Speedway Motorsports Reports Record Revenues and Earnings For Second Quarter
12 August 1997
Speedway Motorsports Reports Record Revenues and Earnings For Second Quarter
CONCORD, N.C., Aug. 12 -- Speedway Motorsports, Inc.
, announced record revenues, net income and earnings per share for
the second quarter ended June 30, 1997. Total revenues for the second quarter
increased by 155%, or $63.3 million, to $104.1 million, and net income
increased by 122%, or $16.2 million to $29.5 million, compared to last year.
Fully diluted earnings per share increased by 123%, or $.37, to $.67 compared
to $.30 for last year. Second quarter earnings of $.67 per share exceeded
analysis' consensus expectations by $.06 per share.
In addition to the record results, the second quarter was highlighted by
the opening of Texas Motor Speedway (TMS), which hosted its inaugural race
weekend with the largest crowd ever to attend a Busch Grand National event,
the Coca-Cola 300, and a sold-out capacity crowd at the Interstate Batteries
500 Winston Cup race. TMS also hosted its inaugural NASCAR Craftsman Truck
Series race, attended by the largest crowd ever for that series. In addition,
SMI hosted its inaugural Indy Racing League (IRL) race at TMS, attended by the
second largest crowd ever for an IRL event, as well as hosting two music
concerts, with reported combined attendance of approximately 600,000.
The quarter was also highlighted by record attendance at Bristol Motor
Speedway's (BMS) Moore's Snack Food 250 Busch Grand National and Food City 500
Winston Cup races held in April; Charlotte Motor Speedway's (CMS) Winston
all-star, CARQUEST Auto Parts 300 Busch Grand National and Coca-Cola 600
Winston races held in May; and Sears Point Raceway's (SPR) Save Mart
Supermarkets 300 Winston Cup race held in May.
"The record performance in the second quarter validates our approach to
maximizing shareholder value. Excess demand for good seats still exists, so
we continue to expand and enhance SMI's markets and facilities. Our sponsors
and drivers like to race in major markets in front of huge crowds attracting
national attention," stated Speedway Motorsports chairman, Bruton Smith.
"Therefore, we will continue to search for new opportunities and markets while
continuing to expand and improve our existing speedway."
In 1997, after adding more than 236,000 seats and new fan amenities,
including the opening of TMS and significant expansion at AMS, BMS, and CMS,
SMI's total permanent seating will exceed 520,000, the largest in the
industry. TMS is the second largest facility in the United States in terms of
permanent seating. The growth in attendance, reflected in record results,
demonstrates SMI's continuing development and expansion program for its
shareholders.
Speedway Motorsports, a New York Stock Exchange company, and the owner and
operator of Atlanta, Bristol, Charlotte, and Texas Motor Speedways, 600
racing, and the operator of Sears Point Raceway, is a leading marketer and
promoter of motorsports entertainment in the United States.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data
For The Three and Six Months Ended June 30, 1997 and 1996
(dollars and shares in thousands except per share amounts)
INCOME STATEMENT DATA Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
(unaudited) (unaudited) (unaudited) (unaudited)
REVENUES:
Admissions $51,249 $22,564 $56,455 $27,306
Event related revenue 48,406 14,446 55,117 19,040
Other operating revenue 4,486 3,806 8,022 6,800
Total revenues 104,141 40,816 119,594 53,146
OPERATING EXPENSES:
Direct expense of events 35,186 11,429 39,893 15,133
Other direct operating
expenses 2,794 2,439 4,850 4,333
General and
administrative 8,701 4,591 15,792 8,622
Depreciation and
amortization 4,455 2,058 7,119 3,796
Preoperating expense 1,850 0 1,850 0
Total operating
expenses 52,986 20,517 69,504 31,884
OPERATING INCOME 51,155 20,299 50,090 21,262
Interest income
(expense), net (877) 686 (382) 449
Other income (expense) (179) 971 22 966
Income before income
taxes 50,099 21,956 49,730 22,677
Income tax provision 20,582 8,663 20,476 8,997
NET INCOME $29,517 $13,293 $29,254 $13,680
Primary earnings per
share and common stock
equivalents $0.70 $0.32 $0.69 $0.34
Weighted average number
of shares
outstanding 42,080 42,106 42,093 40,490
Earnings per share
assuming full dilution $0.67 $0.30 $0.67 $0.32
Weighted average
number of shares
outstanding 44,459 44,484 44,472 42,869
SOURCE Speedway Motorsports, Inc.