Attached files
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| 8-K - DOVER MOTORSPORTS INC--FORM 8-K - DOVER MOTORSPORTS INC | d526892d8k.htm |
Exhibit 99.1
| FOR IMMEDIATE RELEASE | For further information, call: | |
| Timothy R. Horne - Sr. Vice President - Finance | ||
| Dover, Delaware, April 25, 2013 | (302) 857-3292 |
DOVER MOTORSPORTS, INC. REPORTS RESULTS
FOR THE QUARTER ENDED MARCH 31, 2013
Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the quarter ended March 31, 2013.
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 2013 or 2012; therefore, our revenues were minimal.
Operating and marketing expenses of $1,054,000 in the first quarter of 2013 decreased slightly from $1,100,000 in the first quarter of 2012.
General and administrative expenses of $1,911,000 in the first quarter of 2013 were down slightly from $1,970,000 in the first quarter of 2012.
Depreciation expense remained consistent at $825,000 in the first quarter of 2013 compared to $837,000 in the first quarter of 2012.
Net interest expense was $275,000 in the first quarter of 2013 compared to $401,000 in the first quarter of 2012. The decrease is primarily due to lower average outstanding borrowings in the first quarter of 2013 compared to the first quarter of 2012.
The effective income tax rate was a benefit of 39.8% for the first quarter of 2013 compared to a benefit of 36.7% for the first quarter of 2012.
Net loss for the first quarter of 2013 was $2,279,000 or $.06 per diluted share compared with a loss of $2,623,000 or $.07 per diluted share in the first quarter of 2012.
At March 31, 2013, the Company’s total indebtedness was $21,200,000 compared with $30,120,000 at March 31, 2012.
* * *
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, |
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| 2013 | 2012 | |||||||
| Revenues: |
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| Event-related |
$ | 109 | $ | 119 | ||||
| Other |
7 | 7 | ||||||
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| 116 | 126 | |||||||
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| Expenses: |
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| Operating and marketing |
1,054 | 1,100 | ||||||
| General and administrative |
1,911 | 1,970 | ||||||
| Depreciation |
825 | 837 | ||||||
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| 3,790 | 3,907 | |||||||
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| Operating loss |
(3,674 | ) | (3,781 | ) | ||||
| Interest expense, net |
(275 | ) | (401 | ) | ||||
| Provision for contingent obligation |
22 | 40 | ||||||
| Other income |
139 | — | ||||||
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| Loss before income taxes |
(3,788 | ) | (4,142 | ) | ||||
| Income tax benefit |
1,509 | 1,519 | ||||||
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| Net loss |
$ | (2,279 | ) | $ | (2,623 | ) | ||
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| Net loss per common share: |
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| Basic |
$ | (0.06 | ) | $ | (0.07 | ) | ||
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| Diluted |
$ | (0.06 | ) | $ | (0.07 | ) | ||
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| Weighted average shares outstanding: |
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| Basic |
36,397 | 36,297 | ||||||
| Diluted |
36,397 | 36,297 | ||||||
DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
| March 31, 2013 |
March 31, 2012 |
December 31, 2012 |
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| ASSETS |
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| Current assets: |
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| Cash |
$ | 42 | $ | 12 | $ | 15 | ||||||
| Accounts receivable |
1,736 | 3,269 | 224 | |||||||||
| Inventories |
125 | 115 | 124 | |||||||||
| Prepaid expenses and other |
1,578 | 1,441 | 1,222 | |||||||||
| Prepaid income taxes |
318 | 331 | — | |||||||||
| Deferred income taxes |
78 | 74 | 78 | |||||||||
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| Total current assets |
3,877 | 5,242 | 1,663 | |||||||||
| Property and equipment, net |
92,123 | 95,633 | 92,896 | |||||||||
| Other assets |
719 | 772 | 738 | |||||||||
| Deferred income taxes |
459 | 454 | 490 | |||||||||
