Speedway Motorsports Reports Record Revenues and Earnings For Three and Six Months Ended June 30, 2000
9 August 2000
Speedway Motorsports Reports Record Revenues and Earnings For Three and Six Months Ended June 30, 2000
CONCORD, N.C., Aug. 8 Speedway Motorsports, Inc.
announced record revenues, net income and earnings per share for
the three and six months ended June 30, 2000.
Total revenues for the second quarter increased 15% or $20.8 million to
$160.8 million, and operating income increased 11% or $7.5 million to
$76.7 million, compared to last year. Net income increased 12% or
$4.5 million to $41.9 million, and diluted earnings per share increased 13% or
$.11 to $.95, including last year's non-recurring charges of $1.1 million for
financing costs attributable to the Las Vegas Motor Speedway acquisition.
Excluding such non-recurring charges, second quarter net income increased 10%
or $3.8 million and diluted earnings per share increased 11% or $.09. Second
quarter diluted earnings per share of $.95 exceeded consensus expectations.
For the six months ended June 30, 2000, total revenues increased 18% or
$33.9 million to $227.1 million, and operating income increased 11% or
$9.3 million to $90.3 million, compared to last year. Net income increased
18% or $6.9 million to $46.3 million, and diluted earnings per share increased
18% or $.16 to $1.06, including last year's non-recurring finance charges of
$3.4 million. Excluding such non-recurring charges, six month net income
increased 12% or $4.9 million and diluted earnings per share increased 12% or
$.11.
Speedway Motorsports promoted during the second quarter five NASCAR
Winston Cup and three NASCAR Busch Series racing events, one NASCAR Craftsman
Truck Series racing event, an inaugural National Hot Rod Association (NHRA)
Nationals racing event, two Indy Racing Northern Light Series (IRL) racing
events, and four inaugural World of Outlaws and Hav-A-Tampa Dirt Late Model
Series racing events. The IRL racing event hosted at Las Vegas Motor Speedway
in the current second quarter was held in last year's third quarter.
Bristol Motor Speedway, with 13,000 new permanent seats, hosted sold-out
capacity crowds at its Food City 500 NASCAR Winston Cup Series, and record
attendance at its Cheez-It 250 NASCAR Busch Series, racing events. Lowe's
Motor Speedway, with 11,000 new permanent seats, also hosted sold-out capacity
crowds at its Coca-Cola 600 Winston Cup Series racing event, as well as record
attendance at The Winston and CARQUEST Auto Parts 300 NASCAR Busch Series
racing events. Despite poor weekend weather, Texas Motor Speedway's DIRECTV
500 NASCAR Winston Cup Series racing event hosted near capacity crowds even
with almost 15,000 temporary seats, and the five-hour rain delayed Albertson's
300 Presented By Pop Secret Busch Series racing event hosted near record
attendance. The Company also achieved record attendance at Sears Point
Raceway's Save Mart/Kragen 350 Winston Cup weekend event.
Other second quarter highlights include the debut of the Pennzoil World of
Outlaws Sprint Car Series, the fifth most popular motorsports series in the
United States, to capacity crowds at the Company's newly constructed, modern
4/10-mile dirt track facilities at Lowe's and Texas Motor Speedways. Also,
Las Vegas Motor Speedway hosted its inaugural NHRA National racing event at
the newly constructed state-of-the-art dragway, "The Strip at Las Vegas", and
the ever popular Bristol Motor Speedway hosted inaugural World of Outlaws and
Hav-A-Tampa Dirt Late Model Series racing events that were tremendously
successful.
"Our focus on the second half of 2000 is to optimize our events and
prepare for the historic 2001 NASCAR series with its strong new FOX/Turner/NBC
network lineup," stated H.A. "Humpy" Wheeler, chief operating officer and
president.
"Our strong second quarter results reinforce our continuing belief in the
strength of NASCAR racing. We remain confident the intensified media
attention, soon to be focused on our sport, will convincingly demonstrate the
ongoing strength of motorsports racing," stated Bruton Smith, chairman and
chief executive officer of Speedway Motorsports. "We own first-class
facilities in premier markets and are proven leaders in marketing and
promotion of successful venues. SMI has always realized it is the core fan
base that has made this the most stable sport in America, and we remain
unfailingly committed first to our fans in providing the best possible racing
experience and value."
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 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. The Company also owns Performance Racing Network
which broadcasts syndicated motorsports programming to over 500 stations
nationwide.
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, including
those contained in Exhibit 99.1 to the Company's Annual Report on Form 10-K,
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.
EDT. The call is open to all participants. Please dial (913) 981-5510 to
connect to the call. The confirmation number is 702549. 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
For The Three and Six Months Ended June 30, 2000 and 1999
(In thousands except per share amounts)
Three Months Ended Six Months Ended
INCOME STATEMENT
DATA
6/30/2000 6/30/1999 6/30/2000 6/30/1999
REVENUES:
Admissions $70,906 $63,051 $91,800 $82,877
Event related
revenue 77,353 69,377 110,496 97,333
Other
operating
revenue
12,555 7,626 24,782 12,948
Total
Revenues 160,814 140,054 227,078 193,158
OPERATING EXPENSES:
Direct expense of
events 52,691 46,558 73,917 66,327
Other direct
operating expenses 10,420 5,683 20,972 9,210
General and
administrative 13,129 11,518 26,253 22,318
Depreciation and
amortization 7,870 7,140 15,620 14,259
Total Operating
Expenses 84,110 70,899 136,762 112,114
OPERATING INCOME 76,704 69,155 90,316 81,044
Interest Expense, Net (6,778) (6,325) (13,251) (12,652)
Acquisition Loan Cost
Amortization -- (1,135) -- (3,398)
Other Income, Net 220 121 424 295
Income Before Income
Taxes 70,146 61,816 77,489 65,289
Income Tax Provision 28,211 24,404 31,148 25,869
NET INCOME $41,935 $37,412 $46,341 $39,420
Basic Earnings Per
Share $1.01 $0.90 $1.11 $0.95
Weighted average shares
outstanding 41,656 41,549 41,652 41,528
Diluted Earnings Per
Share $0.95 $0.84 $1.06 $0.90
Weighted average
shares outstanding 44,714 44,993 44,788 44,932
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
As of June 30, 2000 and December 31, 1999
(In thousands except per share amounts)
June 30, December 31,
BALANCE SHEET DATA 2000 1999
Cash and cash equivalents $34,098 $56,270
Total current assets 88,431 108,567
Property and equipment, net and property held
for sale 782,658 794,834
Goodwill and other intangible assets, net 60,060 58,987
Total assets 979,196 995,982
Current liabilities 110,035 131,982
Revolving credit facility borrowings 90,000 130,000
Senior and convertible subordinated long-term
debt 326,998 327,208
Total long-term debt 418,316 458,560
Total liabilities 601,034 664,274
Total stockholders' equity $378,162 $331,708