Speedway Motorsports Announces Record Revenues and Earnings for Third Consecutive Year in 1997
10 February 1998
Speedway Motorsports Announces Record Revenues and Earnings for Third Consecutive Year in 1997
CONCORD, N.C., Feb. 10 -- Speedway Motorsports, Inc.
announced record revenues, operating income and earnings per share
for the third consecutive year in 1997.
Total revenues for the year ended December 31, 1997 increased 88%, or
$90.0 million to $192.1 million, and operating income increased 74%, or $29.0
million to $68.4 million, over last year. Net income increased by 45%, or
$11.8 million to $38.2 million, compared to 1996. Diluted earnings per share
increased 39%, or $.25 to $.89, compared to $.64 for last year, exceeding
analysts' consensus expectations by $.03 per share. Fourth quarter total
revenues increased by 30% to $46.1 million compared to last year and diluted
earnings per share of $.23 exceeded analysts' consensus expectations by
$.01 per share.
The fourth quarter highlights include record attendance of more than
200,000 at Charlotte Motor Speedway's All Pro Auto Parts Bumper to Bumper 300
Busch Grand National and UAW-GM Quality 500 NASCAR Winston Cup Series races in
October 1997. In addition, Atlanta Motor Speedway (AMS) successfully
completed its major reconfiguration into a 1.54 mile quad-oval superspeedway,
increasing seating capacity by 22,000 to 124,000 and adding 58 new luxury
suites. In November 1997, AMS hosted the Reece's 400 ARCA race and a sold-out
capacity crowd at its NAPA 500 NASCAR Winston Cup Series race. NASCAR crowned
Jeff Gordon as its Winston Cup champion at the NAPA 500.
"Our 1997 has been an overwhelming success. Speedway Motorsports opened
Texas Motor Speedway, the second-largest sporting facility in the United
States, transformed Atlanta Motor Speedway into a world-class, `state-of-the-
art' facility, and hosted two hugely successful inaugural Indy Race League
race events. Our expansion in 1997 increased SMI's combined seating capacity
by 236,000 to 525,000 -- the largest in the industry. We also continued to
significantly enhance the facilities and fan amenities at our other
speedways," stated Speedway Motorsports chairman, Bruton Smith. "Looking
forward to 1998 and beyond, SMI plans further major expansion at Bristol and
Charlotte Motor Speedways and Sears Point Raceway to meet the continued excess
demand for good seats at first-class facilities and venues. In addition, SMI
is also hosting four IRL events next year, one new race event at both Atlanta
and Texas Motor Speedways. We believe our involvement with the IRL brings us
new national markets and opportunities, as SMI is continually searching for
new uses of our facilities to maximize shareholder value."
Speedway Motorsports, a New York Stock Exchange company, and the owner and
operator of Atlanta, Bristol, Charlotte, and Texas Motor Speedways, 600
Racing, and the operator of Sears Point Raceway, is a leading marketer and
promoter of motorsports entertainment in the United States.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data
For The Three and Twelve Months Ended December 31, 1996 and 1997
(dollars and shares in thousands except per share amounts)
Three Months Ended Twelve Months Ended
12/31/96 12/31/97 12/31/96 12/31/97
INCOME STATEMENT DATA (Unaudited) (Unaudited) (Audited) (Unaudited)
REVENUES:
Admissions $18,849 $23,642 $52,451 $94,032
Event related revenue 12,863 18,967 36,414 83,177
Other operating revenue 3,750 3,539 13,248 14,917
Total revenues 35,462 46,148 102,113 192,126
OPERATING EXPENSES:
Direct expense of events 10,057 14,377 30,173 65,347
Other direct operating
expenses 2,281 2,278 8,O05 9,181
General and administrative 3,787 7,938 16,995 31,623
Depreciation and
amortization 1,694 4,030 7,598 15,742
Preoperating expense
of new facility -- -- -- 1,850
Total operating expenses 17,819 28,623 62,771 123,743
OPERATING INCOME 17,643 17,525 39,342 68,383
Interest income
(expense), net 498 (2,343) 1,316 (5,313)
Other income 1,032 714 2,399 991
Income before
income taxes 19,173 15,896 43,057 64,061
Income tax provision 7,132 5,991 16,652 25,883
NET INCOME $12,041 $9,905 $26,405 $38,178
Basic earnings per share $0.29 $0.24 $0.65 $0.92
Weighted average number
of shares outstanding 41,301 41,413 40,476 41,338
Earnings per share
assuming dilution $0.28 $0.23 $0.64 $0.89
Weighted average number
of shares outstanding 44,474 44,549 41,911 44,491
SOURCE Speedway Motorsports, Inc.
