Speedway Motorsports Roars Through Robust Fourth Quarter/Year; Projects Strong 2001

Revenue was $354.3 million, up 12% over last year. Diluted earnings per share were up 13% or 13 cents to $1.10.

For the fourth quarter ended Dec. 31, Speedway reported net income of $7.1 million, up $300,000 from the same 1999 quarter, on revenue of $76.7 million, up $1 million over last year's fourth quarter. Diluted earnings per share increased 6% or one cent to 17 cents.

The is the 23rd consecutive quarter of revenue growth, Speedway reported to its shareholders. The New York Stock Exchange-traded company closed at $25.90 Feb. 15, up 1.17% or 30 cents for the day. Its 52-week high and low is $36 and $25.50.

Despite bad weather for most of its events in 2000, William R. Brooks, the company's chief financial officer, is projecting another solid earnings year for 2001. "Assuming current industry and economic trends continue, we estimate fiscal year 2001 total revenue could exceed $410 million, with diluted earnings per share ranging from $1.50 to $1.60, resulting in a five-year compound annual earnings growth rate approximating 20%," Brooks says in a prepared statement.

Even with a threatening national economic slowdown, Speedway principals remain bullish. "With Dodge returning this year, the significant increase in prize money for competitors, and NASCAR working to improve close competitive racing, the intense rivalries among team, drivers and sponsors should propel renewed growth in Winston Cup racing in 2001 and beyond," H.A. Wheeler, Speedway's president and chief operating officer, notes in the fiscal report.

The company's bottom line this year and in the near future will be bolstered by a recently-announced NASCAR ancillary broadcasting rights package, points out O. Bruton Smith, Speedway's chairman/CEO. "It will bring added revenues and growth potential to SMI and our industry," Smith says in the prepared statement.

He adds, "With Dodge re-entering NASCAR racing in 2001, this country's Big Three automakers will go head-to-head for the first time since 1985, bringing many Chrysler loyalists back to our sport."

Speedway owns and operates the Atlanta Motor Speedway, Bristol Motor Speedway, Lowe's Motor Speedway at Charlotte, Las Vegas Motor Speedway, Sears Point Raceway and Texas Motor speedway.

The company provides event food, beverage and souvenir merchandising services through its Finish Line Events subsidiary; manufactures/distributes smaller-scale, modified racing cars through its 600 Racing subsidiary; and owns Performance Racing Network which broadcasts syndicated motorsports programming to 500 stations nationwide.