Dover Motorsports Inc. (NYSE:DVD) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 09:00 am ET

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Dover Motorsports Inc. (NYSE:DVD) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Denis McGlynn

Good morning, everyone.

I'm joined by Tim Horne, our CFO, who's going to read our forward-looking statement disclaimer, and then we'll get underway.

Executive
Tim Horne

In order to help you understand the company and its results, we may make certain forward-looking statements. It is possible the company's actual results might differ from any predictions we make today. Additional information regarding factors that could cause such differences appear in the company's SEC filings.

Operator
Denis McGlynn

Thanks, Tim.

Well, the results for this second quarter are highly unusual due to the COVID-19-related postponement of our Spring NASCAR Weekend and the cancellation of June's Firefly Music Festival. As you may know, our Spring NASCAR Weekend has been rescheduled and combined into our regularly scheduled August 21 to 23 weekend, during which we'll conduct six NASCAR races over three days. All six races have title sponsors, and all will be televised live with the exception of Friday's ARCA Menards Series race, which will have a delayed telecast. Unfortunately, due to the resurgence of COVID-19 cases across the region, state officials have recommended that we conduct our races without fans in order to provide for the maximum safety of our fans and workers, and we're planning accordingly.

Moving on to Nashville. Our announcement during the quarter regarding our reopening of Nashville Superspeedway next year was exceptionally well received by all sectors of the racing community and by government officials and the Nashville and Middle Tennessee business community as well. Along with various engineers and contractors, we're consolidating our plan to restore the facility to operational status. We've also begun the process of hiring staff and making sales calls in preparation for next June's race weekend out there.

At this point, I'll turn it over to Tim for his review of the financials.

Executive
Tim Horne

Thanks, Denis.

Given the COVID-19 pandemic's impact on our 2020 slate of events, these quarterly results are obviously not comparable to last year. The second quarter of 2019 included our NASCAR event weekend, which was postponed this year. As we announced on July 8, these postponed May NASCAR events have been rescheduled and will be run with our previously scheduled second race weekend in August. As further announced on July 27, those races will be run without fans. Additionally, the second quarter of 2019 included the Firefly Music Festival. And the pandemic forced that event to be canceled for 2020. So we held no major events in the second quarter of 2020, which essentially explains all the changes in our revenues and operating expenses.

If you look at the second quarter statement of earnings, you'll see our revenues were $110,000 compared to $24.8 million last year. Our operating and marketing expenses were also significantly lower than last year from not holding any events. And we're also lower than the first quarter of this year given cost-cutting measures that were put in place when the pandemic surfaced. G&A expenses were up slightly from last year at $1.87 million from higher insurance costs and stock compensation expense. G&A expenses were