This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Speedway Motorsports Reports Results For The Three And Six Months Ended June 30, 2011 And Reaffirms Full Year 2011 Guidance

Stocks in this article: TRK

Speedway Motorsports, Inc. (SMI) (NYSE:TRK) today reported second quarter 2011 total revenues of $153.1 million and adjusted non-GAAP income from continuing operations of $20.5 million or $0.49 per diluted share. Six month 2011 total revenues were $239.8 million and adjusted non-GAAP income from continuing operations was $23.7 million or $0.57 per diluted share. Also, SMI reaffirmed its full year 2011 earnings guidance of $0.90 to $1.20 per diluted share from continuing operations, excluding the 2011 charges described below. GAAP loss from continuing operations was $28.1 million and $29.3 million, or $0.68 and $0.71 per diluted share, for the three and six month 2011 periods.

The adjusted non-GAAP results exclude a first quarter 2011 charge for early debt redemption and refinancing and a non-cash second quarter 2011 impairment charge as further discussed and reconciled with comparable GAAP amounts below.

Second quarter and year-to-date 2011 results were also impacted by, among other factors, the following:

  • 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

Second Quarter Comparison

  • Total revenues were $153.1 million in 2011 compared to $177.6 million in 2010
  • Goodwill impairment charge was $48.6 million or $1.17 per diluted share (with no tax benefit) in 2011
  • Loss from continuing operations was $28.1 million or $0.68 per diluted share in 2011 compared to income from continuing operations of $24.1 million or $0.57 per diluted share in 2010
  • After tax losses from discontinued operations were $179,000 or $0.00 per diluted share in 2011 compared to $1.0 million or $0.02 per diluted share in 2010
  • Net loss was $28.3 million or $0.68 per diluted share in 2011 compared to net income of $23.0 million or $0.55 per diluted share in 2010
  • Non-GAAP income from continuing operations was $20.5 million or $0.49 per diluted share in 2011 compared to $24.1 million or $0.57 per diluted share in 2010

Year-to-Date Comparison

  • Total revenues were $239.8 million in 2011 compared to $296.1 million in 2010
  • Goodwill impairment charge was $48.6 million or $1.17 per diluted share (with no tax benefit) in 2011
  • After tax loss on early debt redemption and refinancing was $4.5 million or $0.11 per diluted share in 2011
  • Loss from continuing operations was $29.3 million or $0.71 per diluted share in 2011 compared to income from continuing operations of $34.3 million or $0.81 per diluted share in 2010
  • After tax losses from discontinued operations were $453,000 or $0.01 per diluted share in 2011 compared to $2.3 million or $0.05 per diluted share in 2010
  • Net loss was $29.8 million or $0.72 per diluted share in 2011 compared to net income of $32.0 million or $0.76 per diluted share in 2010
  • Non-GAAP income from continuing operations was $23.7 million or $0.57 per diluted share in 2011 compared to $34.3 million or $0.81 per diluted share in 2010

The Company’s admissions and many event related and other revenue categories continue to be negatively impacted by declines in consumer and corporate spending due to weak economic conditions, including high fuel prices and unemployment. In 2011, similar to 2010, management has reduced many ticket prices and increased promotional spending to help foster fan support and mitigate any near-term demand weakness. Admissions revenue declines for the second quarter 2011 largely reflect lower average ticket prices, while for year-to-date reflect both lower average ticket prices and fewer fans attending our race events in the first quarter 2011. Because many revenues, such as admissions and corporate marketing arrangements, are sold well in advance of scheduled events, management believes it will take relatively longer for SMI’s results to reflect sales growth as economic conditions improve.

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs