Dover Motorsports 8K Reports Results for the Second Quarter of 2021 | DVD 29 Jul 21

EXHIBIT 99.1

FOR IMMEDIATE RELEASE		For further information, call:
		Timothy R. Horne – Sr. Vice President - Finance
Dover, Delaware, July 29, 2021		(302) 883-6592

DOVER MOTORSPORTS, INC.

REPORTS RESULTS FOR THE SECOND QUARTER OF 2021

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

The Company held a NASCAR triple-header weekend at Dover International Speedway in May and a NASCAR triple-header weekend, which included the return of NASCAR Cup Series racing to the Nashville market, at Nashville Superspeedway in June.

No events were held during the second quarter of 2020 as the COVID-19 pandemic caused the postponement of the Company’s scheduled May NASCAR weekend and the cancelation of the Firefly Music Festival. The three NASCAR events originally scheduled to be held in May 2020 were held without fans in combination with the August 2020 NASCAR weekend events. Accordingly, the results for the second quarter are not comparable to last year.

Revenues for the second quarter of 2021 increased to $49,896,000 from $110,000 for the second quarter of 2020, reflecting the timing of events described above.

The quarter was highlighted by our reopening of Nashville Superspeedway with a Father’s Day sellout crowd, which required temporary grandstands to accommodate. It was the first full grandstand sellout for NASCAR this year. Broadcast ratings for the ALLY 400 were 22% higher for NBCSN’s telecast compared with the previous year’s same date event and it was the second highest rated sports event on cable that week behind the NBA playoffs. Denis McGlynn, the Company’s President and Chief Executive Officer, stated: “There was an overwhelmingly positive response to the Nashville events from fans, race teams, sponsors and media representatives and we are looking forward to hosting another NASCAR weekend in Nashville next year.”

Dover International Speedway’s admissions and per cap related revenues were impacted by state-mandated restrictions that limited attendance to 20,000 patrons. The event was an operational success and had strong corporate sponsorship and contracted increases in broadcast revenue.

Operating and marketing expenses were $29,405,000 in the second quarter of 2021 compared to $812,000 in the second quarter of 2020.

General and administrative expenses were $2,203,000 in the second quarter of 2021 compared to $1,877,000 in the second quarter of 2020.

Depreciation expense increased to $809,000 for the second quarter of 2021 compared to $765,000 for the second quarter of 2020, primarily from depreciation for the capital expenditures related to the reopening of Nashville Superspeedway.

On May 26, 2021, we closed on the sale of approximately 350 acres of property near Nashville Superspeedway. Proceeds from the sale, less closing costs, were approximately $14,300,000, resulting in a gain of $8,510,000. The purchaser had previously paid a $500,000 deposit that was credited to the purchase price.

The adjustment to the contingent obligation relating to the Tennessee revenue bonds was a benefit of $500,000 in the second quarter of 2021, primarily from higher than anticipated sales taxes collected available for debt service. The benefit of $353,000 in the second quarter of 2020 was primarily from changed sales tax assumptions associated with the planned reopening of Nashville Superspeedway.

Earnings before income taxes for the second quarter of 2021 were $26,627,000 compared to a loss before income taxes for the second quarter of 2020 of ($2,844,000).

The Company’s effective income tax rate was an expense of 25.8% compared to a benefit of 75.8% in the second quarter of 2020. The 2020 benefit was the result of reversing a portion of a previously recorded valuation allowance on Tennessee state deferred tax assets as a result of the reopening of the Nashville Superspeedway.

Net earnings for the second quarter of 2021 were $19,745,000, or $0.54 per diluted share, compared to a net loss for the second quarter of 2020 of ($689,000) or ($0.02) per diluted share.

At June 30, 2021, the Company had no outstanding indebtedness and approximately $18.6 million in available cash.

