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Press Release

DOVER MOTORSPORTS, INC. REPORTS RESULTS FOR THE QUARTER ENDED MARCH 31, 2005

Dover, Delaware - Dover Motorsports, Inc. (NYSE-Symbol: DVD) today reported its results for the quarter ended March 31, 2005. The first quarter historically results in a loss for the Company due to the seasonality of the motorsports business. One major motorsports event was held during the first quarter of 2005 whereas no major events were held during the first quarter of 2004. A NASCAR Busch Series event was held at Nashville Superspeedway in late March in 2005 rather than in early April as it was in 2004.

For the quarter ended March 31, 2005 revenues were $ 3,549,000 compared with $ 1,160,000 in the first quarter of 2004. The increase in revenues in 2005 was due to the inclusion of the NASCAR Busch Series event in Nashville, which had a 6% increase in revenue from the prior year event principally due to higher attendance and TV broadcast fees.

Operating and marketing expenses for the quarter ended March 31, 2005 increased by $ 2,421,000 principally due to the inclusion of the Busch Series event in Nashville.

For the quarter ended March 31, 2005, general and administrative expenses were $ 3,533,000 compared with $ 3,693,000 in the prior year. The decrease resulted from savings realized from previously closed offices in St. Petersburg and Denver of $ 253,000 partially offset by higher fringe benefit expenses and costs incurred to comply with the Sarbanes-Oxley Act of 2002.

Depreciation and amortization increased by $ 34,000 in the first quarter of 2005 primarily due to minor facility and track improvements at the Company’s various locations. Net interest expense decreased by $ 205,000 in the first quarter of 2005 primarily due to lower average levels of indebtedness in 2005.

Loss before income tax benefit for the quarter ended March 31, 2005 was reduced to $ 8,088,000 compared with $ 8,387,000 in the prior year. The lower loss was principally due to the contribution from the Nashville Busch Series event in this year’s first quarter results.

The income tax benefit for the quarter ended March 31, 2005 was $ 4,206,000 compared with $ 5,201,000 in the first quarter of 2004. The lower tax benefit in 2005 was the result of a lower pre-tax loss in the quarter compared with the comparable quarter in the prior year and the Company using a lower estimated effective income tax rate of 52.0% in 2005 compared with 62.0% in 2004.

Net loss for the quarter ended March 31, 2005 was $ 3,882,000 or $ .10 per diluted share compared with $ 3,186,000 or $ .08 per diluted share for the comparable period of the prior year. The lower effective income tax rate in 2005 negatively affected after-tax results in the first quarter because it yielded a lower tax benefit. Conversely, this lower effective tax rate in 2005 is expected to positively affect the comparisons of after-tax earnings in the profitable second and third quarters.

The financial condition of the Company remained strong during the first quarter of 2005. Cash flow from operations was $ 3,019,000 in the first quarter of 2005 compared with $ 8,691,000 in the first quarter of 2004. The prior year’s first quarter cash flows reflected an income tax refund of $ 6,156,000. Deferred revenue, an indicator of future ticket and sponsor revenues, was $ 33,401,000 at March 31, 2005 compared with $ 32,396,000 at March 31, 2004. This increase was achieved despite the fact that the 2004 Nashville Busch Series event was included in the 2004 amount but no similar amount was included in 2005. On a comparable basis deferred revenue at March 31, 2005 was 7% higher than the prior year.

Capital spending was $ 5,987,000 in the first quarter of 2005 compared with $ 799,000 in the first quarter of 2004. Capital spending in the first quarter of 2005 primarily related to the acquisition of certain adjoining parcels of property at Dover International Speedway.

At March 31, 2005, the Company’s indebtedness was $ 47,684,000 compared with $ 54,468,000 a year ago.  

CONSOLIDATED STATEMENT OF EARNINGS, BALANCE SHEET & CASH FLOWS

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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.

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 NASCAR sanctioned motorsports events whose subsidiaries own and operate Dover International Speedway in Dover, Del., and Nashville Superspeedway near Nashville. The company also plays host to the Firefly Music Festival, produced by Red Frog Events and Goldenvoice. For more information, visit www.DoverMotorsports.com.

 

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