Press Release

DOVER MOTORSPORTS, INC. REPORTS RESULTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2007

Release date: January 24, 2008
Contact: Patrick J. Bagley
Sr. Vice President, Finance
Dover Motorsports, Inc.
(302) 883-6530

DOVER, Del. - Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the quarter and year ended December 31, 2007.

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 2007 and 2006 – the NASCAR Busch Series race at Memphis Motorsports Park.

For the quarter ended December 31, 2007, revenues were $ 3,413,000 compared with $ 3,029,000 in the fourth quarter of 2006.  Operating and marketing expenses, which were $ 5,049,000 in the quarter, were affected by increased sales and marketing costs, higher utilities, repairs and other facility costs.  Net interest expense increased by $ 336,000 in the fourth quarter of 2007 primarily because of a $ 191,000 interest accrual related to FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” as well as higher average debt outstanding.

Loss before income tax benefit for the quarter ended December 31, 2007 was $ 7,599,000 compared with $ 7,093,000 in the prior year.

The $ 4,123,000 income tax benefit in the fourth quarter of 2007 represented an effective tax rate of 54.3% compared with the prior year’s fourth quarter effective tax rate of 32.2%, which was impacted by an impairment charge. 

For the quarter ended December 31, 2007, net loss was ,476,000 or $ .10 per diluted share compared with $ 4,806,000 or $ .13 per diluted share for the same period last year.    

For the year ended December 31, 2007 overall revenues were $ 86,052,000 compared with $ 91,274,000 in the prior year.  As previously reported, the industry-wide TV broadcasting rights fee contract was lower in 2007, which represented $ 3,164,000 of the decrease.

For the year ended December 31, 2007 earnings before income taxes were $ 7,342,000 compared with a loss of $ 52,837,000 in prior year.  The prior year’s results included a non-cash impairment charge of $ 64,618,000 related primarily to the write-down of the Company’s Midwest properties.  The accompanying schedule – “Reconciliation of GAAP (Loss) Earnings to Adjusted (Loss) Earnings” displays in tabular form the impact of last year’s impairment charge on the Company’s results.  On an adjusted basis, earnings before income taxes in 2006 were $ 11,781,000.  On an after-tax adjusted basis, net earnings were $ 3,744,000 in 2007 compared with $ 5,650,000 in 2006.

Earnings per diluted share was $ .10 for fiscal year ended 2007 compared with a net loss of $ .98 per diluted share in 2006 after the impairment charges noted above.  On an adjusted basis, earnings per diluted share was $ .16 in 2006.

Net cash flow provided by operating activities of continuing operations for the year ended December 31, 2007 was $ 11,838,000 compared with $ 17,525,000 for the prior year.  Capital expenditures were $ 11,548,000 in 2007 compared with $ 6,331,000 last year.  Completion of additional skybox suites, a new infield media center, and engineering and utility work for an expanded expo area and new fan entrance at Dover represented the majority of the Company’s spending in 2007.  Long-term debt and notes payable to banks was $ 46,509,000 at December 31, 2007 compared with $ 43,906,000 at December 31, 2006.

Dover Motorsports, Inc. (NYSE: DVD) is a leading promoter of motorsports events in the United States. DVD subsidiaries operate three tracks in three states, and present several hundred motorsports events each year. This includes 14 major, national events which include races sanctioned by NASCAR and the NHRA. Dover Motorsports, Inc. owns and operates Dover International Speedway in Dover, Del., Gateway International Raceway near St. Louis, Mo., and Nashville Superspeedway near Nashville, Tenn. For further information log on to www.DoverMotorsports.com. This release may contain forward-looking statements based on management’s beliefs and assumptions. Such statements are subject to various risks and uncertainties that could cause results to vary materially. Please refer to the SEC filings of DVD for a discussion of such factors.