DVD Dover Motorsports Inc

DOVER, Del., April 24 /PRNewswire-FirstCall/ -- Dover Motorsports, Inc. (NYSE:DVD) today reported its results for the quarter ended March 31, 2008. Revenues for the quarter were $2,512,000 compared with $882,000 in the first quarter of 2007. One major motorsports event was held during the first quarter of 2008 -- the Pepsi 300 NASCAR Nationwide Series event at Nashville Superspeedway. No major events were held during the first quarter of 2007. Partially offsetting the increase in revenues from the Nationwide Series event was a decrease in revenues from track rental and weekly racing events due to inclement weather at our Memphis Motorsports Park facility in the first quarter of 2008. The Company historically reports a loss in the first quarter due to the seasonality of our motorsports business. Net loss for the quarter ended March 31, 2008 was $4,148,000 or $.12 per diluted share compared with $3,560,000 or $.10 per diluted share for the comparable period of the prior year. Depreciation and amortization increased by $133,000 in the first quarter of 2008 primarily due to the additional skyboxes placed in service in Dover in June of 2007. Net interest expense increased by $184,000 in the first quarter of 2008 primarily due to an $86,000 increase in interest expense relating to FIN #48, Accounting for Uncertainty in Income Taxes, and additional borrowings under the Company's credit line to fund its previously announced capital improvement program. Operating and marketing expenses for the quarter ended March 31, 2008 were $4,610,000 compared with $2,394,000 last year, with the increase primarily attributable to the Nationwide Series event held during the quarter. Loss before income tax benefit for the quarter ended March 31, 2008 was $7,997,000 compared with $7,098,000 in the first quarter of 2007. The effective income tax rate for the first quarter of 2008 was 48.1% compared with 49.8% in the prior year. This 2008 rate reflects what we currently expect the effective rate to be for the full year. The financial condition of the Company remained strong during the first quarter of 2008. Despite the pre-tax loss in the first quarter, cash flow provided by operations was $2,624,000. Capital spending was $1,598,000 in the first quarter of 2008 compared with $3,004,000 in the first quarter of 2007. The majority of the capital spending in the first quarter represented various phases of the Monster Makeover in Dover. The Company expects to spend approximately $4,600,000 during the remainder of the year on this project. At March 31, 2008, the Company's indebtedness was $46,398,000 compared with $45,307,000 at March 31, 2007. The Company announced yesterday that its Board of Directors declared a regular quarterly dividend of $.015 per share. The dividend is payable on June 10, 2008 to shareholders of record at the close of business on May 10, 2008. 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 near 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 March 31, 2008 2007 Revenues: Admissions $800 $87 Event-related 965 784 Broadcasting 709 - Other 38 11 2,512 882 Expenses: Operating and marketing 4,610 2,394 General and administrative 3,167 3,171 Depreciation and amortization 1,662 1,529 9,439 7,094 Operating loss (6,927) (6,212) Interest income 31 43 Interest expense (1,101) (929) Loss before income tax benefit (7,997) (7,098) Income tax benefit 3,849 3,538 Net loss $(4,148) $(3,560) Net loss per common share: Basic $(0.12) $(0.10) Diluted $(0.12) $(0.10) Weighted average shares outstanding: Basic 35,903 35,866 Diluted 35,903 35,866 DOVER MOTORSPORTS, INC. CONSOLIDATED BALANCE SHEETS In Thousands (Unaudited) March 31, March 31, December 31, 2008 2007 2007 ASSETS Current assets: Cash and cash equivalents $956 $1,312 $327 Accounts receivable 5,127 5,209 1,722 Inventories 305 289 185 Prepaid expenses and other 3,142 4,550 1,773 Receivable from Dover Downs Gaming & Entertainment, Inc. - 55 18 Income taxes receivable 177 - - Deferred income taxes 196 203 186 Total current assets 9,903 11,618 4,211 Property and equipment, net 159,142 153,986 157,748 Restricted cash 3,823 2,590 4,169 Other assets, net 1,531 1,175 1,578 Deferred income taxes 97 - - Total assets $174,496 $169,369 $167,706 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,938 $838 $945 Accrued liabilities 2,690 2,635 3,464 Payable to Dover Downs Gaming & Entertainment, Inc. 40 - - Income taxes payable - 108 257 Current portion of bonds payable 1,130 - 111 Deferred revenue 22,294 24,340 8,689 Total current liabilities 29,092 27,921 13,466 Revolving line of credit 42,300 41,100 42,300 Bonds payable 2,968 4,207 4,098 Liability for pension benefits 805 865 736 Other liabilities 1,693 391 1,202 Non current income taxes payable 9,686 8,718 9,687 Deferred income taxes 16,651 15,957 20,101 Total liabilities 103,195 99,159 91,590 Stockholders' equity: Common stock 1,684 1,647 1,672 Class A common stock 1,952 1,977 1,952 Additional paid-in capital 99,911 99,496 99,849 Accumulated deficit (31,197) (32,175) (26,503) Accumulated other comprehensive loss (1,049) (735) (854) Total stockholders' equity 71,301 70,210 76,116 Total liabilities and stockholders' equity $174,496 $169,369 $167,706 DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands (Unaudited) Three Months Ended March 31, 2008 2007 Operating activities: Net loss $(4,148) $(3,560) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 1,662 1,529 Amortization of credit facility fees 48 45 Stock-based compensation 160 124 Deferred income taxes (3,426) (3,088) Changes in assets and liabilities: Accounts receivable (3,405) (2,274) Inventories (120) (45) Prepaid expenses and other (1,416) (2,781) Receivable from/payable to Dover Downs Gaming & Entertainment, Inc. 58 (46) Income taxes receivable/payable (434) (370) Accounts payable 552 (1,100) Accrued liabilities (774) (765) Deferred revenue 13,605 14,332 Other liabilities 262 94 Net cash provided by operating activities 2,624 2,095 Investing activities: Capital expenditures (1,598) (3,004) Restricted cash 346 1,094 Net cash used in investing activities (1,252) (1,910) Financing activities: Borrowings from revolving line of credit 3,500 6,300 Repayments on revolving line of credit (3,500) (4,200) Repayments of bonds payable (111) (699) Dividends paid (546) (544) Repurchase of common stock (95) (25) Excess tax benefit (expense) on stock awards 9 (3) Net cash (used in) provided by financing activities (743) 829 Net increase in cash and cash equivalents 629 1,014 Cash and cash equivalents, beginning of period 327 298 Cash and cash equivalents, end of period $956 $1,312 DATASOURCE: Dover Motorsports, Inc. CONTACT: Timothy R. Horne, Sr. Vice President - Finance of Dover Motorsports, Inc., +1-302-857-3292 Web site: http://www.dovermotorsports.com/

Copyright