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Press Release

Dover Motorsports, Inc. Results for the Quarter ended March 31, 2012

Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the quarter ended March 31, 2012.

The Company historically reports a loss in the first quarter due to the seasonality of our motorsports business. No major events were promoted during the first quarter of 2012 or 2011. 

We previously announced that the Company’s Nashville facility notified NASCAR that it did not seek 2012 sanction agreements for its two Nationwide Series and two Camping World Truck Series events. We are hosting race team testing during 2012 at Nashville and we will continue to evaluate all of our options for the facility.

Revenues for the first quarter of 2012 were $ 126,000 compared with $ 130,000 in the first quarter of 2011. Operating and marketing expenses were $ 1,100,000 in the first quarter of 2012 compared to $ 1,288,000 in the first quarter of 2011. The decrease is primarily due to the reduced operations in Nashville.

General and administrative expenses of $ 1,970,000 in the first quarter of 2012 were down from $ 2,151,000 in the first quarter of 2011. The decrease is primarily due to lower employee costs in Dover.

Depreciation expense of $ 837,000 in the first quarter of 2012 decreased from $ 1,413,000 in the first quarter of 2011 primarily due to the previously recorded impairment charge in the third quarter of 2011 of all depreciable assets of the Nashville facility.

Net interest expense was $ 401,000 in the first quarter of 2012 compared to $ 841,000 in the first quarter of 2011. The decrease is primarily due to lower average outstanding borrowings and lower interest rates and fees in the first quarter of 2012 compared to the first quarter of 2011.

Loss from continuing operations before income tax benefit in the first quarter of 2012 was $ 4,142,000 compared with a loss of $ 5,559,000 in the first quarter of 2011.

The effective income tax rate was a benefit of 36.7 % for the first quarter of 2012 compared to a benefit of 37.1 % for the first quarter of 2011. 

Net loss for the first quarter of 2012 was $ 2,623,000 or $ .07 per diluted share compared with a loss of $ 3,566,000 or $ .10 per diluted share in the first quarter of 2011. 

Net cash used in operations in the first quarter of 2012 was $ 846,000 compared to $ 839,000 in the first quarter of 2011. 

Capital spending was $ 90,000 in the first quarter of 2012 compared with $ 123,000 in the first quarter of 2011. The Company received proceeds of $ 1,875,000 related to the sale of the Memphis facility in January 2011. 

At March 31, 2012, the Company’s total indebtedness was $ 30,120,000 compared with $ 37,500,000 at March 31, 2011.

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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