-Provides 2010 Full Year Financial Guidance- DAYTONA BEACH, Fla.,
Jan. 28 /PRNewswire-FirstCall/ -- International Speedway
Corporation (NASDAQ:ISCA)(OTC:ISCB) (BULLETIN BOARD: ISCB) ("ISC")
today reported financial results for its fiscal fourth quarter and
full-year ended November 30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20091005/FL87045LOGO ) "We are
excited about the upcoming 2010 motorsports season, despite the
economic issues we still face which had a definite effect on our
revenue last year," stated ISC Chief Executive Officer Lesa France
Kennedy. "We are optimistic that the economic recovery underway
will continue to strengthen and we will begin to see positive
changes in consumer and corporate spending. Benefiting our Company
is the fact that we remain in excellent financial shape highlighted
by significant contracted revenue from media income and a solid
balance sheet." Ms. France Kennedy continued, "As we move into the
new season, our primary focus is on ensuring that the millions of
fans who attend our events receive great entertainment value
coupled with an unforgettable at-track experience. To make
attending our events even more affordable, we have taken the ticket
pricing strategy so successful last year and expanded it to
encompass value pricing on over 500,000 NASCAR Sprint Cup tickets.
We remain encouraged by the recent signs of increased ticket buying
volume for the DAYTONA 500 versus last year." Fourth Quarter
Comparison Total revenues for the fourth quarter decreased to
$201.8 million, compared to revenues of $205.3 million in the
prior-year period. Operating income was $50.5 million during the
period compared to $64.9 million in the fourth quarter of fiscal
2008. In addition to the macroeconomic challenges,
quarter-over-quarter comparability was impacted by: -- The fall
NASCAR Sprint Cup and Nationwide events at Auto Club Speedway held
in the third quarter of fiscal 2008 which were conducted in the
fourth quarter of fiscal 2009. -- An IndyCar® and Grand-Am Rolex
Sports Car series weekend held at Homestead-Miami Speedway in the
second quarter of 2008 was held in ISC's fiscal fourth quarter
2009. -- An IndyCar series event held at Chicagoland in the fourth
quarter of fiscal 2008 was conducted in the third quarter of fiscal
2009. -- Accelerated depreciation of $0.5 million, or $0.01 per
diluted share after tax, in the fourth quarter of 2008 for certain
office and related buildings in Daytona Beach associated with the
Company's previously announced Daytona development project. --
During the 2009 fiscal fourth quarter, the Company recorded a $2.9
million, or $0.04 per diluted share after-tax, non-cash impairment
charge on long-lived assets to remove the net book value of certain
assets retired from service. By comparison, the 2008 fiscal fourth
quarter includes non-cash impairment charges of approximately
$323,000 to remove the net book value of certain assets retired
from service. -- During the 2009 fiscal fourth quarter, the Company
amortized approximately $4.3 million, or $0.05 per diluted share
after tax, related to its interest rate lock. This amortization was
recorded in interest expense in the consolidated statement of
operations. -- The 2008 fiscal fourth quarter included a charge to
provide for working capital advances of $2.3 million, or $0.03 per
diluted share after tax, associated with its joint venture project
in Kansas for the development of a gaming and entertainment
destination. -- During the 2009 fiscal fourth quarter, the $15.5
million, or $0.35 per diluted share after tax equity in net loss
from equity investments represents ISC's portion of the results
from its 50.0 percent indirect interest in Motorsports Authentics
and includes a non-cash charge of approximately $13.7 million, or
$0.28 per diluted share for further impairment of the investment.
ISC's portion of Motorsports Authentics' net income for the fiscal
fourth quarter 2008 included in equity in net loss from equity
investments was approximately $3.4 million, or $0.07 per diluted
share. Net income for the fourth quarter was $9.0 million, or $0.19
per diluted share, compared to net income of $33.6 million, or
$0.69 per diluted share, in the prior year. Excluding discontinued
operations; the operating results from the Company's equity
investment including the related impairments taken by ISC; the
impairment of long-lived assets; and the amortization related to
its interest rate lock recorded in interest expense, non-GAAP
(defined below) net income for the fourth quarter of 2009 was $30.6
million, or $0.63 per diluted share. Non-GAAP net income for the
fourth quarter of 2008 was $39.0 million, or $0.80 per diluted
share. Year-to-Date Comparison For the year-ended ended November
30, 2009, total revenues were $693.2 million, compared to $787.3
million in 2008. Operating income for the fiscal year was $147.8
million compared to $235.8 million in the prior year.
