News Article

DOVER MOTORSPORTS, INC. REPORTS RESULTS FOR THE QUARTER ENDED MARCH 31, 2009

May 19, 2009
For further information, call: Timothy R. Horne – Sr. Vice President - Finance Dover, Delaware, April 30, 2009 (302) 857-3292

Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the quarter ended March 31, 2009.

The reported results include the operations of Memphis Motorsports Park, which is classified as held for sale pending the completion of the previously announced sale to Gulf Coast Entertainment, LLC for $ 10 million in cash and a two percent non-dilutable interest in Gulf Coast Entertainment.  The sale is expected to be completed during the second quarter of 2009. 

Revenues for the quarter were $ 85,000 compared with $ 2,512,000 in the first quarter of 2008. Operating and marketing expenses were ,199,000 in the first quarter of 2009 compared to $ 4,610,000 for the comparable prior year period.  No major events were promoted during the first quarter of 2009.  The NASCAR Nationwide Series event at Nashville Superspeedway run in March of 2008 was run in April of 2009.

Net interest expense decreased by $ 290,000 in the first quarter of 2009 due to lower average interest rates.

The Company historically reports a loss in the first quarter due to the seasonality of our motorsports business.  Loss before income tax benefit for the quarter ended March 31, 2009 was $ 7,517,000 compared with $ 7,997,000 in the first quarter of 2008.

The effective income tax rate for the first quarter of 2009 was 37.6% compared with 48.1% in the prior year.  The decrease in the effective income tax rate was primarily the result of a reduction in our combined effective state income tax rate for the current quarter.

Net loss for the quarter ended March 31, 2009 was $ 4,688,000 or $.13 per diluted share compared with a loss of $ 4,148,000 or $ .12 per diluted share for the comparable period of the prior year. 
 
Cash flow provided by operations was $ 2,332,000 for the first quarter of 2009 compared to $ 2,624,000 for the first quarter of 2008.  Capital spending was $ 699,000 in the first quarter of 2009 compared with $ 1,598,000 in the first quarter of 2008.  The majority of the capital spending in both periods represents various phases of the Monster Makeover in Dover. 

At March 31, 2009, the Company’s total indebtedness was $ 44,572,000 compared with $ 46,398,000 at March 31, 2008.

The Company announced yesterday that its Board of Directors declared a regular quarterly dividend of $ .01 per share. The dividend is payable on June 10, 2009 to shareholders of record at the close of business on May 10, 2009.

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 near Memphis, Tennessee; and Nashville Superspeedway near Nashville, Tennessee.  For further information log on to www.dovermotorsports.com.