SMI profits drop 34.1% Speedway Motorsports Inc. remained profitable but saw a 12.7 percent drop in admissions revenue and a net income drop of 34.1 percent during the first three months of 2009, the company reported today.
In addition to the drop in admissions revenue, event-related revenues dropped 23.8 percent while NASCAR broadcasting revenue increased 1.2 percent. Total revenues were $133.5 million, compared with $155.2 million a year ago for a drop of nearly 14 percent.
Net income dropped from $30.9 million to $20.3 million, 47 cents per share compared with 71 cents per share a year ago.
“While our first-quarter results reflect that challenging economic conditions continue, we remain confident that SMI’s business model continues to provide us with greater resilience than most other industries,” SMI President Marcus Smith said in a statement. “SMI’s long-term outlook remains strong. We believe our current initiatives for enhancing revenues and cost containment are well-positioning SMI for long-term growth when economic conditions inevitably improve.
“It is worth repeating that many of our NASCAR Sprint Cup, Nationwide and Camping World Truck event sponsorships are already sold for 2009 and later years. These corporate marketing arrangements, along with NASCAR broadcasting and other multiyear committed uses of our speedway facilities, provide SMI with significant contracted revenue and cash flow streams for 2009 and beyond.”
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