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
1,894
7,676
7,524
Depreciation
757
1,097
3,046
4,353
Cost to remove long-lived assets
-
1,170
341
1,170
3,687
16,416
36,284
42,288
Gain on sale of land
-
-
4,843
4,325
Operating (loss) earnings
(3,502
)
4,378
7,102
8,000
Interest (expense) income
(1
)
18
(35
)
22
Benefit (provision) for contingent obligation
59
(638
)
171
(1,005
)
Other income
67
51
182
269
(Loss) earnings before income taxes
(3,377
)
3,809
7,420
7,286
Income tax benefit (expense)
1,498
(906
)
62
(1,786
)
Net (loss) earnings
$
(1,879
)
$
2,903
$
7,482
$
5,500
Net (loss) earnings per common share: Basic
$
(0.05
)
$
0.08
$
0.21
$
0.15
Diluted
$
(0.05
)
$
0.08
$
0.21
$
0.15
Weighted average shares outstanding: Basic
35,836
35,795
35,836
35,946
Diluted
35,836
35,795
35,836
35,946
DOVER MOTORSPORTS, INC. RECONCILIATION OF GAAP (LOSS) EARNINGS
BEFORE INCOME TAXES TO ADJUSTED (LOSS) EARNINGS BEFORE INCOME TAXES
AND RECONCILIATION OF GAAP NET (LOSS) EARNINGS TO ADJUSTED NET
(LOSS) EARNINGS In Thousands, Except Per Share Amounts (Unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2020
2019
2020
2019
GAAP (loss) earnings before income taxes
$
(3,377
)
$
3,809
$
7,420
$
7,286
Gain on sale of land (1)
-
-
(4,843
)
(4,325
)
Cost to remove long-lived assets (2)
-
1,170
341
1,170
Accelerated depreciation (3)
-
293
-
1,172
Adjusted (loss) earnings before income taxes
$
(3,377
)
$
5,272
$
2,918
$
5,303
GAAP net (loss) earnings
$
(1,879
)
$
2,903
$
7,482
$
5,500
Gain on sale of land, net of income taxes (1)
-
-
(3,826
)
(3,417
)
Cost to remove long-lived assets, net of income taxes (2)
-
844
246
844
Accelerated depreciation, net of income taxes (3)
-
211
-
845
Adjusted net (loss) earnings
$
(1,879
)
$
3,958
$
3,902
$
3,772
GAAP net (loss) earnings per common share - basic and
diluted
$
(0.05
)
$
0.08
$
0.21
$
0.15
Gain on sale of land, net of income taxes (1)
-
-
(0.11
)
(0.09
)
Cost to remove long-lived assets, net of income taxes (2)
-
0.02
0.01
0.02
Accelerated depreciation, net of income taxes (3)
-
0.01
-
0.02
Adjusted net (loss) earnings per common share - basic and
diluted(4)
$
(0.05
)
$
0.11
$
0.11
$
0.11
(1)
During 2020, we closed on the sale of a
parcel of land at our Nashville Superspeedway facility resulting in
a gain of $4,843,000.
During 2019, we closed on the sale of
parcels of land at our Nashville Superspeedway facility resulting
in gains of $4,186,00 and $139,000.
These transactions were tax effected using
our federal statutory rate as we had available state net operating
losses.
(2)
Related to the decision to remove
grandstand seats at Dover International Speedway, we incurred
$341,000 and $1,170,000 of costs to remove these assets in 2020 and
2019, respectively. These amounts were tax effected using our
federal and state statutory rates.
(3)
During the third quarter of 2019, we made
the decision to remove certain grandstand seating at our Dover
International Speedway facility at the end of the 2019 race season.
As a result, we shortened the service lives of these assets which
resulted in $879,000 and $293,000 of accelerated depreciation being
recorded in the third quarter and fourth quarter of 2019,
respectively. These amounts were tax effected using our federal and
state statutory rates.
(4)
The components of the GAAP net earnings
per common share for the year ended December 31, 2019 do not add to
the adjusted net earnings per common share due to rounding.
