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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-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.
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.”
