DETROIT (Oct. 19, 1999) - Championship Auto Racing Teams, Inc. (NYSE:MPH) announced today that the Hawaiian Super Prix event has been cancelled, due to the race promoter's inability to meet its financial obligations, in accordance with the terms...
DETROIT (Oct. 19, 1999) - Championship Auto Racing Teams, Inc. (NYSE:MPH) announced today that the Hawaiian Super Prix event has been cancelled, due to the race promoter's inability to meet its financial obligations, in accordance with the terms of its agreement with CART.
The Hawaiian Super Prix was scheduled for November 11-13 in Honolulu. The post-season, invitational race had an announced purse of $10 million, with $5 million to be paid to the winner.
"We are disappointed to have to make this announcement," said Andrew Craig, chairman and CEO of CART. "However, the Hawaiian Super Prix has been unable to secure the necessary funding to make the required payment of the purse and other fees to CART.
"Turning to the financial aspects of our business, despite this development, CART is comfortable it will achieve the consensus analyst estimates for the third and fourth quarters of 1999 and for the year 2000."
Under terms of the Hawaiian Super Prix agreement, a $5 million surety bond with Frontier Insurance was posted in February of this year, with CART named as the beneficiary. CART will proceed with exercising its rights under the surety bond. CART's ability to achieve third and fourth quarter estimates does not take into account the one-time gain that will result from the collection of the bond.
CART has been active during 1999 in extending its relationships with several race facilities. CART recently announced the renewal of contracts for FedEx Championship Series events at Long Beach, Mid-Ohio, Road America, Cleveland, and Australia. Total sanction fees over the life of the agreements are approximately $40 million, which represents a 22% increase on average in the renewal years of the respective agreements.
CART has one race remaining in its FedEx Championship Series - the Marlboro 500 Presented by Toyota on October 31 at California Speedway. The season championship - and more than $2 million - are up-for-grabs as Scotsman Dario Franchitti battles Colombia's Juan Montoya for the sport's top prize, the PPG Cup and the $1 million prize that goes to the FedEx Series champion. Another $1 million will be awarded to the driver who wins the 500-mile event.
Notice from CART: This story may contain "Forward-Looking Statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements other than statements of historical facts included in this release may constitute forward-looking statements. Although the parties believe that the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from the parties' expectations due to changes in corporate performance, industry factors, continued due diligence by the parties, and other operational and economical factors.
Championship Auto Racing Teams, Inc. (NYSE:MPH - news) owns, operates and markets the FedEx Championship Series, which is comprised of 20 races in five countries on four continents in 1999. Drivers such as Michael Andretti, Gil de Ferran, Adrian Fernandez, Dario Franchitti, Bryan Herta, Greg Moore, Al Unser, Jr., and Jimmy Vasser race 900-plus horsepower, open wheel cars at speeds of more than 230 miles per hour on some circuits. CART also owns and operates its top two development series, the PPG Dayton Indy Lights Championship and the KOOL Toyota Atlantic Championship. Find out more about CART racing at www.cart.com.