DVD
$1.38
Dover Downs Entertainment
($.01)
(.43%)
Earnings Details
Quarter June 2020
Thursday, July 30, 2020 6:55:00 AM
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Summary

Dover Downs Entertainment (DVD) Recent Earnings

Dover Downs Entertainment (DVD) reported a Quarter June 2020 loss of $0.02 per share on revenue of $0.1 million.. Revenue fell 99.6% compared to the same quarter a year ago.

Dover Motorsports Inc is a marketers and promoters of motorsports entertainment. Through its subsidiaries, it owns and operates Dover International Speedway and Nashville Superspeedway. It is also engaged in harness horse racing operations.

Results
Reported Earnings
($0.02)
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$0.1 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Dover Motorsports, Inc. Reports Results for the Second Quarter of 2020 and Closing of Nashville Land Sale

DOVER, Del.--(BUSINESS WIRE)--Dover Motorsports, Inc. (NYSE: DVD) today reported results for the three months ended June 30, 2020.

The COVID-19 pandemic caused the postponement of the Company’s scheduled May NASCAR weekend and the cancelation of the Firefly Music Festival (“Firefly”). The three NASCAR events originally scheduled to be held in May will now be held without fans in combination with our already scheduled August NASCAR weekend events. Firefly will not be rescheduled in 2020, though it is expected to return in 2021. The Company promoted a NASCAR triple-header and hosted Firefly in Dover during the second quarter of 2019. Accordingly, the results for the second quarter of 2020 are not comparable to last year.

Revenues for the second quarter of 2020 were $110,000 compared to $24,838,000 for the second quarter of 2019. The decrease is primarily from the schedule changes described above.

Operating and marketing expenses decreased to $812,000 in the second quarter of 2020 from $14,584,000 in the second quarter of 2019. The decrease is also from the schedule changes and cost cutting efforts implemented at the onset of the pandemic.

General and administrative expenses were $1,877,000 in the second quarter of 2020 compared to $1,826,000 in the second quarter of 2019.

The adjustment to the contingent obligation was a benefit of $353,000 in the second quarter of 2020 compared to an expense of $135,000 during the second quarter of 2019, primarily from changed sales tax assumptions associated with the planned reopening of Nashville Superspeedway.

Other income increased to $163,000 in the second quarter of 2020 from $57,000 in the second quarter of 2019, primarily from higher gains on equity investments.

Loss before income taxes for the second quarter of 2020 was ($2,844,000) compared to earnings before income taxes of $7,546,000 for the second quarter of 2019.

The Company’s effective income tax rate was a benefit of 75.8% in the second quarter of 2020 and is the result of reversing a portion of a previously booked valuation allowance on Tennessee state deferred tax assets, which we now expect to realize with the reopening of the Nashville Superspeedway next year.

Net loss for the second quarter of 2020 was ($689,000) or ($0.02) per diluted share compared to net earnings for the second quarter of 2019 of $5,501,000 or $0.15 per diluted share.

On July 29, 2020, we closed on the sale of approximately 97 acres of property near our Nashville Superspeedway pursuant to an option agreement with an entity owned by Panattoni Development Company. Proceeds from the sale, less closing costs, were approximately $6.5 million. The purchaser had previously paid to us a $500,000 deposit that was credited to the purchase price. Net proceeds after taxes are estimated to be approximately $5.3 million. None of the acreage sold extends to the land on which our superspeedway is sited and the Company continues to hold approximately 1,000 acres of commercial real estate, including the superspeedway.

At June 30, 2020, the Company had no outstanding indebtedness and almost $2.9 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
In Thousands, Except Per Share Amounts
(Unaudited)
 
 
Three Months EndedSix Months Ended
June 30,June 30,

2020

2019

2020

2019

Revenues:
Admissions

$

-

 

$

2,502

 

$

-

 

$

2,502

 

Event-related

 

110

 

 

3,453

 

314

 

 

3,582

 

Broadcasting

 

-

 

18,878

 

-

 

18,878

 

Other

 

-

 

5

 

 

-

 

5

 

110

 

24,838

 

314

 

24,967

 

 
Expenses:
Operating and marketing

812

 

14,584

 

1,800

 

15,639

 

General and administrative

1,877

 

1,826

 

3,864

 

3,742

 

Depreciation

 

765

 

794

 

1,533

 

1,587

 

Cost to remove long-lived assets

-

 

-

 

 

341

 

-

 

3,454

 

17,204

 

7,538

 

20,968

 

 
Gain on sale of land

-

 

-

 

-

 

 

139

 

 
Operating (loss) earnings

(3,344

)

 

7,634

 

(7,224

)

4,138

 

 
Interest expense, net

(16

)

(10

)

(13

)

(16

)

Benefit (provision) for contingent obligation

 

353

 

(135

)

(16

)

(246

)

Other income, net

163

 

57

 

 

25

 

189

 

 
(Loss) earnings before income taxes

 

(2,844

)

7,546

 

(7,228

)

4,065

 

 
Income tax benefit (expense)

 

2,155

 

(2,045

)

3,399

 

(1,054

)

 
Net (loss) earnings

$

(689

)

$

5,501

 

$

(3,829

)

$

3,011

 

 
Net (loss) earnings per common share:
Basic

$

(0.02

)

$

0.15

 

$

(0.11

)

$

0.08

 

Diluted

$

(0.02

)

$

0.15

 

$

(0.11

)

$

0.08

 

 
Weighted average shares outstanding:
Basic

 

35,836

 

36,010

 

35,835

 

 

36,021

 

Diluted

 

35,836

 

36,010

 

35,835

 

36,021

 

DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
 
 
June 30,June 30,December 31,

2020

2019

2019

 
ASSETS
Current assets:
Cash

$

2,886

 

$

8,989

 

$

7,577

 

Accounts receivable

1,035

 

1,449

 

645

 

Inventories

18

 

20

 

18

 

Prepaid expenses and other

1,493

 

933

 

1,186

 

Income taxes receivable

353

 

-

 

283

 

Assets held for sale

1,622

 

2,203

 

-

 

Total current assets

7,407

 

13,594

 

9,709

 

 
Property and equipment, net

68,398

 

69,881

 

71,357

 

Right of use asset

150

 

231

 

188

 

Other assets

1,156

 

1,169

 

1,212

 

Total assets

$

77,111

 

$

84,875

 

$

82,466

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

26

 

$

712

 

$

119

 

Accrued liabilities

2,948

 

3,053

 

3,710

 

Income taxes payable

-

 

 

1,149

 

-

 

Contract liabilities

3,676

 

2,008

 

976

 

Non-refundable deposit

500

 

-

 

-

 

Total current liabilities

 

7,150

 

6,922

 

4,805

 

 
Liability for pension benefits

863

 

666

 

1,016

 

Lease liability

73

 

157

 

112

 

Non-refundable deposit

-

 

 

500

 

500

 

Provision for contingent obligation

3,404

 

 

2,630

 

3,389

 

Deferred income taxes

5,300

 

8,074

 

8,676

 

Total liabilities

16,790

 

18,949

 

18,498

 

 
Stockholders' equity:
Common stock

1,788

 

1,809

 

1,782

 

Class A common stock

1,851

 

1,851

 

1,851

 

Additional paid-in capital

101,112

 

101,388

 

100,994

 

Accumulated deficit

 

(40,797

)

(35,815

)

(36,968

)

Accumulated other comprehensive loss

(3,633

)

(3,307

)

 

(3,691

)

Total stockholders' equity

60,321

 

 

65,926

 

 

63,968

 

Total liabilities and stockholders' equity

$

77,111

 

$

84,875

 

$

82,466

 

DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
 
Six Months Ended
June 30,

2020

2019

 
Operating activities:
Net (loss) earnings

$

(3,829

)

$

3,011

 

Adjustments to reconcile net (loss) earnings to net cash (used in) provided by operating activities:
Depreciation

 

1,533

 

 

1,587

 

Amortization of credit facility fees

 

28

 

31

 

Stock-based compensation

 

218

 

176

 

Deferred income taxes

 

(3,399

)

(317

)

Provision for contingent obligation

 

16

 

 

246

 

Losses (gains) on equity investments

50

 

 

(113

)

Gain on sale of land

-

 

 

(139

)

Changes in assets and liabilities:
Accounts receivable

(390

)

 

(773

)

Inventories

-

 

 

1

 

Prepaid expenses and other

 

(321

)

 

58

 

Accounts payable

(93

)

 

555

 

Accrued liabilities

(762

)

 

(104

)

Payable to Dover Downs Gaming & Entertainment, Inc.

-

 

 

(9

)

Income taxes payable/receivable

(70

)

1,031

 

Contract liabilities

2,700

 

868

 

Liability for pension benefits

(73

)

(36

)

Net cash (used in) provided by operating activities

(4,392

)

 

6,073

 

 
Investing activities:
Capital expenditures

(196

)

(2,154

)

Proceeds from sale of land and equipment, net

-

 

827

 

Non-refundable deposit received

-

 

 

500

 

Purchases of equity investments

(240

)

(9

)

Proceeds from sale of equity investments

231

 

1

 

Net cash used in investing activities

(205

)

(835

)

 
Financing activities:
Borrowings from revolving line of credit

180

 

4,060

 

Repayments on revolving line of credit

(180

)

 

(4,060

)

Repurchase of common stock

(94

)

(200

)

Net cash used in financing activities

(94

)

(200

)

 
Net (decrease) increase in cash

(4,691

)

 

5,038

 

Cash, beginning of period

7,577

 

 

3,951

 

Cash, end of period

$

2,886

 

$

8,989

 

 

Timothy R. Horne – Sr. Vice President - Finance
(302) 883-6592

Source: Dover Motorsports, Inc.