DVD Dover Motorsports Inc

Dover Motorsports, Inc. (NYSE: DVD) today reported its results for the three months ended March 31, 2019.

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 2019 or 2018; therefore, our revenues were minimal.

Operating and marketing expenses decreased to $1,055,000 in the first quarter of 2019 from $1,151,000 in the first quarter of 2018, primarily due to the timing of advertising costs.

General and administrative expenses of $1,916,000 in the first quarter of 2019 also decreased slightly from $1,955,000 in the first quarter of 2018, primarily from lower employee costs.

Depreciation expense decreased to $793,000 in the first quarter of 2019 from $878,000 in the first quarter of 2018.

As previously reported, during the first quarter of 2018 we closed on the sale of a parcel of land in Nashville for net proceeds of approximately $5 million after closing costs, resulting in a gain of $2,512,000. We sold an additional 7.6 acres during the first quarter of 2019 for net proceeds of approximately $267,000, resulting in a gain of $139,000.

Provision for contingent obligation was $111,000 during the first quarter of 2019 compared to $67,000 for the first quarter of 2018.

Loss before income taxes was $3,481,000 for the first quarter of 2019 compared to $1,349,000 for the first quarter of 2018. On an adjusted basis, excluding the land sales, loss before income taxes was $3,620,000 for the first quarter of 2019 compared with $3,861,000 for the first quarter of 2018.

The Company’s effective income tax rate was 28.5% in the first quarter of 2019 compared with 26.5% in the first quarter of 2018.

Net loss for the first quarter of 2019 was $2,490,000 or $.07 per diluted share compared with a loss of $992,000 or $.03 per diluted share in the first quarter of 2018. Net loss, adjusted for the aforementioned items, was $2,600,000 or $.07 per diluted share for the first quarter of 2019 compared to $2,976,000 or $.08 per diluted share for the first quarter of 2018.

The Company’s financial condition continues to strengthen, with no outstanding borrowings and more than $2.5 million in available cash. During the first quarter this year, the Company repurchased 50,220 shares of its common stock on the open market at an average price of $2.02 per share, not including nominal brokerage commissions.

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 and other motorsports events in the United States whose subsidiaries own and operate Dover International Speedway in Dover, Delaware and Nashville Superspeedway near Nashville, Tennessee. For further information, log on to dovermotorsports.com.

  DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS In Thousands, Except Per Share Amounts (Unaudited)             Three Months Ended March 31, 2019 2018 Revenues: Event-related $ 129   $ 226     Expenses: Operating and marketing 1,055 1,151 General and administrative 1,916 1,955 Depreciation   793     878     3,764     3,984     Gain on sale of land   139     2,512     Operating loss (3,496 ) (1,246 )   Interest expense (6 ) (40 ) Provision for contingent obligation (111 ) (67 ) Other income   132     4     Loss before income taxes (3,481 ) (1,349 )   Income tax benefit   991     357     Net loss $ (2,490 ) $ (992 )   Net loss per common share: Basic $ (0.07 ) $ (0.03 ) Diluted $ (0.07 ) $ (0.03 )   Weighted average shares outstanding: Basic 36,032 36,234 Diluted 36,032 36,234     DOVER MOTORSPORTS, INC. RECONCILIATION OF GAAP LOSS BEFORE INCOME TAXES TO ADJUSTED LOSS BEFORE INCOME TAXES AND RECONCILIATION OF GAAP NET LOSS TO ADJUSTED NET LOSS In Thousands, Except Per Share Amounts (Unaudited)                   Three Months Ended March 31, 2019 2018   GAAP loss before income taxes $ (3,481 ) $ (1,349 )   Gain on sale of land (1)   (139 )   (2,512 )   Adjusted loss before income taxes $ (3,620 ) $ (3,861 )   GAAP net loss $ (2,490 ) $ (992 )   Gain on sale of land, net of income taxes (1)   (110 )   (1,984 )   Adjusted net loss $ (2,600 ) $ (2,976 )     GAAP net loss per common share - basic and diluted $ (0.07 ) $ (0.03 )   Gain on sale of land, net of income taxes (1)   -     (0.05 )   Adjusted net loss per common share - basic and diluted $ (0.07 ) $ (0.08 ) _________________________

