Speedway Motorsports Reports Q2 Results
11 August 1998
Speedway Motorsports Reports Record Revenues and Earnings in Second Quarter of 1998
CONCORD, N.C., Aug. 11 -- Speedway Motorsports, Inc.
announced record revenues, net income and earnings per share for
the quarter ended June 30, 1998. Total revenues for the quarter increased by
13% or $13.6 million to $117.7 million, and net income increased by 17% or
$5.1 million to $34.6 million. Diluted earnings per share of $0.79 was
consistent with market expectations increasing 18% or $0.12 over last year.
"These record results achieved by Speedway Motorsports further highlight
the effectiveness of our Company's long-term business strategy," stated H.A.
"Humpy" Wheeler, Chief Operating Officer and President of Speedway
Motorsports. "We hosted sold-out capacity crowds again at our NASCAR Winston
Cup Series events at Bristol, Charlotte and Texas Motor Speedways. We also
achieved record attendance at The Winston all-star and Sears Point Raceway's
Winston Cup events, and record results at our NASCAR Busch Series races at
Bristol, Charlotte and Texas Motor Speedways. Texas, in its second season,
again hosted one of the largest crowds ever to attend a Craftsman Truck and
Indy Racing League (IRL) event."
SMI continued expansion at Bristol adding 17,000 seats, including 26 new
luxury VIP suites, and at Charlotte adding 12,000 seats, including 12 new
luxury VIP suites. Both expansions feature new stadium-style terrace sections
and "state-of-the-art" mezzanine level concourses and bring total capacity at
Bristol to 133,000 seats, including 81 luxury suites, and at Charlotte to
147,000 seats, including 121 luxury suites. The successful reconfiguration of
Sears Point into a stadium-style road course featuring "The Chute" expanded
spectator viewing areas allowing fans to see more of the racing action.
"Our repeated record performance, including this second quarter, continues
to demonstrate the excess demand for good seats at SMI's first-class
facilities and venues. I am especially proud of Texas Motor Speedway's
successful reconfiguration and resurfacing which received high acclaim at our
June NASCAR Craftsman Truck and IRL race events," stated Bruton Smith,
Chairman and Chief Executive Officer of Speedway Motorsports. "We continue to
explore new markets and opportunities and search for new uses of our
facilities to maximize shareholder value. Also, we are very excited about
showcasing our upcoming inaugural IRL night race at Atlanta Motor Speedway in
August."
Speedway Motorsports, a New York Stock Exchange company, is a leading
marketer and promoter of motorsports entertainment in the United States. SMI
owns and operates the following premier facilities: Atlanta Motor Speedway in
Hampton, Georgia; Bristol Motor Speedway in Bristol, Tennessee; Charlotte
Motor Speedway in Concord, North Carolina; Sears Point Raceway in Sonoma,
California; and Texas Motor Speedway in Fort Worth, Texas. SMI also
manufactures and distributes smaller-scale, modified racing cars through 600
Racing.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data
For The Three and Six Months Ended June 30, 1997 and 1998
(dollars and shares in thousands except per share amounts)
Three Months Ended Six Months Ended
6/30/97 6/30/98 6/30/97 6/30/98
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
INCOME STATEMENT DATA
REVENUES:
Admissions $51,249 $55,708 $56,455 $61,396
Event related revenue 48,406 57,314 55,117 65,783
Other operating revenue 4,486 4,717 8,022 8,520
Total revenues 104,141 117,739 119,594 135,699
OPERATING EXPENSES:
Direct expense of
events 35,186 40,810 39,893 46,763
Other direct operating
expenses 2,794 3,038 4,850 5,260
General and
administrative 8,701 8,771 15,792 16,945
Depreciation and
amortization 4,455 4,981 7,119 9,739
Preoperating expense
of new facility 1,850 -- 1,850 --
Total operating
expenses 52,986 57,600 69,504 78,707
OPERATING INCOME 51,155 60,139 50,090 56,992
Interest expense, net (877) (2,864) (382) (5,612)
Other income (expense),
net (179) 393 22 1,437
Income before income
taxes 50,099 57,668 49,730 52,817
Income tax provision 20,582 23,054 20,476 21,126
NET INCOME $29,517 $34,614 $29,254 $31,691
Earnings per share
- basic $0.71 $0.83 $0.71 $0.76
Weighted average number
of shares outstanding 41,306 41,487 41,305 41,474
Earnings per share
- assuming dilution $0.67 $0.79 $0.67 $0.73
Weighted average number
of shares outstanding 44,459 44,657 44,472 44,635
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data
As of December 31, 1997 and June 30, 1998
(In thousands)
12/31/97 6/30/98
Balance Sheet Data (Unaudited) (Unaudited)
Cash and cash equivalents $28,148 $32,109
Total current assets 92,600 84,437
Property and equipment, net 436,547 487,567
Total assets 597,168 643,616
Total current liabilities 94,588 93,644
Long-term debt 219,135 234,432
Total liabilities 353,054 367,310
Total stockholders' equity $244,114 $276,306