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Speedway Motorsports Reports Results For Fourth Quarter And Year Ended December 31, 2011 And Provides Full Year 2012 Guidance

Stocks in this article: TRK

Speedway Motorsports, Inc. (SMI) (NYSE: TRK) today reported fourth quarter 2011 total revenues of $89.1 million and a loss from continuing operations of $126,000 or $0.00 per diluted share. Full year 2011 total revenues were $505.8 million and adjusted non-GAAP income from continuing operations was $47.5 million or $1.14 per diluted share. Full year 2011 GAAP loss from continuing operations was $5.6 million or $0.14 per diluted share.

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.

Fourth quarter and full year 2011 results were also impacted by, among other factors, the following:

  • Race schedule changes for IndyCar, NASCAR Camping World Truck Series and other smaller racing events
  • Kentucky Speedway held one realigned NASCAR Sprint Cup Series racing event in 2011 that was held at Atlanta Motor Speedway in 2010
  • Poor weather surrounding NASCAR racing events held at Atlanta Motor Speedway in the third quarter 2011, including rescheduling of its NASCAR Sprint Cup race from Sunday to Tuesday
  • Ongoing effects of challenging economic conditions, including high unemployment and fuel prices
  • Lower interest expense from first quarter 2011 debt refinancing transactions
  • Higher effective income tax rates for 2011

Fourth Quarter Comparison

  • Total revenues were $89.1 million in 2011 compared to $82.9 million in 2010
  • Loss from continuing operations was $126,000 or $0.00 per diluted share in 2011 compared to income from continuing operations of $4.0 million or $0.09 per diluted share in 2010
  • Loss from discontinued operations was $272,000 or $0.01 per diluted share in 2011 compared to income from discontinued operations of $2.1 million or $0.05 per diluted share in 2010
  • Net loss was $398,000 or $0.01 per diluted share in 2011 compared to net income of $6.0 million or $0.14 per diluted share in 2010

Full Year Comparison

  • Total revenues were $505.8 million in 2011 compared to $502.2 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 $5.6 million or $0.14 per diluted share in 2011 compared to income from continuing operations of $45.3 million or $1.08 per diluted share in 2010
  • Loss from discontinued operations was $883,000 or $0.02 per diluted share in 2011 compared to $782,000 or $0.02 per diluted share in 2010
  • Net loss was $6.4 million or $0.16 per diluted share in 2011 compared to net income of $44.5 million or $1.06 per diluted share in 2010
  • Adjusted non-GAAP income from continuing operations was $47.5 million or $1.14 per diluted share in 2011 compared to $45.3 million or $1.08 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 unemployment and fuel prices. Admissions revenue declines for 2011 largely reflect lower average ticket prices and, to a lesser extent, fewer fans attending our race events. In 2012, similar to 2011, the Company continues to reduce various ticket and other prices for its fans and corporate customers to help counter these tough economic times and mitigate near-term demand weakness. Because fans are purchasing tickets closer to event dates, the Company has initiated various promotional campaigns to incentivize earlier ticket purchasing and season ticket package renewals. Nevertheless, management believes it will take relatively longer for SMI’s results to reflect sales growth as economic conditions improve since most revenues, such as admissions and corporate marketing arrangements, are still sold well in advance of scheduled events.

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