Speedway Motorsports Inc. reported a net income of $31.1 million in 2014 compared to a loss of $6.5 million in 2013, the company stated in a SEC filing Wednesday.
The company issued its report for the fourth quarter of last year and for all of 2014.
That came as the company, which owns eight tracks that host NASCAR Sprint Cup races, reported admission revenues declined 5 percent from 2013 because of lower overall attendance. Speedway Motorsports stated that poor weather at its Bristol and Texas tracks last spring impacted those numbers.
Asked about the trend in admissions revenue during a conference with industry analysts Wednesday morning, Bill Brooks, SMI’s chief financial officer, said: “We haven’t got definitive proof yet that the admissions or sponsorships have bottomed. The other revenue sources seem to be fairly stable.
“We are optimistic that if there is decline in those categories of revenues that they would be similar to what we experienced.’’
SMI removed seats at New Hampshire Motor Speedway, Atlanta Motor Speedway and Charlotte Motor Speedway last year.
SMI estimates 2015 revenues to be between $450-$500 million (the company reported total revenue of $484.3 million in 2014). SMI estimates that after tax income will be between $37-$45 million in 2015.
Bruton Smith, executive chairman of Speedway Motorsports, said in a statement: “We believe SMI’s future is brighter than it has been for quite some time. SMI’s financial position continues to strengthen. NASCAR’s improvements to our sport over the last few years are significant, and are showing positive benefits in renewed racing excitement, fan appeal and expanding media coverage.
“The media landscape is evolving, driven in part by the new FOX Sports Media Group and NBC Sports Group broadcasting contracts and NASCAR’s innovative marketing programs to capture the next generation of race fans. The new 10-year television broadcasting agreements though 2024 contain an annual average revenue increase of approximately 46 percent, reflecting the high quality of our sport’s entertainment content and long-term marketing appeal. We believe the many sizable and untapped demographics in motorsports, and the marketing initiatives of SMI, NASCAR and the media powerhouses, provide us and our NASCAR industry many long-term growth opportunities.”