Speedway Motorsports Reports First Quarter 2009 Results and Reaffirms Full Year 2009 Guidance

Business Wire, May 06, 2009

CONCORD, N.C. -- Speedway Motorsports, Inc. (SMI) (NYSE:TRK) today reported first quarter 2009 total revenues of $133.6 million and income from continuing operations of $21.4 million or $0.50 per diluted share. Also, SMI reaffirmed its full year 2009 earnings guidance of $1.70 to $1.90 per diluted share from continuing operations.

First quarter 2009 results were impacted by, among other factors, the following:

• ongoing effects of challenging recessionary conditions;
• a decline in Motorsports Authentics operating results as further described below;
• overhead and interest expenses associated with Kentucky Speedway, acquired in December 2008, where no events were held in the first quarter 2009;
• discontinuation of oil and gas operations in the fourth quarter 2008 and reclassification of prior year results; and
• Atlanta Motor Speedway held a NASCAR Nationwide Series racing event in the first quarter 2008 that is scheduled to be held in the third quarter 2009.

First Quarter Comparison:

• total revenues were $133.6 million in 2009 compared to $155.2 million in 2008;
• after tax equity investee losses were $1.6 million or $0.04 per diluted share in 2009 compared to after tax earnings of $1.6 million or $0.04 per diluted share in 2008;
• income from continuing operations was $21.4 million or $0.50 per diluted share in 2009 compared to $32.2 million or $0.74 per diluted share in 2008;
• after tax losses from discontinued operations were $1.0 million or $0.03 per diluted share in 2009 compared to $1.3 million or $0.03 per diluted share in 2008; and
• net income was $20.3 million or $0.47 per diluted share in 2009 compared to $30.9 million or $0.71 per diluted share in 2008.

SMI believes admissions, many event related and other operating first quarter 2009 revenue categories were negatively impacted by declines in consumer and corporate spending from the ongoing impact of recessionary conditions, including difficult credit and housing markets. SMI continues to utilize innovative promotional campaigns to help foster fan support and mitigate near-term ticket sales weakness.

The Company’s 50% share of equity investee, Motorsports Authentics (MA), first quarter 2008 operating 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’s first quarter 2009 results. MA’s first quarter 2009 results were also negatively impacted by reduced discretionary spending from ongoing recessionary conditions and decreased attendance at motorsports racing events.

As previously announced, the Company purchased Kentucky Speedway on December 31, 2008, and its results of operations after acquisition are reflected in the Selected Financial Data accompanying this release.

2009 First Quarter Highlights

First quarter highlights include continuing strong levels of sponsorship revenues for NASCAR racing events, despite continuing tough economic conditions. Major racing events held this first quarter include:

• Atlanta Motor Speedway - NASCAR Kobalt Tools 500 Sprint Cup and American Commercial Lines 200 Camping World Truck Series racing events;
• Bristol Motor Speedway - NASCAR Food City 500 Sprint Cup and Scotts Turf Builder 300 Nationwide Series racing events; and
• Las Vegas Motor Speedway - NASCAR Shelby 427 Sprint Cup and Sam's Town 300 Nationwide Series racing events.

2009 Earnings Guidance Reaffirmed

The Company reiterated that first quarter 2009 earnings are consistent with its previous full year 2009 guidance of $1.70-$1.90 per diluted earnings share from continuing operations, assuming current industry trends continue, and excluding the Company’s 50% share of Motorsports Authentics joint venture operating results or unforeseen factors.

Stock Repurchase Program and Dividends

During the first quarter 2009, the Company repurchased 314,000 shares of common stock for approximately $4.0 million under its previously announced stock repurchase program. As of March 31, 2009, the Company has repurchased 2,072,000 shares since adoption of the program in April 2005. The total number of shares available for future repurchase under the program, as currently authorized, is 928,000.

On February 10, 2009, the Company’s Board of Directors declared a quarterly cash dividend of $0.09 per share of common stock, aggregating approximately $3.9 million, which was paid on March 16, 2009 to shareholders of record as of March 2, 2009. On April 21, 2009, the Company’s Board of Directors declared a quarterly cash dividend of $0.09 per share of common stock, aggregating approximately $3.9 million, payable on June 26, 2009 to shareholders of record as of May 26, 2009. The Board of Directors plans to continue to evaluate cash dividends on a quarterly basis in the future.