Speedway Motorsports Reports Record Revenues and Earnings for the Third Quarter of 2003.Sports Editors/Business Editors CONCORD, N.C.--(BUSINESS WIRE)--Nov. 11, 2003 Speedway Motorsports, Inc. (NYSE NYSE See: New York Stock Exchange : TRK TRK Truck TRK Tracking TRK trunk (US DoD) TRK Tyrosine Kinase Receptor TRK Tarakan, Indonesia - Tarakan (Airport Code) TRK Track/Tracker TRK Team Rocket Killers (gaming) ) today announced record revenues and earnings for the third quarter ended September 30, 2003. For third quarter 2003 as compared to 2002: -- total revenues increased 9% or $5.1 million to $64.0 million; -- third quarter 2003 net income increased 113% or $1.0 million to $1.9 million; and -- third quarter 2003 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 100% or $0.02 to $0.04. During the third quarter, Bristol Motor Speedway Bristol Motor Speedway, originally known as Bristol International Raceway and Bristol Raceway is a NASCAR short track located in Bristol, Tennessee. It was constructed in 1960, and held its first NASCAR race on July 30, 1961. hosted sold-out capacity crowds at its Sharpie 500 NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla. Winston Cup Series and record attendance at its Food City 250 NASCAR Busch Series The NASCAR Busch Series is a stock car racing series owned and operated by NASCAR. It is NASCAR's "minor league" circuit (often compared to Triple-A baseball), and is a proving ground for drivers who wish to step up to the organization's "big league" circuit, the Nextel Cup. racing events. Other third quarter highlights include Las Vegas Motor Speedway Las Vegas Motor Speedway, located in Clark County, Nevada, just outside Las Vegas, is a 1,200 acre (4.9 km²) complex of four different tracks for automobile racing. The complex is owned by Speedway Motorsports, Inc., which is headquartered in Charlotte, North Carolina. achieving record attendance at its NASCAR Craftsman Truck Series Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. 350 racing event, and finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of the exchange offer and registration of the Company's $230 million 6 3/4% senior subordinated notes due 2013 issued in a private placement on May 16, 2003. The direct comparability of third quarter 2003 results to 2002 was impacted by Texas Motor Speedway Texas Motor Speedway is a superspeedway located in the northernmost portion of the U.S. city of Fort Worth, Texas -- the portion located in Denton County, Texas. The track layout is very similar to Atlanta Motor Speedway and Lowe's Motor Speedway (formerly Charlotte Motor hosting NASCAR Craftsman Truck and Indy Racing League The Indy Racing League, better known as IRL, is the sanctioning body of a predominantly American based open-wheel racing series. The League consists of two series, the premiere IndyCar Series Series racing events in the third quarter 2002 which are being held in the fourth quarter 2003, and to a lesser extent, by Las Vegas Motor Speedway hosting its NASCAR Craftsman Truck Series racing event in the third quarter 2003 which was held in the fourth quarter 2002. Changes in racing schedules can lessen the comparability of operating results between quarterly financial statements of successive years. For the 2003 nine-month period as compared to 2002: -- total revenues increased 5% or $16.5 million to $319.9 million; -- nine-month 2003 net income decreased $245,000 to $47.5 million, which was primarily attributable to debt refinancing Refinancing An extension and/or increase in amount of existing debt. and the FTC FTC See Federal Trade Commission (FTC). refund claims settlement after tax charges aggregating $9.4 million in 2003 compared to an accounting change and debt redemption after tax charges of $5.0 million in 2002; and -- nine-month 2003 and 2002 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). diluted earnings per share were $1.11, which included debt refinancing and the FTC settlement after tax charges aggregating $0.22 per share in 2003 compared to an accounting change and debt redemption after tax charges aggregating $0.12 per share in 2002. However, -- nine-month 2003 non-GAAP diluted earnings per share, as defined and reconciled below, which exclude charges for debt refinancing and the FTC settlement in 2003 and the accounting change and debt redemption in 2002, increased 7% or $0.09 to $1.33 compared to $1.24 last year. The following financial information is presented below using other than generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("non-GAAP"), and is reconciled to comparable information presented using GAAP. Non-GAAP net income and diluted earnings per share below are derived by adjusting GAAP basis amounts for certain items presented in the accompanying selected income statement data net of income taxes. Because the adjustments relate to charges for refinancing essentially all of the Company's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and the FTC settlement, management believes such non-GAAP information is useful and meaningful to investors, and is used by management, to assess the Company's core operations. This non-GAAP financial information may not be comparable to similarly titled measures used by other entities and should not be considered as alternatives to operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , net income or diluted earnings per share, which are determined in accordance with GAAP.
