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
SOURCE Dover Motorsports, Inc.
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Related links:
http://www.dovermotorsports.com
CONTACT:
Timothy R. Horne, Sr. Vice President -
Finance of Dover Motorsports, Inc., +1-302-857-3292
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