Dover Motorsports, Inc. Reports Results for the Fourth Quarter and Year Ended December 31, 2020

Rhea-AI Summary

Dover Motorsports, Inc. (NYSE: DVD) reported Q4 2020 revenues of $185,000, a significant decline from $20,794,000 in Q4 2019, attributed to the lack of major events. Operating and marketing expenses dropped to $996,000 from $12,255,000 in the previous year. General and administrative expenses rose slightly to $1,934,000. The company incurred a loss before tax of $3,377,000, contrasting with a profit of $3,809,000 in Q4 2019. Net loss for the quarter was $1,879,000 or $0.05 per share. Despite losses, Dover Motorsports holds approximately $13 million in cash with no debt outstanding.

Positive

• No outstanding indebtedness as of December 31, 2020.
• Approximately $13 million in available cash.

Negative

• Revenues fell dramatically to $185,000 from $20,794,000 year-over-year.
• Net loss of $1,879,000 compared to a profit of $2,903,000 in Q4 2019.
• Increased general and administrative expenses to $1,934,000 from $1,894,000.

Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the fourth quarter and year ended December 31, 2020.

We held no major events during the fourth quarter this year. During the fourth quarter of 2019, we held our fall NASCAR weekend, which consisted of a K&N Pro Series East event, an Xfinity Series event and a NASCAR Cup Series event. Accordingly, the results for the fourth quarter of 2020 are not comparable to last year.

Revenues for the fourth quarter of 2020 were $185,000 compared to $20,794,000 in the fourth quarter of 2019. Operating and marketing expenses were $996,000 in the fourth quarter of 2020 compared to $12,255,000 in the fourth quarter of 2019. Both decreases were primarily from the aforementioned schedule difference.

General and administrative expenses increased to $1,934,000 in the fourth quarter of 2020 compared to $1,894,000 in the fourth quarter of 2019, primarily from the reopening of Nashville Superspeedway.

Depreciation expense in the fourth quarter of 2020 decreased to $757,000 from $1,097,000 in the fourth quarter of 2019. The decrease is due to $293,000 of accelerated depreciation expense in the fourth quarter of 2019 related to the removal of grandstand seats at our Dover facility.

We incurred $1,170,000 in costs related to the removal of the grandstands during the fourth quarter of 2019.

The adjustment to the contingent obligation was a benefit of $59,000 during the fourth quarter of 2020 compared to an expense of $638,000 in the fourth quarter of 2019. The current year benefit was primarily the result of an increase in the discount rate.

Loss before income taxes for the fourth quarter of 2020 was ($3,377,000) compared to earnings before income taxes of $3,809,000 in the fourth quarter of 2019.

The Company’s effective income tax rate was a benefit of 44.4% in the fourth quarter of 2020 and was impacted by the reversal of a portion of a previously booked valuation allowance on Tennessee state deferred tax assets, which we now expect to realize after entering into an agreement during the fourth quarter to sell approximately 350 acres of property near our Nashville Superspeedway facility.

Net loss for the fourth quarter of 2020 was ($1,879,000) or ($.05) per diluted share compared to net earnings of $2,903,000 or $.08 per diluted share in the fourth quarter of 2019. Net earnings for the fourth quarter of 2019, adjusted for the accelerated depreciation and grandstand removal costs, were $3,958,000.

As of December 31, 2020, the Company had no outstanding indebtedness and approximately $13 million in available cash.

* * *

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 (LOSS)
In Thousands, Except Per Share Amounts
(Unaudited)
	Three Months Ended								Years Ended
	December 31,								December 31,
		2020				2019				2020				2019
Revenues:
Admissions	$	-			$	2,466			$	-			$	4,968
Event-related		177				2,929				2,885				6,713
Broadcasting		-				15,389				35,646				34,267
Other		8				10				12				15
		185				20,794				38,543				45,963
Expenses:
Operating and marketing		996				12,255				25,221				29,241
General and administrative		1,934

FAQ

What were the Q4 2020 revenue results for Dover Motorsports (DVD)?

Dover Motorsports reported Q4 2020 revenues of $185,000, down from $20,794,000 in Q4 2019.

How much cash does Dover Motorsports (DVD) have as of December 31, 2020?

Dover Motorsports has approximately $13 million in available cash as of December 31, 2020.

What was Dover Motorsports' (DVD) net loss in Q4 2020?

The net loss for Q4 2020 was $1,879,000 or $0.05 per diluted share.

Did Dover Motorsports (DVD) incur any debt in 2020?

Dover Motorsports reported no outstanding indebtedness as of December 31, 2020.