SMI Q1 Revenues Up, But Fans Spending Less At Tracks

Wheeler Says SMI Must Cater To Fans, Meet Their Extra Needs

Speedway Motorsports Inc. (SMI) yesterday reported Q1 ’08 total revenues were $155.2M, up from $152.2M during Q1 '07. Also, net interest expense was $9.4M compared to $4.7M in ’07, with the gap reflecting increased borrowings to fund the acquisition of New Hampshire Motor Speedway. Net income was $30.9M, down from $31.9M in the year-ago period. Diluted earnings per share were $0.71, down from $0.72 in ’07 (SMI). In Charlotte, Jefferson George reports SMI also saw a 5% drop in admissions revenue -- from $56.5M to $53.6M, but company officials “blamed bad weather for smaller crowds during races in Atlanta and Bristol.” Officials added that they will look at “cutting some costs to offset a decline in fan spending at races.” SMI President & COO Humpy Wheeler said that possibilities include having “fewer employees at events and renegotiating prices with vendors.” Along with cutting costs, Wheeler said that SMI also “plans [to] explore ways to engage fans beyond the grandstand and infield.” Wheeler: “If we can help customers get a hotel room, we’ll do that. We’ve got to look at it as if we’re in the travel business, and we’ve got to cater to people and meet their extra needs.” Wheeler added that SMI also is “considering lower-priced ticket packages for races … and already has installed an all-you-can-eat section at Lowe’s Motor Speedway” (CHARLOTTE OBSERVER, 5/8).