SMI’s Q3 earnings showed that the track operator is still trying to stabilize NASCAR ticket sales, as revenue and profit were up largely due to a beneficial schedule change and a lower corporate tax rate. The Charlotte-based track operator, which owns eight speedways across the country, took in $160.1M in the quarter ended Sept. 31, up 22% from $130.7M in the same quarter last year. Admissions revenue was $30.5M, up 11% from $27.6M in the same period last year. However, SMI Vice Chair & CFO Bill Brooks admitted that this was largely because Charlotte Motor Speedway held its fall NASCAR race weekend in Q3 this year as opposed to Q4 last year. While the CMS race weekend was deemed a success due to rising ticket sales stemming from the excitement around the debut of the roval circuit, the date change from Q4 to Q3 was a major reason why SMI’s earnings were up year over year, with Brooks conceding some of the other races held in Q3 saw continued softness at the gate. Other events held in the quarter included NASCAR tripleheaders at Kentucky, Bristol and Las Vegas, a doubleheader at New Hampshire Motor Speedway, and an NHRA event at Sonoma plus an IndyCar event at Texas. Net income or profit was also up considerably, from $9.2M in Q3 last year to $24.1M in Q3 this year, which is a jump of 162%.
ADMISSIONS REVENUE DOWN FOR YEAR: For the year through Q3, SMI is down about 7% in admissions revenue, which Brooks attributed to lower admissions and poor weather at several of its NASCAR events this year. Total revenue for the year is up 6% so far, from $377.2M to $400.3M, though that includes TV money that was contractually obligated to increase as well as the previously mentioned beneficial date change and lower corporate tax rate. The company maintained its full-year guidance of $1.00 to $1.20 earnings per share. SMI President & CEO Marcus Smith was effusive during his comments when discussing the roval race, which earned plaudits from the industry for its innovation, increased ticket sales and ultimately exciting race. Investors did not seem to be too spooked by SMI’s quarter, as the stock was up 6.04% to $17.02 at presstime.
