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

Rhea-AI Summary

Dover Motorsports, Inc. (NYSE: DVD) reported Q3 2021 results with revenues of $1,238,000, significantly down from $38,044,000 in Q3 2020 due to the cancellation of the Firefly Music Festival and NASCAR events in 2020. Operating and marketing expenses decreased to $839,000 from $22,425,000, while general and administrative expenses rose to $2,040,000. The net loss for Q3 2021 was ($1,865,000) or ($0.05) per diluted share, compared to a net profit of $13,190,000 or $0.36 per diluted share in Q3 2020. The company declared a semi-annual cash dividend of $0.04 per share, payable December 10, 2021.

Positive

• Revenues for the nine months ended September 30, 2021 increased to $51,291,000 from $38,358,000 in the prior year.
• Net earnings for the nine months ended September 30, 2021 were $14,678,000 or $0.40 per diluted share, up from $9,361,000 or $0.26 per diluted share year over year.
• The company has no outstanding indebtedness and approximately $23.7 million in available cash.

Negative

• Q3 2021 revenues were significantly lower at $1,238,000 compared to $38,044,000 in Q3 2020.
• Q3 2021 recorded a net loss of ($1,865,000), a stark contrast to a net profit of $13,190,000 in Q3 2020.
• General and administrative expenses increased year-over-year, indicating rising operational costs.

DOVER, Del.--(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/

Timothy R. Horne – Sr. Vice President - Finance

(302) 883-6592

Source: Dover Motorsports, Inc.

FAQ

What were Dover Motorsports' revenues for Q3 2021?

Dover Motorsports reported revenues of $1,238,000 for Q3 2021.

How did Q3 2021 net loss compare to Q3 2020 for DVD?

The net loss for Q3 2021 was ($1,865,000) compared to a net profit of $13,190,000 in Q3 2020.

What dividend did Dover Motorsports declare in November 2021?

Dover Motorsports declared a semi-annual cash dividend of $0.04 per share, payable on December 10, 2021.

What was the year-to-date revenue for Dover Motorsports in 2021?

For the nine months ended September 30, 2021, revenues were $51,291,000.

What is the financial status of Dover Motorsports as of September 30, 2021?

As of September 30, 2021, Dover Motorsports had no outstanding indebtedness and approximately $23.7 million in available cash.