Championship Auto Racing Teams Reports Record Second Quarter 1999 Results
28 July 1999
Championship Auto Racing Teams Reports Record Second Quarter 1999 Results
DETROIT, July 27 -- Championship Auto Racing Teams, Inc.
today announced record revenues, net income and earnings per share
for the second quarter ended June 30, 1999.
The number of events held in a particular quarter will effect the
comparability of earnings information from quarter to quarter. In the second
quarter of 1999, CART conducted eight events, which was one event more than
the comparable quarter in 1998. The CART events conducted in Motegi, Japan
and Cleveland, Ohio were run in the second quarter of 1999 compared to the
first and third quarters respectively in 1998. The CART event in Detroit,
Michigan, which was run in the second quarter of 1998, moved to the third
quarter of 1999.
For comparability purposes, CART will conduct nine events in the third
quarter of 1999 versus seven events in the third quarter of 1998, and three
races in both the fourth quarter of 1999 and 1998.
Actual Results
Revenues for the second quarter of 1999 were up 27% to $25.5 million,
versus $20.0 million in the comparable quarter in 1998. Net income for the
second quarter of 1999 was $7.5 million, compared to $5.0 million in the
second quarter of 1998. On a diluted per common share basis, earnings were
$0.47 in 1999 compared to $0.32 in the second quarter of 1998.
For the six-month period ended June 30, 1999, revenues increased 9% to
$32.8 million from $30.1 million. Net income rose to $9.1 million or $0.58
per diluted share versus $7.8 million, or $0.59 per diluted share. Weighted
average diluted shares outstanding increased to 15.8 million shares for the
six months ended June 30, 1999 compared to 13.3 million shares outstanding for
the six months ended June 30, 1998.
"The record second quarter results reflect the successful expansion of
Championship Auto Racing Teams since its IPO," said CART Chairman and CEO
Andrew Craig. "Overall, we are pleased with the company's performance and,
looking into the future, the highlight of our third quarter will be our new
race at Chicago Motor Speedway. This will be the very first major auto race
held in this important market and we believe it will make a significant
contribution to the growth of the FedEx Championship Series."
Championship Auto Racing Teams, Inc. owns, operates and
markets the FedEx Championship Series, which is comprised of 20 races in five
countries on four continents in 1999. There also will be a non-points race
held in Hawaii at the conclusion of the season, pushing the event total to 21.
Drivers such as Michael Andretti, Adrian Fernandez, Christian Fittpaldi, Dario
Franchitti, Bryan Herta, Tony Kanaan, Juan Montoya, Greg Moore, Al Unser, Jr.,
and Jimmy Vasser race 900-plus horsepower, open-wheel cars at speeds of more
than 230 miles per hour on some circuits. CART also owns and operates its top
two development series, the PPG Dayton Indy Lights Championship and the KOOL
Toyota Atlantic Championship.
Championship Auto Racing Teams, Inc.
Consolidated Statement of Operations
For the Three and Six Months Ended June 30, 1999 and 1998
(Unaudited)
(In Thousands, Except Earnings Per Share)
QTR ended QTR ended YTD YTD
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
Revenues:
Sanction Fees $15,743 $10,251 $17,099 $15,243
Sponsorship Revenue 5,141 4,603 9,338 7,763
TV Revenue 2,024 2,080 2,289 2,682
Engine Leases,
Rebuilds and
Wheel Sales 563 755 1,085 954
Other 2,002 2,345 3,011 3,423
Total Revenues 25,473 20,034 32,822 30,065
Expenses
Race distributions 6,053 5,486 6,791 6,874
Race Expenses 2,084 1,304 3,066 2,135
Cost of Engine Rebuilds
and Wheel Sales 176 241 357 304
Administrative and
indirect expenses 6,578 5,966 10,477 9,411
Depreciation and
amortization 254 188 489 329
Minority Interest -- 17 -- (37)
Total Expenses 15,145 13,202 21,180 19,016
Operating Income 10,328 6,832 11,642 11,049
Interest income 1,380 968 2,617 1,234
Income before
income taxes 11,708 7,800 14,259 12,283
Income Tax Expense 4,242 2,847 5,154 4,465
Net Income $7,466 $4,953 $9,105 $7,818
Earnings per share
Basic $0.49 $0.33 $0.60 $0.59
Diluted $0.47 $0.32 $0.58 $0.59
Weighted Average
Shares Outstanding
Basic 15,376 15,172 15,276 13,191
Diluted 15,936 15,336 15,806 13,291
Championship Auto Racing Teams, Inc.
Consolidated Balance Sheets
As of June 30, 1999 and December 31, 1998
(In Thousands)
June 30, 1999 December 31, 1998
(Unaudited)
Assets
Current Assets
Cash and Cash Equivalents $15,756 $15,080
Short Term Investments 86,558 61,610
Accounts Receivable 7,358 4,708
Current Portion of Notes Receivable 824 824
Prepaid Expenses 465 331
Inventory 189 71
Current Deferred Tax Asset 122 119
Total Current Assets 111,272 82,743
Notes Receivable 2,480 3,350
Property and Equipment - Net 5,087 5,026
Goodwill 6,600 5,778
Other Assets 532 289
Total Assets $125,971 $97,186
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $2,623 $1,946
Accrued Liabilities
Race Expenses and Point Awards 1,439 --
Royalties 520 1,026
Payroll 446 482
Taxes 3,646 1,733
Other 1,677 934
Unearned Income 11,511 4,273
Current Portion of Long Term Debt 130 130
Total Current Liabilities 21,992 10,524
Long Term Debt 119 184
Deferred Federal Taxes - Noncurrent 334 259
Stockholders' Equity
Capital Stock 155 151
Additional Paid In Capital 98,484 89,771
Retained Earnings (Deficit) 5,072 (4,033)
Unrealized Gain(Loss) on Investments (185) 330
Total Stockholders' Equity 103,526 86,219
Total Liabilities and Stockholders' Equity $125,971 $97,186