CHAMPCAR/CART: OPW First Quarter 1998 Results

Championship Auto Racing Teams Reports First Quarter 1998 Results (April 28, 1998) -- Championship Auto Racing Teams, Inc. (NYSE: OPW) today announced revenues, net income and earnings per share for the first quarter ended March...

Championship Auto Racing Teams Reports First Quarter 1998 Results (April 28, 1998) -- Championship Auto Racing Teams, Inc. (NYSE: OPW) today announced revenues, net income and earnings per share for the first quarter ended March 31, 1998. Actual Results Revenues for the first quarter of 1998 were up 87%, to $10.0 million, versus $5.4 million in the comparable quarter in 1997. Net income for the first quarter of 1998 was up 197% to $2.9 million, compared to $1.0 million in the first quarter of 1997. On a diluted per common share basis, earnings were $0.26 in 1998 compared to $0.09 in first quarter 1997. The above results for the first quarter of 1998 only include the results of American Racing Series and BP Automotive ("Indy Lights") from the effective date of the acquisition, March 13, 1998 through March 31, 1998. Pro Forma Results

Assuming the ARS and BP Automotive acquisition had been effective January 1, 1997 and January 1, 1998, and after eliminating certain race team expenses in first quarter of 1997, pro forma results for the first quarter of 1997 and 1998 would have been as follows: Revenues for the first quarter of 1998 were up 117%, to $11.3 million, versus $5.2 million in the comparable quarter in 1997. Net income for the first quarter of 1998 was up 258% to $3.2 million, compared to $0.9 million in the first quarter of 1997. On a diluted per common share basis, earnings were $0.27 in 1998 compared to $0.08 in the first quarter of 1997. The number of events held in a particular quarter will affect the comparability of earnings information from quarter to quarter. In the first quarter of 1998, CART conducted two events, the Grand Prix of Miami Presented by Toyota in Homestead, Florida and the Budweiser 500 in Motegi, Japan. In the first quarter of 1997, CART conducted one event, the Grand Prix of Miami Presented by Toyota in Homestead, Florida. First quarter revenue growth was primarily attributable to the most recent addition to the FedEx Championship Series schedule, the inaugural Budweiser 500 race in Motegi, Japan, and an increase in sponsorship revenue primarily due to the addition in 1998 of FedEx as the title sponsor of the 19 race series. "Our first quarter results represent an excellent start to our first year as a public company and a solid beginning to 1998," said Andrew Craig, chairman and CEO of CART. "The first quarter demonstrated our continued expansion as a global sports property by competing in Japan and underscores the strong corporate support for our race series with our partnership with FedEx." "We also were able to begin developing our vision of a ladder system that will allow both drivers and fans to have a clear understanding of how to progress to the top of the sport. We started that process by adding the Indy Lights series to our portfolio of products. It is extremely important for open wheel racing in the U.S. that we help identify the preferred method by which talent finds its way to the FedEx Championship Series. In addition, on April 10th, Championship Auto Racing Teams, Inc. announced the acquisition of Pro-Motion Agency, which owns and operates the KOOL/Toyota Atlantic Championship." Championship Auto Racing Teams, Inc., a New York Stock Exchange listed company that completed a initial public offering on March 10, 1998, is the leading promoter of open wheel racing in the United States and owns, operates and markets the FedEx Championship Series, which is comprised of 19 races in five countries on four continents in 1998. Drivers