SMI also said it would hire professional parking and engineering services to manage automotive and pedestrian traffic flows during event days.

As a result, the Kentucky Transportation Cabinet vowed to improve surrounding highways to allow faster access to the expanded parking areas.

Kentucky Speedway General Manager Mark Simendinger said:

We learned meaningful lessons during our inaugural NASCAR Sprint Cup Series race weekend and we committed that the traffic congestion that occurred on race day would not happen again. It was important for us to act quickly and I am thrilled to report this solution, which was formed in only seven short weeks. I compliment and thank SMI Chairman and CEO Bruton Smith, Kentucky Gov. Steve Beshear and KYTC Sec. Mike Hancock for working collaboratively on this plan.

The new parcel of land is expected to increase parking capacity by 35%.

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.

Speedway president Ed Clark said:

Atlanta Motor speedway has provided top-quality racing entertainment to spectators from across the nation and around the world for 50 years. While our schedule will change, our commitment to the racing fans who have been the heart and soul of Atlanta Motor Speedway through these years will be stronger than ever.

According to court documents, AMS claims that Pep Boys stopped making payments on a $3 million race sponsorship contract. The suit states that contract called for $1.4 million for AMS’s 2008 fall race, and $1.6 million for the 2009 fall race.

The suit alleges that the auto parts retailer failed to pay $800,000 by March 1, 2009, as the agreement required. And, Pep Boys still owes $1.6 million for this season’s fall race.

Speedway Motorsports Inc., which owns AMS, claims that Pep boys did not have a problem with the fall Sprint Cup race at Atlanta being moved to Labor Day weekend, making it a summer race instead of a fall race, as the contract states.

Pep Boys, however, sent a letter to SMI saying it could void the contract because of the move. SMI disputes that, saying the contract cannot be voided on those grounds.

SceneDaily has some other information about the sponsorship deal.