This change reflects redemption

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Management Hosts Q2 2013 Results

Good morning. My name is Stephanie, and I will be your conference operator today. At this time I would like to welcome everyone to the Speedway Motorsports Second Quarter Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question and answer session. (Operator instructions.)

This conference call 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 economic factors, weather, the success of NASCAR and others as sanctioning bodies, the success of company's Motorsports Authentics merchandising joint venture, capital projects and expansions, financing needs, and a host of other factors, both within and 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 report on Form 10 Q involve certain risks and uncertainties that could cause actual results or events to differ materially from Cheap coach handbags management's views and expectations.

Inclusion of any information or statement in this conference call does Nfl jerseys china 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 conference call is based on information currently available and may not be reliable after this date.

Thank you, I would now like to turn the conference over to Marcus Smith. Please go ahead.

Thank you, Stephanie, good morning, ladies and gentlemen. Thank you for joining us today as we Custom nfl jerseys discuss the company's financial and operating results for the second quarter results end in June 30, 2013. For the second quarter, we've recorded total revenues of $176.8 million, an adjusted non GAAP Nfl jerseys cheap income from continuing operations of $26.5 million or $0.64 per diluted share. Six months 2013 total revenues were $261 million and adjusted non GAAP income from continuing operations was $25.1 million or $0.61 per diluted share.

We had a very busy quarter; we hosted eight major NASCAR sanctioned events, including those at Charlotte Motor Speedway where we hosted the NASCAR Sprint All Star Race, the Coca Cola 600 Sprint Cup Race and the History Channel 300 Nationwide Series event.

At Kentucky Speedway, we hosted the Quaker State 400 presented by Advance Auto Parts, Sprint Cup Series Race and The Feed the Children 300 Nationwide Series events.

And at Sonoma Raceway, we hosted the Toyota/Save Mart 350 Sprint Cup Series event and then at Texas Motor Speedway, we hosted the NRA 500 Sprint Cup series race and along with the O'Reilly Auto Parts 300 Nationwide series race.

We also hosted several other racing events this quarter including three NHRA national events, three NASCAR Camping World Truck Series events and one Indycar series event, Texas Motor Speedway.

Since our last call, our corporate sales team secured entitlement sponsors for the remaining 2013, NASCAR Sprint cup series race as well as two nationwide series races and currently we have just one nationwide series race yet to be titled for 2013.

In a recent news, just last week NASCAR and NBC Sports Group announced they have reached a 10 year comprehensive agreement granting NBC exclusive rights to the final 20 Sprint Cup Series races of season. Final 19 NASCAR nationwide series events, Select NASCAR Regional and Touring Series events and other live content beginning in 2015.

NBC has also been granted Spanish language rights, certain video on demand rights and exclusive TV Everywhere rights for its NASCAR sprint cup series and NASCAR nationwide series events.

There are three sprint cup and 14 nationwide series broadcast rights that remain to be negotiated. All NASCAR attempting all the truck series broadcast rights have been secured through 2022.

We are extremely excited about the new broadcast agreement reached with NBC Sports Group while the official financial terms have yet to be announced, according to industry media reports that the deal is for $4.4 billion over 10 years. The new rights agreement with NBC along with previously announced rights agreement with FOX should help the industry achieve a number of strategic growth opportunities and we remain confident as the economic conditions approve across the country so our attendance and other event related revenues and activities. And in the meantime will continue to focus on providing our fans and visitors with unmatched entertainment value at all of our facilities.

And with that I will turn the financial discussion over to Bill Brooks. Bill?

Thank you very much, Marcus. I think it's important if we discuss the non GAAP earnings adjustments because they are relatively large and infrequent although they are not really unexpected. The largest adjustment is the non cash charge which is about $89 million reduced by tax benefit of $2.3 million. The goodwill impairments related to New Hampshire Motor Speedway and Kentucky Speedway. The bulk of the impairment results from the goodwill associated with the acquisition of New Hampshire Motor Speedway, remember that this is so called secondary goodwill is recorded because of (inaudible) are significantly different and then in the unlikely event of our selling the assets of New Hampshire's Speedway instead of the stock, the significant tax could be due and recording this potential liability required reporting the secondary goodwill which effectively increased our purchase price from 330 million to over a 450 million and to recall that we had $49 million partial impairment of the secondary goodwill in 2011. This is the balance of the secondary goodwill as this is about now impaired.

The next largest adjustment of 18.5 million before $6.8 million tax benefit was for the call premium unamortized cost and loan discount related to the redemption of our (inaudible) quarter Senior Notes due in 2016 which we undertook as part of our capital restructuring.

The last of these adjustment is of favorable adjustment is a $4.1 million tax benefit arising from some state income tax restructuring undertaken. The resulting adjusted non GAAP income and the continuing operation was 26.5 million and this is really very similar to the 27 million that we had in the prior year. How is that possible? A relatively (inaudible) event related revenues. Much of that weakness was offset by stronger broadcast revenue, lower expenses and benefits from a capital restructuring in a state income tax restructuring but we are really trying to make the best with difficult circumstances including the inclement weather and weather forecast surrounding our events as well as in an uncertain economy.

Specifically for the three months ended in June 30, 2013 compared to the three months ended in June 30, 2012 total revenues for the three months decreased by about 4.3 million or 2.4% from such revenues for the same period last year.

Admissions for the three months ended in June decreased by $4.8 million or 12.4% from such revenue for the same period last year, and the decrease was primarily due to lower overall admissions at our NASCAR sanctioned racing events.

Likewise event related revenue for the three months ended in June 30, 2013 decreased by $2.2 million or about 3.9% from last year. The decrease is due primarily the declines in most of our categories and event related revenues associated with our NASCAR sanctioned racing event. The overall decrease was partially offset by some higher track rental and driving school revenues at some of our Speedways during the current quarter.

NASCAR broadcast revenue for three months ended in June increased by $2.7 million or 3.4% over the last year as expected. Our direct expense of events for the three months ended in June actually decreased by $793,000 or 2.3% from last year. The decrease reflects lower advertising and promotional expenses in a combination of small and insignificant items.

The NASCAR purse and sanction fees for the year ended in June increased by $1.2 million or 2.6% over last year, reflecting higher annual contracted raise purses and sanction fees of our NASCAR events.

General and administrative expenses for the three months ended in June also decreased by $571,000 or 2.3% over last year. The decrease reflects lower legal and professional service cost, lower property taxes, and a combination of individually insignificant items, all of which were partially offset by some wage cost inflation.

Depreciation and amortization expense for the three months ended in June decreased by $271,000 or 1.9% from the prior year, and that reflects that certain assets are now fully depreciated.

Our interest expense that for the three months ended in June was $9.2 million, compared to $10.2 million for the same period last year. This change reflects redemption of our higher interest rate 2016 Senior Notes with lower interest rate credit facility borrowings and lower total outstanding debt. The change also reflects lower capitalized interest compared to last year.

Now, of course we spoke about our impairment of goodwill from the three months, it was $89 million before income tax benefits, 2.3%, and of that amount of goodwill for New Hampshire was $82.7 million originally recorded upon to differed tax liability associated with the intangibles under the purchase method of accounting.

And once again those rules require the deferred taxes to be established assuming we would ultimately sell the New Hampshire Speedway asset from that stock for tax reporting purposes and they prohibit (inaudible) or adjustment of such liabilities notwithstanding to any such payment of tax, loss was fairly pretty unlikely.