Dover Motorsports, Inc. reported higher income in 2015.
The company’s fall NASCAR weekend was negatively impacted by the forecast of a potential hurricane, the postponement of all Friday activities, and threatening weather for the balance of the weekend, causing a reduction in admissions revenue and concession and merchandise sales. Broadcast revenue and sponsorship sales both improved compared to last year’s fall weekend.
For the year ended December 31, 2015, total revenues were $46,539,000 compared with $45,674,000 in the prior year. The increase was primarily due to higher broadcasting revenue and higher rent and concessions revenue related to hosting the Firefly and the inaugural Big Barrel music festivals. Big Barrel announced it will not be held in 2016.
These increases were offset by lower admissions and conces sion revenue during the NASCAR weekend as noted above.
Income from assets held for sale of $2,900,000 represents non-refundable payments made to extend the closing date under a now expired agreement to sell the Nashville facility. The sale of the track fell through.
Net earnings for the year ended December 31, 2015 were $5,285,000 or $.14 per diluted share compared to $3,145,000 or $.09 per diluted share for the year ended December 31, 2014.
The current year’s annual results include a pre-tax charge of $40,000 compared to $2,403,000 in the prior year for the removal of grandstand seats which were not fully depreciated.
The current year’s annual results also include additional depreciation expense of $2,216,000 from the previously mentioned change in useful lives of grandstand seats and structures that were moved at the end of last year’s racing season.
The company’s financial position strengthened during 2015. Total borrowings outstanding decreased to $5,900,000 at December 31, 2015 from $10,760,000 at December 31, 2014.
In December 2015 and 2014, the Company paid annual cash dividends on both classes of common stock of $0.05 per share. Due to the seasonal nature of our business, dividends are studied annually.