Three Months Nine Months
Ended Sept 30: Ended Sept 30:
------------------------------
2003 2002 2003 2002
------------------------------
(in thousands, except per share amounts)
Net income $1,854 $869 $47,485 $47,730
Cumulative effect of accounting change
for goodwill impairment, net of taxes -- -- -- 4,273
Loss from operations and disposal of
discontinued business, net of taxes -- -- -- 686
-----------------------------
Income from continuing operations 1,854 869 47,485 52,689
Adjustments (net of taxes):
Interim interest expense on debt
redeemed -- -- 902 --
Loss on early debt redemption and
refinancing -- -- 7,770 751
FTC refund claims settlement -- -- 693 --
-----------------------------
Non-GAAP net income $1,854 $869 $56,850 $53,440
=============================
Diluted earnings per share $0.04 $0.02 $1.11 $1.11
Accounting change -- -- -- 0.10
Discontinued operations -- -- -- 0.01
-----------------------------
Diluted earnings per share from
continuing operations 0.04 0.02 1.11 1.22
Adjustments (net of taxes):
Interim interest expense on debt
redeemed -- -- 0.02 --
Loss on early debt redemption and
refinancing -- -- 0.18 0.02
FTC refund claims settlement -- -- 0.02 --
-----------------------------
Non-GAAP diluted earnings per share $0.04 $0.02 $1.33 $1.24
=============================
"Our nine-month record revenues and results demonstrate SMI's proven ability to consistently grow revenues by focusing on our core business despite challenging economic conditions, geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. concerns and poor weather," stated H.A. Wheeler, chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and president of Speedway Motorsports. "These results also demonstrate SMI's increasing financial and operating strength from expanding sources of longer-term contracted revenues." "The record attendance at our NASCAR events held at Bristol and Las Vegas Motor Speedways in 2003 demonstrates the increasing market appeal and long-term growth opportunities these first-class venues offer to fans, broadcasters and sponsors," stated O. Bruton Smith Ollen Bruton Smith (born 1927 in Oakboro, North Carolina) is a promoter and owner/CEO of NASCAR track owner Speedway Motorsports, Inc. The billionaire was ranked #207 on the Forbes 400 list with an estimated worth of $1. , chairman and chief executive officer of Speedway Motorsports. "At this time, advance ticket and other sales for our upcoming 2004 racing season appear fairly strong. The strong resilience of our core racing fans continues. We are encouraged by these and other positive economic factors." The nine-month 2003 results reflect charges for: (1) loss on debt refinancing of $12.8 million pre-tax, $7.8 million after taxes or $0.18 per diluted share, related to replacement of the Company's bank credit facility, issuance of $230.0 million of 6 3/4% senior subordinated notes, and early redemption of $250.0 million of 8 1/2% senior subordinated notes; (2) additional net interest expense of $1.5 million pre-tax, $902,000 after taxes or $0.02 per diluted share, from issuing the 6 3/4% senior subordinated notes on May 16, 2003 and redeeming the 8 1/2% senior subordinated notes on June 15, 2003; and (3) FTC refund claims settlement of $1.1 million pre-tax, $693,000 after taxes or $0.02 per diluted share, reached with Oil-Chem Research Corp. The nine-month 2002 results reflect: (1) a charge for loss on early debt redemption of $1.2 million pre-tax, $751,000 after taxes or $0.02 per diluted share, related to the early redemption of $53.7 million of convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before in April 2002; (2) the cumulative effect of an accounting change for goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of $4.3 million or $0.10 per diluted share associated with certain non-motorsports related reporting units upon adoption of Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " as of January 1, 2002; and (3) the Company's disposal of SoldUSA in the second quarter 2002 that resulted in net losses