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

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DOVER, Del., October 28, 2021--(BUSINESS WIRE)--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 EARNINGS

In 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 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:

Basic

$

(0.05)

$

0.36

$

0.40

$

0.26

Diluted

$

(0.05)

$

0.36

$

0.40

$

0.26

Weighted average shares outstanding:

Basic

35,914

35,836

35,914

35,836

Diluted

35,914

35,836

35,914

35,836

DOVER MOTORSPORTS, INC.

CONSOLIDATED BALANCE SHEETS

In Thousands

(Unaudited)

September 30,

September 30,

December 31,

2021

2020

2020

ASSETS

Current 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' EQUITY

Current 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' equity

$

100,126

$

93,032

$

87,546

DOVER MOTORSPORTS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

In Thousands

(Unaudited)

Nine Months Ended

September 30,

2021

2020

Operating activities:

Net earnings

$

14,678

$

9,361

Adjustments to reconcile net earnings to

net cash provided by operating activities:

Depreciation

2,514

2,289

Amortization of credit facility fees

47

42

Stock-based compensation

208

256

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:

Accounts receivable

(1,062)

(587)

Inventories

(6)

-

Prepaid expenses and other

428

171

Accounts payable

(201)

658

Accrued liabilities

(145)

(266)

Income taxes payable/receivable

1,317

2,957

Contract liabilities

(684)

449

Liability for pension benefits

(266)

(109)

Net cash provided by operating activities

9,389

8,440

Investing activities:

Capital expenditures

(10,489)

(545)

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

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 cash

11,115

13,750

Cash, beginning of period

12,568

7,577

Cash, end of period

$

23,683

$

21,327

View source version on businesswire.com: https://www.businesswire.com/news/home/20211028005172/en/

Contacts

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

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