Once Brian Birkhofer charged into the lead on Lap 16 of the Missouri 50 at Lebanon I-44 Speedway on Tuesday night, nobody had t




 

 

Contact:DIRT MotorSports d/b/a World Racing Group

Brian Carter, Chief Executive Officer 

Chris Dolack, VP Public Relations

704-795-7223 " cdolack@dirtcar.com 


 

World Racing Group Reports $8.1 Million Third Quarter Revenue, Improved Operating Results and New Management Alignment

Files Third Quarter 2007 Results


CONCORD, N.C. - BUSINESS WIRE - November 15, 2007 - DIRT Motor Sports, Inc. d/b/a The World Racing Group (OTCBB: DMSP) announced today that it has filed its quarterly report for the three and nine month periods ending September 30, 2007.  



Some of the Company's financial achievements through September 30, 2007, which are qualified in their entirety by the financial statements included in the Company's quarterly report on Form 10QSB which can be found at www.sec.gov:


Third quarter highlights:




	Revenue increase of 32% to $8.1 million from $6.1 million


	Decrease of operating loss before non-cash stock compensation and depreciation of 44% to $1.4 million from $2.6 million


	Operating loss decrease of 35% to $2.2 million from $3.4 million


	Decrease in net loss by 31% to $2.4 million from $3.5 million




Year to date highlights:




	Revenue increase of 36% to $16.7 million from $12.3 million 


	Decrease of operating loss before non-cash stock compensation and depreciation of 33% to $5.4 million from $8.1 million


	Operating loss decrease of 30% to $7.5 million from $10.8 million


	Decrease in net loss by 54% to $8.6 million from $18.8 million





Additionally, the Company announced today a more streamlined executive management team.   Brian Carter, will serve as the Company's Chief Executive Officer and Chief Financial Officer, Tom Deery will serve as President and Chief Operating Officer and Ben Geisler will serve as Chief Marketing Officer.

"The skills of each member of the management team have been aligned with the critical areas for success in 2008.  Tom's vast experience, both managing NASCAR's weekly series and regional touring and his long history in track operations makes him the perfect person to manage the operations of our business," said Mr. Carter.  "Ben's experience in managing and placing over $100 million in sponsorship and activation spending in his previous role with Next Marketing and his involvement with the operations of the business for the past couple seasons makes him very well suited to effectively attract and retain long term marketing partners."   

Carter concluded with, "I am confident that all aspects of our business will thrive under the new management structure.  I expect that the improvements made in 2007 will accelerate in 2008, building on the measurable growth in our racing and event operations and stronger growth in our sponsorship and advertising revenues. The continued revenue growth and decreases in our operating losses in the third quarter, in spite of spending $1.4 million on our television programming and production costs are very encouraging as we look forward to 2008."

About DIRT MotorSports, Inc., d/b/a World Racing Group

Based in Concord, N.C., World Racing Group (WRG) is a national sanctioning body, real-estate operator, and sports entertainment company serving the dirt racing industry.  WRG sanctions sprint car racing under the World of Outlaws® banner, late model racing under the World of Outlaws Late Model Series(SM), big block modified racing under the Advance Auto Parts Super DIRTcar SeriesTM banner and sanctions more than 4,000-races a year under the DIRTcarTM Racing banner.  In addition, WRG owns and operates seven speedways.  To learn more about World Racing Group, visit worldracinggroup.com.



Safe Harbor Statement

This release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are economic, competitive and other factors effecting the company's operations, events and markets, as well as other factors detailed in the company's filings with the Securities and Exchange Commission, which can be found at www.sec.gov.



(Tables follow)



 

 

DIRT Motor Sports, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three and Nine Months Ended September 30, 2007 and 2006

(Unaudited) 



	
	
Three Months Ended:
	
Nine Months Ended:

	
	
2007
	
2006
	
2007
	
2006

	
Revenues
	
	
	
	

	
  Race sanctioning and event fees
	
$3,764,432
	
$2,470,954
	
$7,395,722
	
$4,242,586

	
  Admission fees and ticket sales
	
2,259,395
	
2,601,057
	
5,814,994
	
5,671,771

	
  Sponsorship and advertising revenue
	
1,844,047
	
694,370
	
3,043,977
	
1,646,940

	
  Merchandise sales
	
237,730
	
240,632
	
422,517
	
506,835

	
  Other revenue
	
 11,810
	
 126,386
	
 69,586
	
 215,299

	
          Total revenues
	
8,117,414
	
6,133,399
	
16,746,796
	
12,283,431

	
	
	
	
	

	
Operating expenses
	

	

	

	


