DVD Dover Motorsports Inc

Dover Motorsports, Inc. (NYSE: DVD) today reported results for the three months ended June 30, 2011.

As previously reported, the assets, liabilities and operating results of the Company’s Gateway facility have been reclassified in the accompanying consolidated financial statements to report Gateway separately as a discontinued operation.

The Company promoted five major events during the second quarter of 2011 compared to six major events during the second quarter of 2010. A NASCAR Nationwide Series event promoted at Nashville Superspeedway in the second quarter of 2010 was held in the third quarter of 2011.

Revenues for the quarter ended June 30, 2011 were $26,381,000 compared with $29,946,000 in the second quarter of 2010. The decrease in revenues was primarily due to the schedule change noted above and from lower admissions and event related revenues at the Company’s NASCAR triple-header in Dover.

Operating and marketing expenses were $15,488,000 in the second quarter of 2011 as compared to $18,197,000 in the second quarter of 2010. The decrease was also primarily due to promoting one less event in the second quarter 2011, as well as from lower expenses during the Dover NASCAR weekend.

General and administrative expenses of $2,146,000 in the second quarter of 2011 were down from $2,338,000 for the same quarter last year. The decrease is due primarily to lower employee costs and lower costs resulting from the sale of the Memphis facility.

Net interest expense was $592,000 for the quarter ended June 30, 2011 compared to $793,000 in the second quarter of 2010. The decrease was due to lower borrowing costs as a result of the April 2011 refinancing of the Company’s credit facility and lower average outstanding borrowings in the second quarter of 2011 compared to 2010. Loss on extinguishment of debt relates to the write-off of $67,000 of debt issuance costs associated with the previous credit facility.

Earnings from continuing operations before income tax expense for the quarter ended June 30, 2011 were $6,748,000 compared with $7,216,000 in the second quarter of 2010.

The effective tax rate for the second quarter of 2011 was 42.2% compared to 42.7% in the prior year.

Earnings from continuing operations for the second quarter of 2011 were $3,901,000 or $.11 per diluted share compared to $4,137,000 or $.11 per diluted share for the second quarter of 2010.

For the second quarter of 2010, loss from discontinued operations, net of income tax benefit, was $5,822,000 or $.16 per diluted share. That loss included a non-cash impairment charge, net of income tax benefit, of $5,176,000 to write-down the carrying value of the Gateway facility to fair value.

Net earnings were $3,901,000 or $0.11 per diluted share compared to a net loss of ($1,685,000) or $(0.05) per diluted share for the same period last year.

At June 30, 2011, the Company’s total indebtedness was $31,400,000 compared to $35,800,000 at June 30, 2010.

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 NASCAR sanctioned motorsports events whose subsidiaries own and operate Dover International Speedway in Dover, Delaware and Nashville Superspeedway near Nashville, Tennessee. 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 Six Months Ended June 30, June 30, 2011 2010 2011 2010 Revenues: Admissions $ 6,716 $ 8,565 $ 6,716 $ 8,565 Event-related 4,548 6,047 4,578 6,101 Broadcasting 15,115 15,334 15,115 15,334 Other   2     -     102     1     26,381     29,946     26,511     30,001     Expenses: Operating and marketing 15,488 18,197 16,776 19,592 General and administrative 2,146 2,338 4,297 4,824 Depreciation and amortization   1,340     1,402     2,753     2,817     18,974     21,937     23,826     27,233     Operating earnings 7,407 8,009 2,685 2,768   Interest income 4 4 8 7 Interest expense (596 ) (797 ) (1,441 ) (1,558 ) Other income - - 4 - Loss on extinguishment of debt   (67 )   -     (67 )   -    

Earnings from continuing operations before income tax expense

6,748 7,216 1,189 1,217   Income tax expense   2,847     3,079     786     852     Earnings from continuing operations 3,901 4,137 403 365  

