Active Mover: Dover Motorsports, Inc. (NYSE: DVD)

On Thursday, Shares of Dover Motorsports, Inc. (NYSE: DVD) showed no change to $2.10. The stock opened its trade at $2.05 and after floating in a price range of $2.05 to $2.10; the stock grabbed the investor’s attention and traded 1,542 shares as compared to its average daily volume of 13.79K shares. The stock’s institutional ownership stands at 52.90%.

Dover Motorsports, Inc. (DVD) recently stated its results for the fourth quarter and year ended December 31, 2017.

Revenues for the fourth quarter of 2017 were $18.305M contrast to $20.112M in the fourth quarter of 2016. Operating and marketing expenses were $10.125M in the fourth quarter of 2017 contrast to $11.757M in the fourth quarter of 2016. Both decreases were mainly from the timing of the XFINITY Series races formerly mentioned.

General and administrative expenses of $1.753M in the fourth quarter of 2017 were slightly lower contrast to $1.826M in the fourth quarter of 2016, mainly because of lower employee costs.

Depreciation expense in the fourth quarter of 2017 increased to $1.059M from $842.0K in the fourth quarter of 2016. The fourth quarter of 2017 includes $186.0K of accelerated depreciation expense as a result of the Company’s decision to not complete certain improvements at our Dover facility.

Provision for contingent obligation was $117.0K during the fourth quarter of 2017 contrast to $2.0K in the fourth quarter of 2016 mainly because of a lower discount rate.

Earnings before income taxes for the fourth quarter of 2017 were $5.233M contrast to $5.456M in the fourth quarter of 2016.

Income tax benefit was $2.410M for the fourth quarter of 2017 contrast to an expense of $2.211M in the fourth quarter of 2016. The Tax Cuts and Jobs Act were signed into law in December 2017. The fourth quarter of 2017 and full-year 2017 results reflect the impact of the new tax law which resulted in an income tax benefit of $4.531M, or $.13 per share, mainly from revaluing the Company’s net deferred tax liabilities to reflect the recently enacted 21% federal corporate rate.

Net earnings in the fourth quarter of 2017 were $7.643M or $0.21 per diluted share contrast to $3.245M or $0.09 per diluted share for the fourth quarter of 2016. Net earnings, apart from the tax benefit, were $3.112M or $.08 per diluted share in the fourth quarter of 2017.

For the year ended December 31, 2017, total revenues were $46.742M contrast to $45.873M in the prior year. The increase was from higher broadcasting revenue, partially offset by lower admissions revenue and music festival related revenue.

Net earnings for the year ended December 31, 2017 were $8.426M or $0.23 per diluted share contrast to $3.801M or $0.10 per diluted share for the year ended December 31, 2016. Net earnings for 2017, apart from the aforementioned tax benefit, were $3.895M or $.10 per diluted share.

The Company’s financial position continued to strengthen during 2017. Total borrowings outstanding reduced to $3.240M at December 31, 2017 from $3.840M at December 31, 2016. The Company funded $1.20M towards its pension obligations in 2017. During the fourth quarter this year, the Company repurchased 52,045 shares of its common stock on the open market at an average price of $2.05 per share, bringing total repurchases for the year to 130,741 shares at an average price of $2.11 per share. In December 2017 the Company paid annual cash dividends on both classes of common stock of $.08 per share contrast to $.05 per share in December 2016. Because of the seasonal nature of our business, we will evaluate dividends annually.

DVD has a market value of $77.34M while its EPS was booked as $0.10 in the last 12 months. The stock has 36.83M shares outstanding. In the profitability analysis, the company has gross profit margin of 39.10% while net profit margin was 7.90%. Beta value of the company was 0.44; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.00.

Pamela Lord

Services Reporter

I am Pamela Lord and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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