Speedway Motorsports Reports Results for the
Fourth Quarter And Year Ended December 31, 2000
CONCORD, N.C., Feb. 14 Speedway Motorsports, Inc. today reported that total revenues
for the fourth quarter increased $1.0 million to $76.7 million, and net income
increased $0.3 million to $7.1 million, compared to last year. Diluted
earnings per share increased 6% or $0.01 to $0.17, consistent with revised
consensus expectations.
For the year ended December 31, 2000, total revenues increased 12% or
$36.8 million to $354.3 million, operating income increased 9% or $9.0 million
to $107.7 million, and net income including an accounting change increased 13%
or $5.4 million to $46.9 million, compared to last year. Diluted earnings per
share increased 13% or $0.13 to $1.10, including the effects of the accounting
change in 2000 and non-recurring charges in both years. Net income before the
accounting change increased 18% or $7.5 million to $48.9 million, and diluted
earnings per share increased 18% or $0.18 to $1.15. Excluding the accounting
change and non-recurring charges, net income increased 17% or $7.4 million to
$50.9 million and diluted earnings per share was $1.19, an increase of 17% or
$0.17, over last year.
An accounting change effecting revenue recognition for Speedway Club
membership fees reduced fiscal year 2000 net income by $2.1 million and
diluted earnings per share by $0.05 and had an insignificant impact on current
fourth quarter results. The full year operating results include non-recurring
charges of $3.2 million in 2000 related to resolution of concession contract
rights at Sears Point Raceway and non-recurring finance charges of
$3.4 million in 1999 for financing costs attributable to the Las Vegas Motor
Speedway acquisition.
In the fourth quarter, Lowe's Motor Speedway hosted the UAW-GM Quality 500
NASCAR Winston Cup Series and All Pro Auto Parts Bumper to Bumper 300 NASCAR
Busch Series racing events. These events hosted less than expected attendance
and generated less event related revenues due to a convergence of negative
factors including record cold and forecasted poor weather, Bobby Labonte's
substantial lead in the Winston Cup Series point race, as well as the 1999
rescheduling of the Winston Cup event to Monday because of rain. Also,
Atlanta Motor Speedway hosted the NAPA 500 NASCAR Winston Cup Series and
companion Georgia Boot ARCA Series 400 racing events, both of which were
postponed and rescheduled to Monday because of rain. Attendance and
associated event related revenues of Atlanta's Winston Cup season finale were
also negatively impacted by Bobby Labonte's early winning of the championship
points race. Texas Motor Speedway hosted Indy Racing League and NASCAR
Craftsman Truck Series racing events during the quarter, both of which were
also negatively impacted by forecasted poor weather and inclement weekend
conditions.
"While economic conditions and competitive racing can affect ticket sales,
we believe demand will continue to grow. To help bolster fan interest in
challenging economic conditions, we have held off on increasing ticket and
concession prices at least for 2001," stated William R. Brooks, chief
financial officer of Speedway Motorsports. "Our fiscal 2001 is the first of
six years of significant increases in contracted broadcasting revenues.
Assuming current industry and economic trends continue, we estimate fiscal
year 2001 total revenues could exceed $410 million with diluted earnings per
share ranging from $1.50 to $1.60, resulting in a 5-year compound annual
earnings growth rate approximating 20%."
"We had uncontrollable bad weather throughout 2000 at virtually all of our
events, along with this year's runaway Winston Cup points championship,"
stated H.A. "Humpy" Wheeler, chief operating officer and president of Speedway
Motorsports. "Notwithstanding those challenges, SMI has reported 23
consecutive quarters of year-over-year revenue growth including the current
quarter. Also, total revenues and operating income for the year ended
December 31, 2000, excluding the accounting change, increased 12% and 10% over
last year. With Dodge returning this year, the significant increase in prize
money for competitors, and NASCAR working to improve close competitive racing,
the intense rivalries among teams, drivers and sponsors should propel renewed
growth in Winston Cup racing in 2001 and beyond."
O. Bruton Smith, chairman and chief executive officer of Speedway
Motorsports, stated, "We are extremely excited about the major changes taking
place in our sport this year. The recently announced NASCAR ancillary
broadcasting rights package brings added revenues and growth potential to SMI
and our industry. This, as well as the new television broadcasting package,
will allow NASCAR Winston Cup racing to make major inroads in Europe and other
new untapped markets. With Dodge reentering NASCAR racing in 2001, this
country's 'Big Three' automakers will go head-to-head for the first time since
1985, bringing many Chrysler loyalists back to our sport. A recent Street &
Smith's Business Journal survey shows NASCAR continues as the leader in
sponsor satisfaction of all sports in the eyes of national sports sponsors.
We believe these major changes demonstrate our industry's next strong growth
cycle is emerging, and that such growth will remain unmatched by other
professional sports."
