Speedway Motorsports (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. SMI reaffirmed its full year 2012 earnings guidance of $0.90 to $1.20 per diluted share from continuing operations.
The entertainment company, which owns many NASCAR tracks including Atlanta Motor Speedway, Bristol Motor Speedway, Charlotte Motor Speedway, Infineon Raceway, Kentucky Speedway, Las Vegas Motor Speedway, New Hampshire Motor Speedway and Texas Motor Speedway, is suffering from declining fan attendance, flat souvenir sales and weak corporate sponsorships.
Because many tickets and corporate marketing arrangements are sold well in advance of scheduled events, Speedway said it might take relatively longer for SMI’s results to reflect sales growth as economic conditions improve.
“Although SMI’s first quarter results were within our expectations, they reflect the continuing impact of high unemployment and fuel prices on our core fan base,” stated Marcus G. Smith, Chief Operating Officer and President of Speedway Motorsports.
Thus far in 2012, as in 2011, Speedway maintained reduced ticket and other prices to help counter what it said remained “tough economic times.” At the close of 2011 Speedway had total permanent seating capacity of approximately 900,000, with 832 luxury suites at its tracks.
The Company’s Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock aggregating approximately $6.2 million, payable on June 8, 2012 to shareholders of record as of May 18, 2012. These quarterly dividends represent a 50% increase over comparable quarterly amounts declared last year. The Board of Directors plans to continue to evaluate cash dividends on a quarterly basis in the future.
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