Speedway Motorsports Reports Record Revenues And Earnings for First Quarter of 1999
11 May 1999
Speedway Motorsports Reports Record Revenues And Earnings for First Quarter of 1999
CONCORD, N.C., May 10 -- Speedway Motorsports
today announced record revenues, net income and earnings per share for the
quarter ended March 25, 1999.
Speedway Motorsports' total revenues for the first quarter increased 196%,
or $53.1 million, and operating income increased $15.0 million to $11.9
million compared to an operating loss of $3.1 million in 1998. Net income
increased $4.9 million to $2.0 million, and diluted earnings per share,
including non-recurring charges for financing costs attributable to the Las
Vegas Motor Speedway (LVMS) acquisition, increased $0.12 to $0.05 compared to
a loss per share of $0.07 last year. Excluding non-recurring charges, first
quarter 1999 net income was $3.4 million and diluted earnings per share were
$0.08, exceeding market expectations.
"These record results for the first quarter of 1999 convincingly
demonstrate the positive impact and merit of Speedway Motorsports' purchase of
Las Vegas in December 1998," stated Bruton Smith, chairman and chief executive
officer of Speedway Motorsports.
"Our first NASCAR events in Las Vegas provided a tremendous start to
SMI's 1999 racing season. We hosted sold-out capacity crowds at The Las Vegas
400 NASCAR Winston Cup Series race and record attendance at the Sam's Town 300
NASCAR Busch Series race. Our Las Vegas 400 achieved a record 6.0 television
rating, up over its inaugural 1998, and was the second most watched NASCAR
race in history, excluding the Daytona 500."
Adding to the first quarter record results was Atlanta Motor Speedway's
Cracker Barrel 500 NASCAR Winston Cup Series and Yellow Freight 300 NASCAR
Busch Series racing events which hosted record attendance despite poor
weather. The Cracker Barrel 500 also achieved a record 5.7 television rating.
"The record attendance and television ratings at both Las Vegas' and
Atlanta's NASCAR Winston Cup and Busch Series events bode extremely well for
the upcoming broadcast contract renegotiations for 2000 and beyond," stated
H.A. "Humpy" Wheeler, chief operating officer and president.
Other first quarter highlights include obtaining the motorsports
industry's first facility naming rights agreement, which renamed Charlotte
Motor Speedway as Lowe's Motor Speedway for gross fees aggregating
approximately $35 million over the 10-year agreement term.
Speedway Motorsports is a leading marketer and promoter of motorsports
entertainment in the United States. SMI owns and operates the following
premiere facilities: Atlanta Motor Speedway, Bristol Motor Speedway, Lowe's
Motor Speedway (at Charlotte), 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 Months Ended March 25, 1999 and March 26, 1998
(In thousands except per share amounts)
INCOME STATEMENT DATA Three Months Ended
3/25/99 3/26/98
REVENUES:
Admissions $19,826 $5,688
Event related revenue 27,956 8,469
Other operating revenue 5,322 3,803
Total revenues 53,104 17,960
OPERATING EXPENSES:
Direct expense of events 19,769 5,953
Other direct operating expenses 3,527 2,222
General and administrative 10,800 8,174
Depreciation and amortization 7,119 4,758
Total operating expenses 41,215 21,107
OPERATING INCOME (LOSS) 11,889 (3,147)
Interest expense, net (6,327) (2,748)
Bridge loan cost amortization (2,263) --
Other income, net 174 1,044
Income (loss) before income taxes 3,473 (4,851)
Income tax provision (benefit) 1,465 (1,928)
NET INCOME (LOSS) $2,008 ($2,923)
Basic earnings (loss) per share $0.05 ($0.07)
Weighted average number of shares outstanding 41,507 41,461
Diluted earnings (loss) per share $0.05 ($0.07)
Weighted average number of shares outstanding 44,872 44,613
Note: Computations of diluted earnings (loss) per share were
anti-dilutive for the three months ended March 25, 1999 and
March 26, 1998; therefore, reported basic and diluted earnings
(loss) per share are the same.
SPEEDWAY MOTORSPORTS, INC. AND SUBSIDIARIES
Selected Financial Data - Unaudited
As of December 31, 1998 and March 25, 1999
(In thousands)
Consolidated
Balance Sheet Data 12/31/98 3/25/99
Cash and cash equivalents $35,399 $41,141
Total current assets 92,340 105,796
Property and equipment, net 730,686 754,583
Goodwill and other intangible assets, net 56,903 57,365
Total assets 904,877 941,194
Current liabilities, excluding credit facility
and bridge loan 106,616 139,284
Revolving credit facility and bridge loan 254,050 254,050
Senior and convertible subordinated long-term debt 198,708 198,717
Total long-term debt 453,924 454,806
Total liabilities 617,757 651,934
Total stockholders' equity $287,120 $289,260