This summary is based on the first quarter fiscal 2007 earnings call conducted by Speedway Motorsports, Inc. (TRK) on May 9, 2007.
Chief Operating Officer and President: H.A. Wheller
Chief Financial Officer and Executive Vice President: William Brooks
Executive Vice President of National Sales and Marketing: Marcus Smith
Vice President Communications: Marylaurel Wilks
Key Investors Issues
- Total revenues for the quarter were $152.2 million compared to $151.1 million a year ago.
- Net income was $31.9 million compared to $32.2 million a year ago.
- Diluted earnings per share were 72 cents compared to 73 cents a year ago.
Full-Year 2007 Earnings Guidance
The company reiterated these first quarter 2007 earnings are consistent with its previous full year 2007 guidance of $2.43 to $2.53 per diluted share, assuming current industry and economic trends continue, and excluding its 50% share of Motorsports Authentics joint venture operating results, changes in its non-core businesses, capital expenditures exceeding current plans, or the impact of further increases in fuel prices, interest rates, geopolitical conflicts, poor weather surrounding events or other unforeseen factors.
First Quarter Highlights
First quarter highlights include record levels of corporate marketing and other event related revenues for NASCAR racing events held this period:
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Las Vegas Motor Speedway again hosted sold-out capacity crowds at its NASCAR UAW-DaimlerChrysler 400 NEXTEL Cup Series, and its second highest attendance at the Sam''s Town 300 Busch Series, racing events.
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Atlanta Motor Speedway hosted large crowds at its NASCAR Kobalt Tools 500 NEXTEL Cup Series and Nicorette 300 Busch Series racing events, although last year''s rescheduling of its spring NEXTEL Cup race to Monday because of poor weather had a negative impact on current year attendance.
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Bristol Motor Speedway also again hosted sold-out capacity crowds at its NASCAR Food City 500 NEXTEL Cup Series, and near record crowds at its Sharpie Mini 300 Busch Series, racing events.
During the first quarter 2007, the company repurchased 67,000 shares of common stock for approximately $2.6 million under its previously announced stock repurchase program.
As of March 31, 2007, the company has repurchased a total of 826,000 shares since adoption of the program in April 2005. In February 2007, the Company''s Board of Directors increased the authorized total number of shares that can be repurchased under the program from one million to two million shares.
The first quarter 2007 record revenues reflect strong increases in admissions, sponsorships, luxury suite rentals, advertising, camping, track rentals, radio broadcasting and other event related revenues, despite rising fuel prices, lower NASCAR broadcasting revenues, and the negative impact on current year attendance from rescheduling Atlanta Motor Speedway''s NEXTEL Cup race last year to Monday because of poor weather.
The 2007 season remains on track to be another outstanding year as pre-sales for tickets to many upcoming events and for sponsorships and other corporate event related revenues continue to trend ahead of last year. The management believes that the strong demand for NASCAR racing at Las Vegas Motor Speedway and the untapped potential of its entertainment factor provide long-term opportunities for increased growth to the company, advertisers and broadcasters.
There are several favorable industry dynamics such as the ongoing refinements to the NEXTEL Cup championship race and the ''Car of Tomorrow'' which are beginning to unfold.
Others include the accelerating media attention under NASCAR''s new eight-year broadcasting agreements, the potential of expanding demographics just now being tapped, and the anticipated merchandising benefits from the potential of Motorsports Authentics. These are believed to all position the company for long-term growth visibility, and provide the sponsors and other corporate partners with outstanding long-term marketing opportunities.
Corporate spending and the health of the corporate sponsors of NASCAR and the sport overall are healthy.
- One of the big things in the sport corporate-wise is the Bush series, and the NASCAR’s efforts to sell the new series entitlement partner for that series.
- On the television front, ESPN has been a good partner starting out this year and ESPN ratings have been above their expectations.
Balance Sheet Details
- The company has about $30 million more in cash from year end and from a year ago.
- Long-term debt remains approximately the same.
_ As of March 31 the company has repurchased 826,000 shares. The management projects the company’s capital projects to be between $50 and $60 million in 2007, exclusive of any condominiums it might develop in Las Vegas.
The admissions were up $2 million from a year ago.
