Dover Motorsports, Inc. Reports Results for the Second Quarter of 2014
DOVER, Del. - Dover Motorsports, Inc. (NYSE: DVD) today reported results for the three months ended June 30, 2014.
The Company promoted a NASCAR triple-header and hosted the Firefly Music Festival in Dover during the second quarter of 2014 and 2013. The Company leases a portion of its Dover facility to the promoter, provides logistical assistance and handles certain concessions for which the Company retains a certain percent of the gross sales.
Revenues for the second quarter of 2014 were $ 24,273,000 compared with $ 24,465,000 in the second quarter of 2013. The decrease in revenues was primarily due to lower motorsports admissions and event-related revenue, partially offset by the contracted increase in broadcasting revenue for the Dover NASCAR weekend and by slightly higher revenue from the Firefly Music Festival.
Operating and marketing expenses were $ 13,268,000 in the second quarter of 2014 compared to $ 13,123,000 in the second quarter of 2013. The increase was primarily due to the scheduled increase in purse and sanction fees and increased promotion and security costs for the Dover NASCAR weekend.
General and administrative expenses decreased to $ 1,776,000 in the second quarter of 2014 from $ 1,839,000 in the second quarter of 2013.
Net interest expense decreased to $ 99,000 in the second quarter of 2014 from $ 275,000 for the second quarter of 2013. The decrease was due to lower interest rates, lower outstanding borrowings and lower fees.
Earnings before income tax expense for the second quarter of 2014 were $ 8,256,000 compared with $ 8,391,000 in the second quarter of 2013.
Net earnings for the second quarter of 2014 were $ 4,844,000 or $ 0.13 per diluted share compared to $ 4,903,000 or $ 0.13 per diluted share for the second quarter of 2013.
At June 30, 2014, the Company’s total indebtedness was $ 16,920,000 compared with $ 23,180,000 at June 30, 2013.
As previously announced, the Company entered into an agreement on May 28, 2014 with NeXovation, Inc. to sell its Nashville Superspeedway facility. The agreement provides for an aggregate purchase price of $ 27 million in cash plus the assumption by NeXovation, Inc. of the Company’s obligations under certain Variable Rate Tax Exempt Infrastructure Revenue Bonds issued by the Sports Authority of the County of Wilson, Tenn.The transaction is expected to close during the third quarter and is subject to customary closing conditions.
The Company’s balance sheet includes a $ 1,835,000 contingent obligation related to the bonds noted above which will be reversed upon the closing of the transaction resulting in an increase in our pre-tax earnings by the amount of the contingent obligation at the date of closing.
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.