SMI Reports Quarterly Loss, But Sees Increase In Revenues For '08
 |
SMI Benefits From NHMS Hosting
Two NASCAR Race Weekends |
SMI yesterday reported a net Q4 loss of $4.9M, or $0.11 a share, compared to a loss of nearly $20.2M, or $0.46 a share, in the year-ago period. For FY '08, SMI earned $80M, or $1.84 a share, up from $38.4M, or $0.87 a share, in '07. Annual revenue rose to almost $611M from $561.6M in '07. SMI said Q4 and FY '08 results "were affected" by New Hampshire Motor Speedway's (NHMS) hosting two weekends of NASCAR racing. SMI purchased the track in January '08 (BIZJOURNALS.com, 3/11). In Charlotte, Jefferson George notes most of SMI's Q4 gains came from the "addition of races" at NHMS, as well as "better sales at Motorsports Authentics, a joint merchandising venture" with ISC. Motorsports Authentics "created a big drag on income" in '07. SMI Vice Chair & CFO William Brooks said that to cut costs, SMI has "negotiated lower prices with vendors at tracks." He said SMI also is "cutting staff at events, especially when crowds are expected to be smaller." But SMI execs said that so far this season, crowds "haven't dropped off significantly." Meanwhile, the company "projected revenues for this year ranging from [$480-520M], which would be down at least 15[%] from 2008." SMI execs said that the economy is "so uncertain that [the company] was wary of even offering an outlook for 2009." Brooks: "We were actually perplexed as to what we should even say about that. We've not been faced with how truly variable some of our expenses can be" (CHARLOTTE OBSERVER, 3/12). At presstime, shares of SMI were trading at $10.00, up 6.5% from yesterday's close of $9.39 (THE DAILY).
TRACK IMPROVEMENTS: In Kentucky, Kevin Kelly reports SMI "plans to spend as much as $12[M] this year making improvements" to Kentucky Speedway. Brooks: "We're going to change some of the roads and parking areas and make some enhancements to the infrastructure in anticipation of having some further work done in 2010 if we're successful in getting a Sprint Cup date relocated there." SMI Chair & CEO Bruton Smith last month said that SMI "could spend as much as $75[M] total to expand and renovate Kentucky Speedway to get it ready for a possible Sprint Cup Series race" (KENTUCKY ENQUIRER, 3/12).
|
Related Stories By Company
|
Related Stories By Sport
|
SMI Extends Partnership With Coca-Cola
March 8, 2010 :
SportsBusiness Daily
LVMS Signs Sponsors To Three-Year Deals
February 1, 2010 :
SportsBusiness Daily
NHRA Unveils '10 Schedule
August 26, 2009 :
SportsBusiness Daily
Lowe's Confirms End Of LMS Deal
August 7, 2009 :
SportsBusiness Daily
Smith Expects Lowe's To End LMS Sponsorship
August 3, 2009 :
SportsBusiness Daily
|
Top ISC Execs See Pay Increases In '09
March 12, 2010 :
SportsBusiness Daily
IndyCar Series Fan Demographics
March 12, 2010 :
SportsBusiness Daily
IndyCar Series Entering '10 With Changes
March 12, 2010 :
SportsBusiness Daily
USF1 Employees File Complaint With NCDOL
March 12, 2010 :
SportsBusiness Daily
Rahal Lands IndyCar Ride With Sarah Fisher
March 11, 2010 :
SportsBusiness Daily
|
|
