DVD Dover Motorsports Inc

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 facility.

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 facility.

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 year.

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 prior year.

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 31, 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 motorsports events in the United States. DVD subsidiaries operate three tracks in three states, and present several hundred motorsports events each year. For 2009, 14 major national events were held, including races sanctioned by NASCAR and NHRA. Dover Motorsports, Inc. owns and operates Dover International Speedway in Dover, Del., Gateway International Raceway near St. Louis, Mo., and Nashville Superspeedway near Nashville, Tenn. For further information log on to www.DoverMotorsports.com.

    DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS In Thousands, Except Per Share Amounts (Unaudited)     Three Months Ended March 31, 2010 2009 Revenues: Admissions $ 54 $ 31 Event-related 111 28 Broadcasting - - Other   2     26     167     85     Expenses: Operating and marketing 1,708 2,199 General and administrative 3,339 3,058 Depreciation and amortization   1,582     1,565     6,629     6,822     Operating loss (6,462 ) (6,737 )   Interest income 3 4 Interest expense   (811 )   (784 )   Loss before income tax benefit (7,270 ) (7,517 )   Income tax benefit   2,671     2,829     Net loss $ (4,599 ) $ (4,688 )   Net loss per common share: Basic $ (0.13 ) $ (0.13 ) Diluted $ (0.13 ) $ (0.13 )   Weighted average shares outstanding: Basic 36,086 36,011 Diluted 36,086 36,011         DOVER MOTORSPORTS, INC. CONSOLIDATED BALANCE SHEETS In Thousands (Unaudited)     March 31, March 31, December 31, 2010 2009 2009   ASSETS Current assets: Cash and cash equivalents $ 359 $ 1,138 $ 155 Accounts receivable 3,631 3,349 1,260 Inventories 296 248 277 Prepaid expenses and other 3,878 2,351 1,528 Income taxes receivable 194 241 - Deferred income taxes 115 100 118 Assets held for sale   2,800     10,726     2,800   Total current assets 11,273 18,153 6,138   Property and equipment, net 128,723 134,087 130,182 Restricted cash 3,957 3,894 5,333 Other assets, net 666 542 712 Deferred income taxes   132     284     164   Total assets $ 144,751   $ 156,960   $ 142,529     LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 429 $ 938 $ 456 Accrued liabilities 2,566 2,253 2,986 Payable to Dover Downs Gaming & Entertainment, Inc. 157 5 5 Income taxes payable - - 199 Current portion of bonds payable 1,345 1,235 1,235 Deferred revenue 16,098 16,896 5,931 Liabilities held for sale   -     2,865     -   Total current liabilities 20,595 24,192 10,812   Revolving line of credit 41,300 41,600 41,000 Bonds payable 394 1,737 1,739 Liability for pension benefits 1,776 2,662 1,695 Other liabilities 931 1,972 875 Non current income taxes payable 2,882 9,119 3,269 Deferred income taxes   19,023     13,145     20,850   Total liabilities   86,901     94,427     80,240     Stockholders' equity: Common stock 1,821 1,812 1,806 Class A common stock 1,851 1,851 1,851 Additional paid-in capital 101,056 100,591 100,943 Accumulated deficit (45,593 ) (39,421 ) (40,994 ) Accumulated other comprehensive loss   (1,285 )   (2,300 )   (1,317 ) Total stockholders' equity   57,850     62,533     62,289   Total liabilities and stockholders' equity $ 144,751   $ 156,960   $ 142,529         DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands (Unaudited)   Three Months Ended March 31, 2010 2009   Operating activities: Net loss $ (4,599 ) $ (4,688 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization 1,582 1,565 Amortization of credit facility fees 93 40 Stock-based compensation 170 142 Deferred income taxes (2,407 ) (2,483 ) Changes in assets and liabilities: Accounts receivable (2,371 ) (1,597 ) Inventories (19 ) (56 ) Prepaid expenses and other (2,390 ) (1,057 ) Income taxes receivable/payable (184 ) (347 ) Accounts payable 60 49 Accrued liabilities (420 ) (362 ) Payable to/receivable from Dover Downs Gaming & Entertainment, Inc. 152 16 Deferred revenue 10,167 10,803 Other liabilities   174     307   Net cash provided by operating activities   8     2,332     Investing activities: Capital expenditures (203 ) (699 ) Restricted cash   1,376     1,325   Net cash provided by investing activities   1,173     626     Financing activities: Borrowings from revolving line of credit 3,900 2,300 Repayments on revolving line of credit (3,600 ) (2,900 ) Repayments of bonds payable (1,235 ) (1,129 ) Dividends paid - (367 ) Repurchase of common stock   (42 )   (12 ) Net cash used in financing activities   (977 )   (2,108 )   Net increase in cash and cash equivalents 204 850 Cash and cash equivalents, beginning of period   155     288   Cash and cash equivalents, end of period $ 359   $ 1,138