Speedway Motorsports, Inc. (SMI) (NYSE:TRK) today reported third quarter 2011 total revenues of $177.0 million and adjusted non-GAAP income from continuing operations of $23.9 million or $0.58 per diluted share. Nine month 2011 total revenues were $416.7 million and adjusted non-GAAP income from continuing operations was $47.6 million or $1.15 per diluted share. GAAP income from continuing operations was $23.9 million or $0.58 per diluted share for the third quarter 2011, and a loss from continuing operations of $5.4 million or $0.13 per diluted share, for the nine month 2011 period.

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.

Third quarter and year-to-date 2011 results were also impacted by, among other factors, the following:
  • Kentucky Speedway held one realigned NASCAR Sprint Cup Series racing event in the third quarter 2011 that was held at Atlanta Motor Speedway in the first quarter 2010, and held one NASCAR Nationwide Series racing event in the third quarter 2011 that was held in the second quarter 2010
  • New Hampshire Motor Speedway held one NASCAR Sprint Cup and one NASCAR Nationwide Series racing event in the third quarter 2011 that were held in the second quarter 2010
  • Race schedule changes for IndyCar, NASCAR Camping World Truck Series and other smaller racing events
  • 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 food and fuel prices, as well as high unemployment
  • Lower interest expense from first quarter 2011 debt refinancing transactions
  • Higher effective income tax rates for the nine month 2011 period

Third Quarter Comparison
  • Total revenues were $177.0 million in 2011 compared to $123.2 million in 2010
  • Income from continuing operations was $23.9 million or $0.58 per diluted share in 2011 compared to $7.0 million or $0.16 per diluted share in 2010
  • After tax losses from discontinued operations were $158,000 or $0.01 per diluted share in 2011 compared to $535,000 or $0.01 per diluted share in 2010
  • Net income was $23.7 million or $0.57 per diluted share in 2011 compared to $6.5 million or $0.15 per diluted share in 2010
  • Non-GAAP income from continuing operations was $23.9 million or $0.58 per diluted share in 2011 compared to $7.0 million or $0.16 per diluted share in 2010

Year-to-Date Comparison
  • Total revenues were $416.7 million in 2011 compared to $419.3 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 $5.4 million or $0.13 per diluted share in 2011 compared to income from continuing operations of $41.3 million or $0.98 per diluted share in 2010
  • After tax losses from discontinued operations were $611,000 or $0.02 per diluted share in 2011 compared to $2.8 million or $0.06 per diluted share in 2010
  • Net loss was $6.0 million or $0.15 per diluted share in 2011 compared to net income of $38.5 million or $0.92 per diluted share in 2010
  • Non-GAAP income from continuing operations was $47.6 million or $1.15 per diluted share in 2011 compared to $41.3 million or $0.98 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 and food 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 and third quarters 2011, on a comparable year-over-year event basis, 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. SMI plans to continue with various price reductions for the upcoming 2012 race season to help our fans in these tough economic times. 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 when economic conditions improve.

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