Loss from discontinued operation, net of income tax benefit

  -     (5,822 )   (68 )   (6,649 )   Net earnings (loss) $ 3,901   $ (1,685 ) $ 335   $ (6,284 )   Net earnings (loss) per common share - basic: Continuing operations $ 0.11 $ 0.11 $ 0.01 $ 0.01 Discontinued operation   -     (0.16 )   -     (0.18 ) Net earnings (loss) $ 0.11   $ (0.05 ) $ 0.01   $ (0.17 )   Net earnings (loss) per common share - diluted: Continuing operations $ 0.11 $ 0.11 $ 0.01 $ 0.01 Discontinued operation   -     (0.16 )   -     (0.18 ) Net earnings (loss) $ 0.11   $ (0.05 ) $ 0.01   $ (0.17 )   Weighted average shares outstanding: Basic 36,195 36,096 36,194 36,091 Diluted 36,195 36,096 36,194 36,091         DOVER MOTORSPORTS, INC. CONSOLIDATED BALANCE SHEETS In Thousands (Unaudited)     June 30, June 30, December 31, 2011 2010 2010   ASSETS Current assets: Cash and cash equivalents $ 355 $ 1,151 $ 69 Accounts receivable 2,796 2,316 743 Inventories 268 268 232 Prepaid expenses and other 1,633 1,542 1,713 Prepaid income taxes 97 - - Deferred income taxes 230 124 242 Current assets held for sale - 2,800 1,875 Current assets of discontinued operation   -     807     115   Total current assets 5,379 9,008 4,989   Property and equipment, net 113,768 119,224 116,330 Restricted cash - 2,217 - Other assets, net 911 474 527 Deferred income taxes 112 139 206 Non current assets of discontinued operation   -     2,082     233   Total assets $ 120,170   $ 133,144   $ 122,285     LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 471 $ 1,277 $ 142 Accrued liabilities 2,255 2,369 2,470 Payable to Dover Downs Gaming & Entertainment, Inc. 4 8 18 Income taxes payable - 30 123 Deferred revenue 7,991 8,335 3,644 Current liabilities of discontinued operation   49     4,793     685   Total current liabilities 10,770 16,812 7,082   Revolving line of credit 31,400 35,800 38,200 Liability for pension benefits 1,683 1,784 2,291 Other liabilities 132 989 121 Non current income taxes payable 1,241 2,501 1,241 Deferred income taxes 19,474 18,528 18,843 Non current liabilities of discontinued operation   -     395     -   Total liabilities   64,700     76,809     67,778     Stockholders' equity: Common stock 1,830 1,821 1,820 Class A common stock 1,851 1,851 1,851 Additional paid-in capital 101,709 101,217 101,541 Accumulated deficit (48,832 ) (47,278 ) (49,167 ) Accumulated other comprehensive loss   (1,088 )   (1,276 )   (1,538 ) Total stockholders' equity   55,470     56,335     54,507   Total liabilities and stockholders' equity $ 120,170   $ 133,144   $ 122,285         DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands (Unaudited)   Six Months Ended June 30, 2011 2010   Operating activities: Net earnings (loss) $ 335 $ (6,284 )

Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:

Depreciation and amortization 2,753 3,151 Amortization of credit facility fees 269 186 Stock-based compensation 230 339 Deferred income taxes 296 (3,319 ) Loss on extinguishment of debt 67 - Impairment charge of discontinued operation - 7,964 Changes in assets and liabilities: Accounts receivable (1,957 ) (1,422 ) Inventories (36 ) (36 ) Prepaid expenses and other (181 ) (510 ) Prepaid income taxes/income taxes payable (87 ) 53 Accounts payable 325 1,127 Accrued liabilities (613 ) 1,064 Payable to Dover Downs Gaming & Entertainment, Inc. (14 ) 3 Deferred revenue 4,347 3,858 Other liabilities   152     277   Net cash provided by operating activities   5,886     6,451     Investing activities: Capital expenditures (191 ) (345 ) Proceeds from the sale of property and equipment 1,875 - Restricted cash - 1,376 Proceeds from the sale of available-for-sale securities 69 158 Purchase of available-for-sale securities   (70 )   (160 ) Net cash provided by investing activities   1,683     1,029     Financing activities: Borrowings from revolving line of credit 49,560 14,100 Repayments on revolving line of credit (56,360 ) (19,300 ) Repayments of bonds payable - (1,234 ) Repurchase of common stock (52 ) (50 ) Credit facility fees   (431 )   -   Net cash used in financing activities   (7,283 )   (6,484 )   Net increase in cash and cash equivalents 286 996 Cash and cash equivalents, beginning of period   69     155   Cash and cash equivalents, end of period $ 355   $ 1,151