Speedway Motorsports, Inc. (Speedway Motorsports or the Company) (TRK) today reported second quarter 2019 total revenues of $141.9 million, net income of $17.4 million or $0.43 per diluted share, and adjusted non-GAAP net income of $17.8 million or $0.44 per diluted share. Six month 2019 total revenues were $249.8 million, net income was $25.9 million or $0.63 per diluted share, and adjusted non-GAAP net income was $26.6 million or $0.65 per diluted share. These non-GAAP results were within management’s expectations, and Speedway Motorsports reaffirmed its full year 2019 non-GAAP earnings guidance of $0.90 to $1.10 per diluted share as further described below.
These results are not directly comparable period-over-period because Texas Motor Speedway held one NASCAR Monster Energy Cup and one Xfinity Series racing event in the first quarter 2019 that were held in the second quarter 2018, and one NASCAR Gander Outdoors Truck Series racing event in the first quarter 2019 that was held in the fourth quarter 2018.
The Company’s admissions and certain event related revenues were negatively impacted by poor weather surrounding certain NASCAR and non-NASCAR event weekends as described in the accompanying Selected Financial Data. Management continues to believe many revenue categories are negatively impacted by changing demographics, evolving media content consumption, the lingering effects of lower consumer and corporate spending, and underemployment in certain demographic groups.
Second Quarter Comparison
- Total revenues of $141.9 million in 2019 compared to $166.9 million in 2018
- Accelerated depreciation on retired assets aggregating $552,000 pre-tax, $409,000 after tax or $0.01 per diluted share in 2019
- Non-recurring benefit of state income tax law change of $1.1 million or $0.03 per diluted share in 2018
- Net income of $17.4 million or $0.43 per diluted share in 2019 compared to $30.7 million or $0.75 per diluted share in 2018
- Adjusted non-GAAP net income of $17.8 million or $0.44 per diluted share in 2019 compared to $29.6 million or $0.72 per diluted share in 2018