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| 8-K - FORM 8-K - DOVER MOTORSPORTS INC | d616703d8k.htm |
Exhibit 99.1
| FOR IMMEDIATE RELEASE | For further information, call: | |
| Timothy R. Horne – Sr. Vice President – Finance | ||
| Dover, Delaware, October 24, 2013 | (302) 857-3292 |
DOVER MOTORSPORTS, INC.
REPORTS RESULTS FOR THE THIRD QUARTER OF 2013
Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the third quarter ended September 30, 2013.
The Company promoted a NASCAR triple-header in Dover during the third quarter of 2013 and 2012. Revenues for the third quarter of 2013 were $21,470,000 compared with $22,773,000 in the third quarter of 2012. However, results for the quarters are not comparable since revenues and expenses associated with the annual Firefly Music Festival held on our property are in the third quarter of 2012 but in the second quarter of 2013. The decrease in revenues was primarily due to the timing of the festival and lower NASCAR admissions revenue, partially offset by an increase in broadcasting revenue.
Operating and marketing expenses were $11,618,000 in the third quarter of 2013 compared to $12,075,000 in the third quarter of 2012. The decrease was primarily due to the timing of the Firefly Music Festival, partially offset by an increase in purse and sanction fees and increased promotion and security costs during the Dover NASCAR weekend.
General and administrative expenses of $1,732,000 in the third quarter of 2013 were comparable to $1,723,000 in the third quarter of 2012.
Net interest expense decreased to $237,000 in the third quarter of 2013 from $332,000 for the third quarter of 2012. The decrease was due to lower interest rates and lower average outstanding borrowings in the third quarter of 2013 compared to 2012.
Earnings before income tax expense for the third quarter of 2013 decreased to $7,111,000 from $7,746,000 in the third quarter of 2012.
Net earnings for the third quarter of 2013 decreased to $4,158,000 or $0.11 per diluted share from $4,532,000 or $.12 per diluted share for the third quarter of 2012.
The Company announced yesterday that its Board of Directors declared an annual cash dividend on both classes of common stock of $.05 per share. The dividend will be payable on December 10, 2013 to shareholders of record at the close of business on November 11, 2013. Due to the seasonal nature of our business, we will evaluate dividends annually.
During the third quarter of 2013, the Company repurchased 235,943 shares of its common stock on the open market at prices ranging from approximately $2.16 to $2.47 per share. For the nine months ended September 30, 2013, the Company repurchased 315,839 shares of its common stock on the open market at prices ranging from $2.05 to $2.47 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 September 30, |
Nine Months Ended September 30, |
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| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenues: |
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| Admissions |
$ | 4,657 | $ | 5,105 | $ | 9,521 | $ | 10,428 | ||||||||
| Event-related |
4,422 | 5,708 | 9,062 | 9,789 | ||||||||||||
| Broadcasting |
12,379 | 11,959 | 27,445 | 26,393 | ||||||||||||
| Other |
12 | 1 | 23 | 8 | ||||||||||||
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| 21,470 | 22,773 | 46,051 | 46,618 | |||||||||||||
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| Expenses: |
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| Operating and marketing |
11,618 | 12,075 | 25,795 | 25,703 | ||||||||||||
| General and administrative |
1,732 | 1,723 | 5,482 | 5,458 | ||||||||||||
| Depreciation |
820 | 824 | 2,469 | 2,491 | ||||||||||||
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| 14,170 | 14,622 | 33,746 | 33,652 | |||||||||||||
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| Operating earnings |
7,300 | 8,151 | 12,305 | 12,966 | ||||||||||||
| Interest expense, net |
(237 | ) | (332 | ) | (787 | ) | (1,105 | ) | ||||||||
| Provision for contingent obligation |
41 | (21 | ) | 44 | 268 | |||||||||||
| Other income |
7 | (52 | ) | 152 | (48 | ) | ||||||||||
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| Earnings before income taxes |
7,111 | 7,746 | 11,714 | 12,081 | ||||||||||||
| Income tax expense |
2,953 | 3,214 | 4,932 | 5,154 | ||||||||||||
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| Net earnings |
$ | 4,158 | $ | 4,532 | $ | 6,782 | $ | 6,927 | ||||||||
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| Net earnings per common share: |
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| Basic |
$ | 0.11 | $ | 0.12 | $ | 0.18 | $ | 0.19 | ||||||||
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| Diluted |
$ | 0.11 | $ | 0.12 | $ | 0.18 | $ | 0.19 | ||||||||
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| Weighted average shares outstanding: |
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| Basic |
36,242 | 36,300 | 36,337 | 36,299 | ||||||||||||
| Diluted |
36,242 | 36,300 | 36,337 | 36,299 | ||||||||||||
DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
| September 30, 2013 |
September 30, 2012 |
