CONCORD, N.C., Apr 27, 2005 (BUSINESS WIRE) -- Speedway Motorsports, Inc. (SMI) (NYSE:TRK) today
reported first quarter 2005 total revenues of $95.3 million, net
income of $14.0 million and diluted earnings per share of $0.32,
reaffirmed its earnings guidance for the full year 2005 of $2.15 to
$2.25 per diluted share, and announced a stock repurchase program.
The first quarter 2005 results are not directly comparable to 2004
because of NASCAR NEXTEL Cup and Busch Series racing events at Bristol
Motor Speedway held and reported in the first quarter 2004 that are
being held and reported in the second quarter 2005.
Changes in race schedules at the Company's speedways from time to
time lessen the comparability of operating results between quarterly
financial statements of successive years. Quarterly operating results
are impacted principally from variable revenues and costs directly
related to held events and certain fixed costs do not change when race
dates change.
First Quarter Comparison
The following decreases in first quarter 2005 results are
primarily attributable to reporting NASCAR racing events at Bristol
Motor Speedway in the first quarter 2004 that will be reported in the
second quarter 2005. For the first quarter 2005 as compared to 2004:
-- total revenues decreased 22% or $26.8 million to $95.3
million;
-- net income decreased 43% or $10.7 million to $14.0 million;
and
-- diluted earnings per share decreased 44% or $0.25 to $0.32.
2005 Earnings Guidance Reaffirmed
The Company reiterated these first quarter 2005 earnings are
consistent with its previous full year 2005 guidance of $2.15 to $2.25
per diluted share.
Stock Repurchase Program
The Company's Board of Directors has approved a stock repurchase
program authorizing SMI to repurchase up to 1.0 million shares of
outstanding Company common stock from time to time, depending on
market conditions, share price and other factors. The purchases could
be in the open market or private transactions. The stock repurchase
program is effective immediately, will be funded using the Company's
working capital and may be suspended or discontinued at any time. As
of March 31, 2005, the Company had approximately $252.2 million of
cash and cash equivalents and 43,953,000 shares of common stock
outstanding.
2005 First Quarter Highlights
First quarter highlights include Las Vegas Motor Speedway hosting
record sold-out capacity crowds at its NASCAR UAW-DaimlerChrysler 400
NEXTEL Cup Series, and record near sold-out attendance at the Sam's
Town 300 Busch Series, racing events. Also, Atlanta Motor Speedway
attracted near record attendance at its NASCAR Golden Corral 500
NEXTEL Cup and Aaron's 312 Busch Series racing events.
Other first quarter highlights include the Company's successful
amendment of its $300.0 million bank credit facility and term loan
(the Credit Facility) which provides greater flexibility with respect
to letters of credit, dividend payments, repurchases of Company common
stock and permitted investments of available cash, as well as reduces
interest rates and extends maturity to March 2010 from May 2008.
"Our first quarter 2005 results, on a comparable event basis, show
significant increases in all event revenue categories, and would show
a significant increase in net income over last year if the results of
Bristol Motor Speedway's first quarter 2004 NASCAR NEXTEL and Busch
Series racing events were excluded," stated H.A. Wheeler, chief
operating officer and president of Speedway Motorsports. "Atlanta
Motor Speedway's strong NASCAR NEXTEL Cup event attendance evidences
its long-standing reputation of offering fans some of the best
on-track competition in NASCAR. Atlanta's location in a top media
market, along with the ongoing roadway expansion surrounding and
leading into our speedway, represents a tremendous long-term growth
opportunity for us as well as advertisers and broadcasters."
"These strong 2005 results reflect the ever-growing demand and
untapped potential of Las Vegas Motor Speedway's entertainment factor
where our NASCAR NEXTEL Cup and Busch Series events were sold-out or
near sold-out even with 13,000 additional temporary seats. Looking
beyond this quarter, all of our NASCAR NEXTEL Cup and Busch Series
event sponsorships for 2005 are pre-sold and strong interest continues
to develop in Texas Motor Speedway's new NASCAR triple header weekend
in November 2005," stated O. Bruton Smith, chairman and chief
executive officer of Speedway Motorsports.
