Dover Motorsports Inc. (DVD, Financial) filed Quarterly Report for the period ended 2010-03-31.
Dover Motorsports Inc. has a market cap of $74.6 million; its shares were traded at around $2.03 with and P/S ratio of 1.1. DVD is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Net cash provided by investing activities was $1,173,000 for the three months ended March 31, 2010 as compared to $626,000 for the three months ended March 31, 2009. Capital expenditures were $203,000 for the three months ended March 31, 2010, down from $699,000 for the three months ended March 31, 2009. The 2010 additions related primarily to payments for concessions equipment and facility improvements. The 2009 additions related primarily to the Monster Makeover project, consisting primarily of racetrack improvements at our Dover facility. Decreases in our restricted cash accounts were $1,376,000 and $1,325,000 for the three month periods ended March 31, 2010 and 2009, respectively.
Net cash used in financing activities was $977,000 for the three months ended March 31, 2010 as compared to $2,108,000 for the three months ended March 31, 2009. We had net borrowings on our outstanding line of credit of $300,000 in the first three months of 2010 as compared to net repayments of $600,000 in the first three months of 2009. Repayments of our outstanding SWIDA bonds were $1,235,000 for the first three months of 2010 as compared to $1,129,000 for the first three months of 2009. We paid $367,000 in cash dividends in the first three months of 2009. No dividends were paid in the first three months of 2010.
Cash provided by operating activities is expected to substantially fund our capital expenditures. Based on current business conditions, we expect to spend approximately $250,000 on capital expenditures for the remainder of 2010. On May 24, 2006, we announced plans for a five-year capital improvement project, referred to as the Monster Makeover, that will provide new offerings and upgraded amenities for fans, competitors and the media. The project is expected to take approximately five years to complete at an estimated total cost of approximately $25,000,000 to $30,000,000, of which approximately $20,800,000 was spent as of March 31, 2010. We continue to review the amount and timing of capital expenditures in light of our current earnings level. Additionally, we expect to contribute approximately $500,000 to our pension plans for 2010, none of which was contributed during the three months ended March 31, 2010. We expect continued cash flows from operating activities and funds available from our credit agreement to provide for our working capital needs and capital spending requirements at least through the next twelve months and also provide for our long-term liquidity.
We believe that the sales taxes and incremental property taxes generated from the facility will continue to satisfy the necessary debt service requirements of the bonds through the maturity date in 2029. As of March 31, 2010 and December 31, 2009, $911,000 and $915,000, respectively, was available in the sales and incremental property tax fund maintained by the Sports Authority to pay the remaining principal and interest due under the bonds. During 2009, we paid $1,055,000 into the sales and incremental property tax fund and $689,000 was deducted from the fund for principal and interest payments. If the debt service is not satisfied from the sales and incremental property taxes generated from the facility, a portion of the bonds would become our liability. If we fail to maintain the letter of credit that secures the bonds or we allow an uncured event of default to exist under our reimbursement agreement relative to the letter of credit, the bonds would be immediately redeemable.
In September 1999, the Sports Authority of the County of Wilson (Tennessee) issued $25,900,000 in revenue bonds to build local infrastructure improvements which benefit the operation of Nashville Superspeedway, of which $21,700,000 was outstanding on March 31, 2010. Debt service on the bonds is payable solely from sales taxes and incremental property taxes generated from the facility. As of March 31, 2010 and December 31, 2009, $911,000 and $915,000, respectively, was available in the sales and incremental property tax fund maintained by the Sports Authority to pay the remaining principal and interest due under the bonds. During 2009, we paid $1,055,000 into the sales and incremental property tax fund and $689,000 was deducted from the fund for principal and interest payments. These bonds are direct obligations of the Sports Authority and are therefore not recorded on our consolidated balance sheet. In the event the sales taxes and incremental property taxes are insufficient to cover the payment of principal and interest on the bonds, we would become responsible for the difference. We are exposed to fluctuations in interest rates for these bonds. A significant increase in interest rates could result in us being responsible for debt service payments not covered by the sales and incremental property taxes generated from the facility. In the event we were unable to make the payments, they would be made under a $22,064,000 irrevocable direct-pay letter of credit issued by our bank group. We would be responsible to reimburse the banks for any drawings made under the letter of credit. Such an event could have a material adverse effect on our business, financial condition and results of operations and compliance with debt covenants.
