EX-99.1 2 d724746dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

FOR IMMEDIATE RELEASE   For further information, call:
  Timothy R. Horne – Sr. Vice President - Finance
Dover, Delaware, April 25, 2019   (302) 857-3292

DOVER MOTORSPORTS, INC. REPORTS RESULTS

FOR THE FIRST QUARTER ENDED MARCH 31, 2019

Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the three months ended March 31, 2019.

The Company historically reports a loss in the first quarter due to the seasonality of our motorsports business. No major events were promoted during the first quarter of 2019 or 2018; therefore, our revenues were minimal.

Operating and marketing expenses decreased to $1,055,000 in the first quarter of 2019 from $1,151,000 in the first quarter of 2018, primarily due to the timing of advertising costs.

General and administrative expenses of $1,916,000 in the first quarter of 2019 also decreased slightly from $1,955,000 in the first quarter of 2018, primarily from lower employee costs.

Depreciation expense decreased to $793,000 in the first quarter of 2019 from $878,000 in the first quarter of 2018.

As previously reported, during the first quarter of 2018 we closed on the sale of a parcel of land in Nashville for net proceeds of approximately $5 million after closing costs, resulting in a gain of $2,512,000. We sold an additional 7.6 acres during the first quarter of 2019 for net proceeds of approximately $267,000, resulting in a gain of $139,000.

Provision for contingent obligation was $111,000 during the first quarter of 2019 compared to $67,000 for the first quarter of 2018.

Loss before income taxes was $3,481,000 for the first quarter of 2019 compared to $1,349,000 for the first quarter of 2018. On an adjusted basis, excluding the land sales, loss before income taxes was $3,620,000 for the first quarter of 2019 compared with $3,861,000 for the first quarter of 2018.

The Company’s effective income tax rate was 28.5% in the first quarter of 2019 compared with 26.5% in the first quarter of 2018.

Net loss for the first quarter of 2019 was $2,490,000 or $.07 per diluted share compared with a loss of $992,000 or $.03 per diluted share in the first quarter of 2018. Net loss, adjusted for the aforementioned items, was $2,600,000 or $.07 per diluted share for the first quarter of 2019 compared to $2,976,000 or $.08 per diluted share for the first quarter of 2018.

The Company’s financial condition continues to strengthen, with no outstanding borrowings and more than $2.5 million in available cash. During the first quarter this year, the Company repurchased 50,220 shares of its common stock on the open market at an average price of $2.02 per share, not including nominal brokerage commissions.

* * *

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 leading 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 OPERATIONS

In Thousands, Except Per Share Amounts

(Unaudited)

 

     Three Months Ended  
     March 31,  
     2019     2018  

Revenues:

     

Event-related

    $ 129     $ 226  
  

 

 

    

 

 

  

Expenses:

     

Operating and marketing

      1,055       1,151  

General and administrative

      1,916       1,955  

Depreciation

      793       878  
  

 

 

    

 

 

  
     3,764       3,984  
  

 

 

    

 

 

  

Gain on sale of land

      139       2,512  
  

 

 

    

 

 

  

Operating loss

      (3,496 )      (1,246 ) 

Interest expense

      (6 )      (40 ) 

Provision for contingent obligation

      (111 )      (67 ) 

Other income

      132       4  
  

 

 

    

 

 

  

Loss before income taxes

      (3,481 )      (1,349 ) 

Income tax benefit

      991       357  
  

 

 

    

 

 

  

Net loss

    $ (2,490 )    $ (992 ) 
  

 

 

    

 

 

  

Net loss per common share:

     

Basic

    $ (0.07 )    $ (0.03 ) 
  

 

 

    

 

 

  

Diluted

    $ (0.07 )    $ (0.03 ) 
  

 

 

    

 

 

  

Weighted average shares outstanding:

     

Basic

      36,032       36,234  

Diluted

      36,032       36,234  

DOVER MOTORSPORTS, INC.

RECONCILIATION OF GAAP LOSS BEFORE INCOME TAXES

TO ADJUSTED LOSS BEFORE INCOME TAXES

AND RECONCILIATION OF GAAP NET LOSS TO ADJUSTED NET LOSS

In Thousands, Except Per Share Amounts

(Unaudited)

 

     Three Months
Ended		  
     March 31,  
     2019     2018  

GAAP loss before income taxes

    $ (3,481 )    $ (1,349 ) 

Gain on sale of land (1)

      (139 )      (2,512 ) 
  

 

 

    

 

 

  

Adjusted loss before income taxes

    $ (3,620 )    $ (3,861 ) 
  

 

 

    

 

 

  

GAAP net loss

    $ (2,490 )    $ (992 ) 

Gain on sale of land, net of income taxes (1)

      (110 )      (1,984 ) 
  

 

 

    

 

 

  

Adjusted net loss

    $ (2,600 )    $ (2,976 ) 
  

 

 

    

 

 

  

GAAP net loss per common share - basic and diluted

    $ (0.07 )    $ (0.03 ) 

Gain on sale of land, net of income taxes (1)

      —         (0.05 ) 
  

 

 

    

 

 

  

Adjusted net loss per common share - basic and diluted

    $ (0.07 )    $ (0.08 ) 
  

 

 

    

 

 

  

 

(1)

During the first quarter of 2019 and 2018, we closed on sales of parcels of land at our Nashville Superspeedway facility resulting in gains of $139,000 and $2,512,000, respectively.