	
  Track and event operations
	
8,589,833
	
7,592,261
	
18,860,886
	
16,446,929

	
  Sales and marketing
	
405,860
	
446,737
	
1,284,036
	
945,926

	
  Merchandise operations and cost of sales
	
98,958
	
257,835
	
235,848
	
724,317

	
  General and administrative
	
473,948
	
431,731
	
1,749,351
	
2,246,878

	
  Non-cash stock compensation
	
553,924
	
627,840
	
1,493,796
	
2,112,322

	
  Depreciation and amortization
	
206,932
	
187,521
	
615,675
	
579,867

	
          Total operating expenses
	
10,329,455
	
9,543,925
	
24,239,592
	
23,056,239

	
	
	
	
	

	
Loss from operations
	
(2,212,041)
	
(3,410,526)
	
(7,492,796)
	
(10,772,808)

	
	
	
	
	

	
Other (Expenses) Income
	
	
	
	

	
  Interest expense, net
	
(180,652)
	
(47,653)
	
(1,124,829)
	
(7,979,706)

	
Total Other Expense
	
(180,652)
	
(47,653)
	
(1,124,829)
	
(7,979,706)

	
	
	
	
	

	
Net (Loss)
	
$(2,392,693)
	
$(3,458,179)
	
$(8,617,625)
	
$(18,752,514)

	
	
	
	
	

	
Dividends on preferred stock:
	
	
	
	

	
  Stated dividends, Series D
	
(530,520)
	
-
	
(792,146)
	
-    

	
  Issuance costs, Series D Preferred Stock
	
-
	
-
	
-
	
(1,326,335)    

	
  Exchange of Series C Preferred Stock
	
-
	
-
	
-
	
(1,250,000)

	
	
	
	
	

	
Net loss applicable to common stock
	
$(2,923,213)
	
$(3,458,179)
	
$(9,409,771)
	
$(21,328,849)

	
	
	
	
	

	
Net loss applicable to common stock 

  per common share -

    Basic and diluted
	


 

$(0.20)
	


 

$(0.25)
	


 

$(0.64)
	


 

$(1.65)

	
Weighted average common shares outstanding -

    Basic and diluted
	


14,729,873
	


14,042,408
	


14,619,777
	


12,890,746

	
	
	
	
	






 

DIRT Motor Sports, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2007 and December 31, 2006

(Unaudited)

	
	
September 30,

2007


	
December 31,

2006



	
ASSETS
	
	

	
Current assets
	

	


	
  Cash and cash equivalents
	
$6,180,476
	
$532,230

	
  Accounts receivable - trade
	
930,728
	
223,065

	
  Inventory
	
61,391
	
110,077

	
  Prepaid expenses and other current assets
	
   1,839,267
	
   330,943

	
          Total current assets
	
 9,011,862
	
 1,196,315

	
Land, buildings and equipment, net
	
10,398,392
	
10,447,633

	
Trademarks
	
100,000
	
100,000

	
Goodwill, net of impairment of $10,320,537 
	
-
	
-

	
Prepaid Expenses -  long term
	
41,666
	
166,667

	
Other assets, net of amortization of $69,002 in 2007 and $55,331 in 2006
	
645,727
	
140,122

	
          Total assets
	
$20,197,647
	
$12,050,737

	
	

	


	
LIABILITIES AND STOCKHOLDERS' EQUITY
	

	


	
Current liabilities
	

	


	
  Accounts payable
	
$1,170,250
	
$474,781

	
  Accrued liabilities
	
3,085,269
	
1,147,749

	
  Deferred revenues
	
532,206
	
129,424

	
  Notes payable
	
185,368
	
713,008

	
          Total current liabilities
	
4,973,093
	
2,464,962

	
  Notes payable, long-term, net of discount of $2,795,517 at September 30, 2007
	
 13,357,506             
	
 4,001,711             

	
          Total liabilities
	
18,330,599
	
6,466,673

	
	

	


	
Stockholders' Equity
	
	

	
  Series D Preferred stock, $0.01 par value; 20,000 shares authorized;   17,684 and 

    17,875 shares issued and outstanding at September 30, 2007 and December 31, 2006,  respectively
	




53,844,452
	


53,624,538

	
  Series E Preferred stock, $0.01 par value; 50,000 shares authorized; 3,374 shares issued and 

    outstanding at September 30, 2007
	
34
	
-

	
  Common stock, $0.0001 par value; 100,000,000 shares authorized; 16,498,990

    and 14,374,496 shares issued and outstanding at September 30, 2007 and 

    December 31, 2006, respectively
	

 

1,650
	

 

1,438

	
  Additional paid-in capital
	
17,364,500
	
12,684,051

	
  Accumulated deficit
	
  (69,343,588)
	
  (60,725,963)

	
          Total stockholders' equity
	
   1,867,048
	
   5,584,064

	
          Total liabilities and stockholders' equity
	
$20,197,647 
	
$12,050,737