speedway motorsports inc (TRK) Snapshot

Speedway Motorsports Inc. completed its previously announced redemption of its 8 3/4 % Senior Notes due 2016, of which $275,000,000 in aggregate principle amount was outstanding. The redemption date for the Senior Notes was June 1, 2013 pursuant to notice delivered by the trustee on the company’s behalf on April 15, 2013. The Senior Notes were issued pursuant to the Indenture dated as of May 19, 2009, by and among the company, the guarantors of the Indenture and U.S. Bank National Association, as trustee. The redemption price was 104.375% of the principal amount of the Senior Notes, plus accrued and unpaid interest thereon up to the redemption date, or an aggregate of $299,062,500. After the redemption date, interest on the Senior Notes ceased to accrue and all rights of the holders of the Senior Notes ceased, except for the right to receive the redemption price and accrued and unpaid interest to the Redemption Date. The company funded the redemption amount (1) by drawing the full $250,000,000 term loan at an annual interest rate of LIBOR plus 2% pursuant to the amended and restated credit agreement dated as of February 1, 2013, by and among the company, Speedway Funding, LLC, a Delaware limited liability company, the guarantors to the amended and restated credit agreement, Bank of America, N.A., as Administrative agent, and the several lenders as identified therein. (2) cash on hand in the amount of $49,062,500.

Speedway Motorsports Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported total revenues of $84,222,000 compared to $84,802,000 a year ago. Loss from continuing operations before income taxes was $2,132,000 compared to $181,000 a year ago. Loss from continuing operations was $1,333,000 compared to $118,000 a year ago. Net loss was $1,368,000 or $0.03 basic and diluted per share compared to $146,000 a year ago. The company reaffirmed previous full year 2013 earnings guidance of $0.90 per share to $1.10 per diluted share from continuing operations, excluding non-recurring charges. The range of earnings guidance reflects the continuing negative impact of difficult and uncertain economic conditions. The company still projects 2013 capital expenditures to approximate $20 million to $30 million.

Speedway Motorsports Inc., Q1 2013 Earnings Call, May 01, 2013