Speedway Motorsports Reports Record Revenues
and Earnings for the First Quarter of 2001
CONCORD, N.C., May 8 Speedway Motorsports, Inc. today reported total revenues for
the first quarter ended March 31, 2001 increased 2% or $1.5 million to
$67.0 million, operating income increased 9% or $1.2 million to $14.0 million,
and non-operating other income increased $1.8 million to $2.0 million,
compared to last year. Net income, before the cumulative effects of an
accounting change in 2000, increased 53% or $2.1 million to $6.1 million, and
diluted earnings per share increased 67% or $.06 to $.15, compared to last
year, consistent with market expectations.
Net income, including the accounting change, increased 124% or
$3.4 million to $6.1 million, and diluted earnings per share increased 150% or
$.09 to $.15, compared to last year. The accounting change affected revenue
recognition for Speedway Club membership fees and reduced first quarter 2000
net income by $1.3 million and diluted earnings per share by $0.03.
First quarter highlights include Atlanta Motor Speedway's hosting of the
Cracker Barrel Old Country Store 500 NASCAR Winston Cup Series and the Aaron's
312 NASCAR Busch Series racing events. Also, Las Vegas Motor Speedway (LVMS)
hosted the UAW-DaimlerChrysler 400 NASCAR Winston Cup Series and the Sam's
Town 300 NASCAR Busch Series racing events.
"So far the 2001 NASCAR racing season is off to an exceptional start.
Television ratings are already up almost 40% over last year to new highs,"
stated H.A. "Humpy" Wheeler, chief operating officer and president of Speedway
Motorsports. "The Winston Cup and Busch racing is more exciting and
competitive than ever, and Dodge's return to NASCAR racing is generating the
much anticipated increased enthusiasm and fan interest. These positive
industry changes are successfully demonstrating precisely what sponsors,
advertisers and promoters, and most importantly our fans, are looking for."
"While our first quarter results met expectations, the NASCAR racing
events at LVMS hosted less attendance than in the prior year. We remain
concerned about the effects that challenging economic conditions may have on
near-term ticket sales," stated William R. Brooks, chief financial officer of
Speedway Motorsports.
O. Bruton Smith, chairman and chief executive officer of Speedway
Motorsports, stated, "We are extremely pleased with the success of the major
changes taking place in our sport this year. As expected, these dramatic
changes are propelling renewed growth in Winston Cup racing, demonstrating the
emergence of our industry's next growth cycle."
O. Bruton Smith continued, "We are also extremely excited about the
recently announced consolidated NASCAR ancillary broadcasting rights package
including NASCAR.com, the NASCAR Channel and international, satellite and
other emerging media outlets. These new ancillary rights open up previously
untapped and foreign markets, bringing ever intensifying media coverage of our
sport, all of which is accelerating the growth potential of SMI and our
industry."
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 and its industry'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, and such
information included in this news release is based on information currently
available and may not be reliable after this date.
Note: Speedway Motorsports will host a conference call today at 11:00 a.m.
ET. The call is open to all participants. Please dial (800) 446-2782 to
connect to the call. The reservation number is 3835725. 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 Months Ended March 31, 2001 and 2000
(In thousands except per share amounts)
Three Months Ended
INCOME STATEMENT DATA 3/31/2001 3/31/2000
REVENUES:
Admissions $19,978 $20,894
Event related revenue 37,834 33,143
Other operating revenue 9,163 11,488
Total Revenues 66,975 65,525
OPERATING EXPENSES:
Direct expense of events 23,574 21,226
Other direct operating expenses 7,282 10,552
General and administrative 13,740 13,124
Depreciation and amortization 8,356 7,750
Total Operating Expenses 52,952 52,652
OPERATING INCOME 14,023 12,873
Interest Expense, Net (6,031) (6,473)
Other Income, Net 2,017 204
Income Before Income Taxes and
Cumulative Effect of
Accounting Change 10,009 6,604
Income Tax Provision 3,945 2,644
Income Before Cumulative Effect of
Accounting Change 6,064 3,960
Cumulative Effect of Accounting
Change for Club
Membership Fees -- (1,257)
NET INCOME $6,064 $2,703
Basic Earnings Per Share:
Before Cumulative Effect of
Accounting Change $0.15 $0.09
Accounting Change -- (0.03)
Basic Earnings Per Share $0.15 $0.06
Weighted average shares
outstanding 41,740 41,647
Diluted Earnings Per Share:
Before Cumulative Effect of
Accounting Change $0.15 $0.09
Accounting Change -- (0.03)
Diluted Earnings Per Share $0.15 $0.06
Weighted average shares
outstanding 44,529 44,863
Note: The Company changed its revenue recognition policies for Speedway
Club membership fees in 2000. As discussed in the Company's Annual
Report on Form 10-K for fiscal 2000, the operating results for the
quarter ended March 31, 2000 reflect the cumulative effect of the
accounting change as of January 1, 2000.
Computations of diluted earnings per share were anti-dilutive for
the three months ended March 31, 2000; therefore, reported basic and
diluted per share amounts are the same.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
As of March 31, 2001 and December 31, 2000
(In thousands)
Consolidated
BALANCE SHEET DATA 3/31/01 12/31/00
Cash and cash equivalents $44,092 $30,737
Total current assets 113,961 83,303
Property and equipment, net and
property held for sale 805,048 798,481
Goodwill and other intangible assets,
net 58,531 59,105
Total assets 1,031,037 991,957
Current liabilities 145,446 105,183
Revolving credit facility borrowings 90,000 90,000
Senior and convertible subordinated
long-term debt 314,182 318,788
Total long-term debt 405,451 410,097
Total liabilities 645,490 612,616
Total stockholders' equity $385,547 $379,341
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X86566566
