~Announces $100 Million Increase in Share Buyback Program~ DAYTONA
BEACH, Fla., July 10 /PRNewswire-FirstCall/ -- International
Speedway Corporation (NASDAQ:ISCA)(OTC:ISCB) (BULLETIN BOARD: ISCB)
("ISC") today reported results for the fiscal second quarter and
six months ended May 31, 2007. In addition, the Company announced a
$100 million increase in the amount authorized under its share
repurchase program. "We hosted several successful event weekends
during the second quarter, highlighted by solid corporate and
consumer demand," said ISC President Lesa France Kennedy. "As a
result, we recorded higher total revenues on a comparable event
basis, excluding the impact of lower television broadcast rights
revenue. This growth was driven by increased sponsorship,
admissions, advertising and hospitality revenues, and our outlook
remains positive for the future." Second Quarter Comparison Total
revenues for the second quarter increased to $181.5 million,
compared to revenues of $172.1 million in the prior-year period.
Operating income was $35.0 million during the period compared to
$52.2 million in the second quarter of fiscal 2006. Year-over-year
comparability was impacted by lower television broadcast rights
fees from NASCAR's consolidated contracts that began in 2007; the
acquisition of the remaining interest in Raceway Associates LLC
(owner and operator of Chicagoland Speedway and Route 66 Raceway)
in February 2007; and the timing of certain events, including
Kansas Speedway's NASCAR Craftsman Truck/IRL weekend. In addition,
results for the second quarter of fiscal 2007 include accelerated
depreciation of $4.6 million, or $0.05 per diluted share after tax,
associated with certain existing offices and buildings that are
expected to be razed during the next six to 24 months as part of
the Company's previously announced Daytona Live! project. Second
quarter results also include impairment charges of $9.1 million, or
$0.11 per diluted share after- tax, primarily attributable to ISC's
decision to discontinue speedway development efforts in Kitsap
County, Washington. To a lesser extent, the impairment charge
includes estimated costs for fill removal on the Company's Staten
Island property. Net income for the second quarter of 2007 was
$18.4 million, or $0.35 per diluted share, compared to net income
of $30.7 million, or $0.58 per diluted share, in the prior year.
Excluding the accelerated depreciation and impairment charges,
non-GAAP (defined below) net income for the 2007 second quarter was
$27.1 million, or $0.51 per diluted share. Year-to-Date Comparison
For the six months ended May 31, 2007, total revenues were $366.7
million, compared to $366.0 million in 2006. Operating income for
the six-month period was $100.8 million compared to $130.6 million
in the prior year. Year-over-year comparability was impacted by the
aforementioned decrease in NASCAR television rights fees, the
acquisition of Raceway Associates LLC and the timing of certain
events. In addition, year-to-date results for 2007 include $7.2
million in accelerated depreciation for certain office and related
buildings in Daytona and the previously discussed 2007 second
quarter impairment charges. Net income for the six months ended May
31, 2007, was $54.2 million, or $1.02 per diluted share. In the
first six months of 2006, net income was $74.7 million, or $1.40
per diluted share. Excluding the accelerated depreciation and
impairment charges, non-GAAP (defined below) net income for the
first six months of 2007 was $64.6 million, or $1.21 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 2007 adjustments relate to accelerated depreciation for certain
office and related buildings in Daytona, as well as impairment
charges related to the Company's decision to discontinue
development efforts in Kitsap County, Washington, and costs related
to fill removal on ISC's Staten Island property. 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 Six Months Ended May 31, May 31, May
31, May 31, 2006 2007 2006 2007 Net income $30,687 $18,390 $74,740
$54,209 Net loss, net of tax, from discontinued operations 40 6 118
26 Income from continuing operations 30,727 18,396 74,858 54,235
Adjustments, net of tax: Additional depreciation - 2,856 - 4,449
Impairment of long-lived assets - 5,869 - 5,869 Non-GAAP net income
$30,727 $27,121 $74,858 $64,553 Per share data: Diluted earnings
per share $0.58 $0.35 $1.40 $1.02 Net loss, net of tax, from
discontinued operations - - - - Income from continuing operations
0.58 0.35 1.40 1.02 Adjustments, net of tax: Additional
depreciation - 0.05 - 0.08 Impairment of long-lived assets - 0.11 -
0.11 Non-GAAP diluted earnings per share $0.58 $0.51 $1.40 $1.21
2007 Second Quarter Highlights An overview of the significant major
event weekends held in the second quarter of 2007 includes: --
Daytona International Speedway hosted Bike Week in early March
highlighted by the AMA Supercross and Daytona 200, both presented
by Honda. -- Homestead-Miami Speedway held a successful IndyCar,
Grand-Am and USAC racing weekend, posting a double-digit percentage
increase in attendance. -- Martinsville Speedway hosted a weekend
of Craftsman Truck and NEXTEL Cup racing, highlighted by a near
sold-out crowd for the Goody's Cool Orange 500. Fans were treated
to outstanding on-track competition and the second NEXTEL Cup race
with NASCAR's new Car of Tomorrow. -- Phoenix International Raceway
hosted a successful weekend of NASCAR Busch and NEXTEL Cup racing.
A near capacity crowd was on-hand as Jeff Gordon captured his first
career victory at the race track. -- Talladega Superspeedway also
hosted a Busch and NEXTEL Cup race weekend, posting strong overall
attendance results. On-track competition, the hallmark of NASCAR's
most competitive track, was outstanding as there were 42 lead
changes among 20 different drivers during the Aaron's 499. --
Kansas Speedway hosted a successful Craftsman Truck/IRL weekend in
late April. This event was held in the third quarter of 2006. --
Richmond International Raceway recorded another sellout for the
Crown Royal Presents the Jim Stewart 400 NASCAR NEXTEL Cup race,
including the addition of approximately 5,000 net grandstand and
club seats installed earlier this year. The weekend also marked the
highly successful debut of the Commonwealth Grandstand and the
exclusive, state-of-the-art TORQUE Club. Due to inclement weather,
the NEXTEL Cup race was postponed and run on Sunday. -- Darlington
Raceway hosted very successful NASCAR Busch and NEXTEL Cup races,
despite the latter being postponed due to rain. The track "Too
Tough to Tame" posted its third consecutive sellout for the Dodge
Avenger 500, and Jeff Gordon captured his third win of the season
in the rain-delayed race on Sunday. The Company's top line growth
for the second quarter was partly fueled by a strong increase in
corporate sponsorship and hospitality revenue. Yesterday, ISC
announced a comprehensive 10-year sponsorship agreement with
Coca-Cola North America, which spans 10 facilities and the Daytona
500 Experience (previously known as DAYTONA USA). This significant
agreement ranks among the top three partnerships in ISC history.
The Company also recently secured several race entitlement sponsors
including Centurion Boats for Watkins Glen International's NASCAR
NEXTEL Cup Series race, NAPA Auto Parts for the inaugural Montreal
NASCAR Busch Series event, and