Dale Jarrett Racing Adventure Inc. (OTCMKTS:DJRT) announced its results for the quarter ended March 31, 2015. The sales came at $261,344 compared to $538,266 in comparable period last year. The cost of sales and services stood at $153,172 against $276,209 in the same quarter a year earlier. The gross profit in the quarter was $108,172 compared to $262,057 recorded in the three months a year ago.
Dale Jarrett posted general and administrative expenses of $267,634 and consisted primarily of payroll and advertising expenses of approximately $99,000 and $82,300, respectively. The company intended to enhance sales activity in the quarter following which the advertising expenses increased in the quarter. However, the payroll expenses declined from almost $139,000 in 1Q2014 due to a decline in officer salaries and reduction of staff. The company recorded general and administrative expenses of $298,408 in 1Q2014.
The drop in operating results for the quarter ended March 31, 2015 primarily resulted from a considerable decline in sales which decreased due to the declining popularity of NASCAR. It was also affected by increased competition from new companies that launched services at considerably discounted prices through sites as Living Social and Groupon.
Dale Jarrett announced that the company utilized cash of $72,352 to support operating activities during the quarter ended March 31, 2015. This amount was less than net loss partially due to increase in deferred revenues and occurrence of certain non-cash expenses. The management reported that as the company recorded recurring losses from operations and has working capital and stockholder deficits, with minimal cash, there will be requirement to raise capital either through debt or equity infusions or positive results of operations to meet obligations during the next one year.
In last trading session, the stock price of Dale Jarrett Racing Adventure Inc. (OTCMKTS:DJRT) surged more than 233% to close the trading session at $0.0440.