Press Release
DOVER MOTORSPORTS, INC. REPORTS RESULTS FOR THE SECOND QUARTER
Release date: July 24, 2008
Contact: Timothy R. Horne
Sr. Vice President - Finance
(302) 857-3292
Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the second quarter ended June 30, 2008.
The Company promoted six major events over four weekends in the second quarter of 2008 compared with seven major events in 2007. The first NASCAR Nationwide Series event at Nashville Superspeedway was held in the first quarter of 2008 compared with the second quarter of 2007.
For the quarter ended June 30, 2008 revenues were $ 39,415,000 compared with $ 40,806,000 in the second quarter of 2007. The decrease in revenues is due to the fact that one fewer race was promoted in 2008 and was partially offset by small increases in revenue for our other major events promoted during the quarter.
The Company’s NASCAR triple-header in Dover saw results similar to last year’s event. Lower attendance resulting from weak overall economic conditions and rain for the Company’s NASCAR Nationwide event were offset by increased sponsorship, broadcasting and concession revenues.
Operating and marketing expenses were $ 22,108,000 in the second quarter of 2008 as compared to $ 23,780,000 in the second quarter of 2007. The decrease primarily related to the change in our motorsports event calendar discussed above, partially offset by higher operating and marketing expenses for our June NASCAR Sprint Cup Series weekend at Dover International Speedway and additional events run at our other facilities.
General and administrative expenses of $ 3,122,000 in the second quarter of 2008 were consistent with $ 3,135,000 for the same quarter last year.
Depreciation and amortization expense was $ 1,704,000 in the quarter ended June 30, 2008 compared to $ 1,565,000 for the comparable 2007 period. The increase is primarily due to the Monster Makeover project at Dover International Speedway. Net interest expense was $ 1,032,000 for the quarter ended June 30, 2008 compared to $ 1,041,000 in the second quarter of 2007. The decrease was due to lower average interest rates offset by higher average outstanding borrowings on the credit facility.
Earnings before income taxes increased to $ 11,449,000 in the second quarter of 2008 compared with $ 11,285,000 in the comparable quarter of the prior year.
The effective tax rate for the second quarter of 2008 was 48.9% compared to 50.4% in the prior year. The decrease in the effective tax rate was primarily the result of a reduction in our combined effective state income tax rate.
Net earnings for the quarter ended June 30, 2008 were $ 5,847,000 or $ 0.16 per diluted share compared with $ 5,593,000 or $ 0.16 per diluted share for the same period last year.
For the six months ended June 30, 2008, revenues were $ 41,927,000 compared with $ 41,688,000 in the prior year. The Company promoted seven major events in the first half of both years. Net earnings were $ 1,699,000 or $ 0.05 per diluted share compared with $ 2,033,000 or $ 0.06 per diluted share in the comparable period of the prior year.
For the first half of 2008 cash provided by operations was $ 4,644,000 compared with $ 4,801,000 in the prior year. Capital spending, primarily related to the Monster Makeover project at Dover International Speedway, was $ 6,082,000 in the first half of 2008 compared with $ 8,745,000 in the comparable period in prior year.
The Company announced yesterday that its Board of Directors declared a regular quarterly dividend of $ .015 per share. The dividend is payable on September 10, 2008 to shareholders of record at the close of business on August 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.
|
