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8.26.11 WKA Finance Update

• Financial History• 2010 Results• 2011 YTD Results• Income Sources• Operational Changes

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Financial History

2005 2006 2007 2008 2009 2010 2011*

($300,000)

($250,000)

($200,000)

($150,000)

($100,000)

($50,000)

$0

$50,000

$100,000 Net Income/(Loss)

$36,000 ($152,000) ($256,000) $200 $48,000 ($175,000) $60,000

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What Happened in 2010?• Road America Event

• Road race entries down 200 from 2009 = $37k loss NRRS race

• Dirt & Pavement Series• Increased costs to run Dirt program 2010, $37k loss• Pavement down 400 entries from 2009 = $10k loss

• Legal Expenses• Legal actino $47k

• Magazine• $54k loss for WKA Inc. (magazine operation)

• Overall $200k lower revenue in 2010 and $15k more in expenses

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Revenue Sources: Dec – May 2011

Nat’l Race Income

Advertising

Other

Sponsorship

Membership

Insurance

Nat’l Race Insurance Membership Sponsorship Advertising Other Ttl

$405k $172k $63k $56k $35k $101k $833k

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Expense Items: Dec – May 2011

Insurance

Payroll

Contract Labor

Awards

Magazine

Other

Nat’l Race Expense

Nat’l Race InsuranceContract

Labor Payroll Awards Magazine Other Ttl

$248k $107k $114k $76k $29k $26k $201k $801k

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Other Revenue & Expense Detail*Revenue Amount Expense Amount

FIA Licenses $6k Postage $15k

Reserved #s $4k Rent $20k

Sanction Fees $4k Phone $7k

Calendar Listing $7k Souvenir $11k

Souvenirs $15k Bank $9k

Track App $14k P/R Taxes $8k

FIA Grant $28k Travel $15k

Gen Insurance $12k

Legal $25k

Office Supplies $8k

Depreciation $9k

*Material categories only, rounded

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2010 Series ResultsSeries

Income / (Loss)

$3,926

$60,765

($956)

($10,359)

($37,668)

Dirt

Pavement

Gold Cup

Mfg Cup

Road Race

($40,000) ($20,000) $0 $20,000 $40,000 $60,000 $80,000

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Operational Dashboard History

Year MembersMaster Tracks Sponsorships

National Entries

2007 5560 65 $264k 10,241

2008 4473 70 $242k 9,310

2009 3587 72 $175k 8,782

2010 3001 60 $175k 7,620

6/30/11 YTD 2987 86 $132k* 4,140**

*Sponsorship revenue spread evenly throughout year, includes 7 months**11 of 22 national events complete as of 6/30/11

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Financial History in Summary

• Improved net income, despite significant revenue decreases 2008-2009• 2005 $2.6 million total revenue• 2006 $2.1m• 2007-2009 $1.9m• 2010 $1.65m ($1m lost revenue in 5 years)Despite $1m lost revenue, $200k improvement to bottom line

• Significant operational learning and change decisions:• Contract rewrites• Corrected pricing• Long-term sponsor relationships• “Magazine” transformation• Organizational changes• Awards appropriation