DETROIT (July 25, 2000) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced revenues, net income and earnings per share for the second quarter and six months ended June 30, 2000.
Revenues for the second quarter of 2000 were $24.9 million, versus $25.5 million in the comparable quarter in 1999. Prior to an after-tax, non-recurring charge of $1.8 million related to a severance agreement with Andrew Craig, the Company's former President and CEO, net income for the second quarter of 2000 was $7.9 million and earnings per share on a per diluted common share basis was $0.50. Taking into account the non-recurring severance charge, net income for the second quarter of 2000 was $6.1 million, compared to $7.5 million in the second quarter of 1999. On a per diluted common share basis, earnings were $0.39 in the second quarter of 2000 compared to $0.47 in the comparable quarter in 1999. The non-recurring severance expense resulted in a $0.11 per diluted common share charge for the second quarter of 2000.
For the six-month period ended June 30, 2000, revenues were $32.8 million versus $32.8 million in 1999. Net income, as a result of the after-tax non-recurring charge of $1.8 million described above, was $8.1 million for the six-months ended June 30, 2000, compared to $9.1 million for the six-month period ended June 30, 1999. On a per diluted common share basis, earnings were $0.52 compared to $0.58 per diluted common share. The non-recurring severance expense resulted in a $0.11 per diluted common share charge for the six-month period of 2000.
The number of events held in a particular quarter will affect the comparability of earnings information from quarter to quarter. CART conducted seven events in the second quarter of 2000, which was one less than the comparable quarter in 1999. The CART events conducted in St. Louis and Cleveland will be run in the third quarter of 2000 compared to the second quarter of 1999. The CART event conducted in Detroit was held in the second quarter of 2000 compared to the third quarter of 1999. For comparability purposes, CART 's FedEx Championship Series will conduct nine events in the third quarter of 2000, which was the same number of events as in 1999, and three races in the fourth quarter of 2000, compared to two races in the fourth quarter of 1999.
"Despite running one less race in the second quarter of 2000 in comparison to the second quarter of 1999 and taking into account the non-recurring charge, CART 's financial results were very strong," said CART CEO, Bobby Rahal. "The recent addition of races in Texas, Mexico, the United Kingdom, and Germany for 2001 show the increase demand for CART races worldwide."
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.