Published on August 3rd, 2011 | by Michael J Smith0
Speedway Motorsports Inc Reports Second Quarter Results
Speedway Motorsports Inc reported second quater total revenues of $153.1 million and adjusted non-GAAP income from operations of $20.5 million of $0.49 per diluted share. Six month total revenues were $239.9 million and adjusted non-GAAP income from operations was $23.7 million or $0.57 per diluted share.
Additionally, SMI reaffirmed its full year earning’s guidance of $0.90 to $1.20 per diluted share.
SMI’s GAAP loss from operations was $28.1 million and $29.3 or $0.68 and $0.71 per diluted share for three and six month periods, respectively.
Factors that impacted SMI’s second quarter results include:
- Atlanta Motor Speedway held a NASCAR Sprint Cup Series racing event in the first quarter 2010 that was realigned to Kentucky Speedway in the third quarter 2011
- New Hampshire Motor Speedway held a NASCAR Sprint Cup and a Nationwide Series racing event in the second quarter 2010 that was held in the third quarter 2011
- Charlotte Motor Speedway held a NHRA Nationals racing event in the first quarter 2010 that was held in the second quarter 2011
- Kentucky Speedway held a NASCAR Nationwide Series racing event in the second quarter 2010 that was held in the third quarter 2011
- Ongoing effects of challenging economic conditions, including high food and fuel prices, as well as high unemployment
- Lower interest expense from first quarter 2011 debt refinancing transactions
- Higher effective income tax rates in 2011
Total revenues are down 13.9% compared to the second quarter of 2010. Year-to-date, total revenues are down 19% compared to the same span in 2010.
Marcus G. Smith, Chief Operating Officer and President of Speedway Motorsports said:
Our second quarter results, excluding a sizable non-cash charge, exceeded our expectations and reflect growing indications that attendance trends are stabilizing, as well as current and prospective corporate marketing interest is increasing. The non-cash charge overshadows our progress with cost reduction efforts and benefits of reduced interest costs under our successful first quarter 2011 financing transactions. And we continue to believe our price reductions are successfully helping offset the tough economic times for our fans.
These results come a few weeks after Kentucky Speedway, in its inaugural Sprint Cup race, had horrible traffic conditions that resulted in several fans being turned away, after sitting in hours of traffic, due to a lack of parking. Ultimately, SMI offered fans a ticket exchange.
Bruton Smith, Chairman and Chief Executive Officer of Speedway Motorsports said:
What was intended to be an incredibly successful, sold-out inaugural NASCAR Sprint Cup race in July at our newly modernized Kentucky Speedway was marred by extreme traffic and other congestion for which we remain apologetic. This is not SMI’s way. We build the finest, most fan-pleasing facilities and infrastructure possible for our fans and our sport. Our history is conducting exceptionally fan-appealing, entertaining and successful events. We are already progressing on improving and expanding on-site road systems, available parking, restroom, and other facilities at the speedway, as well as working with the State of Kentucky to help improve surrounding roadways. Notwithstanding these fixable issues, the interest and excitement surrounding this inaugural race event far exceeded our expectations. We remain more confident than ever that Kentucky’s premium market represents a tremendous long-term growth opportunity for SMI, as well as broadcasters and advertisers, and will undoubtedly join SMI’s successful history of investing in first-class facilities.