CHAMPCAR/CART: Second Quarter Results

CART Reports Second Quarter 1998 Results Troy, MI (August 3, 1998) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced record revenues, net income and earnings per share for the second quarter and six months ended June...

CART Reports Second Quarter 1998 Results

Troy, MI (August 3, 1998) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced record revenues, net income and earnings per share for the second quarter and six months ended June 30, 1998.

Actual Results: Total revenues for the second quarter of 1998 were up 7% to $20.0 million from $18.7 million in the comparable quarter in 1997. Net income for the second quarter of 1998 was up to $5.0 million, compared to a net loss of $1.2 million in the second quarter of 1997. On a diluted per common share basis, earnings were $0.32 in 1998 compared to a loss of $(0.12) in the second quarter of 1997.

For the six month period ended June 30, 1998, revenues increased 25% to $30.1 million from $24.1 million. Net income rose to $7.8 million or $0.59 per diluted share versus a net loss of $0.3 million, or $(0.03) per diluted share.

Pro Forma Results: Assuming the American Racing Series, BP Automotive and Pro-Motion Agency acquisitions had been effective January 1, 1997 and January 1, 1998, and after eliminating certain non-recurring race team expenses in the second quarter and six months ended June 30, 1997, pro forma results for the periods would have been as follows:

Total revenues for the second quarter of 1998 decreased 4% to $20.0 million from $20.8 million in the comparable quarter in 1997. Net income for the second quarter of 1998 decreased 2% to $5.0 million, compared to $5.1 million in the second quarter of 1997. On a diluted per common share basis, earnings were $0.32 in 1998 compared to $0.48 in the second quarter of 1997.

For the six month period ended June 30, 1998, revenues increased 18% to $31.4 million from $26.6 million. Net income rose 34% to $8.1 million or $0.59 per diluted share versus $6.0 million, or $.57 per diluted share.

The number of events held in a particular quarter will affect the comparability of earnings information from quarter to quarter. In the second quarter of 1998, CART conducted 7 events, which was one event less than the comparable quarter in 1997. The CART event conducted in Australia moved out of the second quarter and will be run in the fourth quarter on October 18, 1998.

Andrew Craig, CART Chairman and CEO, stated, "despite running one less event in the second quarter, revenues and earnings were comparable with the previous year, primarily due to a 60% increase in sponsorship revenue which is attributable to the addition in 1998 of FedEx as the title sponsor of the series. We continued to control and contain costs which allowed the company to exceed analyst estimates for the quarter.

"During the second quarter, the company continued to grow and enhance the business by adding to its ladder system with the acquisition of Pro-Motion Agency, which runs the KOOL Toyota Atlantic Championship. In addition, we announced a new venue for 1999 in Chicago, Illinois at the Chicago Motor Speedway and completed a marketing representation agreement with ISL Worldwide, which secures minimum sponsorship revenues of $215-235 million dollars over the next nine years."

Source: CART Online

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Series IndyCar