Dover Motorsports, Inc. Reports Results for the Third Quarter of 2009

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

The Company promoted five major events over four weekends in the third quarter
of 2009 compared with seven major events in the third quarter of 2008. The NHRA
event at Memphis Motorsports Park which was held in the third quarter of 2008
will be held in the fourth quarter of 2009. Also, the Indy Racing League event
at the Nashville Superspeedway that was promoted during the third quarter of
2008 was not held in 2009.

For the quarter ended September 30, 2009 revenues were $31,144,000 compared with
$39,791,000 in the third quarter of 2008. The decrease in revenues is due to
promoting two fewer events in 2009 compared to 2008, lower attendance resulting
in reduced admissions revenue and event-related revenue and to reduced corporate
sponsorships.

The Company`s NASCAR Fall race weekend in Dover saw lower attendance,
sponsorships and corporate spending as a result of weak macroeconomic conditions
and less than optimal weather.

Operating and marketing expenses were $19,159,000 in the third quarter of 2009
as compared to $24,083,000 in the third quarter of 2008. The decrease is
primarily related to the change in our motorsports event calendar discussed
above, as well as from lower expenses for most major events held during the
quarter.

General and administrative expenses of $3,062,000 in the third quarter of 2009
were down slightly from $3,131,000 for the same quarter last year.

Depreciation and amortization expense was $1,606,000 in the third quarter of
2009 compared to $1,773,000 for the comparable 2008 period. The decrease
resulted primarily from the cessation of depreciation expense at our Memphis
track which was 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 since
September of 2008 related to our Monster Makeover project at Dover International
Speedway.

As previously reported on October 30, 2009, the Company announced that it is
ceasing all operations at Memphis Motorsports Park and that it will not promote
any events in Memphis in 2010. The Memphis facility had been under an agreement
of sale to Gulf Coast Entertainment but Gulf Coast was unable to secure
financing. Because the sale of our Memphis facility was not completed, the
Company concluded in the third quarter that it was necessary to review the
carrying value of the long-lived assets of its Memphis facility for impairment.
As a result of this review, the Company recorded a non-cash impairment charge of
$7,478,000 to write down the carrying value of the Memphis facility to fair
value.

Net interest expense was a negative $244,000 for the third quarter of 2009
compared to $947,000 in the third quarter of 2008. The decrease in expense was
primarily due to the reversal of $1,011,000 of accrued interest associated with
certain unrecognized income tax benefits that are no longer required.
Additionally, both average borrowings and interest rates were lower during the
third quarter of 2009 than during the third quarter of 2008.

Earnings before income taxes were $83,000 in the third quarter of 2009 compared
with $9,857,000 in the comparable quarter of the prior year. The current years`
results include the aforementioned non-cash impairment charge of $7,478,000. The
Company`s financial results are shown on an adjusted basis on the accompanying
schedule - "Reconciliation of GAAP (Loss) Earnings to Adjusted (Loss) Earnings".

On an adjusted basis, income before income taxes for the third quarter of 2009
was $7,561,000 compared with $9,857,000 for the third quarter of last year.

The income tax provision for the third quarter of 2009 is the result of the mix
of taxable income and losses within our various subsidiaries. Certain
subsidiaries had state taxable income which resulted in state income tax
expense; however, other subsidiaries with state tax losses have no state income
tax benefits based upon the valuation allowances that we have recorded in
connection with state net operating loss carryforwards. Excluding the effect of
the impairment charge, the effective income tax rate was 42.6% in the third
quarter of 2009 compared to 52.3% in the 2008 period.

Net (loss) earnings for the third quarter of 2009 were $(524,000) or $(.01) per
diluted share compared to $4,699,000 or $.13 per diluted share for the same
period last year.

On an adjusted basis, net earnings were $4,337,000 or $.12 per diluted share in
the third quarter of 2009 compared with $4,699,000 or $.13 per diluted share for
the same period last year.

