Management makes it look like it is an even buyout at 0.501DDE Shrs./DVD Shrs. Is this an even deal or is DDE paying too much?
DVD has very little cash and $37M in debt. Are their real estate holdings worth enough to make this a good deal? The Gateway and Nashville raceways just lost $1.7M from a write down and NASCAR is on the decline.
Still assessing the effects but this comes from the related party footnote on the 10-K. I'm sure DVD has many duplicated costs that can be eliminated.
"During the years ended December 31, 2009, 2008 and 2007, we allocated costs of $1,983,000, $2,104,000 and $1,873,000, respectively to DVD, a company related through common ownership, for certain administrative and operating services, including leased space. DVD allocated certain administrative and operating service costs of $225,000, $295,000 and $229,000, respectively, to us for the years ended December 31, 2009, 2008 and 2007. The allocations were based on an analysis of each company’s share of the costs. Additionally, in connection with DVD’s 2009, 2008 and 2007 NASCAR event weekends at Dover International Speedway, we provided certain services, primarily catering, for which DVD was invoiced $999,000, $1,237,000 and $1,207,000, respectively. Additionally, DVD invoiced us $375,000, $434,000 and $429,000, respectively, for our rental of a skybox suite, tickets and other services during DVD’s 2009, 2008 and 2007 NASCAR event weekends at Dover International Speedway. As of December 31, 2009 and 2008, our consolidated balance sheets included a $5,000 receivable from and $11,000 payable to DVD, respectively, for the aforementioned items. We settled these items in January of 2010 and 2009, respectively. The net costs incurred by each company for these services are not necessarily indicative of the costs that would have been incurred if the companies had been unrelated entities and/or had otherwise independently managed these functions; however, management believes that these costs are reasonable. "
Slots in Md are a joke. They are actually arguing on trying to put slots in Arundel mall and coming up against resistance. A mall? Do you think MD is really serious and a threat to Dover? I don't think so. Re the merger. DVD is a dog, has always been a dog and if it was shopped around stockholders would eventually end up with nothing.