It’s that time of year when NASCAR fans from all over the country salivate over the Daytona 500. The largest racing event of the year is coming up this month, and it will bring 250,000 fans to the track. And while there’s no doubt every American knows about the Daytona 500 there are more racing events to take notice.
Dover Motorsports, Inc. (NYSE: DVD) is a leading promoter of NASCAR sanctioned motor sports events whose subsidiaries own and operate Dover International Speedway in Dover, Del., and Nashville Super speedway near Nashville. Dover International Speedway has been hosting NASCAR events since the green flag dropped on the “Mason-Dixon 300” on July 6, 1969.
DVD just released their Q4 Financials heading up to Daytona. Revenues for the fourth quarter of 2016 were $ 20,112,000 compared with $ 21,016,000 in the fourth quarter of 2015. The company attributes the revenue decline on weather. Their XFINITY race was rained out, and had to be moved. That resulted in lower admissions revenue. Additionally, the company experienced lower sponsorship sales partially offset by higher Broadcast revenues compared to last year. On the plus side, the company decreased their SG&A by $89,000 to $1.8 million from lower employee costs.
For the year ended December 31, 2016, total revenues were $ 45,873,000 compared with $ 46,539,000 in the prior year. The decrease was from lower admissions, lower corporate sales for the fall weekend, and from the cancellation of the Big Barrel Country Music Festival in 2016, partially offset by higher broadcasting and other revenue.
“The Company’s financial position continued to strengthen during 2016. Total borrowings outstanding decreased to $ 3,840,000 at December 31, 2016 from $ 5,900,000 at December 31, 2015. In December 2016 and 2015, the Company paid annual cash dividends on both classes of common stock of $ .05 per share. Due to the seasonal nature of our business, we will evaluate dividends annually.”
For our investor audience that enjoy NASCAR too, here are some event to watch. On Friday, June 2, the NASCAR Camping World Truck Series will take place followed by the NASCAR XFINITY Series race on Saturday, June 3 and the “AAA 400 Drive for Autism” NASCAR Cup Series race on Sunday, June 4. In the fall, NASCAR K&N Pro Series East drivers hit Dover on Friday, Sept. 29. On September 30, the “Drive Sober 200” presented by the Delaware Office of Highway Safety NASCAR XFINITY Series race r urns, followed by the centerpiece of the weekend, the NASCAR Cup Series race on Sunday, October 2.
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