Speedway Motorsports Reports Record Revenues and Earnings for the First Quarter of 2003 - Admission Revenues Increase 10% over 2002
CONCORD, N.C.--May 6, 2003--Speedway Motorsports, Inc. today announced record revenues and earnings and diluted earnings per share of $0.45 for the first quarter of 2003. Admission revenues increased 10% over last year despite continuing economic, travel and corporate spending challenges.For first quarter 2003 as compared to 2002:
| -- | total revenues increased 9% or $8.4 million to $105.0 million, with admission revenues increasing 10% or $3.9 million to $43.0 million, |
| -- | income from continuing operations before the cumulative effect of an accounting change increased 10% or $1.8 million to $19.1 million, |
| -- | diluted earnings per share from continuing operations before accounting change increased 13% or $0.05 to $0.45, |
| -- | net income increased 54% or $6.7 million to $19.1 million, and |
| -- | diluted earnings per share increased 55% or $0.16 to $0.45. |
First quarter 2002 results reflect the cumulative effect of an accounting change for goodwill impairment of $4.3 million or $0.10 per diluted share associated with certain non-motorsports related reporting units upon adoption of Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets" as of January 1, 2002. Fiscal quarter 2002 results also reflect the Company's disposal of SoldUSA in the second quarter 2002 which resulted in net losses from discontinued operations and disposal of $686,000 or $0.01 per diluted share. There were no such charges in the first quarter 2003.
First quarter highlights include Atlanta Motor Speedway hosting increased attendance at its Bass Pro Shops MBNA 500 NASCAR Winston Cup Series racing event, and Bristol Motor Speedway again hosting record sold-out capacity crowds at its Food City 500 NASCAR Winston Cup Series, and record attendance at the Channellock 250 NASCAR Busch Series, racing events. Las Vegas Motor Speedway also hosted record sold-out capacity crowds at its UAW-DaimlerChrysler 400 NASCAR Winston Cup Series, and record attendance at the Sam's Town 300 NASCAR Busch Series, racing events.
"Our extremely strong first quarter results, including particularly the 10% increase in admission revenues, with increased or record attendance at all of our NASCAR Winston Cup and Busch racing events, was an exceptional start to SMI's 2003 NASCAR racing season," stated H.A. Wheeler, chief operating officer and president of Speedway Motorsports. "Despite the continuing economic and corporate spending challenges, our Atlanta Motor Speedway's Winston Cup race had its highest attendance since 1999, and our Las Vegas Motor Speedway's Winston Cup and Busch races had their highest attendance at least since our acquisition in 1998. We believe these results clearly demonstrate to sponsors, advertisers and promoters that our core and new fan base continues to grow, as well as the increased marketing appeal and fan interest for motorsports entertainment."
"Our tremendous start for 2003 clearly illustrates the long-term merits of SMI owning first-class facilities in premium markets, and their increasing marketing and broadcasting appeal," stated O. Bruton Smith, chairman and chief executive officer of Speedway Motorsports. "We are proud of our new 10,000 premium seats and 52 luxury suites at the 'phenomenon' we call Bristol Motor Speedway, and we recently began construction of approximately 15,000 new premium seats at Las Vegas Motor Speedway. Atlanta's long-standing reputation for offering fans some of the best on-track competition in NASCAR, along with future roadway expansion surrounding and leading into AMS, location in one of the nation's top media markets represents a tremendous long-term growth opportunity for us as well as advertisers and broadcasters."
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, Infineon Raceway, Las Vegas Motor Speedway, Lowe's Motor Speedway and Texas Motor Speedway. The Company provides souvenir merchandising services through its SMI Properties 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 725 stations nationwide.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
For The Three Months Ended March 31, 2003 and 2002
(In thousands except per share amounts)
Three Months
Ended
---------------------
INCOME STATEMENT DATA 3/31/2003 3/31/2002
----------------------------------------------------------------------
REVENUES:
Admissions $43,040 $39,109
Event related revenue 28,104 26,064
NASCAR broadcasting revenue 25,039 21,575
Other operating revenue 8,811 9,820
----------------------------------------------------------------------
Total Revenues 104,994 96,568
----------------------------------------------------------------------
EXPENSES AND OTHER:
Direct expense of events 17,863 14,883
NASCAR purse and sanction fees 18,883 16,821
Other direct operating expense 8,069 8,224
General and administrative 14,749 14,355
Depreciation and amortization 8,453 7,923
Interest expense, net 5,106 5,796
Other expense (income), net 311 (9)
----------------------------------------------------------------------
Total Expenses and Other 73,434 67,993
----------------------------------------------------------------------
Income From Continuing Operations Before Income
Taxes and Cumulative Effect of Accounting
Change 31,560 28,575
Income Tax Provision 12,415 11,217
----------------------------------------------------------------------
Income From Continuing Operations Before
Cumulative Effect of Accounting Change 19,145 17,358
Loss From Operations and Disposal of
Discontinued Business --- (686)
----------------------------------------------------------------------
Income Before Cumulative Effect of
Accounting Change 19,145 16,672
Cumulative Effect of Accounting
Change for Goodwill Impairment --- (4,273)
----------------------------------------------------------------------
NET INCOME $19,145 $12,399
----------------------------------------------------------------------
BASIC EARNINGS PER SHARE:
Continuing Operations Before
Accounting Change $0.45 $0.41
Discontinued Operations --- (0.01)
Accounting Change --- (0.10)
----------------------------------------------------------------------
BASIC EARNINGS PER SHARE $0.45 $0.30
----------------------------------------------------------------------
Weighted average shares outstanding 42,359 41,883
DILUTED EARNINGS PER SHARE:
Continuing Operations Before
Accounting Change $0.45 $0.40
Discontinued Operations --- (0.01)
Accounting Change --- (0.10)
----------------------------------------------------------------------
DILUTED EARNINGS PER SHARE $0.45 $0.29
----------------------------------------------------------------------
Weighted average shares outstanding 42,617 44,342
Consolidated
----------------------
BALANCE SHEET DATA 3/31/03 12/31/02
----------------------------------------------------------------------
Cash and cash equivalents $106,035 $112,638
Total current assets 178,901 153,566
Property and equipment, net 879,321 861,107
Goodwill and other intangible
assets, net 51,960 51,990
Total assets 1,151,374 1,105,740
Current liabilities 157,584 131,240
Revolving credit facility borrowings 90,000 90,000
Deferred race event income, net 100,994 85,565
Total long-term debt 342,106 342,225
Total liabilities 640,731 614,568
Total stockholders' equity $510,643 $491,172
----------------------------------------------------------------------