CHAMPCAR/CART: CART 4th Quarter Earnings

CHAMPIONSHIP AUTO RACING TEAMS REPORTS FOURTH QUARTER AND RECORD YEAR-END 1999 RESULTS DETROIT (Feb. 4, 2000) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced revenues, net income and earnings per share for the fourth quarter...

CHAMPIONSHIP AUTO RACING TEAMS REPORTS FOURTH QUARTER AND RECORD YEAR-END 1999 RESULTS

DETROIT (Feb. 4, 2000) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today announced revenues, net income and earnings per share for the fourth quarter and year-end December 31, 1999.

The number of events held in a particular quarter will affect the comparability of earnings information from quarter to quarter. CART conducted two events in the fourth quarter of 1999 - the Honda Indy at Queensland, Australia and The 500 Presented by Toyota at Fontana, Calif. The fourth quarter of 1998 included three events, the two mentioned above plus the inaugural Texaco Grand Prix of Houston on the streets of Houston, Texas.

Total revenues for the fourth quarter of 1999 decreased 11% to $11.0 million from $12.5 million in the comparable quarter of 1998. Net income for the fourth quarter of 1999 was $3.2 million compared to $3.3 million in the fourth quarter of 1998. On a diluted per common share basis, earnings were $0.20 in 1999 compared to $0.21 in the fourth quarter of 1998.

For the year-ended December 31, 1999, revenues increased 10% to $68.8 million from $62.5 million. Net income rose 25% to $18.9 million or $1.19 per diluted share versus $15.1 million or $1.05 per diluted share for the year ended December 31, 1998.

"The Company's financial results in 1999 were outstanding and reflect the strength of our business," said CART Chairman and CEO Andrew Craig. "Revenues of $68.8 million and net income of $18.9 million were at record levels for the Company.

"Throughout the year we saw some positive trends develop in our business. For the first time we ran a total of 20 races in the FedEx Championship Series with the addition of a highly successful race in Chicago. Our total cumulative TV audience for the 20 races grew by 7.4% in the U.S.A. Our web site, CART.com, saw spectacular growth with almost 8 million visits in 1999, up by 130% over 1998. The worldwide appeal of the sport continues to expand. We are confident that we have a strong base on which to grow the sport and our business for the future."

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.

- CART -

Qtr Ended Qtr Ended December 31, 1999 December 31, 1998

Revenues Sanction fees $4,391 $5,059 Sponsorship revenue 4,147 3,683 TV revenue 467 824 Engine leases, rebuilds and wheel sales 379 493 Other 1,655 2,396 Total revenues 11,039 12,455 Expenses Race and franchise fund distributions 1,576 2,309 Race expenses 1,052 852 Cost of engine rebuilds and wheel sales 70 112 Administrative and indirect expenses 4,362 4,811 Minority interest - 107 Total expenses 7,060 8,191 Operating income 3,979 4,264 Depreciation and amortization (285) (223) Interest income (net) 1,268 1,058 Income before income taxes 4,962 5,099 Income tax expense 1,774 1,792 Net income $3,188 $3,307 Earnings per share Basic $0.20 $0.22 Diluted $0.20 $0.21 Weighted average shares outstanding Basic 15,587 15,172 Diluted 15,906 15,591

YTD YTD December 31, 1999 December 31, 1998

Revenues Sanction fees $35,479 $30,444 Sponsorship revenue 19,150 16,388 TV revenue 4,950 5,148 Engine leases, rebuilds and wheel sales 2,054 2,214 Other 7,143 8,336 Total revenues 68,776 62,530 Expenses Race and franchise fund distributions 15,334 15,183 Race expenses 6,670 4,818 Cost of engine rebuilds and wheel sales 610 633 Administrative and indirect expenses 20,646 20,658 Total expenses 43,260 41,292 Operating income 25,516 21,238 Depreciation and amortization (1,048) (779) Interest income (net) 5,255 3,198 Income before income taxes 29,723 23,657 Income tax expense 10,865 8,568 Net income $18,858 $15,089 Earnings per share Basic $1.22 $1.06 Diluted $1.19 $1.05 Weighted average shares outstanding Basic 15,427 14,190 Diluted 15,908 14,421

December 31, 1999 December 31, 1998 Assets Current Assets Cash and Cash Equivalents $7,216 $15,080 Short-Term Investments 91,758 61,610 Accounts Receivable 8,780 4,708 Current Portion of Notes Receivable 819 824 Prepaid Expenses 262 331 Inventory 311 71 Current Deferred Tax Asset 114 119 Total Current Assets 109,260 82,743 Notes Receivable 2,485 3,350 Property and Equipment - Net 5,228 5,026 Goodwill 7,442 5,778 Other Assets 472 289 Total Assets $124,887 $97,186 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $2,131 $1,946 Accrued Liabilities Royalties 949 1,026 Payroll 660 482 Taxes 358 1,733 Other 801 934 Deferred Revenue 4,881 4,273 Current Portion of Long-Term Debt - 130 Total Current Liabilities 9,780 10,524 Long-Term Debt - 184 Deferred Federal Taxes - Noncurrent 777 259 Stockholders' Equity Capital Stock 156 151 Additional Paid-In Capital 99,671 89,771 Retained Earnings(Deficit)14,825 (4,033) Unrealized Gain (Loss) on Investments (322) 330 Total Stockholders' Equity 114,330 86,219 Total Liabilities and Stockholders' Equity $124,887 $97,186

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About this article
Series Automotive , IndyCar
Drivers Michael Andretti , Jimmy Vasser