Speedway Motorsports is a leading marketer and promoter of motorsports
entertainment in the United States. The Company owns and operates the
following premier facilities: Atlanta Motor Speedway, Bristol Motor Speedway,
Lowe's Motor Speedway at Charlotte, Las Vegas Motor Speedway, Sears Point
Raceway and Texas Motor Speedway. The Company provides event food, beverage,
and souvenir merchandising services through its Finish Line Events subsidiary,
and manufactures and distributes smaller-scale, modified racing cars through
its 600 Racing subsidiary. The Company also owns Performance Racing Network
which broadcasts syndicated motorsports programming to over 500 stations
nationwide.
This news release contains forward-looking statements, including
statements with regard to the Company's growth potential, future operations
and financial results. There are many factors that affect future events and
trends of its business including, but not limited to, the success of and
weather surrounding NASCAR, IRL, NHRA and other racing events, and economic
conditions. These factors and other factors, including those contained in
Exhibit 99.1 to the Company's Annual Report on Form 10-K, involve certain
risks and uncertainties that could cause actual results or events to differ
materially from management's views and expectations. The Company does not
undertake any obligation to update forward-looking information.
Note: Speedway Motorsports will host a conference call today at 11:00 a.m.
EST. The call is open to all participants. Please dial (800) 446-2782 to
connect to the call. The confirmation number is 3426316. Participating in
the call will be H.A. Wheeler, Chief Operating Officer and President; William
R. Brooks, Chief Financial Officer; and Marylaurel E. Wilks, Vice President,
Communications and General Counsel.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
For The Three and Twelve Months Ended December 31, 2000 and 1999
(In thousands except per share amounts)
Three Months Twelve Months
Ended Ended
12/31/1999 12/31/2000 12/31/2000 12/31/1999
INCOME STATEMENT DATA
REVENUES:
Admissions $29,683 $30,126 $142,160 $132,694
Event related revenue 33,566 33,522 163,634 148,316
Other operating revenue 13,465 12,067 48,503 36,483
Total Revenues 76,714 75,715 354,297 317,493
OPERATING EXPENSES:
Direct expense of events 25,153 24,687 117,229 110,650
Other direct operating
expenses 13,358 12,076 44,432 32,241
General and administrative 14,331 13,955 53,794 47,375
Depreciation and
amortization 7,576 6,693 31,192 28,536
Total Operating Expenses 60,418 57,411 246,647 218,802
OPERATING INCOME 16,296 18,304 107,650 98,691
Interest Expense, Net (6,602) (7,410) (26,973) (27,686)
Concession Contract Rights
Resolution (48) -- (3,185) --
Acquisition Loan Cost
Amortization -- -- -- (3,398)
Other Income, Net 910 354 1,740 959
Income Before Income Taxes and
Cumulative Effect of
Accounting Change 10,556 11,248 79,232 68,566
Income Tax Provision 3,459 4,447 31,100 27,123
Income Before Cumulative Effect of
Accounting Change 7,097 6,801 48,132 41,443
Cumulative Effect of Accounting
Change for Club
Membership Fees -- -- (1,257) --
NET INCOME $7,097 $6,801 $46,875 $41,443
Basic Earnings Per Share:
Before Cumulative Effect of
Accounting Change $0.17 $0.16 $1.16 $1.00
Accounting Change -- -- (0.03) --
Basic Earnings Per Share $0.17 $0.16 $1.13 $1.00
Weighted average shares
outstanding 41,680 41,622 41,663 41,569
Diluted Earnings Per Share:
Before Cumulative Effect of
Accounting Change $0.17 $0.16 $1.13 $0.97
Accounting Change -- -- (0.03) --
Diluted Earnings Per Share $0.17 $0.16 $1.10 $0.97
Weighted average shares
outstanding 44,559 44,951 44,715 44,960
Pro forma Amounts Assuming
Retroactive Application
of Accounting Change:
Net Income $7,097 $6,467 $48,132 $40,601
Basic Earnings Per Share $0.17 $0.15 $1.16 $0.97
Diluted Earnings Per Share $0.17 $0.15 $1.13 $0.95
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
As of December 31, 2000 and 1999
(In thousands)
Consolidated
BALANCE SHEET DATA 12/31/00 12/31/99
Cash and cash equivalents $30,737 $56,270
Total current assets 80,570 108,567
Property and equipment, net and
property held for sale 798,481 794,834
Goodwill and other intangible assets,
net 59,105 58,987
Total assets 989,011 995,982
Current liabilities 121,661 131,982
Revolving credit facility borrowings 90,000 130,000
Senior and convertible subordinated
long-term debt 318,788 327,208
Total long-term debt 410,097 458,560
Total liabilities 609,670 664,274
Total stockholders' equity $379,341 $331,708
