It’s safe to say that the racetrack business is still profitable, but not as much as it was in 2009. Speedway Motorsports Inc, otherwise known as O. Bruton Smith’s company, made a pile of money during the first financial quarter for 2010, but it was a far smaller pile than it made in 2009. Overall revenue was down about $15 million dollars, but they’re not broke as the company managed to take in a total of $118 million during the first quarter.

The company claims that lower ticket prices account for about half the revenue drop, so we assume the other half of the drop comes from reduced ticket sales to events that their tracks are holding. Truth be told, the company forecast the revenue drop and is still on target to hit its projected per share earnings for the 2010 fiscal year.

Because SMI represents a group of the largest tracks in the country, its financial success or failure makes for a pretty decent bellweather for how the whole racing business is doing. It’s not all doom and gloom, but it certainly isn’t as rosy as the years leading up to 2008 were.

One of the things we learned in reading Humpy Wheeler’s book was that zMax Dragway clears about a million bucks after all the bills are paid for an NHRA national event. While that may seem impressive on its face, when compared to what other events generate on circle tracks, it is truly circus peanuts. Keep in mind that Smith spend about $40 million to build that place, so it truly defines the whole “long term investment” philosophy.

Other facts of note from the news reelase:

— total revenues were $118.5 million in 2010 compared to $133.6 million in 2009;

— equity investee results had no impact on the Company’s results in 2010 and after tax equity investee losses were $1.6 million or $0.04 per diluted share in 2009;

— income from continuing operations was $10.3 million or $0.24 per diluted share in 2010 compared to $21.4 million or $0.50 per diluted share in 2009;

— after tax losses from discontinued operations were $1.3 million or $0.03 per diluted share in 2010 compared to $1.0 million or $0.03 per diluted share in 2009; and

— net income was $9.0 million or $0.21 per diluted share in 2010 compared to $20.3 million or $0.47 per diluted share in 2009.

SMI believes admissions and many event related and other operating revenue categories continue to be negatively impacted by declines in consumer and corporate spending from the ongoing impact of weak economic conditions.

So if SMI is taking some large revenue hits, think about how your local drag strip or circle track is doing.

Source — MarketWatch.com —SMI releases financial info