Dover Motorsports, Inc. Reports Results for the Second Quarter
As previously reported, the assets, liabilities and operating results of the Company's Gateway facility have been reclassified in the accompanying consolidated financial statements to report Gateway separately as a discontinued operation.
The Company promoted five major events during the second quarter of 2011 compared to six major events during the second quarter of 2010. A NASCAR Nationwide Series event promoted at Nashville Superspeedway in the second quarter of 2010 was held in the third quarter of 2011.
Revenues for the quarter ended June 30, 2011 were $26,381,000 compared with $29,946,000 in the second quarter of 2010. The decrease in revenues was primarily due to the schedule change noted above and from lower admissions and event related revenues at the Company's NASCAR triple-header in Dover.
Operating and marketing expenses were $15,488,000 in the second quarter of 2011 as compared to $18,197,000 in the second quarter of 2010. The decrease was also primarily due to promoting one less event in the second quarter 2011, as well as from lower expenses during the Dover NASCAR weekend.
General and administrative expenses of $2,146,000 in the second quarter of 2011 were down from $2,338,000 for the same quarter last year. The decrease is due primarily to lower employee costs and lower costs resulting from the sale of the Memphis facility.
Net interest expense was $592,000 for the quarter ended June 30, 2011 compared to $793,000 in the second quarter of 2010. The decrease was due to lower borrowing costs as a result of the April 2011 refinancing of the Company's credit facility and lower average outstanding borrowings in the second quarter of 2011 compared to 2010. Loss on extinguishment of debt relates to the write-off of $67,000 of debt issuance costs associated with the previous credit facility.
Earnings from continuing operations before income tax expense for the quarter ended June 30, 2011 were $6,748,000 compared with $7,216,000 in the second quarter of 2010.
The effective tax rate for the second quarter of 2011 was 42.2% compared to 42.7% in the prior year.
Earnings from continuing operations for the second quarter of 2011 were $3,901,000 or $.11 per diluted share compared to $4,137,000 or $.11 per diluted share for the second quarter of 2010.
For the second quarter of 2010, loss from discontinued operations, net of income tax benefit, was $5,822,000 or $.16 per diluted share. That loss included a non-cash impairment charge, net of income tax benefit, of $5,176,000 to write-down the carrying value of the Gateway facility to fair value.
Net earnings were $3,901,000 or $0.11 per diluted share compared to a net loss of ($1,685,000) or $(0.05) per diluted share for the same period last year.
At June 30, 2011, the Company's total indebtedness was $31,400,000 compared to $35,800,000 at June 30, 2010.
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 NASCAR sanctioned motorsports events whose subsidiaries own and operate Dover International Speedway in Dover, Delaware and Nashville Superspeedway near Nashville, Tennessee. For further information, log on to www.dovermotorsports.com.