from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and disposal of $686,000 or $0.01 per diluted share. There were no charges associated with SoldUSA's disposal in the three months ended September 30, 2003 or 2002 or nine months ended September 30, 2003. Speedway Motorsports is a leading marketer and promoter of motorsports entertainment in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company owns and operates the following premier facilities: Atlanta Motor Speedway Atlanta Motor Speedway (formerly Atlanta International Raceway) is a superspeedway in Hampton, Georgia, twenty miles (32 km) south of Atlanta. It is a 1.54-mile (2.48 km) quad-oval track with a seating capacity of over 125,000. It opened in 1960 as a 1.5 mile standard oval. , Bristol Motor Speedway, Infineon Raceway Infineon Raceway, formerly Sears Point Raceway, is a road course and drag strip located on the landform known as Sears Point in the southern Sonoma Mountains near Sonoma, California, USA. The course is a complex series of twists and turns that go up and down the hills. , Las Vegas Motor Speedway, Lowe's Motor Speedway Lowe's Motor Speedway (formerly Charlotte Motor Speedway) is a speedway in Concord, North Carolina, north of Charlotte. It features a 1.5 mile long quad-oval track that seats 167,000 people, with room for 50,000 more spectators in the infield. and Texas Motor Speedway. The Company provides souvenir merchandising services through its SMI (1) (Storage Management Initiative) The initiative developed by the SNIA in 2003 to create a single standard interface for storage management technologies used by multiple vendors and networking communities. Properties subsidiary, and manufactures and distributes smaller-scale, modified racing cars This article is about the Welsh pop band. For auto racing, see Racing cars. Racing Cars is a Welsh pop band, formed in the Rhondda Valley, South Wales in 1973. through its 600 Racing subsidiary. The Company also owns Performance Racing Network The Performance Racing Network is a radio network controlled by Speedway Motorsports, Inc.. PRN broadcasts all NASCAR-sanctioned Nextel Cup and Busch Series events held at Speedway Motorsports-controlled tracks and assists with the Indianapolis Motor Speedway Radio Network which broadcasts syndicated motorsports programming to over 725 radio stations nationwide. For more information, visit the Company's website at www.gospeedway.com. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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 1. (jargon, chat) IRL - In real life. Generally synonymous with f2f. 2. (language, robotics) IRL - Industrial Robot Language. , NHRA NHRA National Hot Rod Association NHRA Northland Human Resource Association NHRA National Human Resources Association NHRA Nursing Home Reform Act NHRA National Hospice Regatta Alliance NHRA National Heritage Resources Act (South Africa) and other racing events, our relationship with NASCAR and other sanctioning bodies, the success of expense reduction efforts, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , insurance, and economic conditions. These factors and other factors, including those contained in Exhibit 99.1 to the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , 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 a.m. ET which are open to all participants. To participate in the conference call, you may dial 877-616-4485 for US and Canadian calls or 706-643-3796 for International calls. The reference number is 2759116. A webcast of the call by CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network can be accessed at the Company's website www.gospeedway.com. To listen to a playback of the call, you may dial 800-642-1687 (US or Canada) or 706-645-9291 (International) beginning after 12:00 noon (ET) November 11th through November 25th. The reference number is 2759116. Participating in the call will be H.A. Wheeler, Chief Operating Officer and President; William R. Brooks, Chief Financial Officer; and Marylaurel E. Wilks, Vice President, Communications and General Counsel.
