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Long Beach Myth...

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  • Long Beach Myth...

    Link

    Dover runs three CART races; the well-established and profitable Long Beach, CA race and two relatively new street races in Denver and St. Petersburg; the latter two collectively lose a little money.
    We estimate that Long Beach currently generates operating income of about $5 million to Dover.
    Long Beach makes money despite the myths.
    If it doesn't have wings... It isn't worth talking about!

  • #2
    Long Beach makes so much money that Dover took a $29 million write-down against the event:

    The Company recorded a non-cash charge of $28,606,000 as a cumulative effect of an accounting change for the write-off of goodwill associated with the Grand Prix Association of Long Beach, Inc. ("Grand Prix"), a wholly owned subsidiary, in the first six months of 2002.
    Dover also doesn't break out the results of individual races but they did report this:

    Earnings from continuing operations before cumulative effect of accounting change was $30,000 in the first six months of 2003 as compared with $3,019,000 in the first six months of 2002. The decrease resulted primarily from the operating loss incurred from the inaugural Grand Prix of St. Petersburg event, the decline in attendance at the Company's major motorsports events due mainly to inclement weather, higher operating and marketing expenses due to increased purses and sanction fees, increased general and administrative expenses primarily from the settlement of a claim for legal fees, and increased depreciation and interest expense.
    And:

    Operating expenses increased by $5,462,000 in the first six months of 2003 compared with the first six months of 2002, primarily as a result of the inaugural Grand Prix of St. Petersburg event, higher purses and sanction fees for the Company's major motorsports events, as well as the impact of running a NASCAR Busch Series event in May 2003 instead of a NASCAR Truck Series event as in 2002 at the Company's Gateway International Raceway facility.
    And:

    Revenues increased by $2,179,000 to $51,816,000, primarily as a result of the Company's inaugural Grand Prix of St. Petersburg event that occurred in February 2003, as well as the impact of running a NASCAR Busch Series event in May 2003 instead of a NASCAR Truck Series event as in 2002 at the Company's Gateway International Raceway facility. Additionally, the Company experienced an increase in television broadcast and sponsor-related revenues for its major motorsports events. These increases in revenues were partially offset by a decline in attendance at seven of the ten major motorsports events promoted by the Company during the six months ended June 30, 2003, due mainly to inclement weather.
    NO PLACE does Dover say a word about how much money, if any, Long Beach makes. It does seem likely that CART is not a cash cow for Dover since they made a whopping $30,000 profit on auto racing.

    Link

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    • #3
      They wrote down goodwill until they didn't have any profit left? Hmm, sounds like a tax dodge accounting move.

      Also all those quoted numbers refer to a rise in revenues. If your expenses rise more quickly then you loss money even though your revenues rose, they don't say much about expenses.

      Comment


      • #4
        The analysts name is in the article, I know what he does for a living. Who do you think I believe?... a hobbyist or a man with credentials.
        If it doesn't have wings... It isn't worth talking about!

        Comment


        • #5
          I am assuming you are referring to me as the "hobbyist." You may note that the links I posted came straight out of Dover's SEC filings. You don't have to believe me but I would assume you would believe Dover when they file their reports.

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          • #6
            So the analyst doesn't know anything above and beyond the reports? Do you think he missed reading them before allowing himself to be quotes? Do you think he would put his reputation publically and professionally on the line to put out BS?
            If it doesn't have wings... It isn't worth talking about!

            Comment


            • #7
              The analyst said "We estimate that Long Beach currently generates operating income of about $5 million to Dover."

              You immediately jumped to the conclusion that "Long Beach makes money." Reading the financials, there is absolutely no way to back up either position, yours or the analyst's. Dover lumps the figures together and it is impossible to determine any individual race numbers with any certainty. Now, maybe the analyst has a friend at Dover who told him, "ya know, we made $5 million at Long Beach and lost $5 million at Denver so we evened out." It is also possible that the analyst, like you, is guessing. I just have a very hard time believing that race is that profitable. There is a large sanction fee to pay, there are huge expenses associated with the temporary circuit and there aren't that many ticket buyers to carry the freight. I've seen posts that indicate that there are around 40,000 seats. Sell them all for $80 and that gives you a whopping $3.2 million. Add in some concessions and some other income and _maybe_ you get to a gross input of $5 million. How does this stretch to 'an operating income of $5 million? Think with a calculator and not your heart.

              Comment


              • #8
                How dare you come to the Track Forum hall of experts and call them "hobbyists" speedvis.


                I'm quite sure most the boys on Wall Street have this forum bookmarked and wouldn't start the day without a morning read.
                "Living well is the best revenge"

                George Herbert

                Comment


                • #9
                  Some of the boys on Wall Street bought CART stock when it was selling for somewhat higher than 62 cents a share. That might have been money ahead if they had read this forum.

                  Comment


                  • #10
                    Originally posted by Railbird
                    How dare you come to the Track Forum hall of experts and call them "hobbyists" speedvis.


                    I'm quite sure most the boys on Wall Street have this forum bookmarked and wouldn't start the day without a morning read.
                    ssssshhhhhh ........ he speaks ...............
                    http://brianswish.trackforum.com/brianswish_main.htm/

                    Comment


                    • #11
                      Originally posted by Railbird
                      How dare you come to the Track Forum hall of experts and call them "hobbyists" speedvis.
                      He has a whole different set of names for us when he posts with his buddies at "That Hate Site".


                      But remember.......The IRL will be fine!!!!




                      Comment


                      • #12
                        "he" is atleast SOMEONE's hero, which is probably more than either you or I can say.

                        but, ya know what, by golly (I56), he's the right man for the JOB. He can swoop down through these forums like an eagle ... we should call him raileagle, but then people would confuse him with "their" other hero! He's a true crime fighter. He!! he should be in the Justice League of America. We could call him raileagle and give him a cape!

                        da da da da da da da da da "r-a-i-l-e-a-g-l-e" da da da da da
                        http://brianswish.trackforum.com/brianswish_main.htm/

                        Comment


                        • #13
                          Originally posted by trow
                          "he" is atleast SOMEONE's hero, which is probably more than either you or I can say.

                          Nope..."hero" is not the four letter word that most would associate with me around these parts.

                          Comment


                          • #14
                            I can only comment on the facts. The FACT is that Long Beach makes money.
                            If it doesn't have wings... It isn't worth talking about!

                            Comment


                            • #15
                              Speedvis, Dennis McAlpine issued a research comment yesterday indicating that changes or failure by CART would probably not affect Dover much IF Long Beach was picked up by IRL or some other racing series. If CART goes down, he suspects St. Pete and Denver would be history and Dover would hafta write down millions in initial investments in those two losers. I suspect he is right.
                              "The lunatic fringes on both sides need to be written off." -- stnky pete

                              Comment

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