Charlotte-based Speedway Motorsports reported second-quarter earnings Wednesday that missed Wall Street expectations as economic and weather conditions continue to weigh on sales.
For the quarter that ended June 30, Speedway Motorsports reported a loss of $32.2 million because of a large one-time accounting charge, according to a securities filing. That compares with a profit of $27.2 million in the same period last year. The company owns and operates Charlotte Motor Speedway and other major tracks.
On a per-share, adjusted basis, earnings were 68 cents a share, below the consensus estimate of 71 cents a share from Bloomberg-surveyed analysts. Second quarter revenue totaled $179.3 million, up about 2 percent from the same period in 2014.
The company, whose earnings offer a window into NASCAR’s economic picture, said certain revenue categories lagged because of underemployment, higher food and health-care costs. Another factor was bad weather at certain events, including at Bristol Motor Speedway.
The company’s real earnings accounted for a non-cash impairment charge of nearly $98.9 million related to the New Hampshire Motor Speedway, which it acquired in 2008 and which the company expects will generate less cash than previously estimated.
Speedway Motorsports’ impairment evaluation highlighted challenges like changing demographics, evolving fan entertainment choices and more at-home viewing options, the company said.
Marcus Smith, Speedway Motorsports’ president and chief executive officer, said the company’s financial results “reflect stabilizing or improving trends in admissions and many event related revenue categories such as radio broadcasting, luxury suite rentals, camping and hospitality on a year-over-year comparable event basis.”
Earlier this year, Marcus Smith assumed the chief executive officer of the company, replacing his father, motorsports mogul Bruton Smith, who assumed the role of executive chairman.