DETROIT (May 21, 2001) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today provided updated financial guidance with respect to anticipated restructuring costs and responds to inquiries with respect to the financial impact of the recent ...
DETROIT (May 21, 2001) - Championship Auto Racing Teams, Inc. (NYSE: MPH) today provided updated financial guidance with respect to anticipated restructuring costs and responds to inquiries with respect to the financial impact of the recent postponed race at Texas Motor Speedway.
As announced on April 23, 2001, the Company began restructuring its Racing Division, which resulted in the elimination of the positions of President of Racing Operations and Vice President of Logisitics. The restructuring costs are expected to include a pre-tax, non-recurring charge in the second quarter of 2001 in the amount of $810,000, resulting from the payments made by the Company under severance agreements with the former employees who served in those positions.
The Company also stated that since there has been litigation initiated by the Texas Motor Speedway with respect to the sanction fees previously paid to the Company and alleged damages and expenses of Texas Motor Speedway for the race that was postponed on April 29, 2001, the Company is unable to comment on the financial impact the postponement will have on the Company.
Championship Auto Racing Teams, Inc. owns, operates and markets the FedEx Championship Series. All FedEx Series races are broadcast domestically on ABC and ESPN television and CART's worldwide television coverage encompasses more than 200 countries and 1 billion viewers annually. Series' champions Gil de Ferran, Jimmy Vasser, Michael Andretti and Alex Zanardi 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 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.