The Firefly Music Festival is scheduled to return to the Woodlands at Dover International Speedway from September 23-26, 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						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Revenues:
Admissions	$	5,786		$	-		$	5,786		$	-
Event-related		7,040			110			7,197			314
Broadcasting		37,039			-			37,039			-
Other		31			-			31			-
		49,896			110			50,053			314

Expenses:
Operating and marketing		29,405			812			31,001			1,800
General and administrative		2,203			1,877			4,458			3,864
Depreciation		809			765			1,572			1,533
Cost to remove long-lived assets		-			-			-			341
		32,417			3,454			37,031			7,538

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

Operating earnings (loss)		25,989			(3,344	)		21,532			(7,224	)

Interest expense, net		(17	)		(16	)		(32	)		(13	)
Benefit (provision) for contingent obligation		500			353			534			(16	)
Other income, net		155			163			280			25

Earnings (loss) before income taxes		26,627			(2,844	)		22,314			(7,228	)

Income tax (expense) benefit		(6,882	)		2,155			(5,771	)		3,399

Net earnings (loss)	$	19,745		$	(689	)	$	16,543		$	(3,829	)

Net earnings (loss) per common share:
Basic	$	0.54		$	(0.02	)	$	0.45		$	(0.11	)
Diluted	$	0.54		$	(0.02	)	$	0.45		$	(0.11	)

Weighted average shares outstanding:
Basic		35,914			35,836			35,914			35,835
Diluted		35,914			35,836			35,914			35,835

DOVER MOTORSPORTS, INC.

CONSOLIDATED BALANCE SHEETS

In Thousands

(Unaudited)

	June 30,			June 30,			December 31,
	2021			2020			2020
ASSETS
Current assets:
Cash	$	18,636		$	2,886		$	12,568
Accounts receivable		17,999			1,035			601
Inventories		24			18			18
Prepaid expenses and other		798			1,493			1,557
Income taxes receivable		-			353			24
Assets held for sale		-			1,622			5,844
Total current assets		37,457			7,407			20,612

Property and equipment, net		70,038			68,398			63,075
Right of use asset		182			150			112
Deferred income taxes		1,208			-			2,425
Other assets		1,474		��	1,156			1,322
Total assets	$	110,359		$	77,111		$	87,546

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,493		$	26		$	570
Accrued liabilities		6,418			2,948			3,463
Income taxes payable		4,115			-			-
Contract liabilities		857			3,676			1,395
Non-refundable deposit		-			500			500
Total current liabilities		13,883			7,150			5,928

Liability for pension benefits		621			863			871
Lease liability		85			73			33
Provision for contingent obligation		2,684			3,404			3,218
Deferred income taxes		8,874			5,300			8,469
Total liabilities		26,147			16,790			18,519

Stockholders' equity:
Common stock		1,793			1,788			1,786
Class A common stock		1,851			1,851			1,851
Additional paid-in capital		101,258			101,112			101,207
Accumulated deficit		(16,947	)		(40,797	)		(32,032	)
Accumulated other comprehensive loss		(3,743	)		(3,633	)		(3,785	)
Total stockholders' equity		84,212			60,321			69,027
Total liabilities and stockholders' equity	$	110,359		$	77,111		$	87,546

DOVER MOTORSPORTS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

In Thousands

(Unaudited)

	Six Months Ended
	June 30,
	2021			2020
Operating activities:
Net earnings (loss)	$	16,543		$	(3,829	)
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Depreciation		1,572			1,533
Amortization of credit facility fees		31			28
Stock-based compensation		175			218
Deferred income taxes		1,599			(3,399	)
Provision for contingent obligation		(534	)		16
(Gains) losses on equity securities		(92	)		50
Gain on sale of land		(8,510	)		-
Changes in assets and liabilities:
Accounts receivable		(17,398	)		(390	)
Inventories		(6	)		-
Prepaid expenses and other		701			(321	)
Accounts payable		641			(93	)
Accrued liabilities		2,964			(762	)
Income taxes payable/receivable		4,139			(70	)
Contract liabilities		(538	)		2,700
Liability for pension benefits		(184	)		(73	)
Net cash provided by (used in) operating activities		1,103			(4,392	)

Investing activities:
Capital expenditures		(7,253	)		(196	)
Proceeds from sale of land and equipment, net		13,826			-
Purchases of equity securities		(8	)		(240	)
Proceeds from sale of equity securities		13			231
Net cash provided by (used in) investing activities		6,578			(205	)

Financing activities:
Borrowings from revolving line of credit		-			180
Repayments on revolving line of credit		-			(180	)
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 (decrease) in cash		6,068			(4,691	)
Cash, beginning of period		12,568			7,577
Cash, end of period	$	18,636		$	2,886

Dover Motorsports (DVD) 8-KReports Results for the Second Quarter of 2021