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Speedway Motorsports Inc. Reports Operating Results (10-Q)

November 03, 2010 | About:
gurufocus

10qk

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Speedway Motorsports Inc. (TRK) filed Quarterly Report for the period ended 2010-09-30.

Speedway Motorsports Inc. has a market cap of $659.8 million; its shares were traded at around $15.64 with a P/E ratio of 12.9 and P/S ratio of 1.2. The dividend yield of Speedway Motorsports Inc. stocks is 2.5%. Speedway Motorsports Inc. had an annual average earning growth of 6.5% over the past 10 years. GuruFocus rated Speedway Motorsports Inc. the business predictability rank of 4.5-star.TRK is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Revised 2010 Earnings GuidanceIn connection with the Companys third quarter 2010 earnings release, management revised its previous full year 2010 guidance to $0.80-$1.00 per diluted share from continuing operations. This revised guidance reflects the continuing negative impact of recessionary conditions and uncertainty regarding the timing and pace of economic recovery.

Interest Expense, Net for the three months ended September 30, 2010 was $12.7 million compared to $13.7 million for the same period last year. This change reflects lower average Credit Facility borrowings outstanding and, to a lesser extent, higher capitalized interest in the current period as compared to the same period last year. Those changes were partially offset by higher average interest rates on Credit Facility borrowings in the current period. See Note 5 to the Consolidated

Equity Investee Losses for the three months ended September 30, 2009 were $3.2 million, representing the Companys 50% share of joint venture equity investee operating results. As further discussed in Note 2 to the Consolidated Financial Statements, the carrying value of the Companys equity investment in MA is $0 at September 30, 2010 and December 31, 2009. Under equity method accounting, the Company no longer records its 50% share of MA operating losses, if any, unless and until this carrying value is increased from additional Company investments in MA or to the extent of future MA operating profits, if any. Because of uncertainty about MAs ability to achieve sustained profitability, management continues to believe MAs estimated fair value is $0 under applicable authoritative guidance. As such, no income from MAs operations for the three months ended August 31, 2010 was recognized by the Company under the equity method.

Other Expense, Net for the three months ended September 30, 2010 was $204,000 compared to $111,000 for the same period last year. This change is due to a combination of individually insignificant items.

Net Income for the three months ended September 30, 2010 was $6.5 million compared to $7.9 million for the same period last year. This change is due to the factors discussed above.

Read the The complete Report

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