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August 21, 2019

Speedway Motorsports Reports Results For The Three and Six Months Ended June 30, 2006 and Reaffirms Full Year 2006 Guidance

08/09/2006

CONCORD, N.C.--(BUSINESS WIRE)--Aug. 9, 2006--Speedway Motorsports, Inc. (SMI) (NYSE:TRK) today reported second quarter 2006 total revenues of $183.3 million, net income of $45.5 million and diluted earnings per share of $1.03. Six month 2006 results include record total revenues of $334.4 million, net income of $77.7 million and diluted earnings per share of $1.76. Also, SMI reaffirmed its full year 2006 earnings guidance of $2.45 to $2.55 per diluted share.

The second quarter 2006 results are not directly comparable to 2005 because NASCAR NEXTEL Cup and Busch Series racing events at Bristol Motor Speedway held in the second quarter 2005 were held in the first quarter 2006. This change had no impact on the comparability of six month results. 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: (i) variable revenues and costs directly related to held events and (ii) certain fixed costs that do not change when race dates change.

Second Quarter Comparison

The following decreases in second quarter 2006 results are largely attributable to reporting NASCAR racing events at Bristol Motor Speedway in the second quarter 2005 that were reported in the first quarter 2006. For the second quarter 2006 as compared to 2005:

    --  total revenues were $183.3 million in 2006 compared to $216.2
        million in 2005;

    --  net income was $45.5 million in 2006 compared to $55.5 million
        in 2005; and

    --  diluted earnings per share were $1.03 in 2006 compared to
        $1.26 in 2005.

    Year-to-Date Comparison

    For the six month 2006 period as compared to 2005:

    --  total revenues increased 7% or $22.9 million to $334.4
        million;

    --  net income increased 12% or $8.2 million to $77.7 million; and

    --  diluted earnings per share increased 12% or $0.19 to $1.76.

    2006 Earnings Guidance Reaffirmed

These second quarter 2006 earnings are consistent with the Company's previous full year 2006 guidance of $2.45 to $2.55 per diluted share, assuming current industry and economic trends continue, and excluding our 50% share of Motorsports Authentics joint venture operating results, the Company's non-core businesses, capital expenditures exceeding current plans, the impact of further increases in fuel prices, interest rates or geopolitical conflicts, and other unforeseen factors.

2006 Second Quarter Highlights

Second quarter highlights include strong promotional efforts resulting in substantial increases in corporate marketing and other event related revenues to record levels for all NASCAR racing events held this period. Texas Motor Speedway attracted strong attendance at its NASCAR Samsung/RadioShack 500 NEXTEL Cup and O'Reilly 300 Busch Series racing events, and Lowe's Motor Speedway again attracted strong attendance at its NASCAR NEXTEL All-Star Challenge, Coca-Cola 600 NEXTEL Cup and CARQUEST Auto Parts 300 NASCAR Busch Series racing events. Other highlights include Infineon Raceway's Dodge/Save Mart 350 NASCAR NEXTEL Cup Series racing weekend and Texas Motor Speedway's Bombardier Learjet 500 IndyCar and Sam's Town 400 NASCAR Craftsman Truck Series racing events also attracting large crowds.

Stock Repurchase Program

During the six months ended June 30, 2006, the Company repurchased 302,500 shares of common stock for approximately $11.2 million under its previously announced stock repurchase program authorizing the repurchase of up to 1.0 million shares. The Company has repurchased a total of 585,000 shares since adoption of the program in April 2005.

Motorsports Authentics Joint Venture

The Company's share of operating results of Motorsports Authentics (MA), an equally-owned motorsports merchandising joint venture with International Speedway Corporation, for December 1, 2005 through May 31, 2006 are included in the Company's consolidated statements of operations. MA has a November 30 fiscal year end which the Company adopted for reporting its share of MA's operating results so that reporting periods coincide. The Company records its 50% share of MA's net income or loss based on MA's most recent quarterly financial statements using the equity method of accounting.

"Both our second quarter and six month 2006 results, on a comparable event basis if the results of Bristol Motor Speedway's spring NASCAR NEXTEL and Busch Series racing events were reported in the same quarters in 2006 and 2005, show record revenues and net income," stated H.A. Wheeler, chief operating officer and president of Speedway Motorsports. "Particularly strong increases in sponsorship, advertising and other corporate revenues contributed to these record results, despite the expected impact on attendance revenues of rising fuel prices and interest rates. All of our remaining 2006, and most of our 2007, NASCAR NEXTEL Cup and Busch event sponsorships are already sold, and our official sponsorships are well ahead of last year and trending upward for 2007 as corporate marketing interest and promotional spending continue to grow and broaden in appeal."

