Speedway Motorsports Reports Revenues and Earnings for Q3 of 1998
11 November 1998
Speedway Motorsports Reports Record Revenues and Earnings for Third Quarter of 1998
CONCORD, N.C., Nov. 10 -- Speedway Motorsports, Inc.
announced record revenues, net income and earnings per share for
the quarter ended September 30, 1998.
Total revenues for the third quarter increased by 58% or $15.4 million to
$41.7 million, and net income increased by $2.9 million to $1.9 million
compared to a net loss of $981,000 in 1997. Diluted earnings per share
increased $.07 to $.05 compared to a loss per share of $.02 last year.
Diluted earnings per share for the nine months ended September 30, 1998
increased 22% or $.14 to $.79 compared to $.65 last year. Speedway
Motorsports continues to consistently report improved earnings that meet or
exceed market consensus expectations.
"Our consistent achievement of record results, including this third
quarter, continues to convincingly demonstrate the success of Speedway
Motorsports' operating and long-term business strategy," stated H.A. "Humpy"
Wheeler, Chief Operating Officer and President. "At Bristol Motor Speedway,
we hosted sold-out capacity crowds again at our NASCAR Winston Cup Series race
and the largest crowd ever to attend a Busch Series race. Also, we were very
pleased with our successful inaugural Indy Racing League (IRL) night race at
Atlanta Motor Speedway in August, and our additional second IRL race at Texas
Motor Speedway in September. Texas, in its second season, again hosted one of
the largest crowds ever to attend an IRL event, exceeded only by Texas' own
previous IRL events and the Indy 500, and hosted the largest crowd ever for an
ARCA Series event."
Third quarter highlights also include SMI's continued expansion at Bristol
-- adding 19 new luxury VIP suites, bringing its total capacity to 133,00O
seats, including 100 luxury suites. Sears Point Raceway, which has one of the
fastest dragstrips in the world, hosted the NHRA Winston Drag Racing Series
Autolite Nationals in July. SMI recently unveiled plans for an all new,
"state-of-the-art" Bristol Dragway. In another SMI industry first, Bristol
Dragway will host its inaugural NHRA Winston Showdown in July 1999, a special
three-night, all-star event matching top fuel dragsters against funny cars for
the first time in official NHRA competition. Another highlight includes the
announcement that the IRL's championship race weekend, coupled with an
additional NASCAR Craftsman Truck Series race, is moving to Texas Motor
Speedway in 1999.
"We continue to set industry records and achieve innovative firsts,"
stated Bruton Smith, Chairman and Chief Executive Officer of Speedway
Motorsports. "SMI hosted the largest crowds ever for an ARCA and Busch series
event, two of the largest crowds ever for an IRL event, and is presently
constructing our first-class, 'state-of-the-art'" Bristol Dragstrip. These
accomplishments showcase that SMI is a proven industry leader in promoting
successful venues and maximizing shareholder value. We are excited about an
even stronger 1999. We believe our continued commitment to NASCAR, and our
expanding involvement with the Indy Racing League and NHRA, bodes well for the
future of SMI and the motorsports industry."
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,
Bristol Motor Speedway, Charlotte Motor Speedway, Sears Point Raceway and
Texas Motor Speedway. SMI also provides event food, beverage, and souvenir
merchandising services through its Finish Line Events subsidiary, and
manufactures and distributes smaller-scale, modified racing cars through its
600 Racing subsidiary.
This news release contains forward looking statements. Such statements
reflect current views and expectations and are subject to certain risks and
uncertainties, as set forth in the Company's periodic filings with the
Securities and Exchange Commission, that could cause actual results or events
to differ materially from management's views and expectations.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
For the Three and Nine Months Ended September 30, 1998 and 1997
(In thousands except per share amounts)
INCOME STATEMENT DATA Three Months Ended Nine Months Ended
9/30/98 9/30/97 9/30/98 9/30/97
REVENUES:
Admissions $20,761 $13,935 $82,157 $70,390
Event related revenue 16,891 9,093 82,674 64,210
Other operating revenue 4,096 3,356 12,616 11,378
Total Revenues 41,748 26,384 177,447 145,978
OPERATING EXPENSES:
Direct expense of events 19,369 11,077 66,132 50,970
Other direct operating
expenses 2,878 2,053 8,138 6,903
General and administrative 8,541 7,893 25,486 23,685
Depreciation and amortization 5,108 4,593 14,847 11,712
Preoperating expense of new
facility --- 0 --- 1,850
Total operating expenses 35,896 25,616 114,603 95,120
OPERATING INCOME 5,852 768 62,844 50,858
Interest expense, net (2,871) (2,588) (8,483) (2,970)
Other income, net 189 255 1,626 277
Income (loss) before income
taxes 3,170 (1,565) 55,987 48,165
NET INCOME (LOSS) $1,895 ($981) $33,586 $28,273
Basic earnings (loss)
per share $0.05 ($0.02) $0.81 $0.68
Weighted average number of
shares outstanding 41,488 41,329 41,479 41,313
Diluted earnings (loss)
per share $0.05 ($0.02) $0.79 $0.65
Weighted average number of
shares outstanding 44,527 44,470 44,599 44,471
Note: Computation of diluted earnings (loss) per share was anti-dilutive
for the three months ended September 30, 1998 and 1997; therefore,
amounts reported for basic and diluted earnings (loss) per share
are the same.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
As of September 30, 1998 and December 31, 1997
(In thousands)
Balance Sheet Data 9/30/98 12/31/97
Cash and cash equivalents $23,580 $28,148
Total current assets 65,670 92,600
Property and equipment, net 498,118 436,547
Total assets 633,672 597,168
Total current liabilities 82,117 94,588
Long-term debt 234,312 219,135
Total liabilities 355,585 353,054
Total stockholders' equity $278,087 $244,114