Dover Motorsports, Inc. Reports Results for the Second Quarter of 2013

Before you go, we thought you'd like these...
Before you go close icon

Dover Motorsports, Inc. Reports Results for the Second Quarter of 2013

DOVER, Del.--(BUSINESS WIRE)-- Dover Motorsports, Inc. (NYS: DVD) today reported results for the three months ended June 30, 2013.

The Company promoted a NASCAR triple-header in Dover during the second quarter of 2013 and 2012. The Company also hosted the second annual Firefly Music Festival from June 21-23, 2013 on the Company's parking grounds. The Company's involvement included renting the land to the promoter, providing logistical assistance and handling certain concessions for which the Company retained a certain percent of the gross sales. The inaugural Firefly Music Festival was held in the third quarter of 2012.


Revenues for the second quarter of 2013 were $24,465,000 compared with $23,719,000 in the second quarter of 2012. The increase in revenues was primarily due to the contracted increase in broadcasting revenue and revenue from the Firefly Music Festival offset by lower admissions revenue from lower attendance for the Dover NASCAR weekend.

Operating and marketing expenses were $13,123,000 in the second quarter of 2013 compared to $12,528,000 in the second quarter of 2012. The increase was primarily due to the scheduled increase in purse and sanction fees and increased promotion and security costs during the Dover NASCAR weekend, as well as from costs related to the Firefly Festival.

General and administrative expenses increased slightly to $1,839,000 in the second quarter of 2013 from $1,765,000 in the second quarter of 2012.

Net interest expense decreased to $275,000 in the second quarter of 2013 from $372,000 for the second quarter of 2012. The decrease was due to lower borrowing costs and lower average outstanding borrowings in the second quarter of 2013 compared to 2012.

Earnings from operations before income tax expense for the second quarter of 2013 were $8,391,000 compared with $8,477,000 in the second quarter of 2012.

Net earnings for the second quarter of 2013 decreased slightly to $4,903,000 or $0.13 per diluted share compared to $5,018,000 or $.14 per diluted share for the second quarter of 2012.

During the second quarter of 2013, the Company repurchased 79,896 shares of its common stock on the open market at prices ranging from approximately $2.05 to $2.18 per share.

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 motorsports events whose subsidiaries own and operate Dover International Speedway in Dover, Delaware and own Nashville Superspeedway near Nashville, Tennessee. For further information, log on to www.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,
2013201220132012
Revenues:
Admissions$4,864$5,323$4,864$5,323
Event-related4,5313,9624,6404,081
Broadcasting15,06614,43415,06614,434
Other 4  -  11  7 
 24,465  23,719  24,581  23,845 
 
Expenses:
Operating and marketing13,12312,52814,17713,628
General and administrative1,8391,7653,7503,735
Depreciation 824  830  1,649  1,667 
 15,786  15,123  19,576  19,030 
 
Operating earnings8,6798,5965,0054,815
 
Interest expense, net(275)(372)(550)(773)
Provision for contingent obligation(19)2493289
Other income 6  4  145  4 
 
Earnings before income taxes8,3918,4774,6034,335
 
Income tax expense 3,488  3,459  1,979  1,940 
 
Net earnings$4,903 $5,018 $2,624 $2,395 
 
Net earnings per common share:
Basic$0.13 $0.14 $0.07 $0.06 
Diluted$0.13 $0.14 $0.07 $0.06 
 
Weighted average shares outstanding:
Basic36,37336,30036,38536,299
Diluted36,37336,30036,38536,299
 
   
DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
 
 
June 30,June 30,December 31,
201320122012
 
ASSETS
Current assets:
Cash$16$7$15
Accounts receivable12,43011,727224
Inventories183134124
Prepaid expenses and other1,1381,2331,222
Receivable from Dover Downs Gaming & Entertainment, Inc.57--
Prepaid income taxes-7-
Deferred income taxes 83  70  78 
Total current assets13,90713,1781,663
 
Property and equipment, net91,45494,93392,896
Other assets826710738
Deferred income taxes 464  439  490 
Total assets$106,651 $109,260 $95,787 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$284470$145
Accrued liabilities3,9182,6742,903
Payable to Dover Downs Gaming & Entertainment, Inc.-2-
Income taxes payable377-132
Deferred revenue 4,976  5,925  2,719 
Total current liabilities9,5559,0715,899
 
Revolving line of credit23,18031,90019,700
Liability for pension benefits2,9882,6093,065
Other liabilities1,9311,9651,934
Deferred income taxes 18,309  16,189  17,096 
Total liabilities 55,963  61,734  47,694 
 
Stockholders' equity:
Common stock1,8401,8381,836
Class A common stock1,8511,8511,851
Additional paid-in capital102,094102,020102,166
Accumulated deficit(52,632)(55,957)(55,256)
Accumulated other comprehensive loss (2,465) (2,226) (2,504)
Total stockholders' equity 50,688  47,526  48,093 
Total liabilities and stockholders' equity$106,651 $109,260 $95,787 
 
  
DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
 
Six Months Ended
June 30,
20132012
 
Operating activities:
Net earnings$2,624$2,395

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

Depreciation1,6491,667
Amortization of credit facility fees121112
Stock-based compensation166169
Deferred income taxes1,0241,451
Provision for contingent obligation(3)(289)
Gain on sale of property and equipment(138)-
Changes in assets and liabilities:
Accounts receivable(12,206)(11,038)
Inventories(59)(19)
Prepaid expenses and other(103)9

Receivable from/payable to Dover Downs Gaming & Entertainment, Inc.

(57)13
Accounts payable139354
Accrued liabilities1,01590
Income taxes payable/prepaid income taxes429(151)
Deferred revenue2,2572,796
Other liabilities (30) (60)
Net cash used in operating activities (3,172) (2,501)
 
Investing activities:
Capital expenditures(207)(220)
Proceeds from sale of property and equipment138-
Purchas
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Gift Finder Promo
More to Explore
Tue, Dec 06
Set Your Location
City, State, or Zip