EX-99.1 2 tm2131191d2_ex99-1.htm EXHIBIT 99.1

EXHIBT 99.1

FOR IMMEDIATE RELEASE	For further information, call:
	Timothy R. Horne – Sr. Vice President - Finance
Dover, Delaware, October 28, 2021	(302) 883-6592

DOVER MOTORSPORTS, INC.

REPORTS RESULTS FOR THE THIRD QUARTER OF 2021

Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the three months ended September 30, 2021.

We hosted the Firefly Music Festival on our property during the third quarter of 2021. In 2020, the COVID-19 pandemic forced the cancelation of the Firefly Music Festival and caused all six of our NASCAR races to be held without fans during the third quarter of 2020. Accordingly, the results for the third quarter of 2021 are not comparable to the third quarter of 2020.

Revenues for the third quarter of 2021 were $1,238,000 and related primarily to the Firefly Music Festival and other miscellaneous revenues. Revenues for the third quarter of 2020 were $38,044,000 and were almost entirely related to the six NASCAR events held during the quarter. Operating and marketing expenses were $839,000 compared to $22,425,000 in the third quarter of 2020. Both decreases were primarily attributable to the aforementioned schedule changes.

General and administrative expenses increased to $2,040,000 in the third quarter of 2021 compared to $1,878,000 in the third quarter of 2020, primarily from the reopening of Nashville Superspeedway.

Depreciation expense increased to $942,000 from $756,000 in the third quarter of 2020, primarily from depreciation for the capital expenditures related to the reopening of Nashville Superspeedway.

In July of 2020 we sold approximately 97 acres of land in Nashville for proceeds less closing costs of approximately $6,460,000, resulting in a gain of $4,843,000.

Loss before income taxes for the third quarter of 2021 was ($2,513,000) compared to earnings before income taxes for the third quarter of 2020 of $18,025,000. The 2020 results include the $4,843,000 gain on sale of the Nashville land.

Net loss for the third quarter of 2021 was ($1,865,000) or ($.05) per diluted share compared to net earnings for the third quarter of 2020 of $13,190,000 or $.36 per diluted share.

For the nine months ended September 30, 2021, revenues where $51,291,000 compared with $38,358,000 in the prior year. Net earnings were $14,678,000 or $0.40 per diluted share compared with $9,361,000 or $0.26 per diluted share in the comparable period of the prior year.

As of September 30, 2021, the Company had no outstanding indebtedness and approximately $23.7 million in available cash.

The Company announced yesterday that its Board of Directors declared a semi-annual cash dividend on both classes of common stock of $.04 per share. The dividend will be payable on December 10, 2021 to shareholders of record at the close of business on November 10, 2021.

* * *

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 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 EARNINGS

In Thousands, Except Per Share Amounts

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Revenues:
Admissions	$	-		$	-		$	5,786		$	-
Event-related		1,238			2,394			8,435			2,708
Broadcasting		-			35,646			37,039			35,646
Other		-			4			31			4
		1,238			38,044			51,291			38,358

Expenses:
Operating and marketing		839			22,425			31,840			24,225
General and administrative		2,040			1,878			6,498			5,742
Depreciation		942			756			2,514			2,289
Cost to remove long-lived assets		-			-			-			341
		3,821			25,059			40,852			32,597

Gain on sale of land		-			4,843			8,510			4,843

Operating (loss) earnings		(2,583	)		17,828			18,949			10,604

Interest expense, net		(14	)		(21	)		(46	)		(34	)
Benefit for contingent obligation		7			128			541			112
Other income, net		77			90			357			115

(Loss) earnings before income taxes		(2,513	)		18,025			19,801			10,797

Income tax benefit (expense)		648			(4,835	)		(5,123	)		(1,436	)

Net (loss) earnings	$	(1,865	)	$	13,190		$	14,678		$	9,361

Net (loss) earnings per common share:
Basic	$	(0.05	)	$	0.36		$	0.40		$	0.26
Diluted	$	(0.05	)	$	0.36		$	0.40		$	0.26

Weighted average shares outstanding:
Basic		35,914			35,836			35,914			35,836
Diluted		35,914			35,836			35,914			35,836

DOVER MOTORSPORTS, INC.

CONSOLIDATED BALANCE SHEETS

In Thousands

(Unaudited)

	September 30,			September 30,			December 31,
	2021			2020			2020
ASSETS
Current assets:
Cash	$	23,683		$	21,327		$	12,568
Accounts receivable		1,663			1,232			601
Inventories		24			18			18
Prepaid expenses and other		1,057			994			1,557
Income taxes receivable		-			-			24
Assets held for sale		-			-			5,844
Total current assets		26,427			23,571			20,612

Property and equipment, net		70,818			68,125			63,075
Right of use asset		156			131			112
Deferred income taxes		1,256			-			2,425
Other assets		1,469			1,205			1,322
Total assets	$	100,126		$	93,032		$	87,546

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	137		$	793		$	570
Accrued liabilities		3,288			3,559			3,463
Income taxes payable		1,293			2,674			-
Contract liabilities		711			1,425			1,395
Non-refundable deposit		-			-			500
Total current liabilities		5,429			8,451			5,928

Liability for pension benefits		496			786			871
Lease liability		79			53			33
Provision for contingent obligation		2,677			3,276			3,218
Deferred income taxes		9,034			6,888			8,469
Total liabilities		17,715			19,454			18,519

Stockholders' equity:
Common stock		1,791			1,786			1,786
Class A common stock		1,851			1,851			1,851
Additional paid-in capital		101,293			101,152			101,207
Accumulated deficit		(18,812	)		(27,607	)		(32,032	)
Accumulated other comprehensive loss		(3,712	)		(3,604	)		(3,785	)
Total stockholders' equity		82,411			73,578			69,027
Total liabilities and stockholders' equity	$	100,126		$	93,032		$	87,546

DOVER MOTORSPORTS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

In Thousands

(Unaudited)

	Nine Months Ended
	September 30,
	2021			2020
Operating activities:
Net earnings	$	14,678		$	9,361
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation		2,514			2,289
Amortization of credit facility fees		47			42
Stock-based compensation		208			256
Deferred income taxes		1,698			(1,822	)
Benefit for contingent obligation		(541	)		(112	)
Gains on equity securities		(86	)		(4	)
Gain on sale of land		(8,510	)		(4,843	)
Changes in assets and liabilities:
Accounts receivable		(1,062	)		(587	)
Inventories		(6	)		-
Prepaid expenses and other		428			171
Accounts payable		(201	)		658
Accrued liabilities		(145	)		(266	)
Income taxes payable/receivable		1,317			2,957
Contract liabilities		(684	)		449
Liability for pension benefits		(266	)		(109	)
Net cash provided by operating activities		9,389			8,440

Investing activities:
Capital expenditures		(10,489	)		(545	)
Proceeds from sale of land and equipment, net		13,826			5,960
Purchases of equity securities		(76	)		(316	)
Proceeds from sale of equity securities		78			305
Net cash provided by investing activities		3,339			5,404

Financing activities:
Borrowings from revolving line of credit		-			3,880
Repayments on revolving line of credit		-			(3,880	)
Dividends paid		(1,458	)		-
Repurchase of common stock		(117	)		(94	)
Credit facility fees		(38	)		-
Net cash used in financing activities		(1,613	)		(94	)

Net increase in cash		11,115			13,750
Cash, beginning of period		12,568			7,577
Cash, end of period	$	23,683		$	21,327