Penske Motorsports Reports Record Third Quarter 1997 Results
30 October 1997
Penske Motorsports Reports Record Third Quarter 1997 Results
DETROIT, Oct. 30 -- Penske Motorsports, Inc. (PMI)
today announced record revenues, earnings, and earnings per
share for the third quarter of 1997. Quarterly revenues were up 84%, to
$44.0 million, versus $24.0 million in the comparable quarter of 1996. Net
income for the period was up 36% to $8.8 million, compared to $6.5 million in
1996. On a per common share basis, and after a 9% increase in average shares
outstanding, earnings were $0.63 compared to $0.50 in the third quarter of
1996. Nine months revenues were $95.6 million, up 83%, versus nine months
1996 revenues of $52.2 million; net earnings were $18.3 million, up 49%,
compared to $12.2 million in 1996; and earnings per share were $1.33, compared
to $1.03 per share in the first nine months of last year.
Greg Penske, President of PMI, said, "The record performance demonstrated
by the Company in the first nine months of 1997 is a direct result of our
continuing objective of enhancing the race experience for our guests, as well
as introducing new fans to the sport by expanding our presence into new
markets. The opening of California Speedway, our state-of-the-art facility,
has been an unqualified success and has revived interest in oval motor racing
in Southern California. In addition, the recent acquisitions of a 40%
interest in the Homestead-Miami Speedway and a 7% interest in Grand Prix
Association of Long Beach further strengthen our commitment to achieving
growth in attractive U.S. markets."
Mr. Penske went on to say, "Our recent investments have been made possible
by the strong operating results of the Company. Since the beginning of the
year, shareholders' equity has increased by 31% to $191 million and has
allowed us to actively pursue growth opportunities while maintaining a modest
debt to capitalization balance."
The recent running of the AC Delco 400 at the North Carolina Motor
Speedway concluded the Company's racing schedule for 1997. Highlights of the
1997 season included the hosting of four Winston Cup, three CART, four Busch
Series, and two Craftsman Truck events. These races, along with the
corresponding support events, allowed the Company to surpass the one million
mark in attendance for the first time.
Penske Motorsports, Inc. is a leading promoter and marketer of
professional motorsports in the United States. PMI owns and operates the
following through its wholly owned subsidiaries: Michigan Speedway in
Brooklyn, Michigan; Nazareth Speedway in Nazareth, Pennsylvania; and
California Speedway near Los Angeles, California. PMI also has a majority
ownership of the North Carolina Motor Speedway near Rockingham, North
Carolina, holds a 40% interest in Homestead-Miami Speedway, LLC, near Miami,
Florida, and has a minority interest in Grand Prix Association of Long Beach,
Inc. In addition, PMI produces and markets motorsports-related merchandise
and accessories such as apparel, souvenirs and collectibles; and it
distributes and sells Goodyear brand racing tires in the Midwest and Southeast
regions of the United States.
Penske Motorsports' major shareholder is a majority-owned subsidiary of
Penske Corporation, a closely held, diversified transportation services
company which conducts its business through a number of wholly or partially
owned companies, including Penske Truck Leasing Company, Detroit Diesel
Corporation, Diesel Technology Company, Penske Automotive Group, Inc., Penske
Auto Centers, Inc., and Penske Capital Partners. The Penske group of
businesses has annual revenues exceeding $6 billion and employs more than
28,000 around the world.
PENSKE MOTORSPORTS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except for share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
REVENUES:
Speedway admissions $20,343 $10,468 $40,039 $20,248
Other speedway revenue 13,381 5,295 29,131 12,989
Merchandise, tires
and accessories 10,250 8,199 26,475 18,981
TOTAL REVENUES 43,974 23,962 95,645 52,218
EXPENSES:
Operating 14,715 7,032 31,029 16,002
Cost of sales 6,009 4,755 15,411 11,270
Depreciation and
amortization 2,840 823 5,153 2,296
Selling, general
and administrative 5,115 2,031 13,398 5,144
OPERATING EXPENSES 28,679 14,641 64,991 34,712
OPERATING INCOME 15,295 9,321 30,654 17,506
Equity in Loss of
Unconsolidated
Subsidiaries (727) -- (727) --
Interest Income
(Expense), net (766) 703 (689) 1,582
INCOME BEFORE
INCOME TAXES 13,802 10,024 29,238 19,088
INCOME TAXES 4,957 3,525 10,975 6,862
NET INCOME $8,845 $6,499 $18,263 $12,226
NET INCOME PER SHARE $.63 $.50 $1.33 $1.03
WEIGHTED AVERAGE
NUMBER OF SHARES 14,148,340 12,987,500 13,690,088 11,822,076
PENSKE MOTORSPORTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
ASSETS 1997 1996
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $3,864 $27,862
Receivables 7,198 2,365
Inventories 3,360 2,060
Prepaid expenses 1,251 1,272
TOTAL CURRENT ASSETS 15,673 33,559
PROPERTY AND EQUIPMENT, net 221,316 140,402
GOODWILL, net 30,126 6,918
OTHER ASSETS 17,096 3,118
TOTAL $284,211 $183,997
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $1,710 $1,738
Accounts payable 8,630 8,223
Accrued expenses 12,594 1,715
Deferred revenues, net 9,605 14,125
TOTAL CURRENT LIABILITIES 32,539 25,801
LONG-TERM DEBT, less current portion 48,029 3,825
MINORITY INTEREST 2,020 --
DEFERRED REVENUES, net 922 --
DEFERRED TAXES 9,885 8,969
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, par value $ .01 share:
Authorized 50,000,000 shares
Issued and outstanding 14,148,340
shares in 1997 and 13,241,798
in 1996 141 132
Additional paid-in-capital 157,721 130,534
Retained earnings 32,954 14,736
TOTAL STOCKHOLDERS' EQUITY 190,816 145,402
TOTAL $284,211 $183,997
SOURCE Penske Motorsports, Inc.