CART reports first quarter 2001 results
Posted By Terry CallahanMotorsports Editor, The Auto Channel
April 26, 2001
DETROIT (April 26, 2001) - Championship Auto Racing Teams, Inc. today announced revenues, expenses, net income and earnings per share for the first quarter ended March 31, 2001.
The number of events held in a particular quarter will affect the comparability of earnings information from quarter to quarter. CART conducted one event in the first quarter of 2001 and 2000. Indy Lights conducted one race in the first quarter of 2001 compared to zero races in the same period in the prior year. Toyota Atlantics conducted zero races in the first quarter of 2001compared to two races in the same period in the prior year.
Total revenues for the first quarter of 2001 were $6.4 million, a decrease of $1.4 million, or 18%, from the comparable quarter of 2000. "While our revenue performance was hindered by the loss of guaranteed income from our former sponsor partner, we are building our infrastructure in order to produce additional sponsorship revenue," said Thomas L. Carter, CART CFO. "Sanction fee revenues, however, showed a significant increase due to our successful inaugural race in Monterrey, Mexico, where a record 318,000 spectators experienced our racing product over the three day race weekend."
Total expenses for the first quarter of 2001 were $8.3 million, an increase of $2.1 million, or 34%, from the comparable quarter of 2000. Included in this increase was a pre-tax non-recurring charge of $386,000 that resulted from an employee severance agreement. Net income for the first quarter of 2001 was $81,000 compared to net income of $2.0 million in the first quarter of 2000. On a diluted per common share basis, earnings were $0.01 in 2001 compared to $0.13 in the first quarter of 2000. The non-recurring severance expense resulted in a $.02 per diluted share charge, net of taxes, for the three-month period.
"Our first quarter results reflect, in part, our effort to more frequently and effectively reach out to our consumers through expanded marketing activity," said Joseph F. Heitzler, CART President/CEO. "We're going to continue to accomplish this by investing in our company, investing in our people and investing in programs that will increase our branding awareness."
Text provided by CART
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