DETROIT (Oct. 25, 2000) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced revenues, net income and earnings per share for the third quarter and nine months ended September 30, 2000. Total revenues for the third quarter of 2000...
DETROIT (Oct. 25, 2000) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced revenues, net income and earnings per share for the third quarter and nine months ended September 30, 2000.
Total revenues for the third quarter of 2000 were $27.8 million, versus $24.9 million in the comparable quarter in 1999. Net income for the third quarter of 2000 was $7.8 million, compared to $6.6 million in the third quarter of 1999. On a per diluted common share basis, earnings were $0.50 in the third quarter of 2000 compared to $0.41 in the comparable quarter in 1999. The third quarter 2000 results include a one-time $1.4 million (net of expenses) pre-tax settlement with Frontier Insurance Company, related to settlement of litigation concerning the performance bond issued for the Hawaiian Super Prix. In its ongoing efforts to build more awareness and interest for the CART FedEx Championship Series, the Company will invest the settlement proceeds in expanded marketing and advertising initiatives that further promote the Champ Car Series. The additional marketing and advertising expenditures began during the third quarter and will continue through the end of the race season.
For the nine-month period ended September 30, 2000, revenues were $60.5 million versus $57.7 million in 1999. Net income was $15.9 million for the nine months ended September 30, 2000, compared to $15.7 million for the nine-month period ended September 30, 1999. On a per diluted common share basis, earnings were $1.02 compared to $0.99 per diluted common share. The nine month 2000 results include a non-recurring after-tax charge of $1.8 million related to a severance agreement with the Company's former CEO. The non-recurring severance expense resulted in a $0.11 per diluted common share charge for the nine-month period of 2000.
The number of events held in a particular quarter and the mix between the type of race (street course, superspeedway, etc.) and the sanction fees attributed to those races affect quarterly results and will affect the comparability of earnings information from quarter to quarter. CART conducted nine events in each of the third quarters of 2000 and 1999. The CART event in Detroit was held in the second quarter of 2000 compared to the third quarter in 1999, whereas, the CART events conducted in St. Louis and Cleveland were run in the third quarter of 2000 compared to the second quarter of 1999 and the event in Houston took place in the fourth quarter in 2000 compared to the third quarter of 1999. For comparability purposes, CART's FedEx Championship Series will conduct three races in the fourth quarter of 2000, compared to two races in the fourth quarter of 1999.
Championship Auto Racing Teams, Inc. (NYSE:MPH) owns, operates and markets the FedEx Championship Series. Champions Juan Montoya, Michael Andretti and Jimmy Vasser are among the drivers who battle for the FedEx Championship Series title on oval circuits, as well as temporary and permanent road courses. CART also owns and operates its top two development series, the Dayton Indy Lights Championship and the Toyota Atlantic Championship. Learn more about CART's open-wheel racing series at www.cart.com.
Statements made in this release that state the Company's or management's beliefs or expectations and which are not historical facts or which apply prospectively are forward-looking statements. It is important to note that the Company's actual results could differ materially from those contained or implied by such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings including, but not limited to, the 10-K and subsequent 10-Q's. Copies of those filings are available from the Company and the SEC.