For the nine months ended September 30, 2009, revenues were $66,847,000 compared
with $81,718,000 in the prior year. The Company promoted 12 major events in the
first nine months of 2009 compared to 14 major events in the comparable 2008
period.

Net (loss) earnings were $(1,324,000) or $(.04) per diluted share for the first
nine months of 2009 compared with $6,398,000 of $0.18 per diluted share in the
comparable period last year. On an adjusted basis, net earnings were $3,537,000
or $.09 per diluted share for the first nine months of 2009 compared with
$6,398,000 or $.18 per diluted share in the comparable 2008 period.

Cash provided by operations for the first nine months of 2009 was $6,350,000
compared with $10,906,000 in the prior year. Capital spending, primarily
associated with the Monster Makeover project at Dover International Speedway,
was $1,896,000 during the first nine months of 2009.

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. (NYSE:DVD)is a leading promoter of motorsports events in
the United States. DVD subsidiaries operate three tracks in three states, and
present several hundred motorsports events each year. For 2009, 14 major,
national events were held, including races sanctioned by NASCAR and NHRA. Dover
Motorsports, Inc. owns and operates Dover International Speedway in Dover, Del.,
Gateway International Raceway near St. Louis, Mo., and Nashville Superspeedway
near Nashville, Tenn. For further information log on to
www.DoverMotorsports.com. This release may contain forward-looking statements
based on management`s beliefs and assumptions. Such statements are subject to
various risks and uncertainties that could cause results to vary materially.
Please refer to the SEC filings of DVD for a discussion of such factors.

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

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenues:
Admissions $ 11,196 $ 15,365 $ 23,149 $ 30,101
Event-related 7,481 12,073 16,260 24,425
Broadcasting 12,346 12,348 27,284 27,134
Other 121 5 154 58
31,144 39,791 66,847 81,718

Expenses:
Operating and marketing 19,159 24,083 44,505 50,801
General and administrative 3,062 3,131 9,219 9,420
Impairment charge 7,478 - 7,478 -
Depreciation and amortization 1,606 1,773 4,788 5,139
31,305 28,987 65,990 65,360

Operating (loss) earnings (161 ) 10,804 857 16,358

Interest income - 19 7 69
Interest expense 244 (966 ) (1,275 ) (3,118 )
Loss on sale of investments - - (102 ) -

Earnings (loss) before income tax expense 83 9,857 (513 ) 13,309

Income tax expense 607 5,158 811 6,911

Net (loss) earnings $ (524 ) $ 4,699 $ (1,324 ) $ 6,398

Net (loss) earnings per common share:
Basic $ (0.01 ) $ 0.13 $ (0.04 ) $ 0.18
Diluted $ (0.01 ) $ 0.13 $ (0.04 ) $ 0.18

Weighted average shares outstanding:
Basic 36,025 35,958 36,019 35,934
Diluted 36,025 35,965 36,019 36,003

DOVER MOTORSPORTS, INC.
RECONCILIATION OF GAAP EARNINGS (LOSS) TO ADJUSTED EARNINGS
In Thousands, Except Per Share Amounts
(Unaudited)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008

GAAP earnings (loss) before income tax expense $ 83 $ 9,857 $ (513 ) $ 13,309

Non-cash impairment charges (1) 7,478 - 7,478 -

Adjusted earnings before income tax expense $ 7,561 $ 9,857 $ 6,965 $ 13,309

GAAP net (loss) earnings $ (524 ) $ 4,699 $ (1,324 ) $ 6,398

Non-cash impairment charges, net of income taxes (1) 4,861 - 4,861 -

Adjusted net earnings $ 4,337 $ 4,699 $ 3,537 $ 6,398

GAAP net (loss) earnings per common share - diluted $ (0.01 ) $ 0.13 $ (0.04 ) $ 0.18

Non-cash impairment charges, net of income taxes (1) 0.13 - 0.13 -

Adjusted net earnings per common share - diluted $ 0.12 $ 0.13 $ 0.09 $ 0.18

_________________________
(1) During the third quarter of 2009, we reviewed the long-lived assets of our Memphis Motorsports Park facility for impairment. Based on the results of this analysis, we recorded a non-cash impairment charge of $7,478,000 to write-down the carrying value of long-lived assets at our Memphis facility to fair value.

