Stock Repurchase Program
During the first quarter 2007, the Company repurchased 67,000 shares of common stock for approximately $2.6 million under its previously announced stock repurchase program. As of March 31, 2007, the Company has repurchased a total of 826,000 shares since adoption of the program in April 2005. In February 2007, the Company’s Board of Directors increased the authorized total number of shares that can be repurchased under the program from one million to two million shares.
Other Comments
“Our first quarter 2007 record revenues reflect strong increases in admissions, sponsorships, luxury suite rentals, advertising, camping, track rentals, radio broadcasting and other event related revenues, despite rising fuel prices, lower NASCAR broadcasting revenues, and the negative impact on current year attendance from rescheduling Atlanta Motor Speedway’s NEXTEL Cup race last year to Monday because of poor weather, ” stated H. A. Wheeler, chief operating officer and president of Speedway Motorsports. “Our first quarter 2007 net income and diluted earnings per share demonstrate SMI’s core motorsports business remains strong. SMI’s 2007 season remains on track to be another outstanding year as pre-sales for tickets to many upcoming events and for sponsorships and other corporate event related revenues continue to trend ahead of last year. “
“We were extremely proud to showcase our spectacular and overwhelmingly successful ‘Neon Garage’ and reprofiled superspeedway to capacity crowds at Las Vegas Motor Speedway’s March 2007 NASCAR racing weekend, ” stated O. Bruton Smith, chairman and chief executive officer of Speedway Motorsports. “We strongly believe these and other factors illustrate the merits of SMI investing in new leading-edge facilities at Las Vegas. The overwhelming demand for NASCAR racing at Las Vegas Motor Speedway and the untapped potential of its entertainment factor provide excellent long-term opportunities for increased growth to us, advertisers and broadcasters.
“There are several favorable industry dynamics such as the ongoing refinements to the NEXTEL Cup championship race and the ‘Car of Tomorrow’ which are just beginning to unfold. Others include the accelerating media attention under NASCAR’s new eight-year broadcasting agreements, the potential of expanding demographics just now being tapped, and the anticipated merchandising benefits from the potential of Motorsports Authentics. These all position SMI for strong long-term growth visibility, and provide our sponsors and other corporate partners with outstanding long-term marketing opportunities. “
Speedway Motorsports is a leading marketer and promoter of motorsports entertainment in the United States. The Company owns and operates the following premier facilities: Atlanta Motor Speedway, Bristol Motor Speedway, Infineon Raceway, Las Vegas Motor Speedway, Lowe’s Motor Speedway and Texas Motor Speedway. The Company provides souvenir merchandising services through its SMI Properties subsidiaries and Motorsports Authentics joint venture and manufactures and distributes smaller-scale, modified racing cars through its 600 Racing subsidiary. The Company also owns Performance Racing Network which broadcasts syndicated motorsports programming to over 750 radio stations nationwide. For more information, visit the Company’s website at www.speedwaymotorsports.com.
This news release contains forward-looking statements, particularly statements with regard to the Company’s future operations and financial results. There are many factors that affect future events and trends of the Company’s business including, but not limited to, consumer and corporate spending sentiment; air travel; governmental regulations; military actions; national or local catastrophic events; the success of and weather surrounding NASCAR, IRL, NHRA and other racing events; our relationship with NASCAR and other sanctioning bodies; the success of expense reduction efforts; capital projects; expansion; economic conditions; stock repurchases; financing needs; insurance; litigation; taxes; oil and gas activities and associated profitability; geopolitical situations in foreign countries; and other factors outside of management control. These factors and other factors, including those contained in the Company’s Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q, involve certain risks and uncertainties that could cause actual results or events to differ materially from management’s views and expectations. Inclusion of any information or statement in this news release does not necessarily imply that such information or statement is material. The Company does not undertake any obligation to release publicly revised or updated forward-looking information, and such information included in this news release is based on information currently available and may not be reliable after this date.
Note: Speedway Motorsports will host a conference call and web-cast today at 11:00 AM (ET) which are open to all participants. To participate in the conference call, you may dial 866-323-3540 (toll-free) or 706-679-6123 (toll). The reference number is 8152686. A web-cast of the call can be accessed at the Company’s website at www.speedwaymotorsports.com. To listen to a playback of the call, you may dial 800-642-1687 or 706-645-9291 beginning after 12:00 PM (ET) May 9th through 11:59 PM (ET) May 23rd. The reference number is 8152686. Participating in the call will be H. A. Wheeler, Chief Operating Officer and President; William R. Brooks, Chief Financial Officer and Executive Vice President; Marcus G. Smith, Executive Vice President, National Sales and Marketing; and Marylaurel E. Wilks, Vice President, Investor Relations and Communications.
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