SBD/March 9, 2011/Finance
SMI Earns $44.5M Income For FY '10, Reversing $10.3M Loss In '09
Speedway Motorsports Inc. overcame ongoing economic challenges and declining revenue in '10 to generate a net income of $44.5M for the year, reversing a net loss of $10.3M in '09. SMI today reported $502.2M in revenues for FY '10, an 8.8% decrease from the $550.5M it generated in '09. Total revenues were dragged down by a $24M decline in ticket revenues and a $22.2M decline in event-related revenues in '10. SMI generated a net income in part because it wrote down losses for its stake in Motorsports Authentics. It decreased total expenses in '10 by $84.8M. During an earnings call, SMI CFO Bill Brooks said the company is done cutting expenses and is optimistic that it will begin to increase race revenue in '11. The company estimates '11 total revenues of $475-525M and after-tax income of $39-51M. It projects capital expenditures in '11 being in the $40-50M range. SMI President & COO Marcus Smith said, "We're not in the roaring days of the '90s or the early 2000s, but we're certainly not in the doldrums of the last 24 months. The positive spin and positive buzz is a far cry different than what it's been the last two years. The outlook seems much better."
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