Year-over-year comparability was impacted by: -- The continued
adverse economic trends which increasingly contributed to the
decrease in attendance related as well as corporate partner
revenues for certain of the Company's events. -- Exceptionally
strong consumer and corporate demand for the 50th running of the
DAYTONA 500 and supporting events in the first quarter of 2008. The
historic race provided unique opportunities to drive revenue above
the otherwise strong appeal of the sport's marquee event. -- As a
result of executing certain purchase and lease agreements, the
operations of Stock-Car Montreal are now reflected in the Company's
consolidated financial statements, compared to prior year results
recognized in net income from equity investments when the Company
promoted the events in joint venture with its partner Group
Motorise International. -- Accelerated depreciation of
approximately $1.0 million, or $0.01 per diluted share after tax,
in 2009 as compared to approximately $2.1 million, or $0.02 per
diluted share after tax in 2008, related to certain office and
other buildings razed in Daytona Beach as part of the Company's
previously announced Daytona development project. -- In fiscal
2009, the Company recognized non-cash impairments of long-lived
assets totaling approximately $16.7 million, or $0.21 per diluted
share after tax, primarily attributable to the decrease in the
carrying value of ISC's Staten Island property and, to a much
lesser extent, to remove the net book value of certain assets
retired from service. In fiscal 2008, the Company recognized
impairments of long-lived assets totaling approximately $2.2
million, or $0.03 per diluted share, primarily attributable to its
Staten Island property and impairments of certain other long-lived
assets. -- During fiscal 2009, the Company amortized approximately
$4.3 million, or $0.05 per diluted share after tax, related to its
interest rate swap. This amortization was recorded in interest
expense in the consolidated statement of operations. -- The 2009
second quarter results include interest income, net of tax, of
approximately $8.9 million, or $0.18 per diluted share after tax,
for interest earned on the deposited funds which were ultimately
returned to the Company as a result of the definitive settlement
agreement with the Internal Revenue Service in connection with the
previously disclosed federal income tax examination for its 1999
through 2005 fiscal years. -- The recognition of a tax benefit of
$3.5 million, or $0.07 per diluted share after tax, associated with
certain restructuring initiatives in the third quarter of 2008. --
A 2008 first quarter non-cash charge of $3.8 million, or $0.08 per
diluted share after tax, to correct the carrying value of certain
other assets. -- 2008 fourth quarter costs of $2.3 million, or
$0.03 per diluted share after tax, associated with the pursuit of a
casino management contract at Wyandotte County, Kansas. -- In
fiscal 2009, the $77.6 million, or $1.63 per diluted share, after
tax equity in net loss from equity investments represents ISC's
portion of the results from its 50.0 percent indirect interest in
Motorsports Authentics and includes a total non-cash impairment
charge of approximately $69.3 million, or $1.43 per diluted share.
ISC's portion of Motorsports Authentics net income for fiscal 2008
included in equity in net loss from equity investments was
approximately $1.6 million, or $0.02 per diluted share. Net income
for the year-ended November 30, 2009, was $6.8 million, or $0.14
per diluted share, compared to net income of $134.6 million, or
$2.71 per diluted share, in 2008. Excluding discontinued
operations, the operating results from the Company's equity
investment including the related impairments taken by ISC;
accelerated depreciation for certain office and related buildings
in Daytona Beach; impairment of long-lived assets; the amortization
related to its interest rate lock recorded in interest expense; and
the interest income from the IRS settlement, non-GAAP (defined
below) net income for the year-ended ended November 30, 2009, was
$90.7 million, or $1.86 per diluted share. This is compared to
non-GAAP net income for the year-ended November 30, 2008 of $138.1
million, or $2.78 per diluted share. GAAP to Non-GAAP
Reconciliation The following financial information is presented
below using other than generally accepted accounting principles
("non-GAAP"), and is reconciled to comparable information presented
using GAAP. Non-GAAP net income and diluted earnings per share
below are derived by adjusting amounts determined in accordance
with GAAP for certain items presented in the accompanying selected
operating statement data, net of taxes. The 2008 adjustments relate
to: net income from equity investment; accelerated depreciation for
certain office and related buildings in Daytona Beach; the
impairment of long-lived assets associated with the fill removal
process on the Staten Island property and the net book value of
certain assets retired from service; a tax benefit associated with
certain restructuring initiatives; a non-cash charge to correct the
carrying value of certain other assets; and, a provision on working
capital advances associated with its joint venture project in
Kansas for the development of a gaming and entertainment
destination. The adjustments for 2009 relate to: a loss from equity
investment; accelerated depreciation for certain office and related
buildings in Daytona Beach; the impairment of long-lived assets
associated with the Staten Island property and the net book value
of certain assets retired from service; amortization of interest
rate swap; and interest income earned on the deposited funds
returned to the Company as a result of the definitive settlement
agreement with the Internal Revenue Service. The Company believes
such non-GAAP information is useful and meaningful to investors,
and is used by investors and ISC to assess core operations. This
non-GAAP financial information may not be comparable to similarly
titled measures used by other entities and should not be considered
as an alternative to operating income, net income or diluted
earnings per share, which are determined in accordance with GAAP.
