc. |
- | 2 | - | |||||||||
| Income taxes payable |
377 | - | 132 | |||||||||
| Deferred revenue |
4,976 | 5,925 | 2,719 | |||||||||
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| Total current liabilities |
9,555 | 9,071 | 5,899 | |||||||||
| Revolving line of credit |
23,180 | 31,900 | 19,700 | |||||||||
| Liability for pension benefits |
2,988 | 2,609 | 3,065 | |||||||||
| Other liabilities |
1,931 | 1,965 | 1,934 | |||||||||
| Deferred income taxes |
18,309 | 16,189 | 17,096 | |||||||||
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| Total liabilities |
55,963 | 61,734 | 47,694 | |||||||||
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| Stockholders’ equity: |
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| Common stock |
1,840 | 1,838 | 1,836 | |||||||||
| Class A common stock |
1,851 | 1,851 | 1,851 | |||||||||
| Additional paid-in capital |
102,094 | 102,020 | 102,166 | |||||||||
| Accumulated deficit |
(52,632 | ) | (55,957 | ) | (55,256 | ) | ||||||
| Accumulated other comprehensive loss |
(2,465 | ) | (2,226 | ) | (2,504 | ) | ||||||
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| Total stockholders’ equity |
50,688 | 47,526 | 48,093 | |||||||||
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| Total liabilities and stockholders’ equity |
$ | 106,651 | $ | 109,260 | $ | 95,787 | ||||||
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DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2013 | 2012 | |||||||
| Operating activities: |
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| Net earnings |
$ | 2,624 | $ | 2,395 | ||||
| Adjustments to reconcile net earnings to net cash used in operating activities: |
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| Depreciation |
1,649 | 1,667 | ||||||
| Amortization of credit facility fees |
121 | 112 | ||||||
| Stock-based compensation |
166 | 169 | ||||||
| Deferred income taxes |
1,024 | 1,451 | ||||||
| Provision for contingent obligation |
(3 | ) | (289 | ) | ||||
| Gain on sale of property and equipment |
(138 | ) | - | |||||
| Changes in assets and liabilities: |
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| Accounts receivable |
(12,206 | ) | (11,038 | ) | ||||
| Inventories |
(59 | ) | (19 | ) | ||||
| Prepaid expenses and other |
(103 | ) | 9 | |||||
| Receivable from/payable to Dover Downs Gaming & Entertainment, Inc. |
(57 | ) | 13 | |||||
| Accounts payable |
139 | 354 | ||||||
| Accrued liabilities |
1,015 | 90 | ||||||
| Income taxes payable/prepaid income taxes |
429 | (151 | ) | |||||
| Deferred revenue |
2,257 | 2,796 | ||||||
| Other liabilities |
(30 | ) | (60 | ) | ||||
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| Net cash used in operating activities |
(3,172 | ) | (2,501 | ) | ||||
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| Investing activities: |
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| Capital expenditures |
(207 | ) | (220 | ) | ||||
| Proceeds from sale of property and equipment |
138 | - | ||||||
| Purchase of available-for-sale securities |
(38 | ) | - | |||||
| Proceeds from sale of available-for-sale securities |
34 | - | ||||||
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| Net cash used in investing activities |
(73 | ) | (220 | ) | ||||
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| Financing activities: |
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| Borrowings from revolving line of credit |
14,180 | 9,080 | ||||||
| Repayments on revolving line of credit |
(10,700 | ) | (6,340 | ) | ||||
| Repurchase of common stock |
(234 | ) | (27 | ) | ||||
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| Net cash provided by financing activities |
3,246 | 2,713 | ||||||
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| Net increase (decrease) in cash |
1 | (8 | ) | |||||
| Cash, beginning of period |
15 | 15 | ||||||
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| Cash, end of period |
$ | 16 | $ | 7 | ||||
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