SBD/November 2, 2011/Finance

SMI Sees Q3 Revenues Jump Over '10 Due To Two More Cup Races, Year-To-Date Still Down

Traffic delays at Kentucky Speedway may have been a negative for fans, but the first NASCAR Sprint Cup race at the track was a positive for SMI's bottom line. The company today reported that Q3 revenues rose 43% to $177M, which it attributed in part to hosting the first Cup race at Kentucky Speedway in July. That race combined with a Sprint Cup race at New Hampshire boosted Q3 net income to $23.9M, up from $7M over the same period in '10. SMI held two more Sprint Cup races (Kentucky and New Hampshire) in Q3 this year than they did in '10. SMI's annual revenues to date remain behind what it generated last year. Total revenues over the first nine-month period of '11 were $416.7M compared to $419.3M in '10. Admissions revenue to date is down $10.4M from '10 because of lower average ticket prices and attendance declines at races. SMI has reduced ticket prices in '10 and '11, and the company said it planned to continue ticket price reductions next year because of the "tough economic times." Total expenses year-to-date are $397M year to date, up 14% from a year ago. SMI President & COO Marcus Smith in a statement said, "Our adjusted nine-month 2011 results reflect the merits of realigning a NASCAR Sprint Cup race to our Kentucky Speedway and the anticipated long-term benefits of reduced interest costs under our successful financing transactions earlier in 2011. Those improved 2011 results exceeded our expectations and reflect continuing indications that our business is stabilizing." Capital expenditures are projected to be $40-60M in '12.
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