Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the quarter ended March 31, 2011.
As previously reported, the Company terminated the majority of the leases at our Gateway facility in exchange for the transfer of all improvements and personal property on the premises and the conveyance of 18.5 acres of owned land to one of the landlords. As we no longer have any operations at the facility, the results of operations for our Gateway facility are being reported as a discontinued operation. Accordingly, the accompanying consolidated financials statements have been reclassified to report separately the assets, liabilities and operating results of this discontinued operation.
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 2011 or 2010.
Revenues for the first quarter of 2011 were $130,000 compared with $55,000 in the first quarter of 2010. Operating and marketing expenses were $1,288,000 in the first quarter of 2011 compared to $1,395,000 for the comparable prior year period. The decrease is primarily due to the sale of the Memphis facility on January 31, 2011.
General and administrative expenses of $2,151,000 in the first quarter of 2011 were down from $2,486,000 for the same quarter last year. The decrease is due primarily to lower employee costs in Dover and Nashville and lower costs resulting from the sale of the Memphis facility.
Depreciation and amortization of $1,413,000 during the first quarter of 2011 was comparable to $1,415,000 in the first quarter of 2010.
Net interest expense was $841,000 in the first quarter of 2011 compared to $758,000 in the first quarter of 2010. The increase was due primarily to a higher average interest rate on our credit facility and the amortization of credit facility amendment fees.