Dover Motorsports, Inc. Reports Results for the Third Quarter Of 2019

Dover Motorsports, Inc. (NYSE: DVD) today reported results for the three months ended September 30, 2019.

No major events were promoted during the third quarter of 2019 or 2018; therefore, our revenues were minimal.

Operating and marketing expenses were $1,347,000 in the third quarter of 2019 compared to $1,599,000 in the third quarter of 2018. The decrease was primarily the result of lower employee costs and the timing of advertising spending.

General and administrative expenses of $1,888,000 in the third quarter of 2019 were comparable to $1,798,000 in the third quarter of 2018.

Depreciation expense increased to $1,669,000 from $793,000 in the third quarter of 2018. The increase is due to our decision during the third quarter to remove additional grandstand seats after our 2019 race season. We changed the estimated useful lives of the impacted assets resulting in $879,000 of accelerated depreciation expense in the third quarter of 2019. We expect to incur an additional $293,000 of accelerated depreciation expense in the fourth quarter of 2019.

As previously reported, we closed on the sale of two parcels of land in Nashville during the third quarter of 2019 for net proceeds of approximately $6,397,000 after closing costs, resulting in a gain of $4,186,000. The purchaser has an option to acquire approximately 97 additional acres for a total purchase price of approximately $6,480,000 (including a $500,000 non-refundable deposit previously made). Assuming the exercise of that option, the Company would continue to hold approximately 1,000 acres of commercial real estate, including the superspeedway.

Net interest income was $20,000 in the third quarter of 2019 compared to interest expense of $2,000 in the third quarter of 2018 due to lower borrowings and interest earned on higher cash balances during the third quarter of this year.

Provision for contingent obligation increased $121,000 during the third quarter of 2019 primarily from changes in the discount rate and reimbursement of fees.

Loss before income taxes for the third quarter of 2019 was ($588,000) compared to ($4,014,000) in the third quarter of 2018. The 2019 results include the $4,186,000 gain on sale and $879,000 of accelerated depreciation, and our 2018 results included a $99,000 loss from the sale of land near St. Louis. On an adjusted basis, excluding these items, loss before income tax benefit for the third quarter was ($3,895,000) in 2019 compared to ($3,915,000) in 2018.

Net loss for the third quarter of 2019 was ($414,000) or ($.01) per diluted share compared to ($2,699,000) or ($.07) per diluted share in the third quarter of 2018. Net loss, adjusted for the aforementioned items, was ($3,087,000) in 2019 compared to ($2,623,000) in 2018.

As of September 30, 2019, the Company had no outstanding indebtedness and approximately $4.8 million in available cash.

During the third quarter this year, the Company repurchased 158,196 shares of its common stock on the open market at an average price of $2.04 per share, not including nominal brokerage commissions. Total repurchases during the first nine months of this year were 208,416 shares.

The Company announced yesterday that its Board of Directors declared an increased annual cash dividend on both classes of common stock of $.10 per share. The dividend will be payable on December 10, 2019 to shareholders of record at the close of business on November 11, 2019. Due to the seasonal nature of our business, we will evaluate dividends annually.

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 leading 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.

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