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| 8-K - FORM 8-K - DOVER MOTORSPORTS INC | d385564d8k.htm |
Exhibit 99.1
| FOR IMMEDIATE RELEASE | For further information, call: | |
| Timothy R. Horne – Sr. Vice President - Finance | ||
| Dover, Delaware, July 26, 2012 | (302) 857-3292 |
DOVER MOTORSPORTS, INC.
REPORTS RESULTS FOR THE SECOND QUARTER OF 2012
Dover Motorsports, Inc. (NYSE: DVD) today reported results for the three months ended June 30, 2012.
Net earnings for the second quarter of 2012 improved 28.6% to $5,018,000 or $.14 per diluted share compared to $3,901,000 or $.11 per diluted share for the second quarter of 2011.
The Company promoted three major events during the second quarter of 2012 compared to five major events during the second quarter of 2011. The Company’s Nashville facility had promoted a NASCAR Nationwide Series event and a Truck Series event in the second quarter of 2011.
We previously announced that the Company’s Nashville facility notified NASCAR that it did not seek 2012 sanction agreements for its two Nationwide Series and two Camping World Truck Series events. We are hosting race team testing during 2012 at Nashville and we will continue to evaluate all of our options for the facility.
Revenues for the second quarter of 2012 were $23,719,000 compared with $26,381,000 in the second quarter of 2011. The decrease in revenues was primarily due to the schedule change noted above and from lower average ticket prices for the Company’s NASCAR triple-header in Dover which offset slightly higher attendance.
Operating and marketing expenses were $12,528,000 in the second quarter of 2012 compared to $15,488,000 in the second quarter of 2011. The decrease was also primarily due to not promoting the two races in Nashville in the second quarter 2012, as well as from lower expenses during the Dover NASCAR weekend.
General and administrative expenses of $1,765,000 in the second quarter of 2012 were down from $2,146,000 in the second quarter of 2011. The decrease is due primarily to lower employee costs in Dover and lower costs resulting from the reduced operations at the Nashville facility.
Net interest expense was $372,000 for the second quarter of 2012 compared to $592,000 in the second quarter of 2011. The decrease was due to lower borrowing costs and lower average outstanding borrowings in the second quarter of 2012 compared to 2011.
Earnings from continuing operations before income tax expense for the second quarter of 2012 were $8,477,000 compared with $6,748,000 in the second quarter of 2011.
Denis McGlynn, President and CEO, stated, “We are encouraged by the significant improvement in our results and working diligently to continue the trend that we’ve experienced over the last several quarters. Our focus is on generating cash flow at our flagship facility in Dover and we continue to look for ways to increase top line revenue growth while keeping a watchful eye on the expense line as we navigate through a very challenging economic cycle.”
* * *
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 Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenues: |
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| Admissions |
$ | 5,323 | $ | 6,716 | $ | 5,323 | $ | 6,716 | ||||||||
| Event-related |
3,962 | 4,548 | 4,081 | 4,578 | ||||||||||||
| Broadcasting |
14,434 | 15,115 | 14,434 | 15,115 | ||||||||||||
| Other |
— | 2 | 7 | 102 | ||||||||||||
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| 23,719 | 26,381 | 23,845 | 26,511 | |||||||||||||
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| Expenses: |
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| Operating and marketing |
12,528 | 15,488 | 13,628 | 16,776 | ||||||||||||
| General and administrative |
1,765 | 2,146 | 3,735 | 4,297 | ||||||||||||
| Depreciation |
830 | 1,340 | 1,667 | 2,753 | ||||||||||||
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| 15,123 | 18,974 | 19,030 | 23,826 | |||||||||||||
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| Operating earnings |
8,596 | 7,407 | 4,815 | 2,685 | ||||||||||||
| Interest expense, net |
(372 | ) | (592 | ) | (773 | ) | (1,433 | ) | ||||||||
| Provision for contingent obligation |
249 | — | 289 | — | ||||||||||||
| Other income |
4 | — | 4 | 4 | ||||||||||||
| Loss on extinguishment of debt |
— | (67 | ) | — | (67 | ) | ||||||||||
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| Earnings from continuing operations before income tax expense |
8,477 | 6,748 | 4,335 | 1,189 | ||||||||||||
| Income tax expense |
3,459 | 2,847 | 1,940 | 786 | ||||||||||||
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| Earnings from continuing operations |
5,018 | 3,901 | 2,395 | 403 | ||||||||||||
| Loss from discontinued operation, net of income tax benefit |
— | — | — | (68 | ) | |||||||||||
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| Net earnings |
$ | 5,018 | $ | 3,901 | $ | 2,395 | $ | 335 | ||||||||
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| Net earnings per common share - basic: |
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| Continuing operations |
$ | 0.14 | $ | 0.11 | $ | 0.06 | $ | 0.01 | ||||||||
| Discontinued operation |
— | — | — | — | ||||||||||||
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| Net earnings |
$ | 0.14 | $ | 0.11 | $ | 0.06 | $ | 0.01 | ||||||||
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| Net earnings per common share - diluted: |
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| Continuing operations |
$ | 0.14 | $ | 0.11 | $ | 0.06 | $ | 0.01 | ||||||||
| Discontinued operation |
— | — | — | — | ||||||||||||
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| Net earnings |
$ | 0.14 | $ | 0.11 | $ | 0.06 | $ | 0.01 | ||||||||
