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May 24, 2019

Speedway Motorsports Reports Record Results for the Three and Nine Months Ended September 30, 2008 and Reaffirms Full Year 2008 Guidance

11/05/2008

CONCORD, N.C.--(BUSINESS WIRE)--Nov. 5, 2008--Speedway Motorsports, Inc. (SMI) (NYSE:TRK) today reported record third quarter 2008 total revenues of $112.3 million, net income of $7.0 million and diluted earnings per share of $0.16. Nine month 2008 results include record total revenues of $480.3 million, net income of $84.9 million and diluted earnings per share of $1.95. Corporate marketing and other event related revenues for NASCAR racing events remain at near record year-over-year levels, largely offsetting the ongoing effects of challenging economic conditions on admission, merchandising and concession revenues. Also, SMI reaffirmed its full year 2008 earnings guidance of $2.40 to $2.50 per diluted share.

Third quarter and year-to-date 2008 results as compared to 2007 were impacted by, among other factors, the following:

    --  New Hampshire Motor Speedway, acquired in January 2008, hosted
        successful NASCAR Sprint Cup and Nationwide Series racing
        events in this year's second quarter, and NASCAR Sprint Cup
        and Craftsman Truck Series racing events in this third
        quarter;

    --  Lowe's Motor Speedway hosted a successful inaugural major
        National Hot Rod Association (NHRA) racing event at its new
        state-of the-art zMAX Dragway this third quarter;

    --  Bristol Motor Speedway hosted a successful major NHRA racing
        event in this year's second quarter that was held in the third
        quarter 2007; and

    --  improved operating results of Motorsports Authentics as
        further described below.

    Third Quarter Comparison

    For the third quarter 2008 as compared to 2007:

    --  total revenues increased 28% to $112.3 million in 2008
        compared to $87.6 million in 2007;

    --  equity investee after tax earnings increased to $136,000 or
        $0.00 per diluted share in 2008 compared to losses of $18.0
        million or $0.41 per diluted share in 2007;

    --  net income increased to $7.0 million in 2008 compared to a net
        loss of $13.6 million in 2007; and

    --  diluted earnings per share increased to $0.16 in 2008 compared
        to a loss per share of $0.31 in 2007.

    Year-to-Date Comparison

    For the nine month 2008 period as compared to 2007:

    --  total revenues increased 14% to $480.3 million in 2008
        compared to $420.6 million in 2007;

    --  equity investee after tax earnings increased to $2.9 million
        or $0.07 per diluted share in 2008 compared to losses of $20.3
        million or $0.46 per diluted share in 2007;

    --  net income increased 45% to $84.9 million in 2008 compared to
        $58.6 million in 2007; and

    --  diluted earnings per share increased 47% to $1.95 in 2008
        compared to $1.33 in 2007.

The Company's third quarter 2007 operating results and diluted earnings per share were significantly impacted by its 50% share of charges reflected by Motorsports Authentics for inventory and tooling impairment associated with certain NASCAR driver and team changes and other excess merchandise inventory.

2008 Earnings Guidance Reaffirmed

The Company reiterated that third quarter 2008 earnings are consistent with its previous full year 2008 guidance of $2.40 to $2.50 per diluted share, assuming current industry and economic trends continue, and excluding our 50% share of Motorsports Authentics joint venture operating results, non-core businesses, capital expenditures exceeding current plans, the impact of uncertain and unprecedented credit and economic conditions, increases in fuel prices, interest rates, and geopolitical conflicts, poor weather surrounding our events or other unforeseen factors.

2008 Third Quarter Highlights

Similar to its first six months, SMI's third quarter highlights include continuing near record levels of corporate marketing and other event related revenues for NASCAR and other racing events held this period. Bristol Motor Speedway again hosted sold-out capacity crowds at its Sharpie 500 NASCAR Sprint Cup Series and near record attendance at its Food City 250 NASCAR Nationwide Series racing events. New Hampshire Motor Speedway hosted near capacity crowds at its SYLVANIA 300 NASCAR Sprint Cup Series, and near record attendance at its Camping World RV Rental 200 Driven By Winnebago Industries Craftsman Truck Series, racing events despite poor weekend weather.

