Attached files
| file | filename |
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| 8-K - FORM 8-K - DOVER MOTORSPORTS INC | d340906d8k.htm |
Exhibit 99.1
| FOR IMMEDIATE RELEASE | For further information, call: | |
| Timothy R. Horne - Sr. Vice President - Finance | ||
| Dover, Delaware, April 26, 2012 | (302) 857-3292 |
DOVER MOTORSPORTS, INC. REPORTS RESULTS
FOR THE QUARTER ENDED MARCH 31, 2012
Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the quarter ended March 31, 2012.
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 2012 or 2011.
We previously announced that the Company’s Nashville facility notified NASCAR that it did not seek 2012 sanction agreements for its two Nationwide Series and two Camping World Truck Series events. We are hosting race team testing during 2012 at Nashville and we will continue to evaluate all of our options for the facility.
Revenues for the first quarter of 2012 were $126,000 compared with $130,000 in the first quarter of 2011. Operating and marketing expenses were $1,100,000 in the first quarter of 2012 compared to $1,288,000 in the first quarter of 2011. The decrease is primarily due to the reduced operations in Nashville.
General and administrative expenses of $1,970,000 in the first quarter of 2012 were down from $2,151,000 in the first quarter of 2011. The decrease is primarily due to lower employee costs in Dover.
Depreciation expense of $837,000 in the first quarter of 2012 decreased from $1,413,000 in the first quarter of 2011 primarily due to the previously recorded impairment charge in the third quarter of 2011 of all depreciable assets of the Nashville facility.
Net interest expense was $401,000 in the first quarter of 2012 compared to $841,000 in the first quarter of 2011. The decrease is primarily due to lower average outstanding borrowings and lower interest rates and fees in the first quarter of 2012 compared to the first quarter of 2011.
Loss from continuing operations before income tax benefit in the first quarter of 2012 was $4,142,000 compared with a loss of $5,559,000 in the first quarter of 2011.
The effective income tax rate was a benefit of 36.7% for the first quarter of 2012 compared to a benefit of 37.1% for the first quarter of 2011.
Net loss for the first quarter of 2012 was $2,623,000 or $.07 per diluted share compared with a loss of $3,566,000 or $.10 per diluted share in the first quarter of 2011.
Net cash used in operations in the first quarter of 2012 was $846,000 compared to $839,000 in the first quarter of 2011.
Capital spending was $90,000 in the first quarter of 2012 compared with $123,000 in the first quarter of 2011. The Company received proceeds of $1,875,000 related to the sale of the Memphis facility in January 2011.
At March 31, 2012, the Company’s total indebtedness was $30,120,000 compared with $37,500,000 at March 31, 2011.
* * *
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 motorsports events in the United States. Its motorsports subsidiaries operate two motorsports tracks in two states and promote NASCAR sanctioned and other motorsports events. The Company owns and operates Dover International Speedway in Dover, Delaware and Nashville Superspeedway near Nashville, Tennessee. For further information, log on to www.dovermotorsports.com.
DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
In Thousands, Except Per Share Amounts
(Unaudited)
| Three Months Ended March 31, |
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| 2012 | 2011 | |||||||
| Revenues: |
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| Event-related |
$ | 119 | $ | 30 | ||||
| Other |
7 | 100 | ||||||
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| 126 | 130 | |||||||
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| Expenses: |
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| Operating and marketing |
1,100 | 1,288 | ||||||
| General and administrative |
1,970 | 2,151 | ||||||
| Depreciation |
837 | 1,413 | ||||||
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| 3,907 | 4,852 | |||||||
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| Operating loss |
(3,781 | ) | (4,722 | ) | ||||
| Interest expense, net |
(401 | ) | (841 | ) | ||||
| Provision for contingent obligation |
40 | — | ||||||
| Other income |
— | 4 | ||||||
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| Loss from continuing operations before income tax benefit |
(4,142 | ) | (5,559 | ) | ||||
| Income tax benefit |
1,519 | 2,061 | ||||||
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| Loss from continuing operations |
(2,623 | ) | (3,498 | ) | ||||
| Loss from discontinued operation, net of income tax benefit |
— | (68 | ) | |||||
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| Net loss |
$ | (2,623 | ) | $ | (3,566 | ) | ||
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| Net loss per common share - basic: |
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| Continuing operations |
$ | (0.07 | ) | $ | (0.10 | ) | ||
| Discontinued operation |
— | — | ||||||
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| Net loss |
$ | (0.07 | ) | $ | (0.10 | ) | ||
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| Net loss per common share - diluted: |
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| Continuing operations |
$ | (0.07 | ) | $ | (0.10 | ) | ||
| Discontinued operation |
— | — | ||||||
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| Net loss |
$ | (0.07 | ) | $ | (0.10 | ) | ||
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| Weighted average shares outstanding: |
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| Basic |