(In Thousands, Except Per Share Amounts) (Unaudited) Three Months
Ended Twelve Months Ended November November November November 30,
2008 30, 2009 30, 2008 30, 2009 -------- -------- -------- --------
Net income $33,621 $8,996 $134,595 $6,815 Net loss from
discontinued operations 45 40 163 170 --- --- --- --- Income from
continuing operations 33,666 9,036 134,758 6,985 Motorsports
Authentics -Equity in net loss (income) from equity investments,
net of tax 3,370 17,124 (970) 79,277 ----- ------ ---- ------
Consolidated income from continuing operations excluding
Motorsports Authentics equity in net loss (income)from equity
investments 37,036 26,160 133,788 86,262 Adjustments, net of tax:
Additional depreciation 319 - 1,278 637 Impairment of long-lived
assets 198 1,800 1,374 10,081 Amortization of interest rate swap -
2,608 - 2,608 Interest income from IRS Settlement - - - (8,923) Tax
benefit associated with restructuring initiatives - - (3,477) -
Correction of certain other assets' carrying value - - 3,758 -
Provision on advance to Kansas Entertainment 1,409 - 1,409 - -----
--- ----- --- Non-GAAP net income $38,962 $30,568 $138,130 $90,665
======= ======= ======== ======= Per share data: Diluted earnings
per share $0.69 $0.19 $2.71 $0.14 Net loss from discontinued
operations - - - - --- --- --- --- Income from continuing
operations 0.69 0.19 2.71 0.14 Motorsports Authentics -Equity in
net loss (income) from equity investments, net of tax 0.07 0.35
(0.02) 1.63 ---- ---- ----- ---- Consolidated income from
continuing operations excluding Motorsports Authentics equity in
net loss (income) from equity investments 0.76 0.54 2.69 1.77
Adjustments, net of tax: Additional depreciation 0.01 - 0.02 0.01
Impairment of long-lived assets 0.00 0.04 0.03 0.21 Amortization of
interest rate lock - 0.05 - 0.05 Interest income from IRS
Settlement - - - (0.18) Tax benefit associated with restructuring
initiatives - - (0.07) - Correction of certain other assets'
carrying value - - 0.08 - Provision on advance to Kansas
Entertainment 0.03 - 0.03 - ---- --- ---- --- Non-GAAP diluted
earnings per share $0.80 $0.63 $2.78 $1.86 ===== ===== ===== =====
Recent Events Fiscal Fourth Quarter Events Facility Dates Major
Event Hosted ------------------------ -----------
---------------------------- Richmond International Sept. 11-12
NASCAR Sprint Cup and NASCAR Raceway Nationwide Kansas Speedway
Oct. 1-4 NASCAR Sprint Cup; NASCAR Nationwide; and ARCA RE/MAX
Homestead-Miami Speedway Oct. 9-10 IndyCar and Grand-Am Rolex
Sports Car Auto Club Speedway Oct. 10-11 NASCAR Sprint Cup and
NASCAR Nationwide Martinsville Speedway Oct. 24-25 NASCAR Sprint
Cup and NASCAR Camping World Truck Talladega Superspeedway Oct.