"SMI is constructing approximately 8,000 new premium seats at Las
Vegas Motor Speedway because of the overwhelming demand for its NASCAR
NEXTEL Cup and Busch Series events. Our event and official
sponsorships are trending well ahead of last year and corporate
marketing interest and promotional spending appears to be broadening
and gaining momentum. We believe these factors demonstrate the
increasing marketing appeal of the demographics surrounding
motorsports entertainment and the merits of SMI investing in
first-class facilities and premium markets. We believe SMI remains
well positioned for continued strong growth visibility in 2005 and
beyond with excellent marketing opportunities for broadcasters,
sponsors and other corporate partners."
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, Infineon Raceway, Las Vegas Motor Speedway,
Lowe's Motor Speedway 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 710 radio 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, our relationship with NASCAR and
other sanctioning bodies, the success of expense reduction efforts,
capital projects, expansion, stock repurchases, financing needs,
insurance, litigation, 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 and
web-cast today at 11:00 a.m. ET which are open to all participants. To
participate in the conference call, you may dial 877-616-4485 for US
and Canadian calls or 706-643-3796 for International calls. The
reference number is 5524402. A web-cast of the call by CCBN can be
accessed at the Company's website at www.gospeedway.com. To listen to
a playback of the call, you may dial 800-642-1687 (US or Canada) or
706-645-9291 (International) beginning after 12:00 noon (ET) April
27th through midnight (ET) May 9th. The reference number is 5524402.
Participating in the call will be H.A. Wheeler, Chief Operating
Officer and President; William R. Brooks, Chief Financial Officer and
Executive Vice President; Marcus G. Smith, Executive Vice President,
National Sales and Marketing; 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, 2005 and 2004
(In thousands except per share amounts)
Three Months Ended
----------------------
INCOME STATEMENT DATA 3/31/2005 3/31/2004
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REVENUES:
Admissions $32,207 $48,839
Event related revenue 27,878 32,091
NASCAR broadcasting revenue 25,210 30,464
Other operating revenue 10,036 10,780
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Total Revenues 95,331 122,174
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EXPENSES AND OTHER:
Direct expense of events 15,086 19,397
NASCAR purse and sanction fees 17,141 21,725
Other direct operating expense 8,610 10,075
General and administrative 17,224 16,510
Depreciation and amortization 9,268 9,024
Interest expense, net 5,949 4,434
Other expense (income), net (920) 110
----------------------------------------------------------------------
Total Expenses and Other 72,358 81,275
----------------------------------------------------------------------
Income Before Income Taxes 22,973 40,899
Income Tax Provision 8,937 16,155
----------------------------------------------------------------------
NET INCOME $14,036 $24,744
----------------------------------------------------------------------
BASIC EARNINGS PER SHARE $0.32 $0.58
Weighted average shares outstanding 43,915 42,999
DILUTED EARNINGS PER SHARE $0.32 $0.57
Weighted average shares outstanding 44,216 43,332
Major NASCAR-sanctioned Events Held During
Period 4 5
Significant Race Schedule Changes:
-- Bristol Motor Speedway held one NASCAR NEXTEL Cup and one
Busch Series racing event in the first quarter 2004 that will
be reported in the second quarter 2005
-- Atlanta Motor Speedway held one NASCAR Busch Series racing
event in the first quarter 2005
BALANCE SHEET DATA 3/31/2005 12/31/2004
----------------------------------------------------------------------
Cash and cash equivalents $252,161 $216,731
Total current assets 348,553 288,025
Property and equipment, net 935,568 913,987
Goodwill and other intangible assets,
net 157,854 157,917
Total assets 1,479,593 1,398,343
Deferred race event income, net 146,101 99,589
Total current liabilities 190,226 142,887
Revolving credit facility borrowings 50,000 50,000
Total long-term debt 430,263 427,149
Total
liabilities 829,776 765,018
Total stockholders' equity $649,817 $633,325
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SOURCE: Speedway Motorsports, Inc.
Speedway Motorsports, Inc.
Lauri Wilks, 704-455-3239