Speedway Motorsports shows huge profits made on backs of race fans

Speedway Motorsports Inc.'s overall revenue declined by 9.9% in 2009, including a 13.3% drop in ticket revenue, according to a filing with the U.S. Securities and Exchange Commission. Speedway Motorsports Inc., finished 2009 with a balance sheet showing a $10.3 million loss, while its income from continuing operations was $74.9 million, down 28.2 percent from $104.3 million last year, according to the filing. Part of the difference comes from a $74.5 million devaluation of Motorsports Authentics, the struggling merchandise company that SMI co-owns with rival International Speedway Corp. Both companies now consider Motorsports Authentics to have no carrying value. For 2009, overall revenues dropped from $611 million to $550.5 million. Admissions revenue dropped from $188 million to $163.1 million. Event-related revenues (sponsorships, concessions, merchandise, etc.) dropped 15.5%, from $211.6 million to $178.8 million, and broadcast revenue increased 3.3 percent, from $168.2 million to $173.8 million. SMI's 2010 forecast is for the economic struggles to continue as it projects overall revenues to drop to $500-$533 million and for its diluted earnings per share from continuing operations to be $1.00-$1.40 after it was $1.66 in 2009 and $2.40 in 2010. Scene Daily