31-Nov. 1 NASCAR Sprint Cup and NASCAR Camping World Truck Phoenix
International Nov. 13-15 NASCAR Sprint Cup; NASCAR Raceway
Nationwide; and NASCAR Camping World Truck Homestead-Miami Speedway
Nov. 20-22 NASCAR Sprint Cup; NASCAR Nationwide; and NASCAR Camping
World Truck From a marketing partnership perspective, the Company
sold all of its 2009 NASCAR Sprint Cup and Nationwide series event
entitlements and achieved its gross marketing partnership revenue
target for the year. For fiscal 2010, ISC has agreements in place
for approximately 73 percent of its gross marketing partnership
revenue target and has sold 16 of 20 available NASCAR Sprint Cup
series entitlements and 12 of 15 available Nationwide series event
entitlements. This is compared to last year at this time when it
had approximately 71 percent of its gross marketing partnership
revenue target and had entitlements for four Sprint Cup and three
Nationwide races either open or not announced. "We are seeing
encouraging signs of renewed spending from our corporate partners,"
stated Ms. France Kennedy. "We are optimistic that corporate
budgets that were tight last year are loosening now for spending in
motorsports. Not only are we doing deals with new companies to the
sport, but also we are doing deals with companies that are again
partnering with ISC such as UAW and Valvoline. We also recently
signed a deal with HP Hood." Motorsports Authentics In fiscal 2009,
Motorsports Authentics ("MA") management and ownership considered
various approaches to optimize performance in MA's various
distribution channels. As the challenges were assessed, it became
apparent that there was significant risk in future business
initiatives in mass apparel, memorabilia and other yet to be
developed products. These initiatives had previously been deemed
achievable and were included in projections that supported the
carrying value of inventory, goodwill and other intangible assets
on MA's balance sheet. This analysis, combined with a long-term
macroeconomic outlook, which is believed to be less robust than
previously expected, triggered MA's review of certain assets under
SFAS 142 and 144. Factors considered in the review include that
fact that while MA is in the process of renegotiating its
agreements with NASCAR team licensors, many of which are in default
due to MA's failure to pay the unearned portion of certain
guaranteed royalties, there is no certainty that these licensors
will agree to revision of current license contract terms or
continue to grant MA licensing rights under acceptable terms in the
future. Also, MA's financial projections, absent contract
revisions, indicate significant losses at the EBITDA level from
fiscal 2010 through fiscal 2012. As a result of the review, MA's
management, with the assistance of an independent appraisal firm,
concluded that the fair value of MA's goodwill and intangible
assets should be reduced to zero. Absent a favorable resolution of
current license agreement terms regarding the unearned portion of
certain guaranteed royalties, MA has exposure to a material amount
of future guaranteed royalty payments that, in a worst case
scenario, could be asserted as immediately due. ISC has exposure
for a guarantee liability to one NASCAR team licensor which is
limited to $11.5 million in a worst case. While the Company
believes it is possible that some obligation under this guarantee
may occur in the future, the amount ISC would ultimately pay cannot
be estimated at this time. In any event, the Company does not
believe that the ultimate financial outcome will have a material
impact on its financial position or results of operations. MA
continues to explore business strategies in conjunction with
certain motorsports industry stakeholders that allow the
possibility for MA to operate profitably in the future. As with any
business in this adverse economic environment, management must find
the optimal business model for long-term viability. In addition to
revisiting the business vision for MA, management, with support of
ownership, is also undertaking certain initiatives to improve
inventory controls and buying cycles, as well as implementing
changes to make MA a more efficiently operated and profitable
company. ISC believes a revised MA business vision, which must
include successful resolution of current license agreement terms
and favorable license terms in the future, along with focus on core
competencies, streamlined operations, reduced operating costs and
inventory risk, are necessary for MA to survive as a profitable
operation in the future. Should the aforementioned renegotiations
of the license agreements on terms that allow MA reasonable future
opportunities to operate profitably not be successful, should
management decide to allow license defaults to remain uncured, or
should licensors not grant extended cure periods and exercise their
rights under the agreements, MA's ability to continue operating
could be severely impacted. If such efforts are not sufficient or
timely MA could ultimately pursue bankruptcy. External Growth and
Other Initiatives On December 1, 2009, Kansas Entertainment, LLC,
the Company's 50/50 joint venture with Penn National Gaming, Inc.
("Penn") was awarded the casino management contract for Wyandotte
County, Kansas, by the Kansas Lottery Gaming Facility Review Board.
