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TheStreet Open House

Speedway Motorsports Reports Results For First Quarter 2012 And Reaffirms Full Year 2012 Guidance

Speedway Motorsports, Inc. (SMI) (NYSE: TRK) today reported first quarter 2012 total revenues of $84.8 million and a loss from continuing operations of $118,000 or $0.00 per diluted share. These results were within management’s expectations, and SMI reaffirmed its full year 2012 earnings guidance of $0.90 to $1.20 per diluted share from continuing operations.

The Company’s admissions and many event related 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. In 2012, similar to 2011, the Company maintained reduced ticket and other prices for its fans and corporate customers to help counter these tough economic times and mitigate near-term demand weakness.

Because many revenues such as admissions and corporate marketing arrangements are sold well in advance of scheduled events, management believes it may take relatively longer for SMI’s results to reflect sales growth as economic conditions improve.

First Quarter Comparison:

  • Total revenues were $84.8 million in 2012 compared to $86.7 million 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 $118,000 or $0.00 per diluted share in 2012 compared to $1.2 million or $0.03 per diluted share in 2011
  • After tax losses from discontinued operations were $28,000 or $0.00 per diluted share in 2012 compared to $274,000 or $0.01 per diluted share in 2011
  • Net loss was $146,000 or $0.00 per diluted share in 2012 compared to $1.5 million or $0.04 per diluted share in 2011

Non-GAAP Financial Information and Reconciliation

Income (loss) from continuing operations, and diluted earnings (loss) per share from continuing operations, as adjusted, set forth below are non-GAAP (other than generally accepted accounting principles) financial measures presented as supplemental disclosures to their individual corresponding GAAP basis amounts. The following schedule reconciles those non-GAAP financial measures to their most directly comparable information presented using GAAP, all net of taxes. Management believes such non-GAAP information is useful and meaningful to investors and helps in understanding, using and comparing the Company’s results of continuing operations separate from discontinued operations and a certain 2011 charge. Management uses the non-GAAP information to assess the Company’s continuing operations for the periods presented, analyze performance trends and make decisions regarding future operations because it believes this separate information better reflects ongoing operating results. This non-GAAP financial information is not intended to be considered independent of or a substitute for results prepared in accordance with GAAP. 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 net income or loss, diluted earnings or loss per share, or income or loss and diluted earnings or loss per share from continuing operations, determined in accordance with GAAP.

 

  Three Months Ended

March 31:

2012

 

2011

(in thousands, except per share amounts)
Consolidated net loss using GAAP $ (146 ) $ (1,518 )
Loss from discontinued operation   28     274  
Consolidated loss from continuing operations (118 ) (1,244 )
Loss on early debt redemption and refinancing   --     4,458  
Non-GAAP consolidated (loss) income from continuing operations $ (118 ) $ 3,214  
 
Consolidated diluted loss per share using GAAP $ (0.00 ) $ (0.04 )
Loss from discontinued operation   0.00     0.01  
Consolidated diluted loss per share from continuing operations (0.00 ) (0.03 )
Loss on early debt redemption and refinancing   --     0.11  
Non-GAAP diluted (loss) earnings per share from continuing operations $ (0.00 ) $ 0.08  
 

Significant 2012 First Quarter Racing Events

  • Las Vegas Motor Speedway - NASCAR Kobalt Tools 400 Sprint Cup and Sam's Town 300 Nationwide Series racing events
  • Bristol Motor Speedway - NASCAR Food City 500 Sprint Cup and Ford EcoBoost 300 Nationwide Series racing events

2012 Earnings Guidance

The Company reiterated that first quarter 2012 results are consistent with its previous full year 2012 earnings guidance of $0.90-$1.20 per diluted share from continuing operations. The wide range of earnings guidance reflects the continuing negative impact of uncertain economic conditions, as well as the timing and pace of economic recovery. The guidance also reflects expiration of Infineon Raceway’s naming rights agreement and reduced NASCAR ancillary rights revenues. High or increasing fuel and food prices could significantly impact our future results.

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