Dover Motorsports, Inc. Reports Preliminary Results for the Third Quarter
October 26 2006 - 9:00AM
PR Newswire (US)
DOVER, Del., Oct. 26 /PRNewswire-FirstCall/ -- Dover Motorsports,
Inc. (NYSE:DVD) today reported its preliminary results for the
third quarter ended September 30, 2006. These results do not
include any non-cash impairment adjustments arising from a review,
which is in progress, of certain of its long-lived assets. As we
previously reported, on October 3, 2006 NASCAR disclosed to us
certain details of its 2007-2014 TV live broadcast contract
including the amount that each NASCAR series would receive in 2007.
The amount allocated to the NASCAR Busch Series in 2007 is not
significantly different than the amount currently allocated to the
Busch Series, although NASCAR reserves the right in its sole
discretion to make changes to this allocation in future years.
Based on the fact that the allocation of live broadcast revenue for
the NASCAR Busch Series is less than we anticipated, which will
impact the Company's Midwest tracks' projected cash flows, the
accounting rules require that the Company review the long-lived
assets of its Midwest tracks for impairment. This review is
expected to be completed in early November 2006 and the Company
expects to reflect the results in its third quarter Form 10-Q. For
the quarter ended September 30, 2006, revenues decreased by
$381,000 to $42,441,000 compared with the comparable quarter of
2005. The Company promoted a total of seven major motorsports
events in the third quarter of each year. Its third quarter 2006
results were adversely affected by weather at several of the
Company's events as well as the absence of a title sponsor at the
Dover September NASCAR NEXTEL Cup event. Operating and marketing
expenses were $24,095,000 for the quarter ended September 30, 2006
compared with $23,436,000 in the comparable quarter of 2005. Higher
purses and sanction fees accounted for the increase. General and
administrative expenses decreased by 3% to $3,224,000 in the third
quarter of 2006 compared with $3,324,000 for the same quarter last
year. Lower wages, benefits and real estate taxes more than offset
higher stock based compensation expense. Depreciation and
amortization expense remained consistent between the third quarter
of 2006 and the third quarter of 2005 at $2,392,000 and $2,386,000,
respectively. Net interest expense was $935,000 in the third
quarter of 2006, or $195,000 higher than in the third quarter of
2005, primarily due to higher average amounts outstanding on the
Company's bank credit facility during most of the third quarter of
2006. The Company's cash flow from continuing operations was
$14,172,000 compared with $16,591,000 for the first nine months of
last year. At September 30, 2006, long-term indebtedness (including
current portion) was $47,905,000, compared with $56,285,000 that
was outstanding a year earlier. Capital spending was $2,970,000 for
the nine-month period ended September 30, 2006 compared with
$8,582,000 in the same period of the prior year. The 2006 additions
related primarily to preliminary architectural and engineering work
for new luxury skybox suites and the renovation of other fan
amenities at the Dover facility and major equipment purchases at
most of our facilities. The 2005 additions related primarily to the
purchase of property adjacent to our Dover facility and the
installation of SAFER barriers at the Company's tracks. The
financial statements that normally accompany this release will be
completed and available when the Company files its Quarterly Report
on Form 10-Q. 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. is a leading promoter of motorsports events in
the United States. Its motorsports subsidiaries operate four
motorsports tracks in three states and promote motorsports events
under the auspices of three of the premier sanctioning bodies in
motorsports - NASCAR, IRL, and NHRA. The Company owns and operates
Dover International Speedway in Dover, Delaware; Gateway
International Raceway near St. Louis, Missouri; Memphis Motorsports
Park in Memphis, Tennessee; and Nashville Superspeedway near
Nashville, Tennessee. For further information log on to
http://www.dovermotorsports.com/. DATASOURCE: Dover Motorsports,
Inc. CONTACT: Patrick J. Bagley, Sr. Vice President-Finance, Dover
Motorsports, +1-302-857-3745 Web site:
http://www.dovermotorsports.com/
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