CHAMPCAR/CART: Penske MoSports earnings

TO BUSINESS, AUTO AND MOTORSPORTS EDITORS: Penske Motorsports Reports Record Second Quarter 1997 Results DETROIT, Aug. 5 /PRNewswire/ -- Penske Motorsports, Inc. (PMI) (Nasdaq-NNM: SPWY) today announced record revenues, earnings, and ...

TO BUSINESS, AUTO AND MOTORSPORTS EDITORS: Penske Motorsports Reports Record Second Quarter 1997 Results DETROIT, Aug. 5 /PRNewswire/ -- Penske Motorsports, Inc. (PMI) (Nasdaq-NNM: SPWY) today announced record revenues, earnings, and earnings per share for the second quarter of 1997. Second quarter revenues were up 88% to $46.3 million, versus $24.7 million in the comparable quarter of 1996. Net income for the period was up 63% to $10.9 million, compared to $6.7 million in 1996. On a per common share basis, earnings were $0.80 compared to $0.52 in the second quarter of 1996, after a 5% increase in average shares outstanding. Six month revenues were $51.7 million, up 82%, and net earnings increased 64% to $9.4 million, or $0.70 per share, compared to $0.51 per share in the first six months of 1996. PMI reported that its record financial performance resulted from growth in all of its businesses and the successful grand opening of California Speedway in June. Admissions revenue for the period doubled reflecting a 60% increase in attendance. Other Speedway event revenues, which includes food, merchandise, corporate sponsorship, hospitality, and broadcast rights, were up over 100%. The Company's Merchandise, Tires and Accessories (MT&A) business also experienced record growth with revenues up 51% over the second quarter 1996. MT&A gains were driven by strong catalog sales, expanded product lines, and exceptional demand for California Speedway inaugural merchandise. Greg Penske, President of PMI, said, "I am pleased with our Company's financial performance in the first half of 1997, particularly with the successful grand opening of California Speedway. We also announced two important acquisitions which will enhance our growth going forward. During April we completed our purchase of a 70% interest in North Carolina Motor Speedway (NCMS), which currently hosts two major NASCAR Winston Cup Series events and two NASCAR Busch Series Grand National Division races. In July, we acquired a 40% interest in the Homestead-Miami Speedway, which operates a 45,000 seat, state-of-the-art motorsports complex." Mr. Penske went on to say, "Our current expansion uniquely positions the Company in the motorsports entertainment industry. PMI speedways are now located in five of the most attractive and diversified U.S. markets. At the same time, our financial condition has strengthened, allowing us to pursue new growth opportunities. Since year-end, our equity has increased 25% to $182 million, and our debt-to-capitalization is only 10%." Penske Motorsports, Inc. is a leading promoter and marketer of professional motorsports in the United States. PMI owns and operates the following through its wholly-owned subsidiaries, Michigan Speedway in Brooklyn, Michigan; Nazareth Speedway in Nazareth, Pennsylvania; and California Speedway near Los Angeles, California. PMI also has a majority ownership of the North Carolina Motor Speedway near Rockingham, North Carolina and holds a 40% interest in Homestead-Miami Speedway, LLC. In addition, PMI produces and markets motorsports-related merchandise and accessories such as apparel, souvenirs and collectibles, and distributes and sells Goodyear brand racing tires in the Midwest and Southeast regions of the United States. Penske Motorsports' major shareholder is a majority-owned subsidiary of Penske Corporation, a closely-held, diversified transportation services company which conducts its business through a number of wholly- or partially- owned companies, including Penske Truck Leasing Company, Detroit Diesel Corporation, Diesel Technology Company, AG Kuhnle, Kopp and Kausch, Penske Automotive Group, Inc., Penske Auto Centers, Inc., and Penske Capital Partners. The Penske group of businesses has annual revenues exceeding $6 billion and employs more than 28,000 around the world. PENSKE MOTORSPORTS, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands except for share and per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 1997 1996 1997 1996 REVENUE: Speedway admissions $19,696 $9,780 $19,696 $9,780 Other speedway revenue 15,699 7,658 15,750 7,694 Merchandise, tires and accessories 10,901 7,226 16,225 10,905 TOTAL REVENUES 46,296 24,664 51,671 28,379 EXPENSES: Operating 14,028 6,964 16,314 8,970 Cost of sales 6,226 4,416 9,402 6,515 Depreciation and amortization 1,524 813 2,313 1,473 Selling, general and administrative 6,553 2,642 8,283 3,113 OPERATING EXPENSES 28,331 14,835 36,312 20,071 OPERATING INCOME 17,965 9,829 15,359 8,308 INTEREST INCOME (EXPENSE), net (48) 762 77 756 INCOME BEFORE INCOME TAXES 17,917 10,591 15,436 9,064 INCOME TAXES 6,988 3,874 6,018 3,337 NET INCOME $10,929 $6,717 $9,418 $5,727 NET INCOME PER SHARE $.80 $.52 $.70 $.51 WEIGHTED AVERAGE NUMBER OF SHARES 13,670,164 12,987,500 13,457,164 11,232,960 PENSKE MOTORSPORTS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) June 30, December 31, ASSETS 1997 1996 (Unaudited) CURRENT ASSETS: Cash and cash equivalents $6,973 $27,862 Receivables 12,135 2,365 Inventories 4,432 2,060 Prepaid expenses 1,254 1,272 TOTAL CURRENT ASSETS 24,794 33,559 PROPERTY AND EQUIPMENT, net 209,771 140,402 GOODWILL, net 30,099 6,918 OTHER ASSETS 2,146 3,118 TOTAL $266,810 $183,997 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $13,620 $1,738 Accounts payable 18,026 8,223 Accrued expenses 10,661 1,715 Deferred revenue, net 25,189 14,125 TOTAL CURRENT LIABILITIES 67,496 25,801 LONG-TERM DEBT, less current portion 5,287 3,825 MINORITY INTEREST 2,101 DEFERRED TAXES 9,910 8,969 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock, par value $.01 share: Authorized 50,000,000 shares Issued and outstanding 14,148,340 shares in 1997 and 13,241,798 in 1996 141 132 Additional paid-in-capital 157,721 130,534 Retained earnings 24,154 14,736 TOTAL STOCKHOLDERS' EQUITY 182,016 145,402 TOTAL $266,810 $183,997 SOURCE Penske Motorsports, Inc. -0- 08/05/97 /CONTACT: James H. Harris, Vice President & Treasurer of Penske Motorsports, 313-592-5258, or fax, 313-592-7332/ (SPWY)

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Series IndyCar , NASCAR Cup