Dover Motorsports, Inc. Reports Results for the Second Quarter Of 2021
Dover Motorsports, Inc. (NYSE: DVD) reported significant revenue growth for Q2 2021, rising to $49.9 million from $110,000 in Q2 2020 due to resumed NASCAR events. Highlights include a sellout crowd at the Nashville Superspeedway and increased broadcast ratings for the ALLY 400. Earnings before taxes were $26.6 million, compared to a loss in the previous year. Net earnings were $19.7 million, or $0.54 per diluted share. The company ended the quarter debt-free with $18.6 million in cash. The Firefly Music Festival is set to return in September 2021.
- Revenue increased to $49.9 million, showing strong post-pandemic recovery.
- Net earnings reached $19.7 million, a significant turnaround from a net loss in Q2 2020.
- Successful reopening of Nashville Superspeedway with a sellout crowd.
- Earnings before taxes were $26.6 million, reflecting operational success.
- Company remained debt-free with $18.6 million in available cash.
- Attendance at Dover International Speedway was limited to 20,000 due to state restrictions.
- Operating and marketing expenses surged to $29.4 million, up from $812,000 in Q2 2020.
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
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
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
General and administrative expenses were
Depreciation expense increased to
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
The adjustment to the contingent obligation relating to the Tennessee revenue bonds was a benefit of
Earnings before income taxes for the second quarter of 2021 were
The Company’s effective income tax rate was an expense of
Net earnings for the second quarter of 2021 were
At June 30, 2021, the Company had no outstanding indebtedness and approximately
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 EARNINGS | ||||||||||||||||
| In 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 marketing |
|
29,405 |
|
|
812 |
|
|
31,001 |
|
|
1,800 |
|
||||
| General and administrative |
|
2,203 |
|
|
1,877 |
|
|
4,458 |
|
|
3,864 |
|
||||
| Depreciation |
|
809 |
|
|
765 |
|
|
1,572 |
|
|
1,533 |
|
||||
| Cost to remove long-lived assets |
|
- |
|
|
- |
|
|
- |
|
|
341 |
|
||||
|
32,417 |
|
|
3,454 |
|
|
37,031 |
|
|
7,538 |
|
|||||
| Gain on sale of land |
|
8,510 |
|
|
- |
|
|
8,510 |
|
|
- |
|
||||
| Operating earnings (loss) |
|
25,989 |
|
|
(3,344 |
) |
|
21,532 |
|
|
(7,224 |
) |
||||
| Interest expense, net |
|
(17 |
) |
|
(16 |
) |
|
(32 |
) |
|
(13 |
) |
||||
| Benefit (provision) for contingent obligation |
|
500 |
|
|
353 |
|
|
534 |
|
|
(16 |
) |
||||
| Other income, net |
|
155 |
|
|
163 |
|
|
280 |
|
|
25 |
|
||||
| Earnings (loss) before income taxes |
|
26,627 |
|
|
(2,844 |
) |
|
22,314 |
|
|
(7,228 |
) |
||||
| Income tax (expense) benefit |
|
(6,882 |
) |
|
2,155 |
|
|
(5,771 |
) |
|
3,399 |
|
||||
| Net earnings (loss) | $ |
19,745 |
|
$ |
(689 |
) |
$ |
16,543 |
|
$ |
(3,829 |
) |
||||
| Net earnings (loss) per common share: | ||||||||||||||||
| Basic | $ |
0.54 |
|
$ |
(0.02 |
) |
$ |
0.45 |
|
$ |
(0.11 |
) |
||||
| Diluted | $ |
0.54 |
|
$ |
(0.02 |
) |
$ |
0.45 |
|
$ |
(0.11 |
) |
||||
| Weighted average 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 SHEETS | ||||||||||||
| In Thousands | ||||||||||||
| (Unaudited) | ||||||||||||
June 30, |
|
June 30, |
|
December 31, |
||||||||
2021 |
|
2020 |
|
2020 |
||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash | $ |
18,636 |
|
$ |
2,886 |
|
$ |
12,568 |
|
|||
| Accounts receivable |
|
17,999 |
|
|
1,035 |
|
|
601 |
|
|||
| Inventories |
|
24 |
|
