(Source: Herald; Rock Hill, S.C.)
CHARLOTTE Speedway Motorsports said Wednesday that its third-
quarter earnings rose 13 percent, even as it continued to warn that
its merchandising arm, Motorsports Authentics, faces a possible
bankruptcy filing.
The Concord, N.C.-based company, which runs Lowe's Motor Speedway
and seven other racing tracks, said revenue rose 20 percent compared
with the same period a year ago, to $135 million in the quarter.
The company said results continued to be dragged down by big
losses at Motorsports Authentics, tough economic conditions and
fewer racing days because of poor weather.
Excluding schedule changes, admissions and revenue at the
company's tracks fell 8 percent, the company said, while it cut
expenses by 20 percent.
Bankruptcy warning
For Motorsports Authentics, a joint venture with International
Speedway Corp. that sells racing merchandise, the company warned:
"Its ability to continue operating could be severely impacted, and
(it) could ultimately pursue bankruptcy."
Overall, Speedway Motorsports' net income rose to $7.9 million
for the quarter, or 19 cents per share, compared with $7 million,
or 16 cents per share in the third quarter of 2008.
"The protracted tough economic conditions continue to
significantly impact our operating results," company president
Marcus Smith said in a statement. "... (Our financial) results
position us favorably relative to other destination-based
entertainment and industry peers."
Originally published by The Charlotte Observer.
(c) 2009 Herald; Rock Hill, S.C.. Provided by ProQuest LLC. All rights Reserved.
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