Dover Motorsports, Inc. Reports Results for the Fourth Quarter and Year Ended Dec. 31, 2012
Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the fourth quarter and year ended December 31, 2012.
On an adjusted basis, earnings from continuing operations for the year improved 81.1% to $ 4,381,000 from $ 2,419,000 in 2011.
Results for this quarter are not comparable to the prior year’s quarter due to the timing of Dover’s fall NASCAR race weekend. Dover’s 2012 fall NASCAR race weekend was held entirely in the third quarter of 2012 while the 2011 fall NASCAR Nationwide Series and Sprint Cup Series races were held during the fourth quarter of 2011. Also, the results for the year ended December 31, 2011 include the results of two NASCAR Nationwide Series and two NASCAR Truck Series races at the Company’s Nashville facility. The Company did not promote these races in 2012.
For the quarter ended December 31, 2012, revenues were $ 129,000 compared with $ 22,443,000 in the fourth quarter of 2011. The decrease in revenues was due to the schedule change discussed above.
Operating and marketing expenses were $ 985,000 in the fourth quarter of 2012 compared to $ 10,768,000 in the fourth quarter of 2011. The decrease is also from the aforementioned changes.
General and administrative expenses of $ 2,102,000 in the fourth quarter of 2012 increased from $ 1,832,000 for the same quarter last year. The increase is primarily due to higher employee related costs at Dover.
Net interest expense was $ 291,000 for the fourth quarter of 2012 compared to $ 431,000 in the fourth quarter of 2011. The decrease is primarily due to lower average outstanding borrowings and lower interest rates in the fourth quarter of 2012 compared to 2011.
(Loss) earnings from continuing operations before tax benefit (expense) for the fourth quarter of 2012 were ($ 4,019,000) compared with $ 8,562,000 for the fourth quarter of 2011.
Net (loss) earnings for the fourth quarter of 2012 were ($ 2,356,000) or ($ .07) per diluted share compared to $ 5,061,000 or $ .14 per diluted share for the same period last year.
For the year ended December 31, 2012, total revenues were $ 46,747,000 compared with $ 51,870,000 in the prior year. The decrease was primarily due to no longer promoting the four NASCAR races at the Company’s Nashville facility. Lower Dover NASCAR related revenues were partially offset by rental and related revenues from the inaugural Firefly Music Festival held in July 2012 on the Company’s Dover parking grounds.
Net earnings were $ 4,571,000 or $ .12 per diluted share for the year ended December 31, 2012 compared to a net loss of ($ 9,185,000) or ($ 0.25) per diluted share for 2011. The prior year’s annual results include a non-cash impairment charge of $ 15,687,000 to write down the carrying value of the Nashville facility to its fair value, a provision for contingent obligation of $ 2,250,000 and a loss from discontinued operation of $ 71,000 while the results for 2012 includes a credit of $ 321,000 related to the contingent obligation. On an adjusted basis, earnings from continuing operations were $ 4,381,000 or $ .12 per diluted share for 2012 compared to $ 2,419,000 or $ .07 per diluted share for 2011.
The Company’s financial position has also improved during 2012. Total borrowings outstanding were $ 19,700,000 at December 31, 2012 compared to $ 29,160,000 at December 31, 2011. In December 2012, the Company paid an annual cash dividend on both classes of common stock of $ 0.04 per share in the amount of $ 1,475,000.
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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.