The above financial information is
presented using other than generally accepted accounting principles
("non-GAAP"), and is reconciled to comparable information presented
using GAAP. Non-GAAP adjusted earnings (loss) before income taxes,
adjusted net earnings (loss) and adjusted net earnings (loss) per
common share - basic and diluted are derived by adjusting amounts
determined in accordance with GAAP for the aforementioned gains on
sale of land, costs to remove long-lived assets and accelerated
depreciation. We believe such non-GAAP information is useful and
meaningful to investors, and is used by investors and us to assess
core operations. This non-GAAP financial information may not be
comparable to similarly titled measures used by other entities and
should not be considered as an alternative to earnings (loss)
before income taxes, net earnings (loss) or net earnings (loss) per
common share - basic and diluted, which are determined in
accordance with GAAP.
DOVER MOTORSPORTS, INC. CONSOLIDATED BALANCE SHEETS In Thousands
(Unaudited)
December 31,
December 31,
2020
2019
ASSETS Current assets: Cash
$
13,059
$
7,577
Accounts receivable
601
645
Inventories
18
18
Prepaid expenses and other
1,557
1,186
Income taxes receivable
24
283
Assets held for sale
5,844
-
Total current assets
21,103
9,709
Property and equipment, net
63,075
71,357
Right of use asset
112
188
Deferred income taxes
2,425
-
Other assets
1,322
1,212
Total assets
$
88,037
$
82,466
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable
$
1,061
$
119
Accrued liabilities
3,463
3,710
Contract liabilities
1,395
976
Non-refundable deposit
500
-
Total current liabilities
6,419
4,805
Liability for pension benefits
871
1,016
Lease liability
33
112
Non-refundable deposit
-
500
Provision for contingent obligation
3,218
3,389
Deferred income taxes
8,469
8,676
Total liabilities
19,010
18,498
Stockholders' equity: Common stock
1,786
1,782
Class A common stock
1,851
1,851
Additional paid-in capital
101,207
100,994
Accumulated deficit
(32,032
)
(36,968
)
Accumulated other comprehensive loss
(3,785
)
(3,691
)
Total stockholders' equity
69,027
63,968
Total liabilities and stockholders' equity
$
88,037
$
82,466
DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS In
Thousands (Unaudited)
Years Ended
December 31,
2020
2019
Operating activities: Net earnings
$
7,482
$
5,500
Adjustments to reconcile net earnings to net cash provided by
operating activities: Depreciation
3,046
4,353
Amortization of credit facility fees
56
61
Stock-based compensation
311
294
Deferred income taxes
(2,552
)
413
(Benefit) provision for contingent obligation
(171
)
1,005
Gains on equity investments
(115
)
(162
)
Gain on sale of land
(4,843
)
(4,325
)
Changes in assets and liabilities: Accounts receivable
44
31
Inventories
-
3
Prepaid expenses and other
(398
)
(181
)
Income taxes receivable/payable
215
(380
)
Accounts payable
710
(8
)
Accrued liabilities
(383
)
407
Payable to Dover Downs Gaming & Entertainment, Inc.
-
(9
)
Contract liabilities
419
(164
)
Liability for pension benefits
(137
)
(63
)
Net cash provided by operating activities
3,684
6,775
Investing activities: Capital expenditures
(1,998
)
(6,446
)
Proceeds from sale of land and equipment, net
5,960
7,224
Non-refundable deposit received
500
500
Purchases of equity investments
(361
)
(51
)
Proceeds from sale of equity investments
337
40
Net cash provided by investing activities
4,438
1,267
Financing activities: Borrowings from revolving line of
credit
3,880
4,180
Repayments on revolving line of credit
(3,880
)
(4,180
)
Dividends paid
(2,546
)
(3,642
)
Repurchase of common stock
(94
)
(739
)
Credit facility fees
-
(35
)
Net cash used in financing activities
(2,640
)
(4,416
)
Net increase in cash
5,482
3,626
Cash, beginning of year
7,577
3,951
Cash, end of year
$
13,059
$
7,577
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210128005259/en/
For further information, call: Timothy R. Horne - Sr. Vice
President-Finance (302) 883-6592
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