Speedway Motorsports Inc. Reports Operating Results (10-Q)
Speedway Motorsports Inc. is a leading marketer and promoter of motorsports entertainment in the United States. The Company owns and operates the following premier facilities: Atlanta Motor Speedway Bristol Motor Speedway Infineon Raceway Las Vegas Motor Speedway Lowe's Motor Speedway and Texas Motor Speedway. The Company provides souvenir merchandising services through its SMI Properties subsidiaries and Motorsports Authentics joint venture and manufactures and distributes smaller-scale modified racing cars through its six hundred Racing subsidiary. The Company also owns Performance Racing Network which broadcasts syndicated motorsports programming to over seven hundred thirty radio stations nationwide. Speedway Motorsports Inc. has a market cap of $650.3 million; its shares were traded at around $15.27 with a P/E ratio of 8.1 and P/S ratio of 1. The dividend yield of Speedway Motorsports Inc. stocks is 2.3%. Speedway Motorsports Inc. had an annual average earning growth of 9.4% over the past 10 years. GuruFocus rated Speedway Motorsports Inc. the business predictability rank of 4-star. Highlight of Business Operations: Reiterated 2009 Earnings GuidanceIn connection with the Companys third quarter 2009 earnings release, management reaffirmed its previous full year 2009 guidance of $1.70-$1.90 for diluted earnings per share from continuing operations, assuming current industry trends continue, and excluding Motorsports Authentics joint venture results, capital expenditures exceeding current plans, the impact of uncertain and unprecedented credit and economic conditions, poor weather surrounding events and other unforeseen factors.
Interest Expense, Net for the three months ended September 30, 2009 was $13.7 million compared to $8.3 million for the same period last year. This change reflects interest expense associated with the 2009 Senior Notes issued in May 2009,
Equity Investee Losses (Earnings). Equity investee losses for the three months ended September 30, 2009 were $3.2 million compared to equity investee earnings of $224,000 for the same period last year. Those amounts represent the Companys 50% share of joint venture equity investee operating results. As further discussed in Note 2 to the Consolidated Financial Statements, MA third quarter 2008 results reflect increased merchandise sales of a popular NASCAR driver and material MA licensor who changed racing teams at the end of 2007. There were no similar changes that favorably impacted MA third quarter 2009 results. Also, MA third quarter 2009 results were negatively impacted by decreased attendance at motorsports racing events and reduced discretionary spending from recessionary conditions.
Other Expense, Net for the three months ended September 30, 2009 was $111,000 compared to $181,000 for the same period last year. The change was due to a combination of individually insignificant items.
Net Income for the three months ended September 30, 2009 was $7.9 million compared to $7.0 million for the same period last year. This change is due to the factors discussed above.
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