CHAMPIONSHIP AUTO RACING TEAMS, INC. REPORTS SECOND QUARTER 2001 RESULTS AND UPDATED FINANCIAL GUIDANCE FOR 2001 DETROIT (July 31, 2001) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced revenues, expenses, net income and...
CHAMPIONSHIP AUTO RACING TEAMS, INC. REPORTS SECOND QUARTER 2001 RESULTS AND UPDATED FINANCIAL GUIDANCE FOR 2001
DETROIT (July 31, 2001) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced revenues, expenses, net income and earnings per share for the second quarter ended June 30, 2001.
The number of events held in a particular quarter will affect the comparability of earnings information from quarter to quarter. CART conducted six events in the second quarter of 2001 compared to seven events in the same period in 2000. The results reported for the second quarter do not include revenue or race purse expenses associated with the CART event scheduled to be held at the Texas Motor Speedway. Indy Lights conducted four races in the second quarter of 2001 and 2000. Toyota Atlantics conducted four races in the second quarter of 2001 compared to three races in the same period in the prior year.
Total revenues for the second quarter of 2001 were $19.8 million, a decrease of $5.1 million, or 21%, from the comparable quarter of 2000. "Running one less CART FedEx Championship Series race in 2001, when compared to 2000, and lower sponsorship revenue and membership and entry fees in the two CART development series were the main reasons for the decrease in revenue" stated CART's CFO Thomas Carter.
Total expenses for the second quarter of 2001 were $15.6 million, compared to $17.2 million for the second quarter of 2000. Included in the 2001 and 2000 expenses were a pre-tax charge of $810,000 and $2.8 million, respectively, that resulted from employee severance agreements.
Net income for the second quarter of 2001 was $3.9 million compared to net income of $6.1 million in the second quarter of 2000. On a diluted per common share basis, earnings were $0.25 in 2001 compared to $0.39 in the second quarter of 2000.
"There are several exciting initiatives that are close to fruition," said CART Chairman and CEO Joseph F. Heitzler. "We continue to work toward finalizing the CART television package for 2002 and beyond. We are formulating our 2002 schedule, which will include several new markets. Attendance thus far in 2001 has increased in most instances. It all sets the stage for an exciting future."
Total revenues for the six months ended June 30, 2001 were $26.2 million versus $32.8 million in 2000. Total expenses were $23.9 versus $23.4 million in 2000. Net income was $4.0 million compared to $8.1 million in 2000. This resulted in earnings per share on a fully diluted basis of $0.26 compared to $0.52 for the same period in the prior year. There were seven CART Fed-Ex races in the six months ended June 30, 2001 compared to eight races in the same period in the prior year.
Championship Auto Racing Teams, Inc. (NYSE: MPH) owns, operates and markets the FedEx Championship Series. Champions Michael Andretti, Gil de Ferran, Alex Zanardi 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 Form 10-K and subsequent Forms 10-Q. Copies of those filings are available from the Company and the SEC.
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