Based on its selection, and subject to background investigations
and licensing by the Kansas Racing and Gaming Commission which are
expected to be completed in February 2010, Kansas Entertainment
plans to begin construction of the Hollywood-themed and branded
entertainment destination facility in the second half of 2010 with
a planned opening in the first quarter of 2012. The initial phase
of the project, which is planned to comprise approximately 190,000
square feet, includes a 100,000 square foot casino gaming floor
with approximately 2,300 slot machines and 86 table games, a
high-energy center bar, and dining and entertainment options and is
projected to cost approximately $385 million. The joint venture
anticipates partially funding the first phase of the development
with a minimum equity contribution of $50 million from each partner
in mid-2010. In addition, the joint venture currently plans to
pursue financing of approximately $140 million, preferably on a
project secured non-recourse basis. Land that ISC owns is assumed
to be valued at approximately $100 million post licensing and
leased gaming equipment of approximately $45 million would complete
the financing of the project's first phase. The full budget of all
potential phases is projected at over $800 million and would be
financed by the joint venture. In October 2009, ISC entered into a
definitive agreement to sell its Staten Island property that, once
completed, will net the Company in excess of $100 million, which
includes a tax benefit ISC will receive from the sale. The Company
has received a non-refundable $1 million initial payment with the
transaction scheduled to close by February 25, 2010. However, the
closing is subject to certain conditions including the buyer
securing the required equity commitments to acquire the property,
and the buyer performing its obligation under the agreement. That
performance may be affected by its failure to obtain resolution of
certain issues related to the fill permitting process. The failure
to meet these conditions could delay the closing or result in the
termination of the agreement. Capital Spending Capital expenditures
totaled approximately $113.7 million for fiscal 2009, compared to
approximately $107.0 million for fiscal 2008. Capital expenditures
included approximately $32.2 million related to construction of the
new ISC headquarters in Daytona Beach, Florida, which is funded
from long-term restricted cash and investments provided by the
headquarters financing and approximately $11.3 million related to
other aspects of the Company's Daytona Project, Staten Island
property and Stock-Car Montreal; the balance of the spending for
the period relates to grandstand seating enhancements at Michigan;
grandstand seating enhancements and new vehicle parking areas at
Daytona; grandstand seating enhancements at Talladega, and a
variety of other improvements and renovations to its facilities. At
November 30, 2009, the Company had approximately $76.7 million in
capital projects currently approved. Included in these amounts are
approximately $11.7 million related to construction of its new
headquarters building; approximately $6.2 million related to land
acquisitions; installation of a new leaderboard and parking
improvements at Richmond; grandstand seating enhancements, media
center and infield improvements at Michigan; a new 136,000 square
foot interactive fan area outside Turn 3, grandstand seating
enhancements and new vehicle parking areas at Daytona; grandstand
seating enhancements at Talladega; track modifications at Watkins
Glen; acquisition of land and land improvements at various
facilities for expansion of parking, camping capacity and other
uses; and, a variety of other improvements and renovations to its
facilities that enable it to effectively compete with other sports
venues for consumer and corporate spending. As a result of these
currently approved projects and anticipated additional approvals in
fiscal 2010, the Company expects total fiscal 2010 capital
expenditures at ISC's existing facilities will be approximately $60
million to $80 million depending on the timing of certain projects.
The Company reviews the capital expenditure program periodically
and modifies it as required to meet current business needs. Share
Repurchase Program For fiscal 2009, the Company purchased
approximately 184,000 shares of its Class A stock for $4.7 million,
bringing the total number of shares purchased from December 2006
through November 2009 to approximately 4.9 million shares. ISC
currently has approximately $37 million in remaining capacity on
its $250 million authorization. On a quarterly basis and pursuant
to the trading plan under Rule10b5-1, the Company reviews and
adjusts, if necessary, the parameters of its Stock Purchase Plans.
While the Company continues to consider its share repurchase
program an important component of its long-term capital allocation
strategy, ISC, like most of the 500 largest nonfinancial U.S.
companies, is currently maintaining strong cash reserves and
expects to maintain this position awaiting a sustained return to
the robust operating cash flows enjoyed prior to the economic
downturn. At year end, the Company's cash and short-term investment
balances were approximately 8.3 percent of ISC's total assets,
consistent with the largest nonfinancial companies. Fiscal 2010
Financial Outlook For fiscal 2010, ISC anticipates total revenues
for the full year will range between $660 million and $680 million.
