Speedway Motorsports Reports Revenues And Earnings for Q2 of 1999
10 August 1999
Speedway Motorsports Reports Record Revenues And Earnings for Second Quarter of 1999
CONCORD, N.C., Aug. 10 -- Speedway Motorsports, Inc.
announced record revenues, net income and earnings per share for
the quarter ended June 30, 1999.
Our total revenues for the second quarter increased 19% or $22.3 million
to $140.1 million, and operating income increased 15% or $9.0 million to
$69.2 million, compared to last year. Net income increased 8% or $2.8 million
to $37.4 million, and diluted earnings per share, including non-recurring
charges for financing costs attributable to the Las Vegas Motor Speedway
acquisition, increased $.05 to $.84. Excluding non-recurring charges for
financing costs of $1.1 million, second quarter 1999 net income was
$38.1 million and diluted earnings per share were $.86, consistent with
consensus expectations.
For the six months ended June 30, 1999, our total revenues increased
42% or $57.5 million to $193.2 million, operating income increased 42% or
$24.1 million to $81.0 million, and net income including non-recurring charges
increased 24% or $7.7 million to $39.4 million, compared to last year.
Diluted earnings per share increased $.17 to $.90. Excluding non-recurring
charges for financing costs of $3.4 million, six month net income was
$41.5 million and diluted earnings per share were $.95, an increase of 30%
over last year.
Speedway Motorsports promoted five NASCAR Winston Cup and three NASCAR
Busch Series races during the second quarter. Spectators filled the stands
with sold-out capacity crowds at Bristol Motor Speedway's Food City 500,
Lowe's Motor Speedway's Coca-Cola 600, and Texas Motor Speedway's PRIMESTAR
500 NASCAR Winston Cup Series events. The Company also achieved record
attendance at Sears Point Raceway's Save Mart/Kragen 350 Winston Cup event,
and at the NASCAR Busch Series races at Bristol, Lowe's and Texas Motor
Speedways.
"At Texas' PRIMESTAR 500 and Coca-Cola 300, we hosted one of the largest
crowds ever for a NASCAR Winston Cup and Busch Series weekend," stated H.A.
"Humpy" Wheeler, chief operating officer and president. "Also, we recently
announced plans to construct about 11,000 premium seats at Lowe's Motor
Speedway in time for the Coca-Cola 600 in May 2000 - bringing its total
permanent seating capacity to 167,000, second only to Indianapolis Motor
Speedway."
During the first and second quarters, the Company's races were watched by
an ever increasing number of television viewers and fans. The Food City 500
and Save Mart/Kragen 350 Winston Cup events achieved record television
ratings, and the Coca-Cola 600 and PRIMESTAR 500 received very strong ratings.
The Las Vegas 400, Cracker Barrel 500 and PRIMESTAR 500 all rank in the top
five NASCAR Winston Cup Series television broadcasts in 1999.
"Using our proven leadership abilities to promote successful venues, we
continue to explore new markets and opportunities," stated Bruton Smith,
chairman and chief executive officer. "Texas Motor Speedway continues to prove
its growing market appeal, demand and value as a first class facility in a
premier market. Excess demand for seats at Texas' Winston Cup events is
exceptionally strong as evidenced by the sell-out of 13,000 temporary seats
utilized this March."
Speedway Motorsports is a leading marketer and promoter of motorsports
entertainment in the United States. The Company owns and operates the
following premier facilities: Atlanta Motor Speedway, Bristol Motor Speedway,
Lowe's Motor Speedway (at Charlotte), Las Vegas Motor Speedway, Sears Point
Raceway and Texas Motor Speedway. The Company 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 its 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
As of June 30, 1999 and December 31, 1998
(In thousands)
Consolidated
Balance Sheet Data 6/30/99 12/31/98
Cash and cash equivalents $35,750 $35,399
Total current assets 84,625 92,340
Property and equipment, net 771,397 730,686
Goodwill and other intangible assets, net 57,979 56,903
Total assets 942,831 904,877
Current liabilities 97,738 106,616
Revolving credit facility and acquisition loan 130,000 254,050
Senior and convertible subordinated
long-term debt 327,418 198,708
Total long-term debt 459,343 453,924
Total liabilities 614,679 617,757
Total stockholders' equity $328,152 $287,120
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
For The Three and Six Months Ended June 30, 1999 and 1998
(In thousands except per share amounts)
Three Months Ended Six Months Ended
INCOME STATEMENT DATA 6/30/99 6/30/98 6/30/99 6/30/98
REVENUES:
Admissions $63,051 $55,708 $82,877 $61,396
Event related revenue 69,377 57,314 97,333 65,783
Other operating revenue 7,626 4,717 12,948 8,520
Total revenues 140,054 117,739 193,158 135,699
OPERATING EXPENSES:
Direct expense of events 46,558 40,810 66,327 46,763
Other direct operating
expenses 5,683 3,038 9,210 5,260
General and administrative 11,518 8,771 22,318 16,945
Depreciation and amortization 7,140 4,981 14,259 9,739
Total operating
expenses 70,899 57,600 112,114 78,707
OPERATING INCOME 69,155 60,139 81,044 56,992
Interest expense, net (6,325) (2,864) (12,652) (5,612)
Acquisition loan cost
amortization (1,135) -- (3,398) --
Other income, net 121 393 295 1,437
Income before income taxes 61,816 57,668 65,289 52,817
Income tax provision 24,404 23,054 25,869 21,126
NET INCOME $37,412 $34,614 $39,420 $31,691
Basic earnings per share $0.90 $0.83 $0.95 $0.76
Weighted average number of
shares outstanding 41,549 41,487 41,528 41,474
Diluted earnings per share $0.84 $0.79 $0.90 $0.73
Weighted average number of
shares outstanding 44,993 44,657 44,932 44,635