Dover Motorsports has a hit on its hands after successful Nashville NASCAR weekend

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Dover Motorsports, Inc. reported the NASCAR weekend in Nashville was a big success.

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 at Nashville Superspeedway June.

Dover Motorsports was able to move one of its two NASCAR weekends to its Nashville track, which has been quiet in recent years.

The second quarter will account for most of the revenue for the company since it holds only two NASCAR weekends a year. However, it does receive some revenue from the Firefly Music Festival, which is slated for this fall in Dover. 

No events were held during the second quarter of 2020 as the Covid-19 pandemic led to the postponement of the company’s scheduled May NASCAR weekend and the cancelation of the Firefly  Festival.

The NASCAR weekend, originally scheduled to be held in May 2020 were held without fans in combination with the August 2020 NASCAR weekend events. 

The second quarter was highlighted by the reopening of Nashville Superspeedway with a Father’s Day sellout crowd, which required temporary grandstands. With portable seating, the track can handle 38,000 fans, with room for additional bleachers.

It was the first full grandstand sellout for NASCAR this year. Broadcast ratings for the ALLY 400 were 22% higher for NBCSN’s telecast than 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, CEO, 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.”

While the Nashville track is not one of NASCAR’s super-tracks  (Bristol, Texas, Charlotte) that can hold more than 150,000 fans, the city offers more sponsorship opportunities and access to the fast-growing area’s massive entertainment-music industry.

Dover Motorsports downsized its Delaware track grandstands from the days when attendance was north of 100,000.

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

On May 26, Dover Motorsports closed on the sale of approximately 350 acres of property near Nashville Superspeedway and posted an $8.5 million gain.

On June 30,  the company had no outstanding indebtedness and approximately $18.6 million in available cash.

Dover Motorsports’ stock price on Friday was trading at $2.33 a share.

Shares of the company have risen only 9.3% over the past five years, a reflection of the struggles of NASCAR, which has seen falling attendance and until recently lower TV ratings.  Reasons range from the retirements of popular drivers to business decisions by the France family, which owns NASCAR and also bought the biggest  operator of NASCAR tracks.

For further information, log on to dovermotorsports.com

(See earnings summary below)

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
 
 
 
           –
 
Total  
 
    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)
 
                 
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