Speedway Motorsports Reports Q1 Revenues
12 May 1998
Speedway Motorsports Reports Record Revenues
16% Increase In First Quarter 1998
CONCORD, N.C., May 11 -- Speedway Motorsports, Inc.
announced record revenues for the quarter ended March 26, 1998.
Total revenues for the quarter increased by 16% or $2.5 million to $18.0
million. The increase was primarily attributable to higher admissions and
event related revenues associated with the PRIMESTAR 500 NASCAR Winston Cup
Series race held at Atlanta Motor Speedway. The reported diluted loss per
share of $0.07 for the quarter was consistent with market expectations.
The Company historically reports operating losses in the first quarter
when it generates revenue from only one NASCAR race weekend. The revenues
generated from the one NASCAR race weekend generally do not cover quarterly
operating expenses of the Company's five speedway subsidiaries.
"Our first quarter 1998 net loss increased $2.7 million primarily because
of additional depreciation and interest expense from the opening of Texas
Motor Speedway in April 1997, and the postponement of both NASCAR racing
events at Atlanta Motor Speedway this March due to poor weekend weather
conditions," stated Bruton Smith, Chairman and Chief Executive Officer. "While
the PRIMESTAR 500 was held on Monday, the Stihl Outdoor Power Tools 300 Busch
Series race was rescheduled to November 7, 1998, where it precedes the NASCAR
Winston Cup Series finale NAPA 500 at Atlanta Motor Speedway."
"Despite the bad weather conditions, record attendance at Atlanta Motor
Speedway demonstrates the merits and potential of its major reconfiguration in
1997," stated Smith. "Another first quarter highlight was the addition of
17,000 seats at Bristol Motor Speedway and 12,000 seats at Charlotte Motor
Speedway. Our 1998 expansions increase the Company's seating capacity to over
554,000 -- the largest in the industry. Also, we are excited about showcasing
our reconfiguration of Sears Point Raceway and Texas Motor Speedway in the
upcoming June events."
Speedway Motorsports, the owner and operator of Atlanta Motor Speedway,
Bristol Motor Speedway, Charlotte Motor Speedway, Sears Point Raceway, Texas
Motor Speedway and 600 Racing, is a leading marketer and promoter of
motorsports entertainment in the United States.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data
For The Three Months Ended March 31, 1997 and March 26, 1998
(dollars and shares in thousands except per share amounts)
INCOME STATEMENT DATA
Three Months Ended
3/31/97 3/26/98
(Unaudited) (Unaudited)
REVENUES:
Admissions $5,206 $5,688
Event related revenue 6,711 8,469
Other operating revenue 3,536 3,803
Total revenues 15,453 17,960
OPERATING EXPENSES:
Direct expense of events 4,707 5,953
Other direct operating expenses 2,056 2,222
General and administrative 7,091 8,174
Depreciation and amortization 2,664 4,758
Total operating expenses 16,518 21,107
OPERATING LOSS (1,065) (3,147)
Interest income (expense), net 495 (2,748)
Other income 201 1,044
Loss before income taxes (369) (4,851)
Income tax benefit (106) (1,928)
NET LOSS ($263) ($2,923)
Net loss per share - basic ($0.01) ($0.07)
Weighted average number of
shares outstanding 41,304 41,461
Net loss per share -
assuming dilution ($0.01) ($O.07)
Weighted average number of
shares outstanding 44,485 44,613
Note: Computation of diluted net loss per share was anti-dilutive for the
three months ended March 31, 1997 and March 26, 1998; therefore, amounts
reported for basic and diluted net loss per share are the same.
SOURCE Speedway Motorsports, Inc.