10/28/2021 | Press release | Distributed by Public on 10/28/2021 06:28
REPORTS RESULTS FOR THE THIRD QUARTER OF 2021
Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the three months ended September 30, 2021.
We hosted the Firefly Music Festival on our property during the third quarter of 2021. In 2020, the COVID-19 pandemic forced the cancelation of the Firefly Music Festival and caused all six of our NASCAR races to be held without fans during the third quarter of 2020. Accordingly, the results for the third quarter of 2021 are not comparable to the third quarter of 2020.
Revenues for the third quarter of 2021 were $1,238,000 and related primarily to the Firefly Music Festival and other miscellaneous revenues. Revenues for the third quarter of 2020 were $38,044,000 and were almost entirely related to the six NASCAR events held during the quarter. Operating and marketing expenses were $839,000 compared to $22,425,000 in the third quarter of 2020. Both decreases were primarily attributable to the aforementioned schedule changes.
General and administrative expenses increased to $2,040,000 in the third quarter of 2021 compared to $1,878,000 in the third quarter of 2020, primarily from the reopening of Nashville Superspeedway.
Depreciation expense increased to $942,000 from $756,000 in the third quarter of 2020, primarily from depreciation for the capital expenditures related to the reopening of Nashville Superspeedway.
In July of 2020 we sold approximately 97 acres of land in Nashville for proceeds less closing costs of approximately $6,460,000, resulting in a gain of $4,843,000.
Loss before income taxes for the third quarter of 2021 was ($2,513,000) compared to earnings before income taxes for the third quarter of 2020 of $18,025,000. The 2020 results include the $4,843,000 gain on sale of the Nashville land.
Net loss for the third quarter of 2021 was ($1,865,000) or ($.05) per diluted share compared to net earnings for the third quarter of 2020 of $13,190,000 or $.36 per diluted share.
For the nine months ended September 30, 2021, revenues where $51,291,000 compared with $38,358,000 in the prior year. Net earnings were $14,678,000 or $0.40 per diluted share compared with $9,361,000 or $0.26 per diluted share in the comparable period of the prior year.
As of September 30, 2021, the Company had no outstanding indebtedness and approximately $23.7 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 $.04 per share. The dividend will be payable on December 10, 2021 to shareholders of record at the close of business on November 10, 2021.
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This release contains or may contain forward-looking statements based on management's beliefs and assumptions. Such statements are subject to various risks and uncertainties which could cause results to vary materially. Please refer to the Company's SEC filings for a discussion of such factors.
Dover Motorsports, Inc. is a promoter of NASCAR sanctioned and other motorsports events in the United States whose subsidiaries own and operate Dover International Speedway in Dover, Delaware and Nashville Superspeedway near Nashville, Tennessee. For further information, log on to dovermotorsports.com.
DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
In Thousands, Except Per Share Amounts
|Three Months Ended||Nine Months Ended|
|September 30,||September 30,|
|Operating and marketing||839||22,425||31,840||24,225|
|General and administrative||2,040||1,878||6,498||5,742|
|Cost to remove long-lived assets||-||-||-||341|
|Gain on sale of land||-||4,843||8,510||4,843|
|Operating (loss) earnings||(2,583||)||17,828||18,949||10,604|
|Interest expense, net||(14||)||(21||)||(46||)||(34||)|
|Benefit for contingent obligation||7||128||541||112|
|Other income, net||77||90||357||115|
|(Loss) earnings before income taxes||(2,513||)||18,025||19,801||10,797|
|Income tax benefit (expense)||648||(4,835||)||(5,123||)||(1,436||)|
|Net (loss) earnings||$||(1,865||)||$||13,190||$||14,678||$||9,361|
|Net (loss) earnings per common share:|
|Weighted average shares outstanding:|
DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
|September 30,||September 30,||December 31,|
|Prepaid expenses and other||1,057||994||1,557|
|Income taxes receivable||-||-||24|
|Assets held for sale||-||-||5,844|
|Total current assets||26,427||23,571||20,612|
|Property and equipment, net||70,818||68,125||63,075|
|Right of use asset||156||131||112|
|Deferred income taxes||1,256||-||2,425|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Income taxes payable||1,293||2,674||-|
|Total current liabilities||5,429||8,451||5,928|
|Liability for pension benefits||496||786||871|
|Provision for contingent obligation||2,677||3,276||3,218|
|Deferred income taxes||9,034||6,888||8,469|
|Class A common stock||1,851||1,851||1,851|
|Additional paid-in capital||101,293||101,152||101,207|
|Accumulated other comprehensive loss||(3,712||)||(3,604||)||(3,785||)|
|Total stockholders' equity||82,411||73,578||69,027|
|Total liabilities and stockholders' equity||$||100,126||$||93,032||$||87,546|
DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
|Nine Months Ended|
|Adjustments to reconcile net earnings to|
|net cash provided by operating activities:|
|Amortization of credit facility fees||47||42|
|Deferred income taxes||1,698||(1,822||)|
|Benefit for contingent obligation||(541||)||(112||)|
|Gains on equity securities||(86||)||(4||)|
|Gain on sale of land||(8,510||)||(4,843||)|
|Changes in assets and liabilities:|
|Prepaid expenses and other||428||171|
|Income taxes payable/receivable||1,317||2,957|
|Liability for pension benefits||(266||)||(109||)|
|Net cash provided by operating activities||9,389||8,440|
|Proceeds from sale of land and equipment, net||13,826||5,960|
|Purchases of equity securities||(76||)||(316||)|
|Proceeds from sale of equity securities||78||305|
|Net cash provided by investing activities||3,339||5,404|
|Borrowings from revolving line of credit||-||3,880|
|Repayments on revolving line of credit||-||(3,880||)|
|Repurchase of common stock||(117||)||(94||)|
|Credit facility fees||(38||)||-|
|Net cash used in financing activities||(1,613||)||(94||)|
|Net increase in cash||11,115||13,750|
|Cash, beginning of period||12,568||7,577|
|Cash, end of period||$||23,683||$||21,327|