Dover Motorsports, Inc. Reports Results for the Second Quarter

DOVER, Del.--(Business Wire)--
Dover Motorsports, Inc. (NYSE:DVD) today reported its results for the second
quarter ended June 30, 2009.

The Company promoted seven major events over five weekends in the second quarter
of 2009 compared with six major events in 2008. The first NASCAR Nationwide
Series event at Nashville Superspeedway was held in the second quarter of 2009
compared with the first quarter of 2008.

For the quarter ended June 30, 2009 revenues were $35,618,000 compared with
$39,415,000 in the second quarter of 2008. The decrease in revenues is due to
lower attendance resulting in reduced admissions revenue and event-related
revenue. The reduced revenues were partially offset by higher broadcasting and
other revenues due to promoting an extra event in the second quarter of 2009
compared to 2008.

The Company`s NASCAR triple-header in Dover saw lower attendance, sponsorships
and corporate spending as a result of weak overall economic conditions.

Operating and marketing expenses were $23,147,000 in the second quarter of 2009
as compared to $22,108,000 in the second quarter of 2008. The increase is
primarily related to the change in our motorsports event calendar discussed
above.

General and administrative expenses of $3,099,000 in the second quarter of 2009
were consistent with $3,122,000 for the same quarter last year.

Depreciation and amortization expense was $1,617,000 in the quarter ended June
30, 2009 compared to $1,704,000 for the comparable 2008 period. The decrease
resulted primarily from the cessation of depreciation expense at our Memphis
track which is currently classified as held-for-sale and a reduction in our
depreciable asset base resulting from an impairment charge recorded in the
fourth quarter of 2008, partially offset by depreciation on assets placed in
service in June of 2008 related to our Monster Makeover project in Dover,
Delaware. Net interest expense was $732,000 for the quarter ended June 30, 2009
compared to $1,032,000 in the second quarter of 2008. The decrease was due to
lower average interest rates.

Earnings before income taxes decreased to $6,921,000 in the second quarter of
2009 compared with $11,449,000 in the comparable quarter of the prior year.

The effective tax rate for the second quarter of 2009 was 43.8% compared to
48.9% in the prior year. The decrease in the effective tax rate was primarily
the result of a reduction in our combined effective state income tax rate based
upon the mix of state taxable income (loss) for the current quarter.

Net earnings for the quarter ended June 30, 2009 were $3,888,000 or $0.11 per
diluted share compared with $5,847,000 or $0.16 per diluted share for the same
period last year.

For the six months ended June 30, 2009, revenues were $35,703,000 compared with
$41,927,000 in the prior year. The Company promoted seven major events in the
first half of both years. Net (loss) earnings were $(800,000) or $(0.02) per
diluted share compared with $1,699,000 or $0.05 per diluted share in the
comparable period of the prior year.

For the first half of 2009 cash provided by operations was $9,997,000 compared
with $4,644,000 in the prior year. Capital spending, primarily associated with
the Monster Makeover project at Dover International Speedway, was $1,817,000 in
the first half of 2009 compared with $6,082,000 in the comparable period in the
prior year.

As previously reported on Form 8-K dated January 30, 2009 and updated on April
24, 2009 and July 8, 2009, our wholly-owned subsidiary, Midwest Racing, Inc.,
entered into a stock purchase agreement dated January 28, 2009, to sell Memphis
Motorsports Park to Gulf Coast Entertainment, L.L.C. Under the terms of the
agreement, Midwest Racing, Inc. will sell all of the stock of its wholly-owned
subsidiary, Memphis International Motorsports Corporation, the owner of Memphis
Motorsports Park, to Gulf Coast Entertainment for $10 million in cash and a two
percent non-dilutable interest in Gulf Coast Entertainment.

Closing under the stock purchase agreement had been scheduled for June 29, 2009,
but Gulf Coast has not finalized its project financing. We are currently in the
process of negotiating an amendment to the stock purchase agreement which would
allow the buyer to extend the closing date to September 29, 2009 for additional
consideration.

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 four motorsports tracks in
three states and promote motorsports events under the auspices of two of the
premier sanctioning bodies in motorsports - NASCAR and NHRA. The Company owns
and operates Dover International Speedway in Dover, Delaware; Nashville
Superspeedway near Nashville, Tennessee; Gateway International Raceway near St.
Louis, Missouri; and Memphis Motorsports Park near Memphis, Tennessee.

DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
In Thousands, Except Per Share Amounts
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
Revenues:
Admissions $ 11,922 $ 13,936 $ 11,953 $ 14,736
Event-related 8,751 11,387 8,779 12,352
Broadcasting 14,938 14,077 14,938 14,786
Other 7 15 33 53
35,618 39,415 35,703 41,927

Expenses:
Operating and marketing 23,147 22,108 25,346 26,718
General and administrative 3,099 3,122 6,157 6,289
Depreciation and amortization 1,617 1,704 3,182 3,366
27,863 26,934 34,685 36,373

Operating earnings 7,755 12,481 1,018 5,554

Interest income 3 19 7 50
Interest expense (735 ) (1,051 ) (1,519 ) (2,152 )
Loss on sale of investments (102 ) - (102 ) -

Earnings (loss) before income tax expense 6,921 11,449 (596 ) 3,452

Income tax expense 3,033 5,602 204 1,753

Net earnings (loss) $ 3,888 $ 5,847 $ (800 ) $ 1,699

Net earnings (loss) per common share:
Basic $ 0.11 $ 0.16 $ (0.02 ) $ 0.05
Diluted $ 0.11 $ 0.16 $ (0.02 ) $ 0.05

Weighted average shares outstanding:
Basic 36,021 35,940 36,016 35,922
Diluted 36,021 36,030 36,016 36,021

DOVER MOTORSPORTS, INC.
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)

June 30, June 30, December 31,
2009 2008 2008

ASSETS
Current assets:
Cash and cash equivalents $ 514 $ 1,118 $ 288
Accounts receivable 2,923 13,172 1,950
Inventories 350 421 273
Prepaid expenses and other 1,902 3,771 1,697
Receivable from Dover Downs Gaming & Entertainment, Inc. 9 - 11
Prepaid income taxes 43 346 -
Deferred income taxes 111 203 152
Current assets held for sale 10,798 - -
Total current assets 16,650 19,031 4,371

Property and equipment, net 133,283 160,387 144,684
Restricted cash 3,894 3,894 5,219
Other assets, net 576 1,548 594
Deferred income taxes 263 83 311
Total assets $ 154,666 $ 184,943 $ 155,179

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,705 $ 3,086 $ 604
Accrued liabilities 3,518 4,525 2,767
Payable to Dover Downs Gaming & Entertainment, Inc. - 1 -
Income taxes payable - - 159
Current portion of bonds payable 1,235 1,130 1,130
Deferred revenue 11,869 17,213 6,962
Current liabilities held for sale 3,442 - -
Total current liabilities 22,769 25,955 11,622

Revolving line of credit 34,800 45,400 42,200
Bonds payable 1,737 2,969 2,971
Liability for pension benefits 2,680 774 2,555
Other liabilities 1,994 1,620 1,920
Non current income taxes payable 8,837 9,737 9,630
Deferred income taxes 15,479 21,386 16,834
Total liabilities 88,296 107,841 87,732

Stockholders' equity:
Common stock 1,812 1,698 1,787
Class A common stock 1,851 1,942 1,851
Additional paid-in capital 100,725 100,256 100,539
Accumulated deficit (35,899 ) (25,896 ) (34,366 )
Accumulated other comprehensive loss (2,119 ) (898 ) (2,364 )
Total stockholders' equity 66,370 77,102 67,447
Total liabilities and stockholders' equity $ 154,666 $ 184,943 $ 155,179

DOVER MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)

Six Months Ended
June 30,
2009 2008

Operating activities:
Net (loss) earnings $ (800 ) $ 1,699
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:
Depreciation and amortization 3,182 3,366
Amortization of credit facility fees 80 94
Stock-based compensation 283 317
Deferred income taxes (355 ) 1,262
Changes in assets and liabilities:
Accounts receivable (1,245 ) (11,450 )
Inventories (135 ) (236 )
Prepaid expenses and other (577 ) (2,081 )
Receivable from/payable to Dover Downs Gaming & Entertainment, Inc. 2 19
Prepaid income taxes/income taxes payable (132 ) (603 )
Accounts payable 2,152 2,252
Accrued liabilities 1,210 1,061
Deferred revenue 5,831 8,524
Other liabilities 501 420
Net cash provided by operating activities 9,997 4,644

Investing activities:
Capital expenditures (1,817 ) (6,082 )
Restricted cash 1,325 275
Proceeds from sale of available-for-sale securities 187 -
Purchase of available-for-sale securities (185 ) (50 )
Net cash used in investing activities (490 ) (5,857 )

Financing activities:
Borrowings from revolving line of credit 15,600 18,600
Repayments on revolving line of credit (23,000 ) (15,500 )
Repayments of bonds payable (1,129 ) (110 )
Dividends paid (733 ) (1,092 )
Repurchase of common stock (19 ) (137 )
Proceeds from stock options exercised - 216
Excess tax benefit on stock awards - 27
Net cash (used in) provided by financing activities (9,281 ) 2,004

Net increase in cash and cash equivalents 226 791
Cash and cash equivalents, beginning of period 288 327
Cash and cash equivalents, end of period $ 514 $ 1,118

Dover Motorsports, Inc.
Timothy R. Horne - Sr. Vice President - Finance
302-857-3292

Copyright Business Wire 2009

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