Dover Motorsports, Inc. Reports Results for the Second Quarter of 2017
DOVER, Del. - Dover Motorsports, Inc. (NYSE: DVD) today reported results for the three months ended June 30, 2017.
The Company promoted a NASCAR triple-header and hosted the Firefly Music Festival in Dover during the second quarter of 2017 and 2016. The Company leases a portion of its Dover facility to the promoter of Firefly, provides logistical assistance and handles certain concessions for which the Company retains a percentage of the gross sales.
Revenues for the second quarter of 2017 increased slightly to $ 25,587,000 from $ 25,253,000 for the second quarter of 2016. The increase is primarily from the scheduled increase in broadcasting revenue, partially offset by lower admissions revenue for the Dover NASCAR weekend.
Operating and marketing expenses were $ 14,100,000 in the second quarter of 2017 compared to $ 13,847,000 in the second quarter of 2016. The increase was due to the scheduled increase in purse and sanction fees for the Dover NASCAR weekend.
General and administrative expenses decreased slightly to $ 1,783,000 in the second quarter of 2017 from $ 1,820,000 in the second quarter of 2016.
Depreciation expense decreased slightly to $ 823,000 in the second quarter of 2017 from $ 867,000 in the second quarter of 2016. The 2016 expense includes $ 68,000 of accelerated depreciation from a change in the estimated useful lives of facilities we decided to renovate during 2016.
Net interest expense of $ 68,000 in the second quarter of 2017 remained consistent compared to $ 66,000 in the second quarter of 2016.
Provision for contingent obligation was $ 11,000 during the second quarter of 2017 compared to $ 70,000 during the second quarter of 2016 primarily due to changes in discount rates.
Earnings before income taxes for the second quarter of 2017 were $ 8,808,000 compared with $ 8,575,000 for the second quarter of 2016.
Net earnings for the second quarter of 2017 were $ 5,203,000 or $ 0.14 per diluted share compared to $ 5,066,000 or $ 0.14 per diluted share in the second quarter of 2016.
At June 30, 2017, the Company’s total indebtedness was $ 11,200,000 compared with $ 1,500,000 at June 30, 2016. The increase is attributable to the timing of receipt of our share of broadcast revenue. The Company received its broadcast revenue from NASCAR in July of 2017. In 2016, broadcast revenues were received in June.
As previously reported, on July 21, 2017 we extended our agreement for the sale of our Nashville facility for an additional thirty days to allow for time to finalize agreements for a restructured transaction that contemplates the immediate sale of 150 acres at $ 35,000 per acre and the grant of a three year option on an additional 150 acres at $ 55,000 per acre. Assuming both transactions close, we would still have more than 1,000 acres and the speedway would remain intact while we continue to explore future development options.
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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. (NYSE: DVD) is a leading promoter of NASCAR sanctioned motorsports events whose subsidiaries own and operate Dover International Speedway in Dover, Del., and Nashville Superspeedway near Nashville. The company also plays host to the Firefly Music Festival, produced by Red Frog Events and Goldenvoice. For more information, visit www.DoverMotorsports.com.