Speedway Motorsports, Inc. and Subsidiaries
Selected Financial Data - Unaudited
For The Three and Nine Months Ended September 30, 2003 and 2002
(In thousands except per share amounts)
Three Months Ended Nine Months Ended
------------------------------------------
INCOME STATEMENT DATA 9/30/2003 9/30/2002 9/30/2003 9/30/2002
----------------------------------------------------------------------
REVENUES:
Admissions $24,070 $24,309 $121,597 $119,307
Event related revenue 20,742 19,683 98,425 93,895
NASCAR broadcasting
revenue 9,570 8,180 73,198 62,966
Other operating revenue 9,615 6,710 26,678 27,223
----------------------------------------------------------------------
Total Revenues 63,997 58,882 319,898 303,391
----------------------------------------------------------------------
EXPENSES AND OTHER:
Direct expense of events 15,829 15,420 60,091 58,002
NASCAR purse and sanction
fees 8,129 6,919 55,889 48,894
Other direct operating
expense 8,191 5,689 22,927 22,435
General and
administrative 14,832 14,663 46,082 44,940
Depreciation and
amortization 8,890 7,943 25,816 23,750
Interest expense, net 4,838 5,349 16,416 16,141
Loss on early debt
redemption and
refinancing --- --- 12,800 1,237
FTC refund claims
settlement --- --- 1,141 ---
Other expense, net 233 1,468 486 1,191
----------------------------------------------------------------------
Total Expenses and
Other 60,942 57,451 241,648 216,590
----------------------------------------------------------------------
Income From Continuing Operations Before Income
Taxes and Cumulative
Effect of Accounting Change 3,055 1,431 78,250 86,801
Income Tax Provision 1,201 562 30,765 34,112
----------------------------------------------------------------------
Income From Continuing
Operations Before
Cumulative Effect of
Accounting Change 1,854 869 47,485 52,689
Loss From Operations and
Disposal of Discontinued
Business --- --- --- (686)
----------------------------------------------------------------------
Income Before Cumulative
Effect of Accounting Change 1,854 869 47,485 52,003
Cumulative Effect of
Accounting Change for
Goodwill Impairment --- --- --- (4,273)
----------------------------------------------------------------------
NET INCOME $1,854 $869 $47,485 $47,730
----------------------------------------------------------------------
BASIC EARNINGS PER SHARE:
Continuing Operations
Before Accounting Change $0.04 $0.02 $1.12 $1.24
Discontinued Operations --- --- --- (0.01)
Accounting Change --- --- --- (0.10)
----------------------------------------------------------------------
BASIC EARNINGS PER SHARE $0.04 $0.02 $1.12 $1.13
----------------------------------------------------------------------
Weighted average shares
outstanding 42,528 42,213 42,422 42,071
DILUTED EARNINGS PER SHARE:
Continuing Operations
Before Accounting Change $0.04 $0.02 $1.11 $1.22
Discontinued Operations --- --- --- (0.01)
Accounting Change --- --- --- (0.10)
----------------------------------------------------------------------
DILUTED EARNINGS PER SHARE $0.04 $0.02 $1.11 $1.11
----------------------------------------------------------------------
Weighted average shares
outstanding 42,801 42,352 42,696 43,141
BALANCE SHEET DATA 9/30/03 12/31/02
--------------------------------------------------
Cash and cash equivalents $126,341 $112,638
Total current assets 195,021 153,566
Property and equipment, net 880,636 861,107
Goodwill and other
intangible assets, net 59,061 51,990
Total assets 1,173,740 1,105,740
Current liabilities 150,078 131,240
Revolving credit facility
borrowings 60,000 90,000
Deferred race event income,
net 80,307 85,565
Total long-term debt 340,402 342,225
Total liabilities 627,388 614,568
Total stockholders' equity $546,352 $491,172
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