36,297 | 36,192 | ||||||
| Diluted |
36,297 | 36,192 | ||||||
DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
| March 31, 2012 |
March 31, 2011 |
December 31, 2011 |
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| ASSETS |
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| Current assets: |
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| Cash |
$ | 12 | $ | 229 | $ | 15 | ||||||
| Accounts receivable |
3,269 | 2,782 | 689 | |||||||||
| Inventories |
115 | 236 | 115 | |||||||||
| Prepaid expenses and other |
1,441 | 1,912 | 1,255 | |||||||||
| Receivable from Dover Downs Gaming & Entertainment, Inc. |
— | — | 11 | |||||||||
| Prepaid income taxes |
331 | 260 | — | |||||||||
| Deferred income taxes |
74 | 231 | 67 | |||||||||
| Current assets of discontinued operation |
— | 52 | — | |||||||||
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| Total current assets |
5,242 | 5,702 | 2,152 | |||||||||
| Property and equipment, net |
95,633 | 115,039 | 96,380 | |||||||||
| Other assets |
772 | 543 | 783 | |||||||||
| Deferred income taxes |
454 | 166 | 496 | |||||||||
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| Total assets |
$ | 102,101 | $ | 121,450 | $ | 99,811 | ||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 195 | $ | 232 | $ | 116 | ||||||
| Accrued liabilities |
1,766 | 1,452 | 2,584 | |||||||||
| Payable to Dover Downs Gaming & Entertainment, Inc. |
1 | 27 | — | |||||||||
| Income taxes payable |
— | — | 145 | |||||||||
| Deferred revenue |
9,161 | 10,319 | 3,129 | |||||||||
| Current liabilities of discontinued operation |
— | 86 | — | |||||||||
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| Total current liabilities |
11,123 | 12,116 | 5,974 | |||||||||
| Revolving line of credit |
30,120 | 37,500 | 29,160 | |||||||||
| Liability for pension benefits |
2,652 | 2,299 | 2,713 | |||||||||
| Other liabilities |
2,215 | 130 | 2,250 | |||||||||
| Non current income taxes payable |
— | 1,241 | — | |||||||||
| Deferred income taxes |
13,566 | 17,099 | 14,765 | |||||||||
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| Total liabilities |
59,676 | 70,385 | 54,862 | |||||||||
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| Stockholders’ equity: |
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| Common stock |
1,838 | 1,832 | 1,828 | |||||||||
| Class A common stock |
1,851 | 1,851 | 1,851 | |||||||||
| Additional paid-in capital |
101,942 | 101,621 | 101,888 | |||||||||
| Accumulated deficit |
(60,975 | ) | (52,733 | ) | (58,352 | ) | ||||||
| Accumulated other comprehensive loss |
(2,231 | ) | (1,506 | ) | (2,266 | ) | ||||||
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| Total stockholders’ equity |
42,425 | 51,065 | 44,949 | |||||||||
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| Total liabilities and stockholders’ equity |
$ | 102,101 | $ | 121,450 | $ | 99,811 | ||||||
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DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
| Three Months Ended March 31, |
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| 2012 | 2011 | |||||||
| Operating activities: |
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| Net loss |
$ | (2,623 | ) | $ | (3,566 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
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| Depreciation |
837 | 1,413 | ||||||
| Amortization of credit facility fees |
55 | 156 | ||||||
| Stock-based compensation |
91 | 144 | ||||||
| Deferred income taxes |
(1,189 | ) | (1,715 | ) | ||||
| Provision for contingent obligation |
(40 | ) | — | |||||
| Changes in assets and liabilities: |
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| Accounts receivable |
(2,580 | ) | (1,994 | ) | ||||
| Inventories |
— | (4 | ) | |||||
| Prepaid expenses and other |
(191 | ) | (343 | ) | ||||
| Prepaid income taxes/income taxes payable |
(475 | ) | (382 | ) | ||||
| Accounts payable |
79 | 86 | ||||||
| Accrued liabilities |
(818 | ) | (1,380 | ) | ||||
| Payable to/receivable from Dover Downs Gaming & Entertainment, Inc. |
12 | 9 | ||||||
| Deferred revenue |
6,032 | 6,675 | ||||||
| Other liabilities |
(36 | ) | 62 | |||||
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| Net cash used in operating activities |
(846 | ) | (839 | ) | ||||
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| Investing activities: |
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| Capital expenditures |
(90 | ) | (123 | ) | ||||
| Proceeds from the sale of property and equipment |
— | 1,875 | ||||||
| Proceeds from the sale of available-for-sale securities |
— | 69 | ||||||
| Purchase of available-for-sale securities |
— | (70 | ) | |||||
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| Net cash (used in) provided by investing activities |
(90 | ) | 1,751 | |||||
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| Financing activities: |
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| Borrowings from revolving line of credit |
2,260 | 3,100 | ||||||
| Repayments on revolving line of credit |
(1,300 | ) | (3,800 | ) | ||||
| Repurchase of common stock |
(27 | ) | (52 | ) | ||||
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| Net cash provided by (used in) financing activities |
933 | (752 | ) | |||||
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| Net (decrease) increase in cash |
(3 | ) | 160 | |||||
| Cash, beginning of period |
15 | 69 | ||||||
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| Cash, end of period |
$ | 12 | $ | 229 | ||||
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