Business
Wednesday, November 4, 2009
Memphis track a
drag on Dover's 3Q balance sheet
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By AARON
NATHANS • The News Journal • November 4, 2009 |
Dover Motorsports Inc. had a third-quarter loss as a result of shutting
down its Memphis racetrack, the company said Tuesday.
Dover released its earnings this week showing a weaker third quarter than
last year.
Revenues were $31.1 million during the period, down from $39.8 million in
the same quarter a year earlier.
The Dover track promoted two fewer events this year; there was also lower
attendance and reduced corporate sponsorships, the company reported.
Dover had an agreement with Gulf Coast Entertainment to sell the Memphis
Motorsports Park, which it acquired in 1998. But Gulf Coast could not
secure financing, Dover reported.
So Dover announced it would not promote any events in Memphis next year,
and was ceasing all operations there.
"This was a difficult decision for us, but one that ultimately was
dictated by economics," said Denis McGlynn, president and CEO of Dover
Motorsports. "For all concerned, including the Memphis community, it is
truly sad to see Memphis Motorsports Park taken off the racing schedule."
Timothy Horne, vice president for finance, said the phone is already
ringing about potential buyers for the property.
Dover could sell it for other purposes, but, "If someone wants to come in
and buy the property as a racetrack and operate it, I think that would be
best for everybody," Horne said.
The track had been a good investment at one time, he said. "It's had
better days, the economy hasn't always been like it has been today," Horne
said.
Dover added a $7.5 million charge to its balance sheet because of shutting
down the Memphis track.
As a result, the company showed a $524,000 loss in the third quarter, or
one negative cent per diluted share.
On an adjusted basis, Dover made a $4.3 million profit, or 12 cents per
diluted share, during the quarter, down from $4.7 million, or 13 cents per
share, during the same period last year.
Two NASCAR events, planned for next year at Memphis, have been moved to
Dover's other venues.
A Camping World Truck Series race was moved to Nashville Superspeedway on
April 2. And the Nationwide Series race was moved to Gateway International
Raceway on Oct. 23.
Contact Aaron Nathans at 324-2786 or anathans@delawareonline.com.
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