|
18 |
|
|
18 |
|
|||
| Prepaid expenses and other |
|
798 |
|
|
1,493 |
|
|
1,557 |
|
|||
| Income taxes receivable |
|
- |
|
|
353 |
|
|
24 |
|
|||
| Assets held for sale |
|
- |
|
|
1,622 |
|
|
5,844 |
|
|||
| Total current assets |
|
37,457 |
|
|
7,407 |
|
|
20,612 |
|
|||
| Property and equipment, net |
|
70,038 |
|
|
68,398 |
|
|
63,075 |
|
|||
| Right of use asset |
|
182 |
|
|
150 |
|
|
112 |
|
|||
| Deferred income taxes |
|
1,208 |
|
|
- |
|
|
2,425 |
|
|||
| Other assets |
|
1,474 |
|
|
1,156 |
|
|
1,322 |
|
|||
| Total assets | $ |
110,359 |
|
$ |
77,111 |
|
$ |
87,546 |
|
|||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ |
2,493 |
|
$ |
26 |
|
$ |
570 |
|
|||
| Accrued liabilities |
|
6,418 |
|
|
2,948 |
|
|
3,463 |
|
|||
| Income taxes payable |
|
4,115 |
|
|
- |
|
|
- |
|
|||
| Contract liabilities |
|
857 |
|
|
3,676 |
|
|
1,395 |
|
|||
| Non-refundable deposit |
|
- |
|
|
500 |
|
|
500 |
|
|||
| Total current liabilities |
|
13,883 |
|
|
7,150 |
|
|
5,928 |
|
|||
| Liability for pension benefits |
|
621 |
|
|
863 |
|
|
871 |
|
|||
| Lease liability |
|
85 |
|
|
73 |
|
|
33 |
|
|||
| Provision for contingent obligation |
|
2,684 |
|
|
3,404 |
|
|
3,218 |
|
|||
| Deferred income taxes |
|
8,874 |
|
|
5,300 |
|
|
8,469 |
|
|||
| Total liabilities |
|
26,147 |
|
|
16,790 |
|
|
18,519 |
|
|||
| Stockholders' equity: | ||||||||||||
| Common stock |
|
1,793 |
|
|
1,788 |
|
|
1,786 |
|
|||
| Class A common stock |
|
1,851 |
|
|
1,851 |
|
|
1,851 |
|
|||
| Additional paid-in capital |
|
101,258 |
|
|
101,112 |
|
|
101,207 |
|
|||
| Accumulated deficit |
|
(16,947 |
) |
|
(40,797 |
) |
|
(32,032 |
) |
|||
| Accumulated other comprehensive loss |
|
(3,743 |
) |
|
(3,633 |
) |
|
(3,785 |
) |
|||
| Total stockholders' equity |
|
84,212 |
|
|
60,321 |
|
|
69,027 |
|
|||
| Total liabilities and stockholders' equity | $ |
110,359 |
|
$ |
77,111 |
|
$ |
87,546 |
|
|||
| DOVER MOTORSPORTS, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| In 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: | ||||||||
| Depreciation |
|
1,572 |
|
|
1,533 |
|
||
| Amortization of credit facility fees |
|
31 |
|
|
28 |
|
||
| Stock-based compensation |
|
175 |
|
|
218 |
|
||
| Deferred income taxes |
|
1,599 |
|
|
(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 other |
|
701 |
|
|
(321 |
) |
||
| Accounts payable |
|
641 |
|
|
(93 |
) |
||
| Accrued liabilities |
|
2,964 |
|
|
(762 |
) |
||
| Income taxes payable/receivable |
|
4,139 |
|
|
(70 |
) |
||
| Contract liabilities |
|
(538 |
) |
|
2,700 |
|
||
| Liability for pension benefits |
|
(184 |
) |
|
(73 |
) |
||
| Net cash provided by (used in) operating activities |
|
1,103 |
|
|
(4,392 |
) |
||
| Investing activities: | ||||||||
| Capital expenditures |
|
(7,253 |
) |
|
(196 |
) |
||
| Proceeds from sale of land and equipment, net |
|
13,826 |
|
|
- |
|
||
| Purchases of equity securities |
|
(8 |
) |
|
(240 |
) |
||
| Proceeds from sale of equity securities |
|
13 |
|
|
231 |
|
||
| Net cash provided by (used in) investing activities |
|
6,578 |
|
|
(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 cash |
|
6,068 |
|
|
(4,691 |
) |
||
| Cash, beginning of period |
|
12,568 |
|
|
7,577 |
|
||
| Cash, end of period | $ |
18,636 |
|
$ |
2,886 |
|
||
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FAQ
What were Dover Motorsports' earnings for Q2 2021?
How much revenue did Dover Motorsports generate in Q2 2021?
What events contributed to Dover Motorsports' performance in Q2 2021?
What is the current financial status of Dover Motorsports as of June 30, 2021?
When is the Firefly Music Festival scheduled to return?
