Speedway Motorsports Reports Results for Fourth Quarter and Year Ended December 31, 2007 and Provides Full Year 2008 Guidance

CONCORD, N.C., Mar 12, 2008 (BUSINESS WIRE) -- Speedway Motorsports, Inc. (SMI) (NYSE:TRK) today reported record fourth quarter and full year admissions and event related revenues for 2007, demonstrating that demand and appeal for motorsports entertainment in SMI's markets remain strong despite challenging economic times. Also, SMI provided full year 2008 earnings guidance of $2.40 to $2.50 per diluted share as further described below.

Fourth quarter 2007 results include total revenues of $141.1 million, and full year 2007 results include total revenues of $561.6 million. The fourth quarter 2007 consolidated net loss was $20.2 million and $0.46 per diluted share, and full year 2007 consolidated net income was $38.4 million and $0.87 per diluted share. The decreases in consolidated net income and diluted earnings per share are largely attributable to losses of Motorsports Authentics, the Company's merchandising joint venture with International Speedway Corporation.

Fourth quarter and full year 2007 results as compared to 2006 were impacted by, among other factors, the following:

-- sizable current period losses of Motorsports Authentics as further described below;

-- lower revenues under NASCAR's new broadcasting rights agreement as expected; and

-- higher effective income tax rates as expected.

Fourth Quarter Comparison:

For the fourth quarter 2007 as compared to 2006:

-- total revenues were $141.1 million in 2007 compared to $148.2 million in 2006;

-- equity investee after tax losses were $36.5 million or $0.83 per diluted share in 2007 compared to $556,000 or $0.01 per diluted share in 2006;

-- consolidated net loss was $20.2 million in 2007 compared to net income of $28.8 million in 2006; and

-- consolidated diluted loss per share was $0.46 in 2007 compared to diluted earnings per share of $0.65 in 2006.

Full Year Comparison:

For the full year 2007 as compared to 2006:

-- total revenues were $561.6 million in 2007 compared to $567.4 million in 2006;

-- equity investee after tax losses were $57.4 million or $1.31 per diluted share in 2007 compared to $2.1 million or $0.05 per diluted share in 2006;

-- consolidated net income was $38.4 million in 2007 compared to $111.2 million in 2006; and

-- consolidated diluted earnings per share were $0.87 in 2007 compared to $2.53 in 2006.

As set forth above, the Company's fourth quarter and full year 2007 results were significantly impacted by its 50% share of charges reflected by Motorsports Authentics for inventory, tooling, goodwill and other intangible assets impairment due largely to several NASCAR driver, team and sponsor changes, including Dale Earnhardt, Jr., a material Motorsports Authentics licensor, renaming of the NASCAR NEXTEL Cup and Busch Series in 2008, NASCAR's introduction of the "Car of Tomorrow," car manufacturer changes by NASCAR teams, other excess merchandise inventory and tooling no longer used for a secondary product line. SMI remains confident that Motorsports Authentics will successfully overcome the difficulties faced in 2007.

The Company's fourth quarter and full year 2007 results include losses associated with uncertain recovery of a previously disclosed disputed guarantee in oil and gas activities. Because of the ongoing challenges with oil and gas activities, the Company is contemplating discontinuing those operations during 2008, although a final decision has not been made. Also, impairment losses were recognized related to terminating the previously announced condominium construction project at Las Vegas Motor Speedway and to certain property and equipment of Infineon Raceway and Oil-Chem.

2008 Earnings Guidance

William R. Brooks, Chief Financial Officer and Executive Vice President of Speedway Motorsports, stated, "The Company estimates 2008 total revenues of $620-640 million, net income of $105-110 million, depreciation and interest of $85-90 million, and diluted earnings per share of $2.40-2.50, 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 further increases in fuel prices, interest rates, geopolitical conflicts, poor weather surrounding our events or other unforeseen factors. The estimated total capital expenditures in 2008 are approximately $70-80 million."

2007 Fourth Quarter Highlights

Similar to its first nine months, SMI's fourth quarter highlights include continuing record levels of corporate marketing and other event related revenues for NASCAR and other racing events held this period. These continuing strong year-over-year increases in many event related revenue categories, along with increased admission revenues, demonstrate that the demand and appeal for motorsports entertainment in SMI's markets remain strong even in challenging economic times. Although somewhat similar to or increased over last year, SMI believes high fuel prices, volatile interest rates, difficult consumer credit and housing markets, and declines in consumer spending continue to negatively impact admissions, concessions, souvenir merchandising and certain other event related revenues in the quarter.

Other fourth quarter highlights include Lowe's Motor Speedway posting increased attendance revenues from its Saturday night Bank of America 500 NASCAR NEXTEL Cup, and strong attendance at its Friday night Dollar General 300 NASCAR Busch Series, racing events. Atlanta Motor Speedway hosted lower attendance at its Pep Boys Auto 500 NASCAR NEXTEL Cup and EasyCare Vehicle Service Contracts 200 NASCAR Craftsman Truck Series racing events. Also, Texas Motor Speedway's Dickies 500 NASCAR NEXTEL Cup Series racing event posted increased attendance revenues, and large crowds attended its O'Reilly Challenge NASCAR Busch and Silverado 350K NASCAR Craftsman Truck Series racing events.

Stock Repurchase Program

During the full year 2007, the Company repurchased 473,000 shares of common stock for approximately $17.7 million under its previously announced stock repurchase program. As of December 31, 2007, the Company has repurchased a total of 1,232,000 shares since adoption of the program in April 2005. In February 2007, the Company's Board of Directors increased the authorized total number of shares that can be repurchased under the program from one million to two million shares.