such as Michael Andretti, Bobby Rahal, Al Unser Jr., and 1997 champion Alex Zanardi race 800-plus horsepower, open-wheel cars at speeds of 240 miles per hour on some circuits. CART also owns and sanctions the PPG Dayton Indy Lights Championship as well as the KOOL Toyota Atlantic Championship. Statements Of Income March 31, 1998 and 1997 1998 1997 Revenues: Sanction Fees $ 4,991,800 $ 1,407,200 Sponsorship Revenue 3,159,505 1,976,500 TV Revenue 546,684 350,822 Engine Leases, Rebuilds and Wheel Sales 198,659 - Other 1,134,041 1,628,462 Total Revenues 10,030,690 5,362,984 Expenses Race and franchise fund distributions 1,388,412 1,641,039 Race Expenses 832,360 1,118,833 Cost of Engine Rebuilds and Wheel Sales 63,251 - Administrative and indirect expenses 3,445,433 1,525,281 Compensation expense - - Depreciation and amortization 140,929 103,504 Minority Interest (54,113) (140,355) Total Expenses 5,816,272 4,248,302 Operating Income 4,214,418 1,114,682 Interest income/(expense) 266,492 36,189 Pretax income 4,480,909 1,150,871 Income Tax Expense 1,618,287 188,167 Net Income $ 2,862,622 $ 962,704 EARNINGS PER SHARE BASIC $ 0.26 $ 0.09 EARNINGS PER SHARE DILUTED $ 0.26 $ 0.09 BASIC WEIGHTED AVG. SHARES OUTSTANDING 11,189,146 10,200,000 DILUTED WEIGHTED AVG. SHARES OUTSTANDING 11,221,044 10,200,000 Statements of Income - Pro Forma March 31, 1998 and 1997 1998 1997 Revenues: Sanction Fees $ 4,991,800 $ 1,407,200 Sponsorship Revenue 3,586,000 2,224,712 TV Revenue 546,684 296,081 Engine Leases, Rebuilds and Wheel Sales 909,320 681,260 Other 1,233,902 587,233 Total Revenues 11,267,706 5,196,486 Expenses Race distributions 1,407,974 924,945 Race Expenses 847,952 741,074 Cost of Engine Rebuilds and Wheel Sales 350,496 200,406 Administrative and indirect expenses 3,752,487 1,904,044 Compensation expense - - Depreciation and amortization 221,969 133,952 Minority Interest (54,113) (140,355) Total Expenses 6,526,765 3,764,067 Operating Income 4,740,941 1,432,419 Interest income/(expense) 266,492 17,901 Pretax income 5,007,433 1,450,320 Income Tax Expense 1,808,685 555,577 Net Income $ 3,198,748 $ 894,743 EARNINGS PER SHARE BASIC $ 0.28 $ 0.08 EARNINGS PER SHARE DILUTED $ 0.27 $ 0.08 BASIC WEIGHTED AVG. SHARES OUTSTANDING 11,626,646 10,637,500 DILUTED WEIGHTED AVG. SHARES OUTSTANDING 11,658,544 10,637,500 Consolidated Balance Sheet March 31, 1998 and 1997 ASSETS 1998 1997 Current assets: Cash and cash equivalents $ 47,330,683 $ 6,935,808 Short term investments 25,043,090 - Accounts receivable 11,882,724 7,986,066 Prepaid expenses 625,440 736,028 Current deferred tax asset 3,116,739 - Total current assets 87,998,676 15,657,902 Inventory: Merchandise 11,884 16,504 Wheels 19,538 - Notes Receivable 192,815 - Property and equipment (net) 5,038,738 2,075,529 Trademark (net) 141,430 98,874 Noncurrent deferred tax - 639,156 Other assets 4,773,355 207,863 Total assets $ 98,176,436 $ 18,695,828 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 3,614,050 $ 1,243,556 Accrued liabilities: Race expenses and point awards 576,413 2,640,000 Taxes 442,452 188,167 Other 1,603,326 4,667 Unearned income 18,225,658 13,172,402 Current portion of long-term debt 130,000 130,000 Total current liabilities 24,591,899 17,378,792 Notes payable 281,667 567,004 Deferred federal taxes - noncurrent 101,757 - Minority interest (61,043) (202,124) Stockholders Equity Capital stock 151,717 88,000 Additional paid in capital 89,383,554 1,989,000 Retained earnings (16,259,884) (1,124,844) Unrealized gain/(loss) on investments (13,230) - Total stockholders equity 73,262,156 952,156 Total liabilities and stockholders' equity $ 98,176,436 $ 18,695,828

Source: CART Online

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Series IndyCar
Drivers Al Unser Jr. , Michael Andretti , Bobby Rahal , Alex Zanardi