NYSE: TRK +0.01 ( +0.05% ) Volume: 3,501
July 23, 2019

Speedway Motorsports Reports Record Revenues And Earnings for the First Quarter Of 2002

05/14/2002

CONCORD, N.C., May 14 /PRNewswire-FirstCall/ -- Speedway Motorsports, Inc. (NYSE: TRK) today reported total revenues for the first quarter ended March 31, 2002 increased 45% or $29.8 million to $96.6 million. Income from continuing operations, before the cumulative effect of an accounting change in 2002, increased 178% or $11.1 million to $17.4 million, and diluted earnings per share increased 167% or $.25 to $.40, compared to last year, consistent with market expectations. Net income, including a loss from operations and disposal of discontinued business and the accounting change, increased 104% or $6.3 million to $12.4 million, and diluted earnings per share increased 93% or $.14 to $.29, compared to last year.

In the first quarter 2002, Bristol Motor Speedway hosted NASCAR Winston Cup and Busch Series racing events which were held in last year's second quarter. Also, the first quarter 2002 operating results reflect the new long- term food and beverage agreement with Levy Restaurants and Compass Group. Changes in racing schedules, and operating arrangements such as the Levy Restaurants and Compass Group agreement, can lessen the comparability of operating results between quarterly financial statements of successive years.

In adopting Statement of Financial Accounting Standards (SFAS) No. 142 "Goodwill and Other Intangible Assets" as of January 1, 2002, first quarter 2002 results reflect the cumulative effect of an accounting change for goodwill impairment of $4.3 million, net of taxes of $300,000 or $0.10 per diluted share, associated with certain non-motorsports related reporting units. Also, amortization of $444,000 on goodwill and other intangible assets as of December 31, 2001 was not reflected in the current quarter under the new accounting guidelines. The Company plans to discontinue and dispose of the operations of SoldUSA in the second quarter 2002 due to continuing difficult market conditions for internet auction and e-commerce companies. First quarter 2002 results reflect losses from SoldUSA's discontinued operations and disposal of $686,000, net of taxes of $445,000 or $0.01 per diluted share.

First quarter highlights include Atlanta Motor Speedway hosting increased attendance at its MBNA America 500 NASCAR Winston Cup Series racing event, and Bristol Motor Speedway again hosting sold-out capacity crowds at its Food City 500 NASCAR Winston Cup Series, and record attendance at the Channellock 250 NASCAR Busch Series, racing events. Also, Las Vegas Motor Speedway hosted sold-out capacity crowds at its UAW-DaimlerChrysler 400 NASCAR Winston Cup Series, and record attendance at the Sam's Town 300 NASCAR Busch Series, racing events.

"Despite the continuing economic, travel and corporate spending challenges, SMI's record first quarter results reflect increased attendance at all of our NASCAR Winston Cup and Busch racing events and are an exceptional start to the 2002 NASCAR racing season," stated H.A. "Humpy" Wheeler, chief operating officer and president of Speedway Motorsports. "These results prove to us that our traditional core fan base remains strong and is demonstrating precisely the increased enthusiasm and fan interest sponsors, advertisers and promoters desire."

"The company-wide increased attendance in our first quarter, along with the strong television ratings, clearly demonstrate the ongoing strength of motorsports racing and increasing long-term appeal of SMI's facilities and venues," stated O. Bruton Smith, chairman and chief executive officer of Speedway Motorsports. "We are also extremely pleased with the start to our partnership with Levy Restaurants and Compass Group, the market leader in premium foodservice at sports and entertainment facilities. We are looking forward to showcasing our newly-modernized and expanded Sears Point Raceway in June. These, and other strategic changes, well position SMI for the future upturn in economic conditions and will allow us to capitalize on the industry's emerging next growth cycle."

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 souvenir merchandising services through its SMI Properties 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 750 stations nationwide. For more information, visit the Company's Website at www.gospeedway.com.

This news release contains forward-looking statements, particularly statements with regard to the Company's future operations and financial results. There are many factors that affect future events and trends of the Company's business including, but not limited to, consumer and corporate spending sentiment, air travel, governmental regulations, military actions, national or local catastrophic events, the success of and weather surrounding NASCAR, IRL, NHRA and other racing events, the success of expense reduction efforts, litigation, insurance, and economic conditions. 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. Inclusion of any information or statement in this news release does not necessarily imply that such information or statement is material. The Company does not undertake any obligation to release publicly revised or updated forward-looking information, and such information included in this news release is based on information currently available and may not be reliable after this date.

Note: Speedway Motorsports will host a conference call today at 11:00 a.m. ET. The call is open to all participants. Please dial (888) 895-5479 to connect to the call. The reservation number is 5663165. 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 Months Ended March 31, 2002 and 2001
                   (In thousands except per share amounts)

                                                      Three Months Ended
    INCOME STATEMENT DATA                         3/31/2002         3/31/2001

    REVENUES:
      Admissions                                   $39,109           $19,978
      Event related revenue                         26,064            24,739
      NASCAR broadcasting revenue                   21,575            13,095
      Other operating revenue                        9,820             8,987
         Total Revenues                             96,568            66,799
    EXPENSES AND OTHER:
      Direct expense of events                      14,883            12,656
      NASCAR purse and sanction fees                16,821            10,918
      Other direct operating expenses                8,224             7,170
      General and administrative                    14,355            13,512
      Depreciation and amortization                  7,923             8,230
      Interest expense, net                          5,796             6,015
      Other income, net                                 (9)           (2,017)
         Total Expenses and Other                   67,993            56,484
    Income From Continuing Operations
     Before Income Taxes
       and Cumulative Effect of
        Accounting Change                           28,575            10,315
    Income Tax Provision                            11,217             4,065
    Income From Continuing Operations
     Before Cumulative Effect
       of Accounting Change                         17,358             6,250
    Loss From Operations and Disposal of
     Discontinued Business                            (686)             (186)
    Income Before Cumulative Effect of
     Accounting Change                              16,672             6,064
    Cumulative Effect of Accounting
     Change for Goodwill Impairment                 (4,273)               --
    NET INCOME                                     $12,399            $6,064

    Basic Earnings Per Share:
    Continuing Operations Before
     Accounting Change                               $0.41             $0.15
    Discontinued Operations                          (0.01)               --
    Accounting Change                                (0.10)               --
    Basic Earnings Per Share                         $0.30             $0.15
    Weighted average shares outstanding             41,883            41,740

    Diluted Earnings Per Share:
    Continuing Operations Before
     Accounting Change                               $0.40             $0.15
    Discontinued Operations                          (0.01)               --
    Accounting Change                                (0.10)               --
    Diluted Earnings Per Share                       $0.29             $0.15
    Weighted average shares outstanding             44,342            44,529


                                                         Consolidated
    BALANCE SHEET DATA                             3/31/02          12/31/01

    Cash and cash equivalents                     $124,136           $93,980
    Total current assets                           199,024           148,132
    Property and equipment, net                    824,201           813,154
    Goodwill and other intangible assets,
     net                                            52,095            56,742
    Total assets                                 1,111,584         1,063,578

    Redeemable convertible subordinated
     debentures                                     53,694                --
    Other current liabilities                      143,071           106,054
    Revolving credit facility borrowings            90,000            90,000
    Deferred race event income, net                104,792            71,578
    Total long-term debt                           342,473           397,313
    Total liabilities                              659,762           624,689
    Total stockholders' equity                    $451,822          $438,889


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SOURCE Speedway Motorsports, Inc.
Web site: http: //www.speedwaymotorsports.com
CONTACT: Lauri Wilks of Speedway Motorsports, Inc., +1-704-455-3239

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