Full year non-GAAP earnings are expected to range between $1.60 and
$1.80 per diluted share after-tax. From an earnings perspective the
fourth quarter will be the Company's most significant, followed by
the first, third and second quarter. As a result of taking the
equity investment in MA to zero, the Company will no longer record
equity in any future losses at MA and will not record equity income
until the investment balance would again rise above zero. 2010
guidance will also exclude any future loss on impairment of
long-lived assets which could be recorded as part of capital
improvements resulting in removal of assets not fully depreciated;
gain or loss on the sale of its Staten Island property or any
unanticipated further impairment of the property; any income
statement impact related to the Kansas Casino development; and any
amortization related to its interest rate swap recorded in interest
expense, or any charges ultimately recorded in connection with
contingent liabilities. Core Operations The proposed guidance takes
into account the fact that advance ticket sales are still trending
down year-over-year and corporate partnership sales, while
encouraging, are also expected to decrease. Lower revenue will be
partially offset by annualized cost savings established throughout
2009 and lower Prize & Point Fund Monies and NASCAR sanction
fees. On a percentage basis as compared to fiscal 2009; --
Attendance revenues are forecasted to decrease in the mid- to high
single digits; -- Food, beverage and merchandise revenues
forecasted to decrease to the low to mid-single digits; -- Domestic
television and ancillary media rights fees revenue will increase
approximately 2.5 percent. -- Other motorsports-related revenues,
which are primarily comprised of sponsorship, hospitality,
advertising and other related revenues, are forecasted to decrease
to the mid-single digits. -- From an expense standpoint, direct
expenses - Prize & Point Fund Monies and NASCAR sanction fees;
Motorsports related expenses; and Food, beverage & merchandise
Expense - to decrease to the low single digits. Margins ISC expects
non-GAAP earnings before interest, taxes, depreciation and
amortization ("EBITDA")1 margins, operating margins, and effective
income tax rates for the 2009 full year to range as follows: Year
Ending 11/30/2010 ---------- EBITDA margin 32% - 34% Operating
margin 21% - 23% Effective tax rate 38% - 39% (1) EBITDA is a
non-GAAP financial measure used by the Company as an important
indicator of its operating margin. Event Schedule First Second
Third Fourth Full Fiscal Quarter Quarter Quarter Quarter Year
---------- ---------- ---------- ---------- ---------- Series Name
2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 ----------- ----
---- ---- ---- ---- ---- ---- ---- ---- ---- NASCAR Sprint Cup 4 4
5 5 5 5 7 7 21 21 NASCAR Nationwide 2 2 4 4 5 5 5 5 16 16 NASCAR
Camping World 2 1 2 2 2 3 4 4 10 10 IRL IndyCar 0 0 1 1 3 2 1 1 5 4
ARCA RE/MAX 1 1 1 1 2 2 1 1 5 5 Grand-Am Rolex Sports Car 1 1 0 1 4
4 1 0 6 6 AMA Superbike/ Supercross 0 0 2 2 0 0 0 0 2 2 --- --- ---
--- --- --- --- --- --- --- 10 9 15 16 21 21 19 18 65 64 In
closing, Ms. France Kennedy added, "As a leader in motorsports
entertainment, ISC will continue to play a major role in the
ongoing success of the motorsports entertainment industry. We are
well positioned for the future due to our proven business plan and
key strategic initiatives underway. The number one priority of the
management team at ISC is capitalizing on the anticipated
resurgence of consumer and corporate spending which, coupled with
over $25 million in annual, sustainable cost reductions, position
us to deliver increased earnings and strong operating margins in
the future. We are excited about the near and long-term prospects
of our Company, and remain committed to building shareholder value
while providing race fans a memorable experience year round."
Conference Call Details The management of ISC will host a
conference call today with investors at 9:00 a.m. Eastern Time. To
participate, dial toll free (888) 694-4641 five to ten minutes
prior to the scheduled start time and request to be connected to
the ISC earnings call, ID number 51031514. A live Webcast will also
be available at that time on the Company's Web site,
http://www.internationalspeedwaycorporation.com/, under the
"Investor Relations" section. A replay will be available two hours
after the end of the call through midnight Thursday, February 11,
2010. To access, dial (800) 642-1687 and enter the code 51031514,
or visit the "Investor Relations" section of the Company's Web
site. International Speedway Corporation is a leading promoter of
motorsports activities, currently promoting more than 100 racing
