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Press Release

Dover Motorsports, In. reports results for th quater ended March 31, 2010

 

Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the quarter ended March 31, 2010.

 

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

 

Revenues for the first quarter of 2010 were $ 167,000 compared with $ 85,000 in the first quarter of 2009.  Operating and marketing expenses were $ 1,708,000 in the first quarter of 2010 compared to $ 2,199,000 for the comparable prior year period.  The decrease is primarily due to the closure of Memphis.  No major events were promoted during the first quarter of either year. 

 

General and administrative expenses of $ 3,339,000 in the first quarter of 2010 were up from $ 3,058,000 for the same quarter last year.  The increase is due primarily to higher real estate taxes at Gateway International Raceway partially offset by lower costs from the closure of the Memphis facility.

 

Depreciation and amortization of $ 1,582,000 during the first quarter of 2010 was comparable to $ 1,565,000 in the first quarter of 2009.

 

Net interest expense was $ 808,000 in the first quarter of 2010 as compared to
$ 780,000 in the first quarter of 2009.  Excluding the interest expense we record on certain unrecognized income tax benefits, our net interest expense was $ 757,000 in the first quarter of 2010 as compared to $ 643,000 in the first quarter of 2009.  The increase was due primarily to a higher average interest rate on our credit facility.

 

The Company historically reports a loss in the first quarter due to the seasonality of our motorsports business.  Loss before income tax benefit for the quarter ended March 31, 2010 was $ 7,270,000 compared with $ 7,517,000 in the first quarter of 2009.

 

The effective income tax rate for the first quarter of 2010 was 36.7% compared with 37.6% in the prior year. 

 

Net loss for the quarter ended March 31, 2010 was $ 4,599,000 or $ .13 per diluted share compared with a loss of $ 4,688,000 or $ .13 per diluted share for the comparable period of the prior year. 

Cash flow provided by operations was $ 8,000 for the first quarter of 2010 compared to $ 2,332,000 for the first quarter of 2009.  The decrease was primarily due to the first quarter payment of the sanction fee for Nashville’s April 2010 Nationwide and Truck events, as well as lower advanced collections for our upcoming events. The 2009 sanction fee was paid in the second quarter.  Capital spending was $ 203,000 in the first quarter of 2010 compared with $ 699,000 in the first quarter of 2009. 

 

At March 31, 2010, the Company’s total indebtedness was $ 43,039,000 compared with $ 44,572,000 at March 31, 2009.

 

   

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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