Business Wire | Oct 28, 2021 06:55AM EDT

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

Oct. 28, 2021

DOVER, Del.--(BUSINESS WIRE)--Oct. 28, 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.

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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020

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

Event-related 1,238 2,394 8,435 2,708

Broadcasting - 35,646 37,039 35,646

Other - 4 31 4

1,238 38,044 51,291 38,358

Expenses:Operating and marketing 839 22,425 31,840 24,225

General and administrative 2,040 1,878 6,498 5,742

Depreciation 942 756 2,514 2,289

Cost to remove long-lived assets - - - 341

3,821 25,059 40,852 32,597

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 (2,513) 18,025 19,801 10,797taxes 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 commonshare:Basic $ (0.05) $ 0.36 $ 0.40 $ 0.26

Diluted $ (0.05) $ 0.36 $ 0.40 $ 0.26

Weighted average sharesoutstanding:Basic 35,914 35,836 35,914 35,836

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

DOVER MOTORSPORTS, INC.CONSOLIDATED BALANCE SHEETSIn Thousands(Unaudited)September 30,September 30,December 31,2021

2020

2020

ASSETSCurrent assets:Cash$

23,683

$

21,327

$

12,568

Accounts receivable1,663

1,232

601

Inventories24

18

18

Prepaid expenses and other1,057

994

1,557

Income taxes receivable-

-

24

Assets held for sale-

-

5,844

Total current assets26,427

23,571

20,612

Property and equipment, net70,818

68,125

63,075

Right of use asset156

131

112

Deferred income taxes1,256

-

2,425

Other assets1,469

1,205

1,322

Total assets$

100,126

$

93,032

$

87,546

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$

137

$

793

$

570

Accrued liabilities3,288

3,559

3,463

Income taxes payable1,293

2,674

-

Contract liabilities711

1,425

1,395

Non-refundable deposit-

-

500

Total current liabilities5,429

8,451

5,928

Liability for pension benefits496

786

871

Lease liability79

53

33

Provision for contingent obligation2,677

3,276

3,218

Deferred income taxes9,034

6,888

8,469

Total liabilities17,715

19,454

18,519

Stockholders' equity:Common stock1,791

1,786

1,786

Class A common stock1,851

1,851

1,851

Additional paid-in capital101,293

101,152

101,207

Accumulated deficit(18,812)

(27,607)

(32,032)

Accumulated other comprehensive loss(3,712)

(3,604)

(3,785)

Total stockholders' equity82,411

73,578

69,027

Total liabilities and stockholders' equity$

100,126

$

93,032

$

87,546

DOVER MOTORSPORTS, INC.CONSOLIDATED BALANCE SHEETSIn Thousands(Unaudited) September September December 30, 30, 31, 2021 2020 2020

ASSETSCurrent assets:Cash $ 23,683 $ 21,327 $ 12,568

Accounts receivable 1,663 1,232 601

Inventories 24 18 18

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

Other assets 1,469 1,205 1,322

Total assets $ 100,126 $ 93,032 $ 87,546

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable $ 137 $ 793 $ 570

Accrued liabilities 3,288 3,559 3,463

Income taxes payable 1,293 2,674 -

Contract liabilities 711 1,425 1,395

Non-refundable deposit - - 500

Total current liabilities 5,429 8,451 5,928

Liability for pension benefits 496 786 871

Lease liability 79 53 33

Provision for contingent obligation 2,677 3,276 3,218

Deferred income taxes 9,034 6,888 8,469

Total liabilities 17,715 19,454 18,519

Stockholders' equity:Common stock 1,791 1,786 1,786

Class A common stock 1,851 1,851 1,851

Additional paid-in capital 101,293 101,152 101,207

Accumulated deficit (18,812) (27,607) (32,032)

Accumulated other comprehensive loss (3,712) (3,604) (3,785)

Total stockholders' equity 82,411 73,578 69,027

Total liabilities and stockholders' $ 100,126 $ 93,032 $ 87,546equityDOVER MOTORSPORTS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSIn Thousands(Unaudited)Nine Months EndedSeptember 30,2021

2020

Operating activities:Net earnings$

14,678

$

9,361

Adjustments to reconcile net earnings tonet cash provided by operating activities:Depreciation2,514

2,289

Amortization of credit facility fees47

42

Stock-based compensation208

256

Deferred income taxes1,698

(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:Accounts receivable(1,062)

(587)

Inventories(6)

-

Prepaid expenses and other428

171

Accounts payable(201)

658

Accrued liabilities(145)

(266)

Income taxes payable/receivable1,317

2,957

Contract liabilities(684)

449

Liability for pension benefits(266)

(109)

Net cash provided by operating activities9,389

8,440

Investing activities:Capital expenditures(10,489)

(545)

Proceeds from sale of land and equipment, net13,826

5,960

Purchases of equity securities(76)

(316)

Proceeds from sale of equity securities78

305

Net cash provided by investing activities3,339

5,404

Financing activities:Borrowings from revolving line of credit-

3,880

Repayments on revolving line of credit-

(3,880)

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 in cash11,115

13,750

Cash, beginning of period12,568

7,577

Cash, end of period$

23,683

$

21,327

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