December 31, 2012 |
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| ASSETS |
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| Current assets: |
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| Cash |
$ | 35 | $ | 775 | $ | 15 | ||||||
| Accounts receivable |
10,550 | 9,413 | 224 | |||||||||
| Inventories |
123 | 126 | 124 | |||||||||
| Prepaid expenses and other |
882 | 1,040 | 1,222 | |||||||||
| Deferred income taxes |
85 | 71 | 78 | |||||||||
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| Total current assets |
11,675 | 11,425 | 1,663 | |||||||||
| Property and equipment, net |
90,674 | 93,715 | 92,896 | |||||||||
| Other assets |
844 | 780 | 738 | |||||||||
| Deferred income taxes |
462 | 460 | 490 | |||||||||
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| Total assets |
$ | 103,655 | $ | 106,380 | $ | 95,787 | ||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 83 | 87 | $ | 145 | |||||||
| Accrued liabilities |
4,865 | 4,413 | 2,903 | |||||||||
| Payable to Dover Downs Gaming & Entertainment, Inc. |
12 | — | — | |||||||||
| Income taxes payable |
3,326 | 798 | 132 | |||||||||
| Deferred revenue |
112 | 1,278 | 2,719 | |||||||||
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| Total current liabilities |
8,398 | 6,576 | 5,899 | |||||||||
| Revolving line of credit |
18,080 | 24,620 | 19,700 | |||||||||
| Liability for pension benefits |
2,979 | 2,573 | 3,065 | |||||||||
| Other liabilities |
1,890 | 1,987 | 1,934 | |||||||||
| Deferred income taxes |
17,956 | 18,465 | 17,096 | |||||||||
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| Total liabilities |
49,303 | 54,221 | 47,694 | |||||||||
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| Stockholders’ equity: |
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| Common stock |
1,816 | 1,838 | 1,836 | |||||||||
| Class A common stock |
1,851 | 1,851 | 1,851 | |||||||||
| Additional paid-in capital |
101,600 | 102,098 | 102,166 | |||||||||
| Accumulated deficit |
(48,474 | ) | (51,425 | ) | (55,256 | ) | ||||||
| Accumulated other comprehensive loss |
(2,441 | ) | (2,203 | ) | (2,504 | ) | ||||||
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| Total stockholders’ equity |
54,352 | 52,159 | 48,093 | |||||||||
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| Total liabilities and stockholders’ equity |
$ | 103,655 | $ | 106,380 | $ | 95,787 | ||||||
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DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
| Nine Months Ended September 30, |
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| 2013 | 2012 | |||||||
| Operating activities: |
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| Net earnings |
$ | 6,782 | $ | 6,927 | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: |
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| Depreciation |
2,469 | 2,491 | ||||||
| Amortization of credit facility fees |
189 | 170 | ||||||
| Stock-based compensation |
233 | 247 | ||||||
| Deferred income taxes |
654 | 3,689 | ||||||
| Provision for contingent obligation |
(44 | ) | (268 | ) | ||||
| Gain on sale of property and equipment |
(138 | ) | — | |||||
| Loss on sale of land |
— | 52 | ||||||
| Changes in assets and liabilities: |
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| Accounts receivable |
(10,326 | ) | (8,724 | ) | ||||
| Inventories |
1 | (11 | ) | |||||
| Prepaid expenses and other |
85 | 194 | ||||||
| Accounts payable |
(62 | ) | (29 | ) | ||||
| Accrued liabilities |
1,962 | 1,829 | ||||||
| Payable to/receivable from Dover Downs Gaming & Entertainment, Inc. |
12 | 11 | ||||||
| Income taxes payable |
3,378 | 654 | ||||||
| Deferred revenue |
(2,607 | ) | (1,851 | ) | ||||
| Other liabilities |
(15 | ) | (75 | ) | ||||
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| Net cash provided by operating activities |
2,573 | 5,306 | ||||||
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| Investing activities: |
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| Capital expenditures |
(247 | ) | (464 | ) | ||||
| Proceeds from sale of property and equipment |
138 | 585 | ||||||
| Purchase of available-for-sale securities |
(78 | ) | (100 | ) | ||||
| Proceeds from sale of available-for-sale securities |
73 | — | ||||||
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| Net cash (used in) provided by investing activities |
(114 | ) | 21 | |||||
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| Financing activities: |
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| Borrowings from revolving line of credit |
22,280 | 15,820 | ||||||
| Repayments on revolving line of credit |
(23,900 | ) | (20,360 | ) | ||||
| Repurchase of common stock |
(819 | ) | (27 | ) | ||||
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| Net cash used in financing activities |
(2,439 | ) | (4,567 | ) | ||||
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| Net increase in cash |
20 | 760 | ||||||
| Cash, beginning of period |
15 | 15 | ||||||
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| Cash, end of period |
$ | 35 | $ | 775 | ||||
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