Overly rich condition causing oil buildup due to the combustion not consuming enough of it.
This is VERY common and can be fixed by cleaning your carburetor, setting the float properly and if need be, rejet the carburetor according to the throttle positions that give you a rich indication on a spark plug inspection.
Basically, too much fuel/oil is getting in the motor, which is why so much fuel/oil is coming out the other end.
If it smokes terribly and smells bad everytime, I suspect a crank seal has gone and is sucking in transmission fluid into the engine.-BIG DAN