"Looking beyond 2006, SMI continues to believe in the merits of investing in first-class facilities and premium markets," stated O. Bruton Smith, chairman and chief executive officer of Speedway Motorsports. "For example, in March 2007, SMI plans to showcase Las Vegas Motor Speedway's newly constructed media center, garage, fan zones and other entertainment facilities, as well as its higher-banked and reprofiled superspeedway. Atlanta Motor Speedway plans to complete construction of approximately 12,000 new luxury front-stretch and premium club-style seats for its upcoming October 2006 NASCAR racing weekends.

SMI's first-class facilities and markets provide broadcasters, sponsors and other corporate partners with outstanding long-term promotional opportunities in markets with widening demographics that are expected to progressively expand as race drivers such as Juan Pablo Montoya enter NASCAR racing, further increasing enthusiasm and spectator interest in our sport."

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 subsidiaries and Motorsports Authentics joint venture, 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 730 radio stations nationwide. For more information, visit the Company's website at www.speedwaymotorsports.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, economic conditions, stock repurchases, financing needs, insurance, litigation, taxes, global petroleum product and commodity markets and oil and gas investments and associated profitability, geopolitical situations in foreign countries, and other factors outside of management control. These factors and other factors, including those contained in the Company's Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q, 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 866-323-3540 (toll-free) or 706-679-6123 (toll). The reference number is 3173520. A web-cast of the call can be accessed at the Company's website at www.speedwaymotorsports.com. To listen to a playback of the call, you may dial 800-642-1687 or 706-645-9291 beginning after 12:00 PM (ET) August 9th through 11:59 PM (ET) August 16th. The reference number is 3173520. 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, Investor Relations and Communications.

Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
For The Three and Six Months Ended June 30, 2006 and 2005
(In thousands except per share amounts)

                              Three Months Ended    Six Months Ended
                            --------------------  --------------------
INCOME STATEMENT DATA       6/30/2006  6/30/2005  6/30/2006 6/30/2005
----------------------------------------------------------------------

Revenues:
  Admissions                  $50,557    $74,516   $104,752  $106,723
  Event related revenue        60,177     62,960    104,555    90,838
  NASCAR broadcasting
   revenue                     63,730     66,468    105,850    91,678
  Other operating revenue       8,810     12,232     19,238    22,268
----------------------------------------------------------------------
     Total Revenues           183,274    216,176    334,395   311,507
----------------------------------------------------------------------
Expenses and Other:
  Direct expense of events     31,380     36,275     56,484    51,361
  NASCAR purse and sanction
   fees                        39,167     43,514     66,838    60,655
  Other direct operating
   expense                      9,442     10,717     17,136    19,327
  General and
   administrative              18,473     20,423     38,952    37,647
  Depreciation and
   amortization                10,110      9,304     20,180    18,572
  Interest expense, net         4,177      4,979     10,049    10,928
  Losses on equity
   investees                      226          -      1,445         -
  Other expense (income),
   net                            (34)       104         22      (816)
----------------------------------------------------------------------
     Total Expenses and
      Other                   112,941    125,316    211,106   197,674
----------------------------------------------------------------------
Income Before Income Taxes     70,333     90,860    123,289   113,833
Income Tax Provision           24,843     35,344     45,570    44,281
----------------------------------------------------------------------
NET INCOME                    $45,490    $55,516    $77,719   $69,552
----------------------------------------------------------------------


BASIC EARNINGS PER SHARE        $1.04      $1.26      $1.77     $1.58
Weighted average shares
 outstanding                   43,829     43,942     43,828    43,929

DILUTED EARNINGS PER SHARE      $1.03      $1.26      $1.76     $1.57
Weighted average shares
 outstanding                   44,050     44,189     44,045    44,203

Major NASCAR-sanctioned
 Events Held During Period          6          8         12        12

Significant Race Schedule
 Changes:
   -- Bristol Motor Speedway held one NASCAR NEXTEL Cup and one Busch
    Series racing event in the first quarter 2006 that were reported
    in the second quarter 2005

BALANCE SHEET DATA          6/30/2006 12/31/2005
-------------------------------------------------

Cash, cash equivalents and
 short-term investments      $131,318   $120,910
Total current assets          244,291    201,288
Property and equipment, net 1,002,323    979,652
Equity investments in
 associated entities          138,648    136,842
Goodwill and other
 intangible assets, net       159,864    159,929
Total assets                1,580,733  1,514,426

Deferred race event income,
 net                           98,292    101,966
Total current liabilities     166,662    160,663
Revolving credit facility
 borrowings                    50,000     50,000
Total long-term debt          428,593    430,235
Total liabilities             779,428    788,278
Total stockholders' equity   $801,305   $726,148
-------------------------------------------------

    CONTACT: Speedway Motorsports, Inc.
             Lauri Wilks, 704-455-3239

    SOURCE: Speedway Motorsports, Inc.

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