events annually as well as numerous other motorsports-related
activities. The Company owns and/or operates 13 of the nation's
major motorsports entertainment facilities, including Daytona
International Speedway® in Florida (home of the DAYTONA 500®);
Talladega Superspeedway® in Alabama; Michigan International
Speedway® located outside Detroit; Richmond International Raceway®
in Virginia; Auto Club Speedway of Southern California(SM) near Los
Angeles; Kansas Speedway® in Kansas City, Kansas; Phoenix
International Raceway® in Arizona; Chicagoland Speedway® and Route
66 Raceway(SM) near Chicago, Illinois; Homestead-Miami Speedway(SM)
in Florida; Martinsville Speedway® in Virginia; Darlington Raceway®
in South Carolina; and Watkins Glen International® in New York. In
addition, ISC promotes major motorsports activities in Montreal,
Quebec, through its subsidiary, Stock-Car Montreal. The Company
also owns and operates MRN® Radio, the nation's largest independent
sports radio network; the DAYTONA 500 Experience(SM), the "Ultimate
Motorsports Attraction" in Daytona Beach, Florida, and official
attraction of NASCAR®; and Americrown Service Corporation(SM), a
subsidiary that provides catering services, food and beverage
concessions, and produces and markets motorsports-related
merchandise. In addition, ISC has an indirect 50 percent interest
in Motorsports Authentics®, which markets and distributes
motorsports-related merchandise licensed by certain competitors in
NASCAR racing. For more information, visit the Company's Web site
at http://www.internationalspeedwaycorporation.com/. Statements
made in this release that express the Company's or management's
beliefs or expectations and which are not historical facts or which
are applied prospectively are forward-looking statements. It is
important to note that the Company's actual results could differ
materially from those contained in or implied by such
forward-looking statements. The Company's results could be impacted
by risk factors, including, but not limited to, weather surrounding
racing events, government regulations, economic conditions,
consumer and corporate spending, military actions, air travel and
national or local catastrophic events. Additional information
concerning factors that could cause actual results to differ
materially from those in the forward-looking statements is
contained from time to time in the Company's SEC filings including,
but not limited to, the 10-K and subsequent 10-Qs. Copies of those
filings are available from the Company and the SEC. The Company
undertakes no obligation to release publicly any revisions to these
forward-looking statements that may be needed to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this
release does not constitute an admission by International Speedway
or any other person that the events or circumstances described in
such statement are material. (Tables Follow) Consolidated
Statements of Operations (In Thousands, Except Share and Per Share
Amounts) Three Months Ended Twelve Months Ended November November
November November 30, 2008 30, 2009 30, 2008 30, 2009 --------
-------- -------- -------- (Unaudited) REVENUES: Admissions, net
$63,863 $51,639 $236,105 $195,509 Motorsports related 119,178
130,810 462,835 432,217 Food, beverage and merchandise 19,298
16,971 78,119 56,397 Other 2,911 2,333 10,195 9,040 ----- -----
------ ----- 205,250 201,753 787,254 693,163 EXPENSES: Direct:
Prize and point fund monies and NASCAR sanction fees 42,798 52,200
154,655 162,960 Motorsports related 41,135 39,556 166,047 149,753
Food, beverage and merchandise 11,958 11,551 48,159 39,134 General
and administrative 25,808 26,821 109,439 103,846 Depreciation and
amortization 18,293 18,132 70,911 72,900 Impairment of long-lived
assets 323 2,946 2,237 16,747 --- ----- ----- ------ 140,315
151,206 551,448 545,340 ------- ------- ------- ------- Operating
income 64,935 50,547 235,806 147,823 Interest income and other 648
149 (1,630) 1,080 Interest expense (4,962) (7,899) (15,861)
(23,471) Minority interest 194 (5) 324 426 Equity in net loss from
equity investments (5,817) (15,456) (1,203) (77,608) ------ -------
------ ------- Income from continuing operations before income
taxes 54,998 27,336 217,436 48,250 Income taxes 21,332 18,300
82,678 41,265 ------ ------ ------ ------ Income from continuing
operations 33,666 9,036 134,758 6,985 Loss from discontinued
operations (45) (40) (163) (170) --- --- ---- ---- Net income
$33,621 $8,996 $134,595 $6,815 ------- ------ -------- ------ Basic
earnings per share: Income from continuing operations $0.69 $0.19
$2.71 $0.14 Loss from discontinued operations - - - - --- --- ---
--- Net income $0.69 $0.19 $2.71 $0.14 ----- ----- ----- -----
Diluted earnings per share: Income from continuing operations $0.69
