Dover Motorsports, Inc. reports results for the second quarter of 2012
Dover Motorsports, Inc. (NYSE: DVD) today reported results for the three months ended June 30, 2012.
Net earnings for the second quarter of 2012 improved 28.6% to $ 5,018,000 or $ .14 per diluted share compared to $ 3,901,000 or $ .11 per diluted share for the second quarter of 2011.
The Company promoted three major events during the second quarter of 2012 compared to five major events during the second quarter of 2011. The Company’s Nashville facility had promoted a NASCAR Nationwide Series event and a Truck Series event in the second quarter of 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 second quarter of 2012 were $ 23,719,000 compared with $ 26,381,000 in the second quarter of 2011. The decrease in revenues was primarily due to the schedule change noted above and from lower average ticket prices for the Company’s NASCAR triple-header in Dover which offset slightly higher attendance.
Operating and marketing expenses were $ 12,528,000 in the second quarter of 2012 compared to $ 15,488,000 in the second quarter of 2011. The decrease was also primarily due to not promoting the two races in Nashville in the second quarter 2012, as well as from lower expenses during the Dover NASCAR weekend.
General and administrative expenses of $ 1,765,000 in the second quarter of 2012 were down from $ 2,146,000 in the second quarter of 2011. The decrease is due primarily to lower employee costs in Dover and lower costs resulting from the reduced operations at the Nashville facility.
Net interest expense was $ 372,000 for the second quarter of 2012 compared to $ 592,000 in the second quarter of 2011. The decrease was due to lower borrowing costs and lower average outstanding borrowings in the second quarter of 2012 compared to 2011.
Earnings from continuing operations before income tax expense for the second quarter of 2012 were $ 8,477,000 compared with $ 6,748,000 in the second quarter of 2011.
Denis McGlynn, President and CEO, stated, “We are encouraged by the significant improvement in our results and working diligently to continue the trend that we’ve experienced over the last several quarters. Our focus is on generating cash flow at our flagship facility in Dover and we continue to look for ways to increase top line revenue growth while keeping a watchful eye on the expense line as we navigate through a very challenging economic cycle.”
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.