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.
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