Speedway Motorsports Reports Results For Three and Nine Months
14 November 2000
Speedway Motorsports Reports Results For Three and Nine Months Ended September 30, 2000
CONCORD, N.C., Nov. 14 Speedway Motorsports, Inc.
today reported total revenues for the third quarter increased 6%
or $3.1 million to $51.7 million and operating income increased by
$2.9 million to $2.3 million, compared to last year. Net loss decreased 44%
or $2.1 million to $2.7 million, and diluted loss per share decreased $0.05 to
$0.06, excluding non-recurring charges of $3.1 million related to resolution
of concession contract rights at Sears Point Raceway. Including such non-
recurring charges, the third quarter 2000 net loss decreased $212,000 to
$4.6 million and diluted loss per share was $0.11.
For the nine months ended September 30, 2000, total revenues increased 15%
or $37.0 million to $278.8 million, and operating income increased 15% or
$12.2 million to $92.6 million, compared to last year. Net income increased
21% or $7.1 million to $41.8 million, and diluted earnings per share increased
20% or $0.16 to $0.97, including this year's non-recurring charges of
$3.1 million and last year's non-recurring finance charges of $3.4 million for
financing costs attributable to the Las Vegas Motor Speedway (LVMS)
acquisition. Excluding such non-recurring charges, nine month net income
increased 19% or $7.0 million and diluted earnings per share was $1.01, an
increase of 19% or $0.16, over last year.
Bristol Motor Speedway (BMS) hosted the only major NASCAR race weekend in
the third quarter. With 13,000 new permanent seats, BMS again hosted sold-out
capacity crowds at its goracing.com 500 NASCAR Winston Cup Series, and record
attendance at its Food City 250 NASCAR Busch Series, racing events. LVMS
hosted an Indy Racing Northern Light Series event in the second quarter of
this year which, along with a NASCAR Craftsman Truck Series event, was held in
the third quarter of last year. Changes in racing schedules can lessen the
comparability of operating results between quarterly financial statements of
successive years.
In October, Lowe's Motor Speedway (LMS) hosted the UAW-GM Quality 500
NASCAR Winston Cup Series and All Pro Auto Parts Bumper to Bumper 300 NASCAR
Busch Series racing events. These events hosted less than expected attendance
and generated less event related revenues because of a convergence of negative
factors including record cold and forecasted poor weather, a substantial lead
by Bobby Labonte in the Winston Cup Series point race, as well as the 1999
rescheduling of this event to Monday because of rain. Also in October, Texas
Motor Speedway hosted Indy Racing League, and NASCAR Craftsman Truck Series
racing events with forecasted poor weather and inclement weekend conditions.
Ticket sales for Atlanta Motor Speedway's upcoming season finale NAPA 500
NASCAR Winston Cup Series racing weekend are also being negatively impacted by
the lack of a close championship points race.
"We believe these combined negative factors could result in the Company
reporting diluted earnings per share for the fourth quarter ranging from $0.16
to $0.20," stated William R. Brooks, chief financial officer of Speedway
Motorsports. "We have had uncontrollable challenges throughout 2000 including
poor weather at virtually every event we have conducted and the runaway
Winston Cup points championship. While we believe ticket demand will continue
to grow, we foresee ticket and concession price increases leveling off at
least for 2001. However, fiscal 2001 is the first of six years of significant
increases in contracted broadcasting revenues. Diluted earnings per share
estimates for fiscal 2001 of $1.55 to $1.60 should enable SMI to achieve a 5-
year compound annual growth rate approximating 20%."
"SMI has reported 22 consecutive quarters of year-over-year revenue growth
including the current quarter. Notwithstanding this year's inclement weather
at four of our six speedways hosting major NASCAR weekend events, we are
pleased to announce that for the nine months ended September 30, 2000, both
total revenues and operating income increased 15% over last year," stated H.A.
"Humpy" Wheeler, chief operating officer and president of Speedway
Motorsports. "In 2000, SMI has followed through on its efforts to improve
ongoing profitability by selling the Las Vegas Industrial Park in January and
restructuring certain IRL and NHRA agreements and events."
0. Bruton Smith, chairman and chief executive officer of Speedway
Motorsports, stated, "The transition of FOX, Turner and NBC networks into
NASCAR racing will soon focus new media intensity on our sport. NASCAR, along
with the teams and drivers, are working to rekindle competitive racing as
demonstrated in a number of recent exciting and close races. In 2001, Dodge
will reenter NASCAR racing. We believe the combination of these factors and
others will sustain increased viewership interest and fan appeal, and
convincingly demonstrate the ongoing strength of motorsports racing. The core
fan base 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, Inc. and Subsidiaries
Selected Financial Data - Unaudited
As of September 30, 2000 and December 31, 1999
(in thousands)
September 30, December 31,
BALANCE SHEET DATA 2000 1999
Cash and cash equivalents $24,748 $56,270
Total current assets 74,022 108,567
Property and equipment, net and property held
for sale 785,440 794,834
Goodwill and other intangible assets, net 59,580 58,987
Total assets 969,178 995,982
Current liabilities 105,079 131,982
Revolving credit facility borrowings 90,000 130,000
Senior and convertible subordinated long-term
debt 326,893 327,208
Total long-term debt 418,198 458,560
Total liabilities 595,436 664,274
Total stockholders' equity $373,742 $331,708
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
For The Three and Nine Months Ended September 30, 2000 and 1999
(in thousands except per share amounts)
INCOME STATEMENT DATA
Three Months Ended Nine Months Ended
9/30/2000 9/30/1999 9/30/2000 9/30/1999
REVENUES:
Admissions $20,677 $19,691 $112,477 $102,568
Event related revenue 19,572 17,461 130,068 114,794
Other operating
revenue 11,479 11,468 36,261 24,416
51,728 48,620 278,806 241,778
OPERATING EXPENSES:
Direct expense of
events 18,158 19,636 92,075 85,963
Other direct operating
expenses 10,102 10,955 31,074 20,165
General and
administrative 13,210 11,102 39,463 33,420
Depreciation and
amortization 7,996 7,584 23,616 21,843
Total Operating
Expenses 49,466 49,277 186,228 161,391
OPERATING INCOME (LOSS) 2,262 (657) 92,578 80,387
Interest Expense, Net (7,120) (7,624) (20,371) (20,276)
Concession Contract
Rights Resolution (3,137) -- (3,137) --
Acquisition Loan Cost
Amortization -- -- -- (3,398)
Other Income, Net 405 310 829 605
Income (Loss) Before
Income Taxes (7,590) (7,971) 69,899 57,318
Income Tax Provision
(Benefit) (3,024) (3,193) 28,124 22,676
NET INCOME (LOSS) ($4,566) ($4,778) $41,775 $34,642
Basic Earnings (Loss)
Per Share ($0.11) ($0.11) $1.00 $0.83
Weighted average
shares outstanding 41,668 41,599 41,657 41,552
Diluted Earnings (Loss)
Per Share ($0.11) ($0.11) $0.97 $0.81
Weighted average
shares outstanding 44,725 45,025 44,767 44,963
Note: Computations of diluted loss per share were anti-dilutive for the
three months ended September 30, 2000 and 1999; therefore, reported
basic and diluted loss per share are the same.