DVD 5.90 Dover Motorsports, Inc. Reports Results for the Second Quarter
Jul 26, 2007 8:50:00 AM
DOVER, Del., July 26 /PRNewswire-FirstCall/ -- Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the second quarter ended June 30, 2007.
For the quarter ended June 30, 2007 revenues were $40,806,000 compared with $45,003,000 in the second quarter of 2006. Earnings before income taxes were $11,285,000 compared with $15,012,000 in the comparable quarter of the prior year.
The Company promoted seven major events over five weekends in the second quarter of both 2007 and 2006. Adverse weather affected four of the five event weekends in 2007. Dover's Spring NASCAR NEXTEL Cup race was rained out on Sunday for the first time in 32 years. The impact of postponing our June Cup race from Sunday to Monday, together with the previously reported decrease in our television broadcast rights fees under the initial years of NASCAR's new broadcast agreement, adversely affected our results. Decreased revenues from admissions, sponsorship, program sales, concessions and merchandise as well as higher expenses from an extra day's activities resulted in a decrease in profitability. Results from Dover's Spring Friday and Saturday events were not impacted by weather and were comparable to the prior year.
For the quarter ended June 30, 2007 operating and marketing expenses were $23,780,000 compared with $23,272,000 in the comparable quarter of 2006. Higher advertising and promotional activities and the additional cost of operating the Dover facility over a four day weekend contributed to the increase in operating expense. General and administrative expenses of $3,135,000 in the second quarter of 2007 were 1% lower than the $3,173,000 for the same quarter last year.
The income tax provision for the quarter ended June 30, 2007 was $5,692,000 compared with $6,683,000 in the prior year. The effective tax rate for the second quarter was 50.4% in 2007 compared with 44.5% in the prior year. The higher rate in 2007 was due to the impact of a reversal of a tax contingency accrual in 2006 and a decrease in the Company's estimated 2007 annual consolidated pre-tax earnings. The tax rates in both years were affected by state income tax expenses attributable to valuation allowances established on certain state net operating losses.
Net earnings for the quarter ended June 30, 2007 were $5,593,000 or $.16 per diluted share compared with $8,329,000 or $.23 per diluted share for the same period last year. The lower TV broadcast rights fees and the higher effective income tax rate each affected earnings by $.02 per diluted share.
For six months ended June 30, 2007, revenues were $41,688,000 compared with $45,804,000 in the prior year. The Company promoted seven major events in the first half of both years. Net earnings were $2,033,000 or $.06 per diluted share compared with $3,936,000 or $.11 per diluted share in the comparable period of the prior year.
For the first half of 2007 cash provided by operations was $4,801,000 compared with $7,178,000 in the prior year. At June 30, 2007, indebtedness was $49,007,000 compared with $51,204,000 that was outstanding a year earlier.
Capital spending, primarily from the Monster Makeover project, was $8,745,000 in the first half of 2007 compared with $2,038,000 in the prior year. The Company expects capital spending of $1,500,000 to $2,000,000 during the second half of the year.
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 motorsports events in the
United States. Its motorsports subsidiaries operate four motorsports tracks
in three states and promote motorsports events under the auspices of three of
the premier sanctioning bodies in motorsports -- NASCAR, IRL, and NHRA. The
Company owns and operates Dover International Speedway in Dover, Delaware;
Nashville Superspeedway near Nashville, Tennessee; Gateway International
Raceway near St. Louis, Missouri; and Memphis Motorsports Park in Memphis,
Tennessee.
DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
In Thousands, Except Per Share Amounts
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Revenues:
Admissions $15,760 $16,613 $15,847 $16,698
Event-related 10,494 12,117 11,278 12,807
Broadcasting 14,512 16,244 14,512 16,244
Other 40 29 51 55
40,806 45,003 41,688 45,804
Expenses:
Operating and marketing 23,780 23,272 26,174 25,490
General and administrative 3,135 3,173 6,306 6,192
Depreciation and amortization 1,565 2,397 3,094 4,780
28,480 28,842 35,574 36,462
Operating earnings 12,326 16,161 6,114 9,342
Interest income 32 11 75 23
Interest expense (1,073) (1,160) (2,002) (2,286)
Earnings before income tax expense 11,285 15,012 4,187 7,079
Income tax expense 5,692 6,683 2,154 3,143
Net earnings $5,593 $8,329 $2,033 $3,936
Net earnings per common share:
Basic $0.16 $0.23 $0.06 $0.11
Diluted $0.16 $0.23 $0.06 $0.11
Weighted average shares outstanding:
Basic 35,876 35,999 35,871 36,049
Diluted 35,991 36,198 35,963 36,211
DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
June 30, June 30, December 31,
2007 2006 2006
ASSETS
Current assets:
Cash and cash equivalents $1,330 $1,249 $298
Accounts receivable 14,766 15,101 2,935
Inventories 334 290 244
Prepaid expenses and other 4,653 4,202 1,808
Receivable from Dover Downs Gaming &
Entertainment, Inc. - - 9
Income taxes receivable 101 158 -
Deferred income taxes 217 495 193
Total current assets 21,401 21,495 5,487
Property and equipment, net 158,187 218,285 152,502
Restricted cash 2,673 2,104 3,684
Other assets, net 1,278 1,346 1,261
Goodwill - 2,487 -
Total assets $183,539 $245,717 $162,934
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,065 $2,642 $1,938
Accrued liabilities 4,768 5,549 3,400
Payable to Dover Downs Gaming &
Entertainment, Inc. 38 1 -
Income taxes payable - - 478
Current portion of bonds payable - 695 695
Deferred revenue 19,755 20,058 10,008
Current liabilities of discontinued
operation - 103 -
Total current liabilities 28,626 29,048 16,519
Revolving line of credit 44,800 46,300 39,000
Bonds payable 4,207 4,209 4,211
Liability for pension benefits 664 - 771
Other liabilities - 21 -
Noncurrent income taxes payable 9,296 - -
Deferred income taxes 20,493 50,610 28,173
Total liabilities 108,086 130,188 88,674
Stockholders' equity:
Common stock 1,657 1,637 1,635
Class A common stock 1,967 1,992 1,977
Additional paid-in capital 99,599 100,032 99,412
(Accumulated deficit) retained
earnings (27,126) 12,296 (28,071)
Accumulated other comprehensive loss (644) (428) (693)
Total stockholders' equity 75,453 115,529 74,260
Total liabilities and stockholders'
equity $183,539 $245,717 $162,934
DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
Six Months Ended
June 30,
2007 2006
Operating activities:
Net earnings $2,033 $3,936
Adjustments to reconcile net earnings
to net cash provided by operating activities
of continuing operations:
Depreciation and amortization 3,094 4,780
Amortization of credit facility fees 91 97
Stock-based compensation 247 235
Deferred income taxes 1,285 2,061
Changes in assets and liabilities:
Accounts receivable (11,831) (12,735)
Inventories (90) (60)
Prepaid expenses and other (2,949) (2,482)
Income taxes receivable/payable (579) (448)
Accounts payable 2,127 1,165
Accrued liabilities 1,368 128
Payable to/receivable from Dover Downs
Gaming & Entertainment, Inc. 47 (14)
Deferred revenue 9,747 10,536
Other liabilities 211 (21)
Net cash provided by operating
activities of continuing operations 4,801 7,178
Net cash used in operating activities
of discontinued operation - (41)
Investing activities:
Capital expenditures (8,745) (2,038)
Restricted cash 1,011 1,096
Net cash used in investing activities (7,734) (942)
Financing activities:
Borrowings from revolving line of
credit 20,300 17,300
Repayments of revolving line of credit (14,500) (20,100)
Repayments of bonds payable (699) (874)
Dividends paid (1,088) (1,093)
Repurchase of common stock (54) (1,141)
Excess tax benefit on stock awards 6 16
Other - (7)
Net cash provided by (used in)
financing activities 3,965 (5,899)
Net increase in cash and cash
equivalents 1,032 296
Cash and cash equivalents, beginning of
period 298 953
Cash and cash equivalents, end of
period $1,330 $1,249
SOURCE Dover Motorsports, Inc.
----------------------------------------------
Patrick J. Bagley
Sr. Vice President-Finance of Dover Motorsports
Inc.
+1-302-883-6530
News 
Market Data 
Discover 
