Speedway Motorsports Reports Q3 Revenues and Operating Income
11 November 1997
Speedway Motorsports Reports Record Revenues and Operating Income for Third Quarter
CONCORD, N.C., Nov. 11 -- Speedway Motorsports, Inc.
, announced record revenues and operating income for the third
quarter ended September 30, 1997. Total revenues for the third quarter
increased by 95%, or $12.9 million to $26.4 million, and operating income
increased by 75%, or $330,000 to $768,000, compared to last year. Net income
for the quarter decreased resulting in a net loss of $981,000 or $.02 per
share, consistent with analysts' consensus expectations. The Company
conducted only one NASCAR sanctioned Winston Cup event in the third quarter.
The record third quarter results were highlighted by increased attendance
at Bristol Motor Speedway's (BMS) Food City 250 NASCAR Busch Grand National
race and a sold-out capacity crowd at its Goody's Headache Powder 500 NASCAR
Winston Cup race held on August 22-23. Combined weekend attendance figures at
BMS exceeded more than 184,000. In addition, on July 26, Charlotte Motor
Speedway hosted its inaugural Indy Racing League (IRL) race, attended by the
third largest crowd ever for that series. Sears Point Raceway, which has one
of the fastest dragstrips in the world, also hosted the NHRA Winston Drag
Racing Series Autolite Nationals in July.
"The sold-out events and continuing excess demand for tickets at Bristol
Motor Speedway, as well as our repeated record results, demonstrates the
tremendous value in SMI's approach of expanding and providing first class
facilities and venues for its shareholders. We look forward to an even
stronger 1998," stated Speedway Motorsports chairman, Bruton Smith. "Also, we
are excited about the hugely successful IRL race held at Charlotte Motor
Speedway in July, SMI's second this season. We believe our involvement with
the IRL brings us new national markets and opportunities. SMI will be hosting
four IRL events next year, with one new event at both Atlanta and Texas Motor
Speedways."
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 Nine Months Ended September 30, 1996 and 1997
(dollars and shares in thousands except per share amounts)
Three Months Ended Nine Months Ended
9/30/96 9/30/97 9/30/96 9/30/97
INCOME STATEMENT DATA (Unaudited)(Unaudited) (Unaudited) (Unaudited)
REVENUES:
Admissions $6,296 $13,935 $33,602 $70,390
Event related revenue 4,511 9,093 23,551 64,210
Other operating revenue 2,698 3,358 9,498 11,378
Total revenues 13,505 26,384 66,651 145,978
OPERATING EXPENSES:
Direct expense of events 4,983 11,077 20,116 50,970
Other direct operating
expenses 1,391 2,053 5,724 6,903
General and administrative 4,586 7,893 13,208 23,685
Depreciation and amortization 2,107 4,593 5,904 11,712
Preoperating expense - - - 1,850
Total operating expenses 13,067 25,616 44,952 95,120
OPERATING INCOME 438 768 21,699 50,858
Interest income (expense) net 369 (2,588) 818 (2,970)
Other income 401 255 1,367 277
Income (loss) before income
taxes 1,208 (1,565) 23,884 48,165
Income tax provisions
(benefit) 523 (584) 9,520 19,892
NET INCOME (LOSS) $685 ($981) $14,364 $28,273
Primary earnings (loss) per
share and common stock
equivalents $0.02 ($0.02) $0.35 $0.67
Weighted average number of
shares outstanding 42,130 42,091 41,046 42,093
Earnings (loss) per share
assuming full dilution $0.02 ($0.02)(a) $0.33 $0.65
Weighted average number of
shares outstanding 44,508 44,470 43,424 44,471
(a) Computation of fully diluted loss per share was antidilutive for the three
months ended September 30, 1997; therefore, primary and fully diluted amounts
are presented the same.
SOURCE Speedway Motorsports, Inc.