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

DOVER, Del.–()–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 $49,896,000 from $110,000 for the second quarter of 2020, reflecting the timing of events described above.

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 22% higher for NBCSN’s telecast compared with the previous year’s same date event and it was the second highest rated sports event on cable that week behind the NBA playoffs. Denis McGlynn, the Company’s President and Chief Executive Officer, stated: “There was an overwhelmingly positive response to the Nashville events from fans, race teams, sponsors and media representatives and we are looking forward to hosting another NASCAR weekend in Nashville next year.”

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 $29,405,000 in the second quarter of 2021 compared to $812,000 in the second quarter of 2020.

General and administrative expenses were $2,203,000 in the second quarter of 2021 compared to $1,877,000 in the second quarter of 2020.

Depreciation expense increased to $809,000 for the second quarter of 2021 compared to $765,000 for the second quarter of 2020, primarily from depreciation for the capital expenditures related to the reopening of Nashville Superspeedway.

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 $14,300,000, resulting in a gain of $8,510,000. The purchaser had previously paid a $500,000 deposit that was credited to the purchase price.

The adjustment to the contingent obligation relating to the Tennessee revenue bonds was a benefit of $500,000 in the second quarter of 2021, primarily from higher than anticipated sales taxes collected available for debt service. The benefit of $353,000 in the second quarter of 2020 was primarily from changed sales tax assumptions associated with the planned reopening of Nashville Superspeedway.

Earnings before income taxes for the second quarter of 2021 were $26,627,000 compared to a loss before income taxes for the second quarter of 2020 of ($2,844,000).

The Company’s effective income tax rate was an expense of 25.8% compared to a benefit of 75.8% in the second quarter of 2020. The 2020 benefit was the result of reversing a portion of a previously recorded valuation allowance on Tennessee state deferred tax assets as a result of the reopening of the Nashville Superspeedway.

Net earnings for the second quarter of 2021 were $19,745,000, or $0.54 per diluted share, compared to a net loss for the second quarter of 2020 of ($689,000) or ($0.02) per diluted share.

At June 30, 2021, the Company had no outstanding indebtedness and approximately $18.6 million in available cash.

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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