Dover Motorsports, Inc. reports results for the quarter and year ended December 31, 2010
Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the quarter and year ended December 31, 2010.
The Company’s fourth quarter is a seasonally slow quarter and typically results in a loss. We only promoted a NASCAR Nationwide Series event at Gateway International Raceway (Gateway) during the fourth quarter of 2010. We promoted two major events in the fourth quarter of 2009 – a NASCAR Nationwide Series event and the NHRA Full Throttle Racing Series event, both held at Memphis Motorsports Park (Memphis).
For the quarter ended December 31, 2010, revenues were $ 1,772,000 compared with $ 4,031,000 in the fourth quarter of 2009. The decrease was primarily related to the change in our motorsports events calendar discussed above and due to lower attendance and race related revenue at Gateway’s Nationwide Series race. Operating and marketing expenses in the 2010 quarter were $ 3,791,000 compared to $ 5,961,000 in the 2009 quarter primarily due to the change in the events calendar and lower costs related to the NASCAR Nationwide Series race.
General and administrative expenses of $ 3,154,000 in the fourth quarter of 2010 increased from $ 2,955,000 for the same quarter last year. The increase is primarily due to higher real estate taxes at Gateway, partially offset by savings from the closure of our Memphis facility.
As previously reported, we auctioned all real and personal property of Memphis with net proceeds of approximately $ 2,000,000 anticipated. Closing on the real property is scheduled for January 31, 2011. A non-cash impairment charge of $ 809,000 was recognized in the fourth quarter of 2010 to reduce the carrying value of Memphis to the sales price.
Also as previously reported, the Company has ceased all operations at Gateway and the facility is closed. The Company is evaluating all options regarding the final disposition of the facility. The Company recognized expense of $ 589,000 in the fourth quarter of 2010 to record a liability for the estimated fair value of Gateway’s future net lease obligations.
Depreciation and amortization was $ 1,500,000 during the fourth quarter of 2010 compared with $ 1,679,000 in the fourth quarter of 2009. The decrease is primarily due to a reduction in our depreciable asset base resulting from an impairment charge recorded in the second quarter of 2010.
The results for the fourth quarter of 2010 include the aforementioned non-cash impairment charge to write down the carrying value of Memphis to its fair value and the charge for future lease obligations at Gateway. The Company’s financial results are shown on an adjusted basis on the accompanying schedule – “Reconciliation of GAAP Loss to Adjusted Loss."
Loss before income tax benefit for the fourth quarter of 2010 was $ 7,417,000 on an adjusted basis compared with $ 7,396,000 for the fourth quarter of last year.
Net loss was $ 4,569,000 or $ .13 per diluted share on an adjusted basis in the fourth quarter of 2010 compared with $ 4,571,000 or $.13 per diluted share for the same period last year.
For the year ended December 31, 2010, total revenues were $ 62,960,000 compared with $ 70,878,000 in the prior year. We promoted one less major event in 2010 then we did in 2009.
On an adjusted basis, net loss was $ 2,261,000 or $ .06 per diluted share for the year ended 2010 compared with $ 1,034,000 or $.03 per diluted share in 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 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.