CHAMPCAR/CART: CART consolidated third quarter financial report

<pre> Championship Auto Racing Teams, Inc. Consolidated Statements of Income For the Three and Nine Months Ended September 30, 2002 and 2001 (Unaudited) ...

<pre> Championship Auto Racing Teams, Inc. Consolidated Statements of Income For the Three and Nine Months Ended September 30, 2002 and 2001 (Unaudited) (In Thousands, Except Earnings Per Share)

Three Months Nine Months Ended September 30, Ended September 30, 2002 2001 2002 2001 Revenues Sanction fees $12,555 $21,744 $27,082 $37,633 Sponsorship revenue 2,934 3,703 8,039 10,110 Television revenue 1,967 2,365 4,230 4,204 Race promotion revenue -- -- 1,417 -- Engine leases, rebuilds and wheel sales -- 325 -- 908 Other 1,081 1,422 2,665 2,928 Total revenues 18,537 29,559 43,433 55,783

Expenses Race distributions 8,427 8,399 15,778 13,760 Race expenses 4,110 3,227 8,432 7,799 Race promotion expense 5,452 -- 8,935 -- Cost of engine rebuilds and wheel sales -- 128 -- 343 Television expense 4,892 -- 9,604 -- Administrative and indirect expenses 8,966 9,803 20,762 22,766 Litigation expense -- 3,547 -- 3,547 Relocation expense -- -- 1,305 -- Asset impairment and strategic charges -- 8,548 -- 8,548 Depreciation and amortization 357 346 1,045 1,151 Total expenses 32,204 33,998 65,861 57,914

Operating loss (13,667) (4,439) (22,428) (2,131) Realized gain on sale of investments 2 -- 2 -- Interest income - net 882 1,761 3,083 5,700

Income (loss) before income taxes (12,783) (2,678) (19,343) 3,569 Income tax expense (benefit) (4,473) (968) (6,769) 1,249

Net income (loss) before effect of accounting change $(8,310) $(1,710) $(12,574) $2,320

Cumulative effect of accounting change (net of tax) -- -- (956) --

Net income (loss) $(8,310) $(1,710) $(13,530) $2,320

Earnings (loss) per share before cumulative effect of accounting change: Basic $(0.56) $(0.11) $(0.85) $0.15 Diluted $(0.56) $(0.11) $(0.85) $0.15

Net earnings (loss) per share Basic $(0.56) $(0.11) $(0.92) $0.15 Diluted $(0.56) $(0.11) $(0.92) $0.15

Weighted average shares outstanding: Basic 14,718 15,141 14,718 15,482 Diluted 14,718 15,149 14,718 15,485

Championship Auto Racing Teams, Inc. Consolidated Balance Sheets As of September 30, 2002 and December 31, 2001 (Dollars in Thousands) (Unaudited)

September 30, 2002 December 31, 2001 Assets

Current assets Cash and cash equivalents $15,174 $27,765 Short-term investments 87,776 87,621 Accounts receivable - net 9,192 5,195 Current portion of notes receivable -- -- Prepaid expenses 1,473 2,805 Inventory 95 70 Deferred income taxes 10,359 2,856

Total current assets 124,069 126,312

Notes receivable (net of allowance for doubtful notes of $96 and $96, at September 30, 2002 and December 31, 2001, respectively) -- --

Property and equipment - net 5,716 4,832

Goodwill - net -- 1,470

Non-current deferred tax 457 --

Other assets 356 327

Total assets $130,598 $132,941

Liabilities and stockholders' equity

Current liabilities Accounts payable $5,034 $3,009 Accrued liabilities: Race expenses and point awards 2,171 -- Television expenses 2,514 -- Royalties 119 222 Payroll 2,728 4,298 Taxes 929 110 Other 4,617 5,558 Deferred revenue 8,141 1,511

Total current liabilities 26,253 14,708

Deferred income taxes -- 297

Stockholder's equity Capital stock 147 147 Additional paid-in capital 87,765 87,765 Retained earnings 15,498 29,028 Unrealized gain on investments 935 996

Total stockholders' equity 104,345 117,936

Total liabilities and stockholders' equity $130,598 $132,941

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Series Automotive , IndyCar