Dover Motorsports, Inc. Reports 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. is a leading promoter of motorsports events in the United States. Its motorsports subsidiaries operate two motorsports tracks in two states and promote NASCAR sanctioned and other motorsports events. The Company owns and operates Dover International Speedway in Dover, Delaware and Nashville Superspeedway near Nashville, Tennessee. For further information, log on to www.dovermotorsports.com.
 
DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
In Thousands, Except Per Share Amounts
(Unaudited)
     
 
Three Months Ended
March 31,
2012 2011
Revenues:
Event-related $ 119 $ 30
Other   7     100  
  126     130  
 
Expenses:
Operating and marketing 1,100 1,288
General and administrative 1,970 2,151
Depreciation   837     1,413  
  3,907     4,852  
 
Operating loss (3,781 ) (4,722 )
 
Interest expense, net (401 ) (841 )
Provision for contingent obligation 40 -
Other income   -     4  
 
Loss from continuing operations before income tax benefit (4,142 ) (5,559 )
 
Income tax benefit   1,519     2,061  
 
Loss from continuing operations (2,623 ) (3,498 )
 
Loss from discontinued operation, net of income tax benefit   -     (68 )
 
Net loss $ (2,623 ) $ (3,566 )
 
Net loss per common share - basic:
Continuing operations $ (0.07 ) $ (0.10 )
Discontinued operation   -     -  
Net loss $ (0.07 ) $ (0.10 )
 
Net loss per common share - diluted:
Continuing operations $ (0.07 ) $ (0.10 )
Discontinued operation   -     -  
Net loss $ (0.07 ) $ (0.10 )
 
Weighted average shares outstanding:
Basic 36,297 36,192
Diluted 36,297 36,192
 
 
DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
       
 
March 31, March 31, December 31,
2012 2011 2011
 
ASSETS
Current assets:
Cash $ 12 $ 229 $ 15
Accounts receivable 3,269 2,782 689
Inventories 115 236 115
Prepaid expenses and other 1,441 1,912 1,255
Receivable from Dover Downs Gaming & Entertainment, Inc. - - 11
Prepaid income taxes 331 260 -
Deferred income taxes 74 231 67
Current assets of discontinued operation   -     52     -  
Total current assets 5,242 5,702 2,152
 
Property and equipment, net 95,633 115,039 96,380
Other assets 772 543 783
Deferred income taxes   454     166     496  
Total assets $ 102,101   $ 121,450   $ 99,811  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 195 $ 232 $ 116
Accrued liabilities 1,766 1,452 2,584
Payable to Dover Downs Gaming & Entertainment, Inc. 1 27 -
Income taxes payable - - 145
Deferred revenue 9,161 10,319 3,129
Current liabilities of discontinued operation   -     86     -  
Total current liabilities 11,123 12,116 5,974
 
Revolving line of credit 30,120 37,500 29,160
Liability for pension benefits 2,652 2,299 2,713
Other liabilities 2,215 130 2,250
Non current income taxes payable - 1,241 -
Deferred income taxes   13,566     17,099     14,765  
Total liabilities   59,676     70,385     54,862  
 
Stockholders' equity:
Common stock 1,838 1,832 1,828
Class A common stock 1,851 1,851 1,851
Additional paid-in capital 101,942 101,621 101,888
Accumulated deficit (60,975 ) (52,733 ) (58,352 )
Accumulated other comprehensive loss   (2,231 )   (1,506 )   (2,266 )
Total stockholders' equity   42,425     51,065     44,949  
Total liabilities and stockholders' equity $ 102,101   $ 121,450   $ 99,811  
 
 
DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
     
Three Months Ended
March 31,
2012 2011
 
Operating activities:
Net loss $ (2,623 ) $ (3,566 )

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 837 1,413
Amortization of credit facility fees 55 156
Stock-based compensation 91 144
Deferred income taxes (1,189 ) (1,715 )
Provision for contingent obligation (40 ) -
Changes in assets and liabilities:
Accounts receivable (2,580 ) (1,994 )
Inventories - (4 )
Prepaid expenses and other (191 ) (343 )
Prepaid income taxes/income taxes payable (475 ) (382 )
Accounts payable 79 86
Accrued liabilities (818 ) (1,380 )
Payable to/receivable from Dover Downs Gaming & Entertainment, Inc. 12 9
Deferred revenue 6,032 6,675
Other liabilities   (36 )   62  
Net cash used in operating activities   (846 )   (839 )
 
Investing activities:
Capital expenditures (90 ) (123 )
Proceeds from the sale of property and equipment - 1,875
Proceeds from the sale of available-for-sale securities - 69
Purchase of available-for-sale securities   -     (70 )
Net cash (used in) provided by investing activities   (90 )   1,751  
 
Financing activities:
Borrowings from revolving line of credit 2,260 3,100
Repayments on revolving line of credit (1,300 ) (3,800 )
Repurchase of common stock   (27 )   (52 )
Net cash provided by (used in) financing activities   933     (752 )
 
Net (decrease) increase in cash (3 ) 160
Cash, beginning of period   15     69  
Cash, end of period $ 12   $ 229  
 

Copyright Business Wire 2010

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