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
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
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
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
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
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.