Speedway Motorsports Reports Results for the Q4 And Year Ended Dec 31, 1999
15 February 2000
Speedway Motorsports Reports Results for the Fourth Quarter And Year Ended December 31, 1999
CONCORD, N.C., Feb. 15 -- Speedway Motorsports, Inc.
today reported that total revenues for the fourth quarter
increased 45% or $23.4 million to $75.7 million, compared to last year. As
expected, net income decreased $2.0 million to $6.8 million or diluted
earnings per share of $.16, compared to diluted earnings per share of $.21
last year. The results for the quarter and year ended December 31, 1999 are
not readily comparable to last year because of the December 1, 1998 Las Vegas
Motor Speedway (LVMS) acquisition and changes in the Company's racing schedule
from last year.
For the year ended December 31, 1999, total revenues increased 38% or
$87.7 million to $317.5 million, and operating income increased 24% or
$18.9 million to $98.7 million, compared to last year. Net income, excluding
non-recurring charges for financing costs attributable to the LVMS
acquisition, was $43.5 million or diluted earnings per share of $1.02. Net
income including non-recurring charges was $41.4 million or diluted earnings
per share of $.97.
In the fourth quarter, Lowe's Motor Speedway hosted the All Pro Auto Parts
Bumper to Bumper 300 NASCAR Busch Series event and the UAW-GM Quality 500
NASCAR Winston Cup Series event which was postponed and rescheduled to Monday,
October 11, because of poor weather conditions. Atlanta Motor Speedway (AMS)
hosted the Bondo/Mar-Hyde ARCA Series 400 and the season finale NAPA 500
Winston Cup Series events. In November 1998, AMS held the Stihl Outdoor Power
Tools 300 NASCAR Busch Series race previously postponed and rescheduled from
March 1998 because of inclement weather. Also, Texas Motor Speedway hosted
Indy Racing League and NASCAR Craftsman Truck Series racing events in October
1999 that were held in the third quarter of 1998. Changes in racing schedules
can lessen the comparability of operating results between quarterly financial
statements of successive years.
"Despite 1999 presenting us with several unique challenges, our short and
long-term outlook is more positive than ever," stated H.A. "Humpy" Wheeler,
chief operating officer and president. "We have reacted quickly to the
problems of 1999 taking strong corrective actions including selling the Las
Vegas Industrial Park in January 2000 and restructuring our agreements and
events with the IRL to improve our profitability. Good weather and better
arrangements with the NHRA should improve the profitability of these drag
racing events as well."
"Many growth-oriented companies experience atypical years, but more
important is the longer-term perspective and growth trends of our Company. Our
compound annual earnings growth rate approximates 20% for the 5 year period
1996 to 2000, including earnings estimates for fiscal 2000," stated H.A.
Wheeler. "SMI has reported 19 consecutive quarters of year-over-year revenue
growth including the current quarter. Such long-term growth rates clearly
demonstrate our continuing operational strengths and that our core business is
solid and growing."
Other fiscal 2000 highlights include the construction of modern dirt track
facilities at Lowe's and Texas Motor Speedways and the debut of NHRA-
sanctioned drag racing at "The Strip at Las Vegas" - a new, state-of-the-art
dragway. These facilities will host nationally-televised events such as the
Pennzoil World of Outlaws Sprint Car Series, the fifth most popular
motorsports series in the United States, as well as AMA-sanctioned motorcycle
racing, monster truck shows and other exciting events. In addition,
Nationwide Insurance and SMI recently announced a three year comprehensive
marketing partnership agreement focusing on safety and customer assistance.
"With 1999 behind us, we look forward to 2000 and beyond with more
determination and excitement than ever," stated Bruton Smith, chairman and
chief executive officer. "Speedway Motorsports is well-positioned in top
markets with first class facilities and venues to benefit from the
accelerating growth of the motorsports industry. The historic consolidation
of television broadcast rights leverages the overall media attention focused
on our sport, and will drive expanding sponsorship, merchandising and
attendance revenues. The ancillary rights packages for internet, specialty
pay-per-view, foreign distribution and other international television
broadcast rights, once finalized, will serve to bring NASCAR racing to foreign
markets and fans hungry for more intense motorsports entertainment."
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 regard to the Company's growth potential and future operations
and financial results. There are many factors that affect future events and
trends of its business including, but not limited to, the success of NASCAR,
IRL, NHRA and other racing events. These factors and other factors set forth
in the Company's filings with the Securities and Exchange Commission involve
certain risks and uncertainties that could cause actual results or events to
differ materially from management's views and expectations.
Note: Speedway Motorsports will host a conference call today at 11:00 a.m.
EST. The call is open to all participants. Please dial (719) 457-2617 to
connect to the call. The confirmation number is 878374. Participating in the
call will be H.A. Wheeler, Chief Operating Officer and President; William R.
Brooks, Chief Financial Officer; and Marylaurel E. Wilks, Vice President,
Communications and General Counsel.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
As of December 31, 1999 and 1998
(In thousands)
Consolidated
Balance Sheet Data 12/31/99 12/31/98
Cash and cash equivalents $56,270 $35,399
Total current assets 113,706 92,340
Property and equipment, net and
property held for sale 794,834 730,686
Goodwill and other
intangible assets, net 58,987 56,903
Total assets 995,762 904,877
Current liabilities 131,302 106,616
Revolving credit facility
and acquisition loan 130,000 254,050
Senior and convertible
subordinated long-term debt 327,208 198,708
Total long-term debt 458,560 453,924
Total liabilities 664,054 617,757
Total stockholders' equity $331,708 $287,120
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
For The Three and Twelve Months Ended December 31, 1999 and 1998
(In thousands except per share amounts)
Three Months Ended Twelve Months Ended
INCOME STATEMENT DATA 12/31/99 12/31/98 12/31/99 12/31/98
REVENUES:
Admissions $30,126 $25,444 $132,694 $107,601
Event related revenue 33,522 22,785 148,316 105,459
Other operating
revenue 12,067 4,120 36,483 16,736
Total revenues 75,715 52,349 317,493 229,796
OPERATING EXPENSES:
Direct expense
of events 24,687 16,914 110,650 83,046
Other direct
operating expenses 12,076 2,837 32,241 10,975
General and
administrative 13,955 8,793 47,375 34,279
Depreciation and
amortization 6,693 6,854 28,536 21,701
Total operating
expenses 57,411 35,398 218,802 150,001
OPERATING INCOME 18,304 16,951 98,691 79,795
Interest expense, net (7,410) (3,745) (27,686) (12,228)
Acquisition loan
cost amortization -- (752) (3,398) (752)
Other income, net 354 1,576 959 3,202
Income before
income taxes 11,248 14,030 68,566 70,017
Income tax provision 4,447 5,245 27,123 27,646
NET INCOME $6,801 $8,785 $41,443 $42,371
Basic earnings per share $0.16 $0.21 $1.00 $1.02
Weighted average number
of shares outstanding 41,622 41,491 41,569 41,482
Diluted earnings
per share $0.16 $0.21 $0.97 $1.00
Weighted average number
of shares outstanding 44,951 44,646 44,960 44,611