Speedway Motorsports Reports Revenues And Earnings for Q1 2000
9 May 2000
Speedway Motorsports Reports Record Revenues And Earnings for the First Quarter of 2000
CONCORD, N.C., May 9 Speedway Motorsports, Inc.
today reported total revenues for the first quarter ended March
31, 2000 increased 25% or $13.2 million to $66.3 million, and operating income
increased 14% or $1.7 million to $13.6 million, compared to last year.
Net income increased 119% or $2.4 million to $4.4 million, and diluted
earnings per share increased 120% or $.06 to $.11, compared to last year.
Excluding last year's non-recurring charges for financing costs attributable
to the Las Vegas Motor Speedway acquisition, first quarter 2000 net income
increased 31% or $1.0 million and diluted earnings per share increased 22% or
$.02. First quarter diluted earnings per share of $.11 exceeded market
expectations.
In the first quarter, Las Vegas Motor Speedway hosted record attendance at
both the rain-shortened CarsDirect.com 400 NASCAR Winston Cup Series and the
Sam's Town 300 NASCAR Busch Series racing events. The CarsDirect.com 400 was
the second highest rated sporting event on network television for the week
ended March 5, 2000 with a 4.0 rating. Atlanta Motor Speedway hosted the
Cracker Barrel Old Country Store 500 NASCAR Winston Cup Series and the six
hour rain-delayed Aaron's 312 NASCAR Busch Series racing events. Despite poor
forecasted weather, Atlanta's Cracker Barrel Old Country Store 500 hosted the
event's third largest crowd ever, with television ratings increasing to
4.7 from 4.6 last year.
Other first quarter highlights include record crowds at Las Vegas' World
of Outlaws Sprint Car Series racing events, construction of modern 4/10-mile
dirt track facilities at Lowe's and Texas Motor Speedways and construction of
"The Strip at Las Vegas" - a new, state-of-the-art dragway. These new
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, NHRA drag racing, AMA-sanctioned motorcycle racing, monster
truck shows and other exciting events.
"Including this first quarter, SMI has reported 20 consecutive quarters of
year-over-year revenue increases evidencing long-term growth and the strengths
of our core business," stated H.A. "Humpy" Wheeler, chief operating officer
and president of Speedway Motorsports. "In efforts to improve our
profitability, we sold the Las Vegas Industrial Park in January 2000 and
restructured our agreements and events with the IRL and NHRA."
"Despite bad weather at our first two NASCAR event weekends, we are
extremely pleased with the record first quarter results, "stated Bruton Smith,
chairman and chief executive officer of Speedway Motorsports. "This gives us
a tremendous start on SMI's 2000 season. The overwhelming success of our
second NASCAR event weekend at Las Vegas continues to demonstrate the positive
long-term merits of our acquisition. We are excited about the upcoming
consolidation of domestic television broadcast rights. The overall
intensified media attention focused on our sport should greatly expand
sponsorship, merchandising and attendance revenues. Once finalized, the
ancillary rights packages for internet, specialty pay-per-view, foreign
distribution and other international television broadcast rights will further
the growth of motorsports."
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
For the Three Months Ended March 31, 2000 and 1999
(In thousands except per share amounts)
Three Months Ended
INCOME STATEMENT DATA 3/31/2000 3/31/1999
REVENUES:
Admissions $20,894 $19,826
Event related revenue 33,143 27,956
Other operating revenue 12,227 5,322
Total Revenues 66,264 53,104
OPERATING EXPENSES:
Direct expense of events 21,226 19,769
Other direct operating expenses 10,552 3,527
General and administrative 13,124 10,800
Depreciation and amortization 7,750 7,119
Total Operating Expenses 52,652 41,215
OPERATING INCOME 13,612 11,889
Interest Expense, Net (6,473) (6,327)
Acquisition Loan Cost Amortization -- (2,263)
Other Income, Net 204 174
Income Before Income Taxes 7,343 3,473
Income Tax Provision 2,937 1,465
NET INCOME $4,406 $2,008
Basic Earnings Per Share $0.11 $0.05
Weighted average shares outstanding 41,647 41,507
Diluted Earnings Per Share $0.11 $0.05
Weighted average shares outstanding 44,863 44,872
Note: Computations of diluted earnings per share were anti-dilutive for
the three months ended March 31, 1999; therefore, reported basic and
diluted earnings per share are the same.
March 31, December 31,
BALANCE SHEET DATA 2000 1999
Cash and cash equivalents $42,185 $56,270
Total current assets 104,710 108,567
Property and equipment, net and property
held for sale 763,154 794,834
Goodwill and other intangible assets, net 60,529 58,987
Total assets 976,045 995,982
Current liabilities 148,060 131,982
Revolving credit facility borrowings 90,000 130,000
Senior and convertible subordinated
long-term debt 327,103 327,208
Total long-term debt 418,437 458,560
Total liabilities 639,785 664,274
Total stockholders' equity $336,260 $331,708