Speedway Motorsports Reports "Race To Profitability Results" C'mon Baby
Speedway Motorsports Reports Results for Three And Nine Months Ended September 30, 2001CONCORD, N.C., Nov. 13 -- Speedway Motorsports, Inc. (NYSE: TRK - news) today reported total revenues for the third quarter increased 3% or $1.8 million to $53.4 million compared to last year. Net loss decreased 51% or $2.4 million to $2.3 million, and diluted loss per share decreased $0.06 or 55% to $0.05 consistent with revised expectations. Excluding last year's non-recurring pre-tax charge of $3.1 million related to resolution of concession contract rights at Sears Point Raceway, the third quarter 2001 net loss decreased 17% or $462,000 and diluted loss per share decreased 29% or $0.02.
For the nine months ended September 30, 2001, total revenues increased 7% or $18.2 million to $295.8 million, net income increased 18% or $7.2 million to $47.0 million, and diluted earnings per share increased 17% or $0.16 to $1.09, compared to last year. Excluding this year's non-recurring pre-tax charge of $3.5 million related to cancellation of a Championship Auto Racing Teams (CART) race originally scheduled at Texas Motor Speedway, last year's non-recurring charge of $3.1 million, and the cumulative effect of an accounting change in 2000, net income increased 14% or $6.2 million and diluted earnings per share increased 14% or $0.14. The accounting change affected revenue recognition for Speedway Club membership fees and reduced net income by $1.3 million and diluted earnings per share by $0.03 for the nine months ended September 30, 2000.
Bristol Motor Speedway (Bristol) hosted the only major NASCAR race weekend in the third quarter with sold-out capacity crowds at its Sharpie 500 NASCAR Winston Cup Series, and record attendance at its Food City 250 NASCAR Busch Series, racing events. In addition, Sears Point Raceway, undergoing a comprehensive multi-year modernization and expansion program, hosted record attendance at its National Hot Rod Association (NHRA) Nationals weekend racing event. During last year's third quarter, Atlanta Motor Speedway (Atlanta) hosted an Indy Racing Northern Light Series (IRL) racing event, and Bristol hosted a major NHRA-sanctioned Nationals racing event, both of which were held in this year's second quarter. Changes in racing schedules can lessen the comparability of operating results between quarterly financial statements of successive years.
``Notwithstanding the challenging economic conditions faced all year, we continue to report consecutive year-over-year revenue and operating income growth,'' stated H.A. ``Humpy'' Wheeler, chief operating officer and president of Speedway Motorsports. ``We believe SMI's recently announced expense reduction program defensively positions us for the inevitable future upturn in economic conditions and corporate spending. Our traditional core fan base remains solid. This long-term strength, coupled with the sustained increases in television ratings and NASCAR's continual efforts to improve close competitive racing, convincingly demonstrates the ongoing strength of motorsports racing, viewership interest, and fan appeal.''
O. Bruton Smith, chairman and chief executive officer of Speedway Motorsports, stated, ``We are extremely proud of recently being named to Forbes magazine's '200 Best Small Companies' in America list for the third time in the past five years. We believe this repeated distinction recognizes our long-term business strategy of owning first-class facilities in premier markets, and being a leader in the marketing and promotion of successful venues. SMI is extremely well positioned within the industry to maximize the entertainment value of motorsports during our industry's next growth cycle.''
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 750 stations nationwide. For more information, visit the Company's Website at www.gospeedway.com.
This news release contains forward-looking statements, particularly statements with regard to the Company's future operations and financial results. There are many factors that affect future events and trends of its business including, but not limited to, consumer and corporate spending sentiment, air travel, governmental regulations, military actions, national or local catastrophic events, the success of and weather surrounding NASCAR, IRL, NHRA and other racing events, the success of expense reduction efforts, 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. Inclusion of any information or statement in this news release does not necessarily imply that such information or statement is material. 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 4879232. 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 Nine Months Ended September 30, 2001 and 2000
- (In thousands except per share amounts)
Three Months Ended Nine Months Ended
INCOME STATEMENT DATA 9/30/2001 9/30/2000 9/30/2001 9/30/2000
REVENUES:
Admissions $20,147 $20,677 $109,886 $112,477
Event related revenue 24,119 19,572 157,147 130,068
Other operating revenue 9,088 11,355 28,756 35,038
Total Revenues 53,354 51,604 295,789 277,583
EXPENSES AND OTHER:
Direct expense of events 19,415 18,158 104,735 92,075
Other direct operating expenses 9,056 10,102 25,339 31,074
General and administrative 14,160 13,210 44,486 39,463
Depreciation and amortization 8,069 7,996 24,646 23,616
Interest expense, net 6,459 7,120 18,637 20,371
Expenses of cancelled CART race -- -- 3,469 --
Concession contract rights
resolution -- 3,137 -- 3,137
Other income, net (77) (405) (2,998) (829)
Total Expenses and Other 57,082 59,318 218,314 208,907
Income (Loss) Before Income Taxes
and Cumulative Effect of
Accounting Change (3,728) (7,714) 77,475 68,676
Income Tax Provision (Benefit) (1,453) (3,073) 30,483 27,640
Income (Loss) Before Cumulative
Effect of Accounting Change (2,275) (4,641) 46,992 41,036
Cumulative Effect of Accounting
Change for Club
Membership Fees -- -- -- (1,257)
NET INCOME (LOSS) ($2,275) ($4,641) $46,992 $39,779
Basic Earnings (Loss) Per Share:
Before Cumulative Effect of
Accounting Change ($0.05) ($0.11) $1.13 $0.99
Accounting Change -- -- -- (0.03)
Basic Earnings (Loss) Per
Share ($0.05) ($0.11) $1.13 $0.96
Weighted average shares
outstanding 41,757 41,668 41,747 41,657
Diluted Earnings (Loss) Per
Share:
Before Cumulative Effect of
Accounting Change ($0.05) ($0.11) $1.09 $0.96
Accounting Change -- -- -- (0.03)
Diluted Earnings (Loss) Per
Share ($0.05) ($0.11) $1.09 $0.93
Weighted average shares
outstanding 44,332 44,725 44,415 44,767
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
nine months ended September 30, 2000 reflect the cumulative effect
of the accounting change as of January 1, 2000.
Computations of diluted loss per share were anti-dilutive for the
three months ended September 30, 2001 and 2000; therefore, reported
basic and diluted loss per share are the same.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
As of September 30, 2001 and December 31, 2000
(In thousands)
Consolidated
BALANCE SHEET DATA 9/30/01 12/31/00
Cash and cash equivalents $47,227 $30,737
Total current assets 117,871 83,303
Property and equipment, net 813,782 798,481
Goodwill and other intangible
assets, net 57,231 59,105
Total assets 1,024,921 991,957
Current liabilities 103,990 105,183
Revolving credit facility
borrowings 90,000 90,000
Senior and convertible
subordinated long-term debt 307,666 318,788
Total long-term debt 398,934 410,097
Total liabilities 597,990 612,616
Total stockholders' equity $426,931 $379,341