Speedway Motorsports Reports Record Revenues And Earnings
9 February 1999
Speedway Motorsports Reports Record Revenues And Earnings For Fourth Consecutive Year In 1998
CONCORD, N.C., Feb. 9 -- Speedway Motorsports, Inc.
announced record revenues, operating income and earnings per share
for the fourth consecutive year in 1998.
These results for the quarter and year ended December 31, 1998 are not
directly comparable to 1997 because of Speedway Motorsports, Inc.'s December
1, 1998 purchase of Las Vegas Motor Speedway (LVMS). Total revenues for the
year ended December 31, 1998 increased 20% or $37.7 million to $229.8 million,
and operating income increased 17% or $11.4 million to $79.8 million, over
last year. Net income increased 11% or $4.2 million to $42.4 million, and
diluted earnings per share increased 12% or $.11 to $1.00, compared to last
year. Fourth quarter total revenues increased 13% or $6.2 million to
$52.3 million, and diluted earnings per share of $.21, while exceeding
expectations by $.01 per share, declined $.02. The decline in fourth quarter
diluted earnings per share compared to 1997 was expected because of additional
operating and financing costs attributable to the December 1, 1998 purchase of
LVMS.
Speedway Motorsports, Inc. purchased the assets and operations of LVMS,
including adjacent real estate and 1.4 million square feet of warehouse space,
for approximately $215 million. LVMS, a 1.5 mile lighted, superspeedway with
approximately 107,000 permanent seats, including 102 luxury suites, opened in
September 1996 and is located on approximately 1,300 acres. The
superspeedway's configuration readily allows for significant future expansion.
In addition to acquiring LVMS, other fourth quarter highlights include
record attendance at Charlotte Motor Speedway's All Pro Auto Parts Bumper to
Bumper 300 NASCAR Busch Series and UAW-GM Quality 500 NASCAR Winston Cup
Series events in October 1998, and at Atlanta Motor Speedway's Stihl Outdoor
Power Tools 300 Busch Series and record revenues at the NAPA 500 Winston Cup
Series events in November 1998. Jeff Gordon was crowned Winston Cup champion
by NASCAR under the lights at the NAPA 500 after nearly all-day rain delays on
Sunday.
"After our incredibly successful year in 1998, we are looking forward to
1999 and beyond," stated H.A. "Humpy" Wheeler, chief operating officer and
president. "With our acquisition of Las Vegas, SMI will be hosting new NASCAR
Winston Cup and Busch Series events. We will also be hosting five IRL events
-- the largest of any industry operator -- and will open our new
'state-of-the-art' Bristol Dragway, hosting the inaugural NHRA Winston
Showdown in July."
"These accomplishments showcase that SMI is a proven industry leader in
promoting successful venues and enhancing shareholder value," stated Bruton
Smith, chairman and chief executive officer of Speedway Motorsports. "We
continue to demonstrate our commitment to NASCAR, and we are excited about our
expanding involvement with the Indy Racing League and NHRA. SMI is well
positioned in top markets, and within the industry, for rapid and unified
growth to maximize the entertainment value of motorsports."
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, Las Vegas 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, including
statements with regards to the Company's growth potential. There are many
factors that affect future events and trends of the Company's business. These
factors involve certain risks and uncertainties, as set forth in the Company's
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 Twelve Months Ended December 31, 1998 and 1997
(In thousands except per share amounts)
Three Months Ended Year Ended
INCOME STATEMENT DATA 12/31/98 12/31/97 12/31/98 12/31/97
REVENUES:
Admissions $25,444 $23,642 $107,601 $94,032
Event related revenue 22,785 18,967 105,459 83,177
Other operating revenue 4,120 3,539 16,736 14,917
Total revenues 52,349 46,148 229,796 192,126
OPERATING EXPENSES:
Direct expense of events 16,914 14,377 83,046 65,347
Other direct operating expenses 2,837 2,278 10,975 9,181
General and administrative 8,793 7,938 34,279 31,623
Depreciation and amortization 6,854 4,030 21,701 15,742
Preoperating expense of new
facility - 0 - 1,850
Total operating expenses 35,398 28,623 150,001 123,743
OPERATING INCOME 16,951 17,525 79,795 68,383
Interest expense, net (3,745) (2,343) (12,228) (5,313)
Bridge loan cost amortization (752) - (752) -
Other income, net 1,576 714 3,202 991
Income before income taxes 14,030 15,896 70,017 64,061
Income tax provision 5,245 5,991 27,646 25,883
NET INCOME $8,785 $9,905 $42,371 $38,178
Basic earnings per share $0.21 $0.24 $1.02 $0.92
Weighted average number of shares
outstanding 41,491 41,413 41,482 41,338
Diluted earnings per share $0.21 $0.23 $1.00 $0.89
Weighted average number of shares
outstanding 44,646 44,549 44,611 44,491
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
As of December 31, 1998 and 1997
(in thousands)
Consolidated Consolidated
Balance Sheet Data 12/31/98 12/31/97
Cash and cash equivalents $35,399 $28,148
Total current assets 81,984 92,600
Property and equipment, net 730,686 436,547
Goodwill and other intangible assets, net 56,903 51,300
Total assets 894,521 597,168
Total current liabilities 112,726 94,588
Long-term debt:
Bankloan 254,050 -
Senior and convertible subordinated debt 198,708 198,674
Other notes payable and capital lease obligation 627 20,461
Total liabilities 607,401 353,054
Total stockholders' equity $287,120 $244,114