Dover Motorsports, Inc. reports results for the quarter ended Sept. 20, 2009
Motorsports, Inc. (NYSE: DVD) today reported its results for the third quarter
ended September 30, 2009.
promoted five major events over four weekends in the third quarter of 2009
compared with seven major events in the third quarter of 2008. The NHRA event at Memphis Motorsports
Park which was held in the third quarter of 2008 will be held in the fourth
quarter of 2009. Also, the Indy
Racing League event at the Nashville Superspeedway that was promoted during the
third quarter of 2008 was not held in 2009.
For the quarter
ended September 30, 2009 revenues were $ 31,144,000 compared with $ 39,791,000 in
the third quarter of 2008. The
decrease in revenues is due to promoting two fewer events in 2009 compared to
2008, lower attendance resulting in reduced admissions revenue and
event-related revenue and to reduced corporate sponsorships.
NASCAR Fall race weekend in Dover saw lower attendance, sponsorships and
corporate spending as a result of weak macroeconomic conditions and less than
marketing expenses were $ 19,159,000 in the third quarter of 2009 as compared to
$ 24,083,000 in the third quarter of 2008. The decrease is primarily related to the change in our motorsports
event calendar discussed above, as well as from lower expenses for most major
events held during the quarter.
administrative expenses of $ 3,062,000 in the third quarter of 2009 were down
slightly from $ 3,131,000 for the same quarter last year.
amortization expense was $ 1,606,000 in the third quarter of 2009 compared to
$ 1,773,000 for the comparable 2008 period. The decrease resulted
primarily from the cessation of depreciation expense at our Memphis
track which was classified as held-for-sale and a reduction in our depreciable asset base resulting from an impairment
charge recorded in the fourth quarter of 2008, partially offset by depreciation
on assets placed in service since September of 2008 related to our Monster
Makeover project at Dover International Speedway.
reported on October 30, 2009, the Company announced that it is
The Memphis facility
Because the sale of our Memphis facility was not completed,
the Company concluded in the third quarter that it was necessary to review the
carrying value of the long-lived assets of its Memphis facility for
impairment. As a result of this review, the Company recorded a non-cash
impairment charge of $ 7,478,000 to write down the carrying value of the Memphis
facility to fair value.
expense was a negative 4,000 for the third quarter of 2009 compared to 7,000
in the third quarter of 2008. The
decrease in expense was primarily due to the reversal of ,011,000 of accrued
interest associated with certain unrecognized income tax benefits that are no
longer required. Additionally,
both average borrowings and interest rates were lower during the third quarter
of 2009 than during the third quarter of 2008.
income taxes were $ 83,000 in the third quarter of 2009 compared with $ 9,857,000
in the comparable quarter of the prior year. The current years’ results include the aforementioned
non-cash impairment charge of $ 7,478,000. The Company’s financial results are shown on an adjusted basis on the
accompanying schedule – “Reconciliation of GAAP (Loss) Earnings to Adjusted
On an adjusted
basis, income before income taxes for the third quarter of 2009 was $ 7,561,000
compared with $ 9,857,000 for the third quarter of last year.
The income tax
provision for the third quarter of 2009 is the result of the mix of taxable income and losses
within our various subsidiaries. Certain subsidiaries had state taxable
income which resulted in state income tax expense; however, other subsidiaries
with state tax losses have no state income tax benefits based upon the valuation
allowances that we have recorded in connection with state net operating loss
carryforwards. Excluding the effect of the impairment
charge, the effective income tax rate was 42.6% in the third quarter of 2009
compared to 52.3% in the 2008 period.
Net (loss) earnings
for the third quarter of 2009 were $ (524,000) or $ (.01) per diluted share
compared to $ 4,699,000 or $ .13 per diluted share for the same period last year.
On an adjusted
basis, net earnings were $ 4,337,000 or $ .12 per diluted share in the third
quarter of 2009 compared with $ 4,699,000 or $ .13 per diluted share for the same
period last year.
For the nine months
ended September 30, 2009, revenues were $ 66,847,000 compared with $ 81,718,000 in
the prior year. The Company
promoted 12 major events in the first nine months of 2009 compared to 14 major
events in the comparable 2008 period.
Net (loss) earnings
were $ (1,324,000) or $ (.04) per diluted share for the first nine months of 2009
compared with $ 6,398,000 of <>.18 per diluted share in the comparable period
last year. On an adjusted basis, net
earnings were $ 3,537,000 or $ .09 per diluted share for the first nine months of
2009 compared with
$ 6,398,000 or $ .18 per diluted share in the comparable 2008
Cash provided by operations
for the first nine months of 2009 was $ 6,350,000 compared with $ 10,906,000 in the
prior year. Capital spending,
primarily associated with the Monster Makeover project at Dover International
$ 1,896,000 during the first nine months of 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.