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Dover Motorsports, Inc. Reports Results for the First Quarter Ended March 31, 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 OPERATIONS
In 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 SHEETS
In Thousands
(Unaudited)
 
 

March 31,

March 31,

December 31,

2021

2020

2020

 
ASSETS
Current 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' EQUITY
Current 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' equity

$

90,600

$

79,281

$

87,546

DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In 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:
Depreciation

763

768

Amortization of credit facility fees

15

14

Stock-based compensation

124

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 liabilities

17

(1,030

)

Contract liabilities

6,330

1,933

Liability for pension benefits

(101

)

(37

)

Net cash provided by (used in) operating activities

980

(2,332

)

 
Investing activities:
Capital expenditures

(2,538

)

(115

)

Purchases of equity investments

(4

)

(196

)

Proceeds from sale of equity investments

11

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 period

12,568

7,577

Cash, end of period

$

10,862

$

5,032

Contacts:

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

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