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| Total assets |
$ | 97,178 | $ | 102,101 | $ | 95,787 | ||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 281 | 195 | $ | 145 | |||||||
| Accrued liabilities |
1,886 | 1,766 | 2,903 | |||||||||
| Payable to Dover Downs Gaming & Entertainment, Inc. |
— | 1 | — | |||||||||
| Income taxes payable |
— | — | 132 | |||||||||
| Deferred revenue |
6,945 | 9,161 | 2,719 | |||||||||
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| Total current liabilities |
9,112 | 11,123 | 5,899 | |||||||||
| Revolving line of credit |
21,200 | 30,120 | 19,700 | |||||||||
| Liability for pension benefits |
2,997 | 2,652 | 3,065 | |||||||||
| Other liabilities |
1,912 | 2,215 | 1,934 | |||||||||
| Deferred income taxes |
16,075 | 13,566 | 17,096 | |||||||||
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| Total liabilities |
51,296 | 59,676 | 47,694 | |||||||||
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| Stockholders’ equity: |
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| Common stock |
1,848 | 1,838 | 1,836 | |||||||||
| Class A common stock |
1,851 | 1,851 | 1,851 | |||||||||
| Additional paid-in capital |
102,191 | 101,942 | 102,166 | |||||||||
| Accumulated deficit |
(57,535 | ) | (60,975 | ) | (55,256 | ) | ||||||
| Accumulated other comprehensive loss |
(2,473 | ) | (2,231 | ) | (2,504 | ) | ||||||
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| Total stockholders’ equity |
45,882 | 42,425 | 48,093 | |||||||||
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| Total liabilities and stockholders’ equity |
$ | 97,178 | $ | 102,101 | $ | 95,787 | ||||||
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DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
| Three Months Ended March 31, |
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| 2013 | 2012 | |||||||
| Operating activities: |
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| Net loss |
$ | (2,279 | ) | $ | (2,623 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
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| Depreciation |
825 | 837 | ||||||
| Amortization of credit facility fees |
57 | 55 | ||||||
| Stock-based compensation |
98 | 91 | ||||||
| Deferred income taxes |
(1,196 | ) | (1,189 | ) | ||||
| Provision for contingent obligation |
(22 | ) | (40 | ) | ||||
| Gain on sale of property and equipment |
(138 | ) | — | |||||
| Changes in assets and liabilities: |
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| Accounts receivable |
(1,512 | ) | (2,580 | ) | ||||
| Inventories |
(1 | ) | — | |||||
| Prepaid expenses and other |
(365 | ) | (191 | ) | ||||
| Prepaid income taxes/income taxes payable |
(266 | ) | (475 | ) | ||||
| Accounts payable |
136 | 79 | ||||||
| Accrued liabilities |
(1,017 | ) | (818 | ) | ||||
| Payable to/receivable from Dover Downs Gaming & Entertainment, Inc. |
— | 12 | ||||||
| Deferred revenue |
4,226 | 6,032 | ||||||
| Other liabilities |
(44 | ) | (36 | ) | ||||
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| Net cash used in operating activities |
(1,498 | ) | (846 | ) | ||||
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| Investing activities: |
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| Capital expenditures |
(52 | ) | (90 | ) | ||||
| Proceeds from the sale of property and equipment |
138 | — | ||||||
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| Net cash provided by (used in) investing activities |
86 | (90 | ) | |||||
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| Financing activities: |
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| Borrowings from revolving line of credit |
2,840 | 2,260 | ||||||
| Repayments on revolving line of credit |
(1,340 | ) | (1,300 | ) | ||||
| Repurchase of common stock |
(61 | ) | (27 | ) | ||||
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| Net cash provided by financing activities |
1,439 | 933 | ||||||
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| Net increase (decrease) in cash |
27 | (3 | ) | |||||
| Cash, beginning of period |
15 | 15 | ||||||
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| Cash, end of period |
$ | 42 | $ | 12 | ||||
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