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

September 30, September 30, December 31,
2009 2008 2008

ASSETS
Current assets:
Cash and cash equivalents $ 838 $ 1,035 $ 288
Accounts receivable 9,240 10,406 1,950
Inventories 317 320 273
Prepaid expenses and other 1,682 1,705 1,697
Receivable from Dover Downs Gaming & Entertainment, Inc. - 7 11
Deferred income taxes 116 197 152
Total current assets 12,193 13,670 4,371

Property and equipment, net 134,547 158,857 144,684
Restricted cash 3,962 6,286 5,219
Other assets, net 722 1,480 594
Deferred income taxes 257 87 311
Total assets $ 151,681 $ 180,380 $ 155,179

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,343 $ 4,363 $ 604
Accrued liabilities 6,537 5,644 2,767
Payable to Dover Downs Gaming & Entertainment, Inc. 35 - -
Income taxes payable 1,214 2,155 159
Current portion of bonds payable 1,235 1,130 1,130
Deferred revenue 3,992 3,930 6,962
Total current liabilities 15,356 17,222 11,622

Revolving line of credit 39,200 42,500 42,200
Bonds payable 1,738 2,970 2,971
Liability for pension benefits 2,706 863 2,555
Other liabilities 932 1,605 1,920
Non current income taxes payable 4,696 9,632 9,630
Deferred income taxes 20,940 24,155 16,834
Total liabilities 85,568 98,947 87,732

Stockholders' equity:
Common stock 1,811 1,697 1,787
Class A common stock 1,851 1,942 1,851
Additional paid-in capital 100,868 100,393 100,539
Accumulated deficit (36,423 ) (21,743 ) (34,366 )
Accumulated other comprehensive loss (1,994 ) (856 ) (2,364 )
Total stockholders' equity 66,113 81,433 67,447
Total liabilities and stockholders' equity $ 151,681 $ 180,380 $ 155,179

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

Nine Months Ended
September 30,
2009 2008

Operating activities:
Net (loss) earnings $ (1,324 ) $ 6,398
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:
Depreciation and amortization 4,788 5,139
Amortization of credit facility fees 121 134
Stock-based compensation 425 452
Deferred income taxes (1,115 ) 3,898
Impairment charge 7,478 -
Changes in assets and liabilities:
Accounts receivable (7,290 ) (8,684 )
Inventories (44 ) (135 )
Prepaid expenses and other 166 78
Accounts payable 1,739 3,687
Accrued liabilities 3,570 2,180
Payable to/receivable from Dover Downs Gaming & Entertainment, Inc. 46 11
Income taxes payable 1,126 1,898
Deferred revenue (2,970 ) (4,759 )
Other liabilities (366 ) 609
Net cash provided by operating activities 6,350 10,906

Investing activities:
Capital expenditures (1,896 ) (6,467 )
Restricted cash 1,257 (2,117 )
Proceeds from sale of available-for-sale securities 187 -
Purchase of available-for-sale securities (185 ) (50 )
Net cash used in investing activities (637 ) (8,634 )

Financing activities:
Borrowings from revolving line of credit 27,150 31,000
Repayments on revolving line of credit (30,150 ) (30,800 )
Repayments of bonds payable (1,128 ) (109 )
Dividends paid (733 ) (1,638 )
Repurchase of common stock (19 ) (137 )
Credit facility fees (283 ) (124 )
Proceeds from stock options exercised - 216
Excess tax benefit on stock awards - 28
Net cash used in financing activities (5,163 ) (1,564 )

Net increase in cash and cash equivalents 550 708
Cash and cash equivalents, beginning of period 288 327
Cash and cash equivalents, end of period $ 838 $ 1,035

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

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