Dover reduces value of Nationwide Series tracks
Dover Motorsports has written down the value of its Midwest facilities that play host to Nationwide and Camping World Truck series events.
In a news release detailing its fourth quarter and year-end results for 2008, the company announced that it is writing down the value of Memphis Motorsports Park by $2.15 million, Nashville Superspeedway by $3.14 million and Gateway International Raceway by $7.505 million.
The company cited projected cash flows and the fact that no anticipated material increase in revenues for Nationwide Series races from the television contract is anticipated as the reason for the reduction in value.
A write-down is an accounting measure that adjusts the value of the property to what the company considers fair market value and also impacts how much a company pays in taxes. On a conference call with financial analysts, Dover Senior Vice President of Finance Timothy Horne said Nashville's new value is approximately $51.5 million while Gateway and Memphis are now valued at approximately $10 million.
The company announced last week it had agreed to sell Memphis for $10 million cash to the builders of Alabama Motorsports Park. In its news release today, the company indicated that admissions revenue was lower for the Memphis race in 2008 than it was in 2007.
Adjusting the company’s earnings for the impairment charges and other accounting measures, Dover reported a profit of $2.638 million in 2008, compared with $3.744 million in 2007. Including the impairment charge, Dover recorded a loss of about $5.7 million in 2008.
With only two Cup races – both at Dover International Speedway – the company said admissions revenues dropped from $33.92 million in 2007 to $31.03 million in 2008. But event-related revenues were up – from $24.77 million to $25.65 million – as well as broadcasting revenues from $27.27 million to $27.53 million.