Other Comments

"Fiscal 2007 was a challenging year for SMI, and we look forward to substantially improved results in 2008. One significant positive is that SMI's 2007 results show record levels of attendance, corporate marketing and other event related revenues," stated H.A. Wheeler, Chief Operating Officer and President of Speedway Motorsports. "These continuing year-over-year increases in admissions and many event related revenue categories, particularly sponsorships and advertising, were achieved despite high fuel prices, difficult consumer credit and housing markets and nationwide declines in consumer spending.

"After the initial decline for NASCAR broadcasting revenues in 2007, this significant contracted revenue source begins steadily increasing in 2008. All of our NASCAR Sprint Cup (formerly NEXTEL) and Nationwide (formerly Busch) event sponsorships for 2008, and many for 2009, are already sold and pre-sales for other corporate event related revenues are trending ahead of last year."

O. Bruton Smith, Chairman and Chief Executive Officer of Speedway Motorsports stated, "SMI is extremely proud to have finalized the purchase of its newly renamed New Hampshire Motor Speedway. SMI now owns seven first-class race track facilities in the West, Northeast, Southeast and Southwest, including four in the nation's top-10 metropolitan markets. We also announced the planned modernization of Lowe's Motor Speedway, and the hosting of the Carolinas NHRA Nationals at their new "state-of-the-art" dragway on September 11-14, 2008. More than ever, we believe owning the finest fan-friendly, most exciting race entertainment facilities in premier media markets provides SMI, as well as advertisers and broadcasters, with broadening demographics and outstanding long-term promotional growth opportunities.

"SMI's core operations remain strong. Almost 4.0 million fans attended our 2007 events, despite challenging economic circumstances, demonstrating that the demand and appeal for motorsports entertainment remains strong. These, and other dynamics like our newly acquired New Hampshire Motor Speedway, are outstanding opportunities that firmly position SMI for long-term increased growth and shareholder value."

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, 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 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 AM (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 36342469. 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) March 12th through 11:59 PM (ET) March 26th. The reference number is 36342469. 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 Twelve Months Ended December 31, 2007 and 2006
(In thousands except per share amounts)

                          Three Months Ended      Twelve Months Ended
INCOME STATEMENT DATA   12/31/2007   12/31/2006  12/31/2007 12/31/2006
---------------------- ------------ ------------ ---------- ----------

  Admissions           $    43,676  $    42,956   $179,765   $175,208
  Event related
   revenue                  51,446       48,257    197,321    183,404
  NASCAR broadcasting
   revenue                  36,008       41,116    142,517    162,715
  Other operating
   revenue                   9,960       15,891     42,043     46,038
---------------------- ------------ ------------ ---------- ----------
    Total Revenues         141,090      148,220    561,646    567,365
---------------------- ------------ ------------ ---------- ----------
Expenses and Other:
  Direct expense of
   events                   22,899       18,288    100,414     95,990
  NASCAR purse and
   sanction fees            26,896       28,156    100,608    105,826
  Other direct
   operating expense        22,047       22,459     54,658     48,121
  General and
   administrative           20,272       20,428     80,988     78,070
  Depreciation and
   amortization             11,357       10,351     44,475     40,707
  Interest expense,
   net                       5,900        4,434     20,984     20,785
  Losses on equity
   investees                36,484          857     57,422      3,343
  Other expense, net         4,796          186      5,199        185
---------------------- ------------ ------------ ---------- ----------
    Total Expenses and
     Other                 150,651      105,159    464,748    393,027
---------------------- ------------ ------------ ---------- ----------
Income (Loss) Before
 Income Taxes               (9,561)      43,061     96,898    174,338
Income Tax Provision       (10,608)     (14,260)   (58,504)   (63,116)
---------------------- ------------ ------------ ---------- ----------
Net Income (Loss)         ($20,169) $    28,801   $ 38,394   $111,222
---------------------- ------------ ------------ ---------- ----------

Basic Earnings (Loss)
 Per Share                  ($0.46) $      0.66   $   0.88   $   2.54
Weighted average
 shares outstanding         43,597       43,785     43,735     43,801

Diluted Earnings
 (Loss) Per Share           ($0.46) $      0.65   $   0.87   $   2.53
Weighted average
 shares outstanding         43,711       43,988     43,906     44,006

 sanctioned Events
 Held During Period              5            5         19         19

Certain Race Schedule Changes:
-- NASCAR NEXTEL Cup Series qualifying and an International Race of
 Champions racing event at Texas Motor Speedway were not held in the
 second quarter 2007; comparable racing events were held in 2006.

BALANCE SHEET DATA      12/31/2007   12/31/2006
---------------------- ------------ ------------

Cash, cash equivalents
 and short-term
 investments           $   168,462  $   121,139
Total current assets       242,648      196,926
Property and
 equipment, net          1,066,393    1,054,676
Equity investments in
 associated entities        76,678      135,346
Goodwill and other
 intangible assets,
 net                       155,993      156,122
Total assets             1,578,320    1,583,408

Deferred race event
 income, net               112,099      112,651
Total current
 liabilities               177,720      181,524
Revolving credit
 facility borrowings        98,438       98,438
Total long-term debt       428,460      428,482
Total liabilities          751,101      763,319
Total stockholders'
 equity                    827,219      820,089
---------------------- ------------ ------------

SOURCE: Speedway Motorsports, Inc.

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