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Dover Motorsports Inc. has a market cap of $74.6 million; its shares were traded at around $2.03 with and P/S ratio of 1.1. DVD is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net interest expense was $808,000 in the first quarter of 2010 as compared to $780,000 in the first quarter of 2009. Excluding the interest expense we record on certain unrecognized income tax benefits, our net interest expense was $757,000 in the first quarter of 2010 as compared to $643,000 in the first quarter of 2009. The increase was due primarily to a higher average interest rate on our credit facility.Net cash provided by investing activities was $1,173,000 for the three months ended March 31, 2010 as compared to $626,000 for the three months ended March 31, 2009. Capital expenditures were $203,000 for the three months ended March 31, 2010, down from $699,000 for the three months ended March 31, 2009. The 2010 additions related primarily to payments for concessions equipment and facility improvements. The 2009 additions related primarily to the Monster Makeover project, consisting primarily of racetrack improvements at our Dover facility. Decreases in our restricted cash accounts were $1,376,000 and $1,325,000 for the three month periods ended March 31, 2010 and 2009, respectively.
Net cash used in financing activities was $977,000 for the three months ended March 31, 2010 as compared to $2,108,000 for the three months ended March 31, 2009. We had net borrowings on our outstanding line of credit of $300,000 in the first three months of 2010 as compared to net repayments of $600,000 in the first three months of 2009. Repayments of our outstanding SWIDA bonds were $1,235,000 for the first three months of 2010 as compared to $1,129,000 for the first three months of 2009. We paid $367,000 in cash dividends in the first three months of 2009. No dividends were paid in the first three months of 2010.
Cash provided by operating activities is expected to substantially fund our capital expenditures. Based on current business conditions, we expect to spend approximately $250,000 on capital expenditures for the remainder of 2010. On May 24, 2006, we announced plans for a five-year capital improvement project, referred to as the Monster Makeover, that will provide new offerings and upgraded amenities for fans, competitors and the media. The project is expected to take approximately five years to complete at an estimated total cost of approximately $25,000,000 to $30,000,000, of which approximately $20,800,000 was spent as of March 31, 2010. We continue to review the amount and timing of capital expenditures in light of our current earnings level. Additionally, we expect to contribute approximately $500,000 to our pension plans for 2010, none of which was contributed during the three months ended March 31, 2010. We expect continued cash flows from operating activities and funds available from our credit agreement to provide for our working capital needs and capital spending requirements at least through the next twelve months and also provide for our long-term liquidity.
We believe that the sales taxes and incremental property taxes generated from the facility will continue to satisfy the necessary debt service requirements of the bonds through the maturity date in 2029. As of March 31, 2010 and December 31, 2009, $911,000 and $915,000, respectively, was available in the sales and incremental property tax fund maintained by the Sports Authority to pay the remaining principal and interest due under the bonds. During 2009, we paid $1,055,000 into the sales and incremental property tax fund and $689,000 was deducted from the fund for principal and interest payments. If the debt service is not satisfied from the sales and incremental property taxes generated from the facility, a portion of the bonds would become our liability. If we fail to maintain the letter of credit that secures the bonds or we allow an uncured event of default to exist under our reimbursement agreement relative to the letter of credit, the bonds would be immediately redeemable.
In September 1999, the Sports Authority of the County of Wilson (Tennessee) issued $25,900,000 in revenue bonds to build local infrastructure improvements which benefit the operation of Nashville Superspeedway, of which $21,700,000 was outstanding on March 31, 2010. Debt service on the bonds is payable solely from sales taxes and incremental property taxes generated from the facility. As of March 31, 2010 and December 31, 2009, $911,000 and $915,000, respectively, was available in the sales and incremental property tax fund maintained by the Sports Authority to pay the remaining principal and interest due under the bonds. During 2009, we paid $1,055,000 into the sales and incremental property tax fund and $689,000 was deducted from the fund for principal and interest payments. These bonds are direct obligations of the Sports Authority and are therefore not recorded on our consolidated balance sheet. In the event the sales taxes and incremental property taxes are insufficient to cover the payment of principal and interest on the bonds, we would become responsible for the difference. We are exposed to fluctuations in interest rates for these bonds. A significant increase in interest rates could result in us being responsible for debt service payments not covered by the sales and incremental property taxes generated from the facility. In the event we were unable to make the payments, they would be made under a $22,064,000 irrevocable direct-pay letter of credit issued by our bank group. We would be responsible to reimburse the banks for any drawings made under the letter of credit. Such an event could have a material adverse effect on our business, financial condition and results of operations and compliance with debt covenants.
Read the The complete Report
