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Press Release

DOVER MOTORSPORTS, INC. REPORTS RESULTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2009

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

 

The Company’s fourth quarter is a seasonally slow quarter and typically results in a loss.  We promoted two major events in the fourth quarter of 2009 – the NASCAR Nationwide Series race and the NHRA Full Throttle Racing Series race, both held at Memphis Motorsports Park (Memphis).  We only promoted the NASCAR Nationwide Series race at Memphis during the fourth quarter of 2008.

 

As previously reported, the Company has ceased all operations at Memphis and the facility is being held for sale. The Company realigned both NASCAR races promoted in Memphis to its other Midwest tracks, effective for the 2010 race season.

 

For the quarter ended December 31, 2009, revenues were $ 4,031,000 compared with $ 2,561,000 in the fourth quarter of 2008.  The increase was attributable to the additional race promoted in the fourth quarter of 2009, partially offset by lower admissions and sponsorship revenue in 2009 compared to 2008.  Operating and marketing expenses in the 2009 quarter were higher than the 2008 quarter due to the additional race, though the expenses per race were lower in 2009 than 2008 primarily due to cost savings initiatives.

 

General and administrative expenses of $ 2,955,000 in the fourth quarter of 2009 were down slightly from $ 3,108,000 for the same quarter last year.  The decrease is due to cost saving initiatives, including the closure of Memphis.

 

Depreciation and amortization was $ 1,679,000 during the fourth quarter of 2009 compared with $ 1,770,000 in the fourth quarter of 2008. The decrease is primarily due to a reduction in our depreciable asset base resulting from the impairment charges in the fourth quarter of 2008 and the third quarter of 2009.

 

Net interest expense decreased by $ 104,000 in the fourth quarter of 2009, primarily as a result of lower interest rates compared to last year. 

 

The results for the fourth quarter of 2008 include a non-cash impairment charge of
$ 12,795,000 to write down the carrying value of the Midwest facilities to their fair value.  The Company’s financial results are shown on an adjusted basis on the accompanying schedule – “Reconciliation of GAAP Loss to Adjusted (Loss) Earnings”.  Loss before income tax benefit for the fourth quarter of 2009 was
$ 7,396,000 compared with $ 7,724,000 on an adjusted basis for the fourth quarter of last year.

 

Net loss was $ 4,571,000 or $ .13 per diluted share in the fourth quarter of 2009 compared with $ 3,760,000 or $ .10 per diluted share on an adjusted basis for the same period last year.     

 

For the year ended December 31, 2009, total revenues were $ 70,878,000 compared with $ 84,279,000 in the prior year.  We promoted one fewer major event in 2009 then we did in 2008.

 

On an adjusted basis, net (loss) earnings were ($ 1,034,000) or ($ .03) per diluted share for the year ended 2009 compared with $ 2,638,000 or $ .07 per diluted share in 2008.  

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.

 

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