Speedway Motorsports Inc. reported third-quarter revenues of $144.1 million, up slightly from last year’s $139.8 million.
The company, which hosts eight tracks that play host to Sprint Cup races, also revealed in a release that revenues through the first nine months of 2015 were $408.7 million, also up slightly over last year ($400.3 million). Net income for the third quarter was reported as $8.6 million (compared to $15 million last year).
Mostly because of an impairment charge of $60.5 million for other intangible assets at New Hampshire Motor Speedway and goodwill associated with souvenir merchandising, SMI reported a loss in continuing operations of $28.1 million (compared with income of $38.2 million through the first three quarters last year). The 2015 results also reflect tax-accelerated depreciation and costs of removal for “low-demand” seating at Las Vegas Motor Speedway (a section of 19,000 seats were removed and will be used for premium hospitality and advertising).
In the release, SMI said its revenues “continue to be negatively impacted by economic conditions, including underemployment and high food and health-care costs.” It also blamed the harsh and long winter in many parts of the East Coast, and poor weather affecting admissions for race weekends at Atlanta Motor Speedway and Bristol Motor Speedway.
During a Wednesday morning conference call with industry analysts, SMI reported that advance ticket sales for the Nov. 8 race at Texas Motor Speedway were “reasonably consistent with the prior year.” It also reaffirmed that the third-quarter results are consistent with its previous guidance for 2015. The company has estimated total earnings of $450-500 million this year.
SMI CEO and president Marcus Smith said the results indicated “stabilizing or improving trends in admissions and many event related revenue categories.
“Our results were within our expectations, with year-over-year increases in admissions and several event-related revenue categories such as radio broadcasting and luxury suite rentals at many of our major racing events,” Smith said in a release. “The economy appears to be improving, but underemployment and the lingering effects of tough times remain a substantial struggle for many of our core and targeted fans. SMI’s business model is more focused than ever on providing our fans entertainment experiences and enjoyment value for their hard-earned money.”
Smith said SMI tracks had sold title sponsorships for most of their 2016 races.
