SMI swings to a loss
Speedway Motorsports Inc. (SMI) said Wednesday that it swung to a second-quarter loss, weighed down by a $48.6 million impairment charge and a drop in revenue.
The motorsports marketer, promoter and race track owner said its admissions and event-related revenue continue to be hurt by lower consumer and corporate spending stemming from weak economic conditions, including high fuel prices and unemployment. As a result, the company said it has lowered ticket prices and increased promotional spending.
Speedway posted a loss of $28.3 million, or 68 cents per share, compared with a profit of $23 million, or 55 cents per share, in the same quarter last year.
Excluding discontinued operations, the hefty impairment and other charges, the company said it posted an adjusted profit from continuing operations of $20.5 million, or 49 cents per share, compared with a profit from continuing operations of $24.1 million, or 57 cents per share, in the 2010 period.
Revenue fell 14 percent to $153.1 million from $177.6 million. Admissions revenue dropped 24 percent to $31.3 million, largely as a result of lower ticket prices, while event-related revenue decreased 5.5 percent to $51.9 million.
Speedway said it still expects to post a 2011 adjusted profit from continuing operations of 90 cents to $1.20 per share. Analysts, on average, expect a profit of $1.06 per share for the year, according to a FactSet survey.