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Speedway Motorsports Reports Results For The Three And Six Months Ended June 30, 2012 And Reaffirms Full Year 2012 Guidance

Stocks in this article: TRK

Speedway Motorsports, Inc. (SMI) (NYSE: TRK) today reported second quarter 2012 total revenues of $181.0 million and net income of $27.0 million or $0.65 per diluted share. Six month 2012 total revenues were $265.8 million and net income was $26.8 million or $0.65 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.

Second quarter and year-to-date 2012 results were impacted by, among other factors, the following:

  • Kentucky Speedway held a NASCAR Sprint Cup, NASCAR Nationwide and NASCAR Camping World Truck Series racing event in the second quarter 2012 that were held in the third quarter 2011
  • Ongoing effects of challenging economic conditions, including high unemployment and fuel prices

Revenues 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.

Second Quarter Comparison

  • Total revenues were $181.0 million in 2012 compared to $153.1 million in 2011
  • 2011 goodwill impairment charge was $48.6 million or $1.17 per diluted share (with no tax benefit)
  • Income from continuing operations was $27.0 million or $0.65 per diluted share in 2012 compared to a loss from continuing operations of $28.1 million or $0.68 per diluted share in 2011
  • After tax losses from discontinued operations were $11,000 or $0.00 per diluted share in 2012 compared to $179,000 or $0.00 per diluted share in 2011
  • Net income was $27.0 million or $0.65 per diluted share in 2012 compared to a net loss of $28.3 million or $0.68 per diluted share in 2011
  • Non-GAAP income from continuing operations was $27.0 million or $0.65 per diluted share in 2012 compared to $20.5 million or $0.49 per diluted share in 2011

Year-to-Date Comparison

  • Total revenues were $265.8 million in 2012 compared to $239.8 million in 2011
  • 2011 goodwill impairment charge was $48.6 million or $1.17 per diluted share (with no tax benefit)
  • 2011 after tax loss on early debt redemption and refinancing was $4.5 million or $0.11 per diluted share
  • Income from continuing operations was $26.8 million or $0.65 per diluted share in 2012 compared to a loss from continuing operations of $29.3 million or $0.71 per diluted share in 2011
  • After tax losses from discontinued operations were $39,000 or $0.00 per diluted share in 2012 compared to $453,000 or $0.01 per diluted share in 2011
  • Net income was $26.8 million or $0.65 per diluted share in 2012 compared to a net loss of $29.8 million or $0.72 per diluted share in 2011
  • Non-GAAP income from continuing operations was $26.8 million or $0.65 per diluted share in 2012 compared to $23.7 million or $0.57 per diluted share in 2011

Non-GAAP Financial Information and Reconciliation

Income from continuing operations, and diluted earnings 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 certain 2011 charges. In 2011, the Company reflected a second quarter non-cash charge for goodwill impairment related to New Hampshire Motor Speedway with no tax benefit, and a first quarter charge related to its debt redemption and refinancing transactions with tax benefits of $2.9 million.

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