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  During the first quarter of 2019 and 2018, we closed on sales of parcels of land at our Nashville Superspeedway facility resulting in gains of $139,000 and $2,512,000, respectively.   The above financial information is presented using other than generally accepted accounting principles ("non-GAAP"), and is reconciled to comparable information presented using GAAP. Non-GAAP adjusted loss before income taxes, adjusted net loss and adjusted net loss per common share - basic and diluted are derived by adjusting amounts determined in accordance with GAAP for the aforementioned gain on sale of land. Income taxes are based on our approximate statutory tax rates. We believe such non-GAAP information is useful and meaningful to investors, and is used by investors and us to assess core operations. This non-GAAP financial information may not be comparable to similarly titled measures used by other entities and should not be considered as an alternative to loss before income taxes, net loss or net loss per common share - basic and diluted, which are determined in accordance with GAAP.     DOVER MOTORSPORTS, INC. CONSOLIDATED BALANCE SHEETS In Thousands (Unaudited)           March 31, March 31, December 31, 2019 2018 2018   ASSETS Current assets: Cash $ 2,552 $ 352 $ 3,951 Accounts receivable 1,844 1,935 676 Inventories 21 15 21 Prepaid expenses and other 1,268 1,290 1,055 Income taxes receivable - 562 - Assets held for sale   -     -     531   Total current assets 5,685 4,154 6,234   Property and equipment, net 47,599 50,261 48,137 Nashville Superspeedway facility 23,505 23,567 23,567 Other assets   1,098     1,086     1,015   Total assets $ 77,887   $ 79,068   $ 78,953     LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 99 $ 166 $ 187 Accrued liabilities 2,238 2,403 3,083 Payable to Dover Downs Gaming & Entertainment, Inc. - 12 9 Income taxes payable 118 - 118 Contract liabilities   4,496     5,298     1,140   Total current liabilities 6,951 7,879 4,537   Revolving line of credit, net - 500 - Liability for pension benefits 720 2,263 773 Provision for contingent obligation 2,495 2,027 2,384 Deferred income taxes   7,390     8,326     8,371   Total liabilities   17,556     20,995     16,065     Stockholders' equity: Common stock 1,809 1,826 1,805 Class A common stock 1,851 1,851 1,851 Additional paid-in capital 101,320 101,659 101,416 Accumulated deficit (41,316 ) (43,777 ) (38,826 ) Accumulated other comprehensive loss   (3,333 )   (3,486 )   (3,358 ) Total stockholders' equity   60,331     58,073     62,888   Total liabilities and stockholders' equity $ 77,887   $ 79,068   $ 78,953       DOVER MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands (Unaudited)               Three Months Ended March 31, 2019 2018   Operating activities: Net loss $ (2,490 ) $ (992 )

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation 793 878 Amortization of credit facility fees 15 16 Stock-based compensation 108 105 Deferred income taxes (991 ) (357 ) Provision for contingent obligation 111 67 (Gains) losses on equity investments (87 ) 16 Gain on sale of land (139 ) (2,512 ) Changes in assets and liabilities: Accounts receivable (1,168 ) (1,459 ) Prepaid expenses and other (222 ) (180 ) Accounts payable (39 ) 105 Accrued liabilities (845 ) (646 ) Payable to Dover Downs Gaming & Entertainment, Inc. (9 ) 5 Contract liabilities 3,356 4,049 Liability for pension benefits   (18 )   (519 ) Net cash used in operating activities   (1,625 )   (1,424 )   Investing activities: Capital expenditures (398 ) (139 ) Proceeds from sale of land and equipment, net 827 4,945 Purchases of equity investments (4 ) (35 ) Proceeds from sale of equity investments   1     33   Net cash provided by investing activities   426     4,804     Financing activities: Borrowings from revolving line of credit - 2,460 Repayments on revolving line of credit - (5,200 ) Repurchase of common stock   (200 )   (289 ) Net cash used in financing activities   (200 )   (3,029 )   Net (decrease) increase in cash (1,399 ) 351 Cash, beginning of period   3,951     1   Cash, end of period $ 2,552   $ 352    

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Timothy R. Horne – Sr. Vice President - Finance(302) 857-3292