$0.19 $2.71 $0.14 Loss from discontinued operations - - - - --- ---
--- --- Net income $0.69 $0.19 $2.71 $0.14 ----- ----- ----- -----
Dividends per share $- $- $0.12 $0.14 --- --- ----- ----- Basic
weighted average shares outstanding 48,560,549 48,445,097
49,589,465 48,520,661 ---------- ---------- ---------- ----------
Diluted weighted average shares outstanding 48,670,245 48,560,603
49,688,909 48,633,730 ---------- ---------- ---------- ----------
Consolidated Balance Sheets (In Thousands, Except Per Share
Amounts) November November 30, 2008 30, 2009 -------- --------
ASSETS Current Assets: Cash and cash equivalents $218,920 $158,572
Short-term investments 200 200 Restricted cash 2,405 - Receivables,
less allowance of $1,200 in 2008 and 2009 47,558 41,934 Inventories
3,763 2,963 Income taxes receivable - 4,015 Deferred income taxes
1,838 2,172 Prepaid expenses and other current assets 7,194 8,100
----- ----- Total Current Assets 281,878 217,956 Property and
Equipment, net 1,331,231 1,353,636 Other Assets: Long-term
restricted cash and investments 40,187 10,144 Equity investments
77,613 - Intangible assets, net 178,841 178,610 Goodwill 118,791
118,791 Deposits with Internal Revenue Service 117,936 - Other
34,342 29,766 ------ ------ 567,710 337,311 ------- ------- Total
Assets $2,180,819 $1,908,903 ---------- ---------- LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities: Current portion of
long-term debt $153,002 $3,387 Accounts payable 26,393 18,801
Deferred income 103,549 63,999 Income taxes payable 8,659 8,668
Other current liabilities 18,035 19,062 ------ ------ Total Current
Liabilities 309,638 113,917 Long-Term Debt 422,045 343,793 Deferred
Income Taxes 104,172 247,743 Long-Term Tax Liabilities 161,834
20,917 Long-Term Deferred Income 13,646 12,775 Other Long-Term
Liabilities 28,125 30,481 Commitments and Contingencies - -
Shareholders' Equity: Class A Common Stock, $.01 par value,
80,000,000 shares authorized; 27,397,924 and 27,810,169 issued and
outstanding in 2008 and 2009, respectively 274 278 Class B Common
Stock, $.01 par value, 40,000,000 shares authorized; 21,150,471 and
20,579,682 issued and outstanding in 2008 and 2009, respectively
211 205 Additional paid-in capital 497,277 493,765 Retained
earnings 665,405 665,274 Accumulated other comprehensive loss
(21,808) (20,245) ------- ------- Total Shareholders' Equity
1,141,359 1,139,277 --------- --------- Total Liabilities and
Shareholders' Equity $2,180,819 $1,908,903 ---------- ----------
Consolidated Statements of Cash Flows (In Thousands) Twelve Months
Ended November November 30, 2008 30, 2009 -------- --------
OPERATING ACTIVITIES Net income $134,595 $6,815 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 70,911 72,900 Minority interest (324)
(426) Stock-based compensation 3,282 2,172 Amortization of
financing costs 517 591 Amortization of interest rate swap - 4,268
Deferred income taxes 30,753 15,269 (Income) loss from equity
investments 1,203 77,608 Impairment of long-lived assets, non cash
784 16,747 Other, net 3,921 112 Changes in operating assets and
liabilities Receivables, net (698) 5,583 Inventories, prepaid
expenses and other assets 4,117 174 Deposits with Internal Revenue
Service - 111,984 Accounts payable and other liabilities (8,233)
(484) Deferred income (26,967) (40,421) Income taxes 7,030 (11,187)
----- ------- Net cash provided by operating activities 220,891
261,705 INVESTING ACTIVITIES Capital expenditures (107,036)
(113,729) Purchase of equity investments (81) - Proceeds from
short-term investments 41,700 - Purchases of short-term investments
(2,650) - (Increase) decrease in restricted cash (42,592) 32,448
Proceeds from affiliate 4,700 12,500 Advance to affiliate (18,450)
(12,550) Other, net 700 (1,135) --- ------ Net cash used in
investing activities (123,709) (82,466) FINANCING ACTIVITIES
Proceeds under credit facility 170,000 - Payments under credit
facility (20,000) (75,000) Proceeds from long-term debt 51,300 -
Payment of long-term debt (3,505) (152,801) Cash dividends paid
(5,960) (6,822) Reacquisition of previously issued common stock
(127,413) (4,964) -------- ------ Net cash provided by (used in)
financing activities 64,422 (239,587) ------ -------- Net increase
(decrease) in cash and cash equivalents 161,604 (60,348) Cash and
cash equivalents at beginning of year 57,316 218,920 ------ -------
Cash and cash equivalents at end of year 218,920 158,572 =======
=======
http://www.newscom.com/cgi-bin/prnh/20091005/FL87045LOGODATASOURCE:
International Speedway Corporation CONTACT: Charles N. Talbert,
Director, Investor and Corporate Communications, +1-386-681-4281
Web Site: http://www.internationalspeedwaycorporation.com/
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