Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - DOVER MOTORSPORTS INC | tm2114477d3_8k.htm |
EXHIBIT 99.1
| FOR IMMEDIATE RELEASE | For further information, call: |
| Timothy R. Horne – Sr. Vice President - Finance | |
| Dover, Delaware, April 29, 2021 | (302) 883-6592 |
DOVER MOTORSPORTS, INC. REPORTS RESULTS
FOR THE FIRST QUARTER ENDED MARCH 31, 2021
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 | ||||