Dover Motorsports, Inc. Reports Results for the First Quarter Ended March 31, 2019

Dover Motorsports, Inc. 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20190425005185/en/

Market News and Data brought to you by Benzinga APIs