DVD Dover Motorsports Inc

DOVER, Del., Oct. 25 /PRNewswire-FirstCall/ -- Dover Motorsports, Inc. (NYSE:DVD) today reported its results for the third quarter and nine months ended September 30, 2007. For the quarter ended September 30, 2007, revenues were $40,951,000 compared with $42,441,000 in the comparable quarter of 2006. The Company promoted a total of seven major motorsports events in the third quarter of each year. As previously reported, broadcast rights fees from the new industry-wide TV contract with NASCAR decreased in 2007 by 10% and represented substantially all of the decrease in revenue during the third quarter. Operating and marketing expenses increased modestly to $24,398,000 for the quarter ended September 30, 2007 compared with $24,095,000 in the comparable quarter of 2006. General and administrative expenses decreased by 5% in the third quarter of 2007 to $3,062,000 compared with $3,224,000 in the prior year. Depreciation and amortization expense decreased by $776,000 in the third quarter of 2007, primarily due to the impact of an impairment charge recorded in the prior year, which reduced the carrying value of the depreciable assets of the Company's midwest facilities. Net interest expense was $1,121,000 in the third quarter of 2007, or $186,000 higher than in the third quarter of 2006, primarily due to the recording of an accrual $181,000 of interest expense in accordance with FIN 48. For the quarter ended September 30, 2007, earnings before income taxes were $10,754,000 compared with a loss of $52,823,000 last year, which included impairment charges of $64,618,000. Net earnings were $5,187,000 or $.14 per diluted share in the third quarter of 2007. The Company's cash flow from operations for the first nine months of the year was $9,203,000 compared with $14,172,000 in the prior year. At September 30, 2007, long-term indebtedness (including current portion) was $47,708,000, compared with $47,905,000 that was outstanding a year earlier. Capital spending was $10,012,000 for the nine-month period ended September 30, 2007 compared with $2,970,000 in the same period of the prior year. The 2007 additions related primarily to new skybox suites and the renovation and expansion of other fan amenities at Dover International Speedway. The Company expects to spend less than $1,000,000 in capital during the remainder of 2007. 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/. DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS In Thousands, Except Per Share Amounts (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Revenues: Admissions $17,127 $17,437 $32,974 $34,135 Event-related 11,761 11,497 23,039 24,304 Broadcasting 12,051 13,453 26,563 29,697 Other 12 54 63 109 40,951 42,441 82,639 88,245 Expenses: Operating and marketing 24,398 24,095 50,572 49,585 Impairment charges - 64,618 - 64,618 General and administrative 3,062 3,224 9,368 9,416 Depreciation and amortization 1,616 2,392 4,710 7,172 29,076 94,329 64,650 130,791 Operating earnings (loss) 11,875 (51,888) 17,989 (42,546) Interest income 32 28 107 51 Interest expense (1,153) (963) (3,155) (3,249) Earnings (loss) before income tax (expense) benefit 10,754 (52,823) 14,941 (45,744) Income tax (expense) benefit (5,567) 18,348 (7,721) 15,205 Net earnings (loss) $5,187 $(34,475) $7,220 $(30,539) Net earnings (loss) per common share: Basic $0.14 $(0.96) $0.20 $(0.85) Diluted $0.14 $(0.96) $0.20 $(0.85) Weighted average shares outstanding: Basic 35,879 36,003 35,874 36,033 Diluted 36,041 36,003 35,989 36,033 DOVER MOTORSPORTS, INC. CONSOLIDATED BALANCE SHEETS In Thousands (Unaudited) September 30, September 30, December 31, 2007 2006 2006 ASSETS Current assets: Cash and cash equivalents $1,070 $1,193 $298 Accounts receivable 10,649 11,286 2,935 Inventories 216 299 244 Prepaid expenses and other 1,766 1,765 1,808 Receivable from Dover Downs Gaming & Entertainment, Inc. - - 9 Deferred income taxes 205 411 193 Total current assets 13,906 14,954 5,487 Property and equipment, net 157,854 154,704 152,502 Restricted cash 4,068 4,215 3,684 Other assets, net 1,079 985 1,261 Total assets $176,907 $174,858 $162,934 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $3,089 $3,699 $1,938 Accrued liabilities 5,706 6,220 3,400 Payable to Dover Downs Gaming & Entertainment, Inc. 17 32 - Income taxes payable 3,254 2,086 478 Current portion of bonds payable - 695 695 Deferred revenue 4,639 4,903 10,008 Current liabilities of discontinued operation - 103 - Total current liabilities 16,705 17,738 16,519 Revolving line of credit 43,500 43,000 39,000 Bonds payable 4,208 4,210 4,211 Liability for pension benefits 485 - 771 Other liabilities 795 21 - Noncurrent income taxes payable 8,452 - - Deferred income taxes 22,658 29,507 28,173 Total liabilities 96,803 94,476 88,674 Stockholders' equity: Common stock 1,667 1,637 1,635 Class A common stock 1,957 1,992 1,977 Additional paid-in capital 99,724 100,111 99,412 Accumulated deficit (22,483) (22,723) (28,071) Accumulated other comprehensive loss (761) (635) (693) Total stockholders' equity 80,104 80,382 74,260 Total liabilities and stockholders' equity $176,907 $174,858 $162,934 DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands (Unaudited) Nine Months Ended September 30, 2007 2006 Operating activities: Net earnings (loss) $7,220 $(30,539) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities of continuing operations: Depreciation and amortization 4,710 7,172 Amortization of credit facility fees 147 141 Stock-based compensation 370 314 Deferred income taxes 2,517 (18,817) Impairment charges - 64,618 Changes in assets and liabilities: Accounts receivable (7,714) (8,920) Inventories 28 (69) Prepaid expenses and other 42 78 Accounts payable 1,151 2,222 Accrued liabilities 2,306 799 Payable to/receivable from Dover Downs Gaming & Entertainment, Inc. 26 17 Income taxes payable/receivable 2,776 1,796 Deferred revenue (5,369) (4,619) Other liabilities 993 (21) Net cash provided by operating activities of continuing operations 9,203 14,172 Net cash used in operating activities of discontinued operation - (41) Investing activities: Capital expenditures (10,012) (2,970) Restricted cash (384) (1,015) Net cash used in investing activities (10,396) (3,985) Financing activities: Borrowings from revolving line of credit 33,300 29,600 Repayments of revolving line of credit (28,800) (35,700) Repayments of bonds payable (698) (873) Dividends paid (1,632) (1,637) Repurchase of common stock (54) (1,141) Credit facility fees (159) (161) Excess tax benefit on stock awards 8 16 Other - (10) Net cash provided by (used in) financing activities 1,965 (9,906) Net increase in cash and cash equivalents 772 240 Cash and cash equivalents, beginning of period 298 953 Cash and cash equivalents, end of period $1,070 $1,193 DATASOURCE: Dover Motorsports, Inc. CONTACT: Patrick J. Bagley - Sr. Vice President-Finance of Dover Motorsports, Inc., +1-302-883-6530 Web site: http://www.dovermotorsports.com/

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