Business Wire | Apr 29, 2021 06:55AM EDT

Dover Motorsports, Inc. Reports Results for the First Quarter Ended March 31, 2021

Apr. 29, 2021

DOVER, Del.--(BUSINESS WIRE)--Apr. 29, 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 OPERATIONSIn 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 SHEETSIn Thousands(Unaudited)March 31,

March 31,

December 31,

2021

2020

2020

ASSETSCurrent assets:Cash$

10,862

$

5,032

$

12,568

Accounts receivable2,003

777

601

Inventories18

18

18

Prepaid expenses and other1,709

1,265

1,557

Income taxes receivable24

283

24

Assets held for sale5,844

-

5,844

Total current assets20,460

7,375

20,612

Property and equipment, net66,148

70,704

63,075

Right of use asset207

169

112

Deferred income taxes2,425

-

2,425

Other assets1,360

1,033

1,322

Total assets$

90,600

$

79,281

$

87,546

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$

1,623

$

104

$

570

Accrued liabilities3,504

2,680

3,463

Contract liabilities7,725

2,909

1,395

Non-refundable deposit500

-

500

Total current liabilities13,352

5,693

5,928

Liability for pension benefits746

939

871

Lease liability105

93

33

Non-refundable deposit-

500

-

Provision for contingent obligation3,184

3,757

3,218

Deferred income taxes7,370

7,444

8,469

Total liabilities24,757

18,426

18,519

Stockholders' equity:Common stock1,793

1,790

1,786

Class A common stock1,851

1,851

1,851

Additional paid-in capital101,207

100,984

101,207

Accumulated deficit(35,234

)

(40,108

)

(32,032

)

Accumulated other comprehensive loss(3,774

)

(3,662

)

(3,785

)

Total stockholders' equity65,843

60,855

69,027

Total liabilities and stockholders' equity$

90,600

$

79,281

$

87,546

DOVER MOTORSPORTS, INC.CONSOLIDATED BALANCE SHEETSIn Thousands(Unaudited) March 31, March 31, December 31,

2021 2020 2020

ASSETSCurrent 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' EQUITYCurrent 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' $ 90,600 $ 79,281 $ 87,546 equityDOVER MOTORSPORTS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSIn 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:Depreciation763

768

Amortization of credit facility fees15

14

Stock-based compensation124

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 liabilities17

(1,030

)

Contract liabilities6,330

1,933

Liability for pension benefits(101

)

(37

)

Net cash provided by (used in) operating activities980

(2,332

)

Investing activities:Capital expenditures(2,538

)

(115

)

Purchases of equity investments(4

)

(196

)

Proceeds from sale of equity investments11

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 period12,568

7,577

Cash, end of period$

10,862

$

5,032

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