The new "revolutionary" zMAX Dragway at Lowe's Motor Speedway hosted one of the largest crowds in NHRA history during its overwhelmingly successful inaugural NHRA Nationals weekend. Other third quarter highlights include near record ticket sales for Infineon Raceway's FRAM Autolite NHRA Nationals racing events. Also, large crowds were hosted at the Qwik Liner Las Vegas 350 NASCAR Craftsman Truck Series racing event at Las Vegas Motor Speedway, and near record attendance at the PEAK Antifreeze & Motor Oil Indy Grand Prix of Sonoma County Indy Racing League event hosted at Infineon Raceway.

SMI believes admissions, concessions, souvenir merchandising and other event related third quarter and year-to-date 2008 revenues were negatively impacted by declines in consumer spending from high fuel prices and difficult consumer credit and housing markets. SMI also believes revenues were negatively impacted by poor weather surrounding certain NASCAR racing events held at Atlanta and Bristol Motor Speedways in the first quarter 2008 and New Hampshire Motor Speedway this third quarter.

Stock Repurchase Program

During the nine months ended September 30, 2008, the Company repurchased 220,000 shares of common stock for approximately $5.5 million under its previously announced stock repurchase program. As of September 30, 2008, the Company has repurchased approximately 1.5 million shares since adoption of the program in April 2005. As of September 30, 2008, the total number of shares available for future repurchase under the program, as currently authorized, is 548,000.

Other Comments

"Despite challenging economic conditions, SMI again demonstrated its strong resilient business model with record third quarter and year-to-date revenues and earnings," stated Marcus G. Smith, Chief Operating Officer and President of Speedway Motorsports. "A significant portion of our revenue stream for 2009 and beyond is already contracted, including NASCAR broadcasting, naming rights, and most of our 2009 event entitlement, and many other corporate, sponsorships. SMI's solid business model positions us favorably relative to many other industries for continued strong revenues and earnings.

"The success of our newly acquired New Hampshire Motor Speedway is generating positive contributions to SMI's 2008 consolidated net earnings, demonstrating the long-term merits of our investment strategies. Also, Motorsports Authentics continued to show significant earnings improvement over last year, illustrating their ongoing strategic and operational changes are successfully overcoming many past challenges."

O. Bruton Smith, Chairman and Chief Executive Officer of Speedway Motorsports stated, "Our NASCAR Sprint Cup and Craftsman Truck Series racing events at SMI's newly purchased New Hampshire Motor Speedway were a tremendous success, despite poor weekend weather. We believe the New England area 'top-10' market provides outstanding long-term promotional opportunities and significant untapped earnings growth potential. The spectacular opening of our 'revolutionary' zMAX Dragway at Lowe's Motor Speedway exceeded even our grandest expectations. We are excited about plans to again host NHRA's POWERade 'Countdown to the Championship' race weekend in 2009 at what our fans, racing competitors, and advertisers undoubtedly find is the finest dragway facility in motorsports today.

"We believe these factors demonstrate the appeal and demand for motorsports entertainment, along with SMI's premier venues, remain strong even in tough economic conditions. We also strongly believe that investing in first-class facilities and premium markets well positions SMI for continued future growth with excellent marketing opportunities for broadcasters, sponsors and other corporate partners when economic conditions improve."

Speedway Motorsports is a leading marketer and promoter of motorsports entertainment in the United States. The Company, through its subsidiaries, owns and operates the following premier facilities: Atlanta Motor Speedway, Bristol Motor Speedway, Infineon Raceway, Las Vegas Motor Speedway, Lowe's Motor Speedway, New Hampshire Motor Speedway and Texas Motor Speedway. The Company provides souvenir merchandising services through its SMI Properties subsidiaries; manufactures and distributes smaller-scale, modified racing cars and parts through its 600 Racing subsidiary; and produces and broadcasts syndicated motorsports programming to radio stations nationwide through its Performance Racing Network subsidiary. The Company also equally-owns Motorsports Authentics, a joint venture formed with International Speedway Corporation to produce, market and sell licensed motorsports merchandise. 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 Motorsports Authentics merchandising joint venture; the success of expense reduction efforts; capital projects; expansion; economic conditions; stock repurchases; financing needs; insurance; litigation; taxes; oil and gas activities, including the possibility of discontinuing operations; 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 webcast today at 11:00 AM (EST) open to all participants. To participate in the conference call, you may dial 888-735-0476 (toll-free) or 706-758-1524 (toll). The reference number is 70542971. A webcast 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 12:00 PM (EST) November 5th through 11:59 PM (EST) November 19th. The reference number is 70542971. Participating in the call will be Marcus G. Smith, Chief Operating Officer and President, and William R. Brooks, Vice Chairman and Chief Financial Officer.

Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
For The Three and Nine Months Ended September 30, 2008 and 2007
(In thousands except per share amounts)

                         Three Months               Nine Months
                            Ended                      Ended
                  -------------------------- -------------------------
INCOME STATEMENT
 DATA              9/30/2008 (a) 9/30/2007    9/30/2008 (a) 9/30/2007
-------------------------------------------  -------------------------

Revenues:
  Admissions      $      40,133 $   30,264   $     151,952 $  136,089
  Event related
   revenue               37,932     33,035         162,117    145,875
  NASCAR
   broadcasting
   revenue               25,205     13,832         131,438    106,509
  Other operating
   revenue                9,058     10,485          34,838     32,083
-------------------------------------------  -------------------------
Total
 Revenues               112,328     87,616         480,345    420,556
-------------------------------------------  -------------------------
Expenses and
 Other:
  Direct expense
   of events             31,005     23,531          94,153     77,515
  NASCAR purse
   and sanction
   fees                  18,240     10,367          91,364     73,712
  Other direct
   operating
   expense                8,683     10,686          33,607     32,611
  General and
   administrative        22,379     19,218          65,110     60,716
  Depreciation
   and
   amortization          12,363     11,295          36,085     33,118
  Interest
   expense, net           8,161      5,637          25,951     15,084
  Equity investee
   (earnings)
   losses                  (224)    17,177          (4,768)    20,938
  Other expense
   (income), net            181       (145)         (1,066)       403
-------------------------------------------  -------------------------
Total Expenses
 and Other              100,788     97,766         340,436    314,097
-------------------------------------------  -------------------------
Income (Loss)
 Before Income
 Taxes                   11,540    (10,150)        139,909    106,459
Income Tax
 Provision               (4,535)    (3,468)        (54,984)   (47,896)
-------------------------------------------  -------------------------
Net Income
 (Loss)           $       7,005   ($13,618)  $      84,925 $   58,563
-------------------------------------------  -------------------------


Basic Earnings
 (Loss) Per Share $        0.16     ($0.31)  $        1.95 $     1.34
 Weighted average
  shares
  outstanding            43,419     43,762          43,476     43,782

Diluted Earnings
 (Loss) Per Share $        0.16     ($0.31)  $        1.95 $     1.33
 Weighted average
  shares
  outstanding            43,422     43,926          43,494     43,970

Major NASCAR-
 sanctioned
 Events Held
 During Period                3          2              17         14

Certain Race Schedule Changes:
-- New Hampshire Motor Speedway, acquired in January 2008, hosted
 NASCAR Sprint Cup and Craftsman Truck Series racing events this third
 quarter.
-- New Hampshire Motor Speedway hosted NASCAR Sprint Cup and
 Nationwide Series racing events in the second quarter 2008.
-- Lowe's Motor Speedway hosted an inaugural major National
 Hot Rod Association racing event this third quarter.
-- Bristol Motor Speedway hosted a major National Hot Rod Association
 racing event in the second quarter 2008 that was held in the third
 quarter 2007.
BALANCE SHEET DATA                            9/30/2008 (a) 12/31/2007
----------------------------------------------------------------------

Cash, cash equivalents and short-term
 investments                                 $     119,021 $   168,462
Total current assets                               187,776     242,648
Property and equipment, net                      1,166,735   1,066,393
Equity investments in associated entities           80,436      76,678
Goodwill and other intangible assets, net          558,283     155,993
Total assets                                     2,028,401   1,578,320

Deferred race event income, net                     97,333     112,099
Total current liabilities                          170,814     177,720
Revolving credit facility borrowings               350,000      98,438
Total long-term debt                               680,016     428,460
Total liabilities                                1,119,401     750,649
Total stockholders' equity                         909,000     827,671
----------------------------------------------------------------------

(a) Reflects business acquisition of New Hampshire Motor Speedway on
 January 11, 2008, including its results of operations after
 acquisition and financial condition as of September 30, 2008.
    CONTACT: Speedway Motorsports, Inc.
             Janet Kirkley, 704-532-3318

    SOURCE: Speedway Motorsports, Inc.

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