News Article
DOVER MOTORSPORTS, INC. REPORTS RESULTS
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2008
February 12, 2009
For further information, call: Timothy R. Horne - Sr. Vice President-Finance Dover, Delaware, February 2, 2009 (302) 857-3292
Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the quarter and year ended December 31, 2008.
The Company’s fourth quarter is a seasonally slow quarter and typically results in a loss. We only promoted one major event in the fourth quarter of both 2008 and 2007 – the NASCAR Nationwide Series race at Memphis Motorsports Park.
For the quarter ended December 31, 2008, revenues were $ 2,561,000 compared with $ 3,413,000 in the fourth quarter of 2007. The decrease was primarily attributable to lower admissions at the aforementioned Nationwide Series event, as well as a reduction in NASCAR’s estimate of ancillary media revenues we will receive for 2008. Operating and marketing expenses in the quarter were also lower as a result of the lower revenues.
Given current economic conditions and their impact on our current and projected operations and cash flows, combined with the fact that there was no change in the allocation of broadcast revenues to the NASCAR Nationwide Series for 2009, we reviewed the carrying value of the long-lived assets of each of our Midwest facilities for impairment. Based on the results of this analysis, the Company recorded a non-cash impairment charge of $ 12,795,000 to write down the carrying value of its Midwest facilities to fair value.
Net interest expense decreased by $ 155,000 in the fourth quarter of 2008, primarily as a result of lower interest rates compared to last year.
Loss before income tax benefit for the quarter was $ 20,519,000 compared with $ 7,599,000 in the fourth quarter of 2007. The current years’ results include the aforementioned non-cash impairment charge of $ 12,795,000. The Company’s financial results are shown on an adjusted basis on the accompanying schedule – “Reconciliation of GAAP (Loss) Earnings to Adjusted (Loss) Earnings”.
On an adjusted basis, loss before income tax benefit for the fourth quarter was $ 7,724,000 compared with $ 7,599,000 for the fourth quarter of last year.
On an adjusted basis, net loss was $ 3,760,000 or $ .10 per diluted share in the fourth quarter of 2008 compared with $ 3,476,000 or $ .10 per diluted share for the same period last year.
For the year ended December 31, 2008 total revenues were $ 84,279,000 compared with $ 86,052,000 in the prior year.
On an adjusted basis, earnings were $ 2,638,000 or $ .07 per diluted share for the year ended 2008 compared with $ 3,744,000 or $ .10 per diluted share in 2007.
The Company previously announced that it has entered into a definitive agreement to sell Memphis Motorsports Park to Gulf Coast Entertainment, L.L.C. Under the terms of the agreement, Dover Motorsports will sell all of the stock of its subsidiary Memphis International Motorsports Corporation, the owner of Memphis Motorsports Park, to Gulf Coast Entertainment for $ 10 million in cash. As additional consideration for the purchase, Dover Motorsports will receive a two percent non-dilutable interest in Gulf Coast Entertainment and will have an agreement to provide motorsports management services to Alabama Motorsports Park when the facilities become operational. Closing is expected to take place on or about April 30, 2009 and is subject to financing and customary closing conditions.
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This release contains or may contain forward-looking statements based on management's beliefs and assumptions. Such statements are subject to various risks and uncertainties which could cause results to vary materially. Please refer to the Company's SEC filings for a discussion of such factors.
Dover Motorsports, Inc. is a leading promoter of motorsports events in the United States. Its motorsports subsidiaries operate four motorsports tracks in three states and promote motorsports events under the auspices of two of the premier sanctioning bodies in motorsports – NASCAR and NHRA. The Company owns and operates Dover International Speedway in Dover, Delaware; Gateway International Raceway near St. Louis, Missouri; Memphis Motorsports Park in Memphis, Tennessee; and Nashville Superspeedway near Nashville, Tennessee. For further information log on to www.dovermotorsports.com.
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