DOVER MOTORSPORTS, INC. REPORTS RESULTS FOR
THE THIRD QUARTER
Dover Motorsports, Inc. (NYSE-Symbol: DVD) today reported its results for the third quarter and nine months ended September 30, 2007.
For the quarter ended September 30, 2007, revenues were $ 40,951,000 compared with $ 42,441,000 in the comparable quarter of 2006. The Company promoted a total of seven major motorsports events in the third quarter of each year. As previously reported, broadcast rights fees from the new industry-wide TV contract with NASCAR decreased in 2007 by 10% and represented substantially all of the decrease in revenue during the third quarter.
Operating and marketing expenses increased modestly to $ 24,398,000 for the quarter ended September 30, 2007 compared with $ 24,095,000 in the comparable quarter of 2006. General and administrative expenses decreased by 5% in the third quarter of 2007 to $ 3,062,000 compared with $ 3,224,000 in the prior year.
Depreciation and amortization expense decreased by $ 776,000 in the third quarter of 2007, primarily due to the impact of an impairment charge recorded in the prior year, which reduced the carrying value of the depreciable assets of the Company’s midwest facilities.
Net interest expense was $ 1,121,000 in the third quarter of 2007, or $ 186,000 higher than in the third quarter of 2006, primarily due to the recording of an accrual $ 181,000 of interest expense in accordance with FIN 48.
For the quarter ended September 30, 2007, earnings before income taxes were $ 10,754,000 compared with a loss of $ 52,823,000 last year, which included impairment charges of $ 64,618,000. Net earnings were $ 5,187,000 or $ .14 per diluted share in the third quarter of 2007.
The Company’s cash flow from operations for the first nine months of the year was $ 9,203,000 compared with $ 14,172,000 in the prior year. At September 30, 2007, long-term indebtedness (including current portion) was $ 47,708,000, compared with $ 47,905,000 that was outstanding a year earlier.
Capital spending was $ 10,012,000 for the nine-month period ended September 30, 2007 compared with $ 2,970,000 in the same period of the prior year. The 2007 additions related primarily to new skybox suites and the renovation and expansion of other fan amenities at Dover International Speedway. The Company expects to spend less than $ 1,000,000 in capital during the remainder of 2007.
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. (NYSE: DVD) is a leading promoter of NASCAR sanctioned motorsports events whose subsidiaries own and operate Dover International Speedway in Dover, Del., and Nashville Superspeedway near Nashville. The company also plays host to the Firefly Music Festival, produced by Red Frog Events and Goldenvoice. For more information, visit www.DoverMotorsports.com.