 

    

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 loss before income taxes, adjusted net loss and adjusted net loss per common share - basic and diluted are derived by adjusting amounts determined in accordance with GAAP for the aforementioned gain on sale of land. Income taxes are based on our approximate statutory tax rates. 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 loss before income taxes, net loss or net loss per common share - basic and diluted, which are determined in accordance with GAAP

DOVER MOTORSPORTS, INC.

CONSOLIDATED BALANCE SHEETS

In Thousands

(Unaudited)

 

     March 31,     March 31,     December 31,  
     2019     2018     2018  

ASSETS

       

Current assets:

       

Cash

    $ 2,552     $ 352     $ 3,951  

Accounts receivable

      1,844       1,935       676  

Inventories

      21       15       21  

Prepaid expenses and other

      1,268       1,290       1,055  

Income taxes receivable

      —         562       —    

Assets held for sale

      —         —         531  
  

 

 

    

 

 

    

 

 

  

Total current assets

      5,685       4,154       6,234  

Property and equipment, net

      47,599       50,261       48,137  

Nashville Superspeedway facility

      23,505       23,567       23,567  

Other assets

      1,098       1,086       1,015  
  

 

 

    

 

 

    

 

 

  

Total assets

    $ 77,887     $ 79,068     $ 78,953  
  

 

 

    

 

 

    

 

 

  

LIABILITIES AND STOCKHOLDERS’ EQUITY

       

Current liabilities:

       

Accounts payable

    $ 99     $ 166     $ 187  

Accrued liabilities

      2,238       2,403       3,083  

Payable to Dover Downs Gaming & Entertainment, Inc.

      —         12       9  

Income taxes payable

      118       —         118  

Contract liabilities

      4,496       5,298       1,140  
  

 

 

    

 

 

    

 

 

  

Total current liabilities

      6,951       7,879       4,537  

Revolving line of credit, net

      —       500       —  

Liability for pension benefits

      720       2,263       773  

Provision for contingent obligation

      2,495       2,027       2,384  

Deferred income taxes

      7,390       8,326       8,371  
  

 

 

    

 

 

    

 

 

  

Total liabilities

      17,556       20,995       16,065  
  

 

 

    

 

 

    

 

 

  

Stockholders’ equity:

       

Common stock

      1,809       1,826       1,805  

Class A common stock

      1,851       1,851       1,851  

Additional paid-in capital

      101,320       101,659       101,416  

Accumulated deficit

      (41,316 )      (43,777 )      (38,826 ) 

Accumulated other comprehensive loss

      (3,333 )      (3,486 )      (3,358 ) 
  

 

 

    

 

 

    

 

 

  

Total stockholders’ equity

      60,331       58,073       62,888  
  

 

 

    

 

 

    

 

 

  

Total liabilities and stockholders’ equity

    $ 77,887     $ 79,068     $ 78,953  
  

 

 

    

 

 

    

 

 

  

DOVER MOTORSPORTS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

In Thousands

(Unaudited)

 

     Three Months Ended
March 31,		  
     2019     2018  

Operating activities:

     

Net loss

    $ (2,490 )    $ (992 ) 

Adjustments to reconcile net loss to net cash used in operating activities:

     

Depreciation

      793       878  

Amortization of credit facility fees

      15       16  

Stock-based compensation

      108       105  

Deferred income taxes

      (991 )      (357 ) 

Provision for contingent obligation

      111       67  

(Gains) losses on equity investments

      (87 )      16  

Gain on sale of land

      (139 )      (2,512 ) 

Changes in assets and liabilities:

     

Accounts receivable

      (1,168 )      (1,459 ) 

Prepaid expenses and other

      (222 )      (180 ) 

Accounts payable

      (39 )      105  

Accrued liabilities

      (845 )      (646 ) 

Payable to Dover Downs Gaming & Entertainment, Inc.

      (9 )      5  

Contract liabilities

      3,356       4,049  

Liability for pension benefits

      (18 )      (519 ) 
  

 

 

    

 

 

  

Net cash used in operating activities

      (1,625 )      (1,424 ) 
  

 

 

    

 

 

  

Investing activities:

     

Capital expenditures

      (398 )      (139 ) 

Proceeds from sale of land and equipment, net

      827       4,945  

Purchases of equity investments

      (4 )      (35 ) 

Proceeds from sale of equity investments

      1       33  
  

 

 

    

 

 

  

Net cash provided by investing activities

      426       4,804  
  

 

 

    

 

 

  

Financing activities:

     

Borrowings from revolving line of credit

      —         2,460  

Repayments on revolving line of credit

      —         (5,200 ) 

Repurchase of common stock

      (200 )      (289 ) 
  

 

 

    

 

 

  

Net cash used in financing activities

      (200 )      (3,029 ) 
  

 

 

    

 

 

  

Net (decrease) increase in cash

      (1,399 )      351  

Cash, beginning of period

      3,951       1  
  

 

 

    

 

 

  

Cash, end of period

    $ 2,552     $ 352