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| Weighted average shares outstanding: |
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| Basic |
36,300 | 36,195 | 36,299 | 36,194 | ||||||||||||
| Diluted |
36,300 | 36,195 | 36,299 | 36,194 | ||||||||||||
DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
| June 30, 2012 |
June 30, 2011 |
December 31, 2011 |
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| ASSETS |
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| Current assets: |
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| Cash |
$ | 7 | $ | 355 | $ | 15 | ||||||
| Accounts receivable |
11,727 | 2,796 | 689 | |||||||||
| Inventories |
134 | 268 | 115 | |||||||||
| Prepaid expenses and other |
1,233 | 1,633 | 1,255 | |||||||||
| Receivable from Dover Downs Gaming & Entertainment, Inc. |
— | — | 11 | |||||||||
| Prepaid income taxes |
7 | 97 | — | |||||||||
| Deferred income taxes |
70 | 230 | 67 | |||||||||
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| Total current assets |
13,178 | 5,379 | 2,152 | |||||||||
| Property and equipment, net |
94,933 | 113,768 | 96,380 | |||||||||
| Other assets |
710 | 911 | 783 | |||||||||
| Deferred income taxes |
439 | 112 | 496 | |||||||||
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| Total assets |
$ | 109,260 | $ | 120,170 | $ | 99,811 | ||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 470 | $ | 471 | $ | 116 | ||||||
| Accrued liabilities |
2,674 | 2,255 | 2,584 | |||||||||
| Payable to Dover Downs Gaming & Entertainment, Inc. |
2 | 4 | — | |||||||||
| Income taxes payable |
— | — | 145 | |||||||||
| Deferred revenue |
5,925 | 7,991 | 3,129 | |||||||||
| Current liabilities of discontinued operation |
— | 49 | — | |||||||||
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| Total current liabilities |
9,071 | 10,770 | 5,974 | |||||||||
| Revolving line of credit |
31,900 | 31,400 | 29,160 | |||||||||
| Liability for pension benefits |
2,609 | 1,683 | 2,713 | |||||||||
| Other liabilities |
1,965 | 132 | 2,250 | |||||||||
| Non current income taxes payable |
— | 1,241 | — | |||||||||
| Deferred income taxes |
16,189 | 19,474 | 14,765 | |||||||||
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| Total liabilities |
61,734 | 64,700 | 54,862 | |||||||||
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| Stockholders’ equity: |
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| Common stock |
1,838 | 1,830 | 1,828 | |||||||||
| Class A common stock |
1,851 | 1,851 | 1,851 | |||||||||
| Additional paid-in capital |
102,020 | 101,709 | 101,888 | |||||||||
| Accumulated deficit |
(55,957 | ) | (48,832 | ) | (58,352 | ) | ||||||
| Accumulated other comprehensive loss |
(2,226 | ) | (1,088 | ) | (2,266 | ) | ||||||
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| Total stockholders’ equity |
47,526 | 55,470 | 44,949 | |||||||||
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| Total liabilities and stockholders’ equity |
$ | 109,260 | $ | 120,170 | $ | 99,811 | ||||||
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DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
| Six Months Ended June 30, |
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| 2012 | 2011 | |||||||
| Operating activities: |
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| Net earnings |
$ | 2,395 | $ | 335 | ||||
| Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: |
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| Depreciation |
1,667 | 2,753 | ||||||
| Amortization of credit facility fees |
112 | 269 | ||||||
| Stock-based compensation |
169 | 230 | ||||||
| Deferred income taxes |
1,451 | 296 | ||||||
| Provision for contingent obligation |
(289 | ) | — | |||||
| Loss on extinguishment of debt |
— | 67 | ||||||
| Changes in assets and liabilities: |
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| Accounts receivable |
(11,038 | ) | (1,957 | ) | ||||
| Inventories |
(19 | ) | (36 | ) | ||||
| Prepaid expenses and other |
9 | (181 | ) | |||||
| Prepaid income taxes/income taxes payable |
(151 | ) | (87 | ) | ||||
| Accounts payable |
354 | 325 | ||||||
| Accrued liabilities |
90 | (613 | ) | |||||
| Payable to/receivable from Dover Downs Gaming & Entertainment, Inc. |
13 | (14 | ) | |||||
| Deferred revenue |
2,796 | 4,347 | ||||||
| Other liabilities |
(60 | ) | 152 | |||||
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| Net cash (used in) provided by operating activities |
(2,501 | ) | 5,886 | |||||
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| Investing activities: |
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| Capital expenditures |
(220 | ) | (191 | ) | ||||
| Proceeds from the sale of property and equipment |
— | 1,875 | ||||||
| Proceeds from the sale of available-for-sale securities |
— | 69 | ||||||
| Purchase of available-for-sale securities |
— | (70 | ) | |||||
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| Net cash (used in) provided by investing activities |
(220 | ) | 1,683 | |||||
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| Financing activities: |
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| Borrowings from revolving line of credit |
9,080 | 49,560 | ||||||
| Repayments on revolving line of credit |
(6,340 | ) | (56,360 | ) | ||||
| Repurchase of common stock |
(27 | ) | (52 | ) | ||||
| Credit facility fees |
— | (431 | ) | |||||
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| Net cash provided by (used in) financing activities |
2,713 | (7,283 | ) | |||||
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| Net (decrease) increase in cash |
(8 | ) | 286 | |||||
| Cash, beginning of period |
15 | 69 | ||||||
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| Cash, end of period |
$ | 7 | $ | 355 | ||||
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