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

Dover Motorsports, Inc. Reports Results for the Second Quarter Of 2021

Jul. 29, 2021

DOVER, Del.--(BUSINESS WIRE)--Jul. 29, 2021--Dover Motorsports, Inc. (NYSE: DVD) today reported results for the three months ended June 30, 2021.

The Company held a NASCAR triple-header weekend at Dover International Speedway in May and a NASCAR triple-header weekend, which included the return of NASCAR Cup Series racing to the Nashville market, at Nashville Superspeedway in June.

No events were held during the second quarter of 2020 as the COVID-19 pandemic caused the postponement of the Company's scheduled May NASCAR weekend and the cancelation of the Firefly Music Festival. The three NASCAR events originally scheduled to be held in May 2020 were held without fans in combination with the August 2020 NASCAR weekend events. Accordingly, the results for the second quarter are not comparable to last year.

Revenues for the second quarter of 2021 increased to $49,896,000 from $110,000 for the second quarter of 2020, reflecting the timing of events described above.

The quarter was highlighted by our reopening of Nashville Superspeedway with a Father's Day sellout crowd, which required temporary grandstands to accommodate. It was the first full grandstand sellout for NASCAR this year. Broadcast ratings for the ALLY 400 were 22% higher for NBCSN's telecast compared with the previous year's same date event and it was the second highest rated sports event on cable that week behind the NBA playoffs. Denis McGlynn, the Company's President and Chief Executive Officer, stated: "There was an overwhelmingly positive response to the Nashville events from fans, race teams, sponsors and media representatives and we are looking forward to hosting another NASCAR weekend in Nashville next year."

Dover International Speedway's admissions and per cap related revenues were impacted by state-mandated restrictions that limited attendance to 20,000 patrons. The event was an operational success and had strong corporate sponsorship and contracted increases in broadcast revenue.

Operating and marketing expenses were $29,405,000 in the second quarter of 2021 compared to $812,000 in the second quarter of 2020.

General and administrative expenses were $2,203,000 in the second quarter of 2021 compared to $1,877,000 in the second quarter of 2020.

Depreciation expense increased to $809,000 for the second quarter of 2021 compared to $765,000 for the second quarter of 2020, primarily from depreciation for the capital expenditures related to the reopening of Nashville Superspeedway.

On May 26, 2021, we closed on the sale of approximately 350 acres of property near Nashville Superspeedway. Proceeds from the sale, less closing costs, were approximately $14,300,000, resulting in a gain of $8,510,000. The purchaser had previously paid a $500,000 deposit that was credited to the purchase price.

The adjustment to the contingent obligation relating to the Tennessee revenue bonds was a benefit of $500,000 in the second quarter of 2021, primarily from higher than anticipated sales taxes collected available for debt service. The benefit of $353,000 in the second quarter of 2020 was primarily from changed sales tax assumptions associated with the planned reopening of Nashville Superspeedway.

Earnings before income taxes for the second quarter of 2021 were $26,627,000 compared to a loss before income taxes for the second quarter of 2020 of ($2,844,000).

The Company's effective income tax rate was an expense of 25.8% compared to a benefit of 75.8% in the second quarter of 2020. The 2020 benefit was the result of reversing a portion of a previously recorded valuation allowance on Tennessee state deferred tax assets as a result of the reopening of the Nashville Superspeedway.

Net earnings for the second quarter of 2021 were $19,745,000, or $0.54 per diluted share, compared to a net loss for the second quarter of 2020 of ($689,000) or ($0.02) per diluted share.

At June 30, 2021, the Company had no outstanding indebtedness and approximately $18.6 million in available cash.

The Firefly Music Festival is scheduled to return to the Woodlands at Dover International Speedway from September 23-26, 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 EARNINGSIn Thousands, Except Per Share Amounts(Unaudited) Three Months Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Revenues: Admissions $ 5,786 $ - $ 5,786 $ -

Event-related 7,040 110 7,197 314

Broadcasting 37,039 - 37,039 -

Other 31 - 31 -

49,896 110 50,053 314

Expenses: Operating and 29,405 812 31,001 1,800 marketingGeneral and 2,203 1,877 4,458 3,864 administrativeDepreciation 809 765 1,572 1,533

Cost to remove 341 long-lived - - - assets 32,417 3,454 37,031 7,538

Gain on sale 8,510 8,510 of land - -

Operating 25,989 (3,344 ) 21,532 (7,224 )earnings (loss) Interest (17 ) (16 ) (32 ) (13 )expense, netBenefit(provision) 500 353 534 (16 )for contingentobligationOther income, 155 163 280 25 net Earnings 26,627 (2,844 ) 22,314 (7,228 )(loss) before income taxes Income tax (6,882 ) 2,155 (5,771 ) 3,399 (expense) benefit Net earnings $ 19,745 $ (689 ) $ 16,543 $ (3,829 )(loss) Net earnings(loss) per common share:Basic $ 0.54 $ (0.02 ) $ 0.45 $ (0.11 )

Diluted $ 0.54 $ (0.02 ) $ 0.45 $ (0.11 )

Weightedaverage shares outstanding:Basic 35,914 35,836 35,914 35,835

Diluted 35,914 35,836 35,914 35,835

DOVER MOTORSPORTS, INC.CONSOLIDATED BALANCE SHEETSIn Thousands(Unaudited)June 30,

June 30,

December 31,

2021

2020

2020

ASSETSCurrent assets:Cash$

18,636

$

2,886

$

12,568

Accounts receivable17,999

1,035

601

Inventories24

18

18

Prepaid expenses and other798

1,493

1,557

Income taxes receivable-

353

24

Assets held for sale-

1,622

5,844

Total current assets37,457

7,407

20,612

Property and equipment, net70,038

68,398

63,075

Right of use asset182

150

112

Deferred income taxes1,208

-

2,425

Other assets1,474

1,156

1,322

Total assets$

110,359

$

77,111

$

87,546

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$

2,493

$

26

$

570

Accrued liabilities6,418

2,948

3,463

Income taxes payable4,115

-

-

Contract liabilities857

3,676

1,395

Non-refundable deposit-

500

500

Total current liabilities13,883

7,150

5,928

Liability for pension benefits621

863

871

Lease liability85

73

33

Provision for contingent obligation2,684

3,404

3,218

Deferred income taxes8,874

5,300

8,469

Total liabilities26,147

16,790

18,519

Stockholders' equity:Common stock1,793

1,788

1,786

Class A common stock1,851

1,851

1,851

Additional paid-in capital101,258

101,112

101,207

Accumulated deficit(16,947

)

(40,797

)

(32,032

)

Accumulated other comprehensive loss(3,743

)

(3,633

)

(3,785

)

Total stockholders' equity84,212

60,321

69,027

Total liabilities and stockholders' equity$

110,359

$

77,111

$

87,546

DOVER MOTORSPORTS, INC.CONSOLIDATED BALANCE SHEETSIn Thousands(Unaudited) June 30, June 30, December 31,

2021 2020 2020

ASSETSCurrentassets:Cash $ 18,636 $ 2,886 $ 12,568

Accounts 17,999 1,035 601 receivable 24 18 Inventories 18

Prepaid 798 1,493 1,557 expenses andotherIncome taxes 353 24 receivable -

Assets held 1,622 5,844 for sale -

Total current 37,457 7,407 20,612 assets Property and 70,038 68,398 63,075 equipment, netRight of use 182 150 112 assetDeferred 1,208 2,425 income taxes -

Other assets 1,474 1,156 1,322

Total assets $ 110,359 $ 77,111 $ 87,546

LIABILITIESANDSTOCKHOLDERS'EQUITYCurrentliabilities:Accounts $ 2,493 $ 26 $ 570 payableAccrued 6,418 2,948 3,463 liabilitiesIncome taxes 4,115 payable - -

Contract 857 3,676 1,395 liabilitiesNon-refundable 500 500 deposit -

Total current 13,883 7,150 5,928 liabilities Liability for 621 863 871 pensionbenefitsLease 85 33 liability 73

Provision for 2,684 3,404 3,218 contingentobligationDeferred 8,874 5,300 8,469 income taxesTotal 26,147 16,790 18,519 liabilities Stockholders'equity:Common stock 1,793 1,788 1,786

Class A common 1,851 1,851 1,851 stockAdditional 101,258 101,112 101,207 paid-incapitalAccumulated (16,947 ) (40,797 ) (32,032 )deficitAccumulatedother (3,743 ) (3,633 ) (3,785 )comprehensivelossTotal 84,212 60,321 69,027 stockholders'equityTotalliabilities $ 110,359 $ 77,111 $ 87,546 andstockholders'equityDOVER MOTORSPORTS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSIn Thousands(Unaudited)Six Months Ended

June 30,

2021

2020

Operating activities:Net earnings (loss)$

16,543

$

(3,829

)

Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:Depreciation1,572

1,533

Amortization of credit facility fees31

28

Stock-based compensation175

218

Deferred income taxes1,599

(3,399

)

Provision for contingent obligation(534

)

16

(Gains) losses on equity securities(92

)

50

Gain on sale of land(8,510

)

-

Changes in assets and liabilities:Accounts receivable(17,398

)

(390

)

Inventories(6

)

-

Prepaid expenses and other701

(321

)

Accounts payable641

(93

)

Accrued liabilities2,964

(762

)

Income taxes payable/receivable4,139

(70

)

Contract liabilities(538

)

2,700

Liability for pension benefits(184

)

(73

)

Net cash provided by (used in) operating activities1,103

(4,392

)

Investing activities:Capital expenditures(7,253

)

(196

)

Proceeds from sale of land and equipment, net13,826

-

Purchases of equity securities(8

)

(240

)

Proceeds from sale of equity securities13

231

Net cash provided by (used in) investing activities6,578

(205

)

Financing activities:Borrowings from revolving line of credit-

180

Repayments on revolving line of credit-

(180

)

Dividends paid(1,458

)

-

Repurchase of common stock(117

)

(94

)

Credit facility fees(38

)

-

Net cash used in financing activities(1,613

)

(94

)

Net increase (decrease) in cash6,068

(4,691

)

Cash, beginning of period12,568

7,577

Cash, end of period$

18,636

$

2,886

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CONTACT: Timothy R. Horne - Sr. Vice President - Finance (302) 883-6592