Press Release
DOVER MOTORSPORTS, INC. REPORTS RESULTS
FOR THE QUARTER ENDED MARCH 31, 2008
Release date: May 2, 2008
Contact: Timothy R. Horne
Sr. Vice President - Finance
(302) 857-3292
Revenues for the quarter were $ 2,512,000 compared with $ 882,000 in the first quarter of 2007. One major motorsports event was held during the first quarter of 2008 – the Pepsi 300 NASCAR Nationwide Series event at Nashville Superspeedway. No major events were held during the first quarter of 2007. Partially offsetting the increase in revenues from the Nationwide Series event was a decrease in revenues from track rental and weekly racing events due to inclement weather at our Memphis Motorsports Park facility in the first quarter of 2008.
The Company historically reports a loss in the first quarter due to the seasonality of our motorsports business. Net loss for the quarter ended March 31, 2008 was $ 4,148,000 or $ .12 per diluted share compared with ,560,000 or $ .10 per diluted share for the comparable period of the prior year. Depreciation and amortization increased by $ 133,000 in the first quarter of 2008 primarily due to the additional skyboxes placed in service in Dover in June of 2007. Net interest expense increased by $ 184,000 in the first quarter of 2008 primarily due to an $ 86,000 increase in interest expense relating to FIN #48, Accounting for Uncertainty in Income Taxes, and additional borrowings under the Company’s credit line to fund its previously announced capital improvement program.
Operating and marketing expenses for the quarter ended March 31, 2008 were $ 4,610,000 compared with $ 2,394,000 last year, with the increase primarily attributable to the Nationwide Series event held during the quarter.
Loss before income tax benefit for the quarter ended March 31, 2008 was $ 7,997,000 compared with $ 7,098,000 in the first quarter of 2007.
The effective income tax rate for the first quarter of 2008 was 48.1% compared with 49.8% in the prior year. This 2008 rate reflects what we currently expect the effective rate to be for the full year.
The financial condition of the Company remained strong during the first quarter of 2008. Despite the pre-tax loss in the first quarter, cash flow provided by operations was $ 2,624,000. Capital spending was $ 1,598,000 in the first quarter of 2008 compared with $ 3,004,000 in the first quarter of 2007. The majority of the capital spending in the first quarter represented various phases of the Monster Makeover in Dover. The Company expects to spend approximately $ 4,600,000 during the remainder of the year on this project.
At March 31, 2008, the Company’s indebtedness was $ 46,398,000 compared with $ 45,307,000 at March 31, 2007.
The Company announced yesterday that its Board of Directors declared a regular quarterly dividend of $ .015 per share. The dividend is payable on June 10, 2008 to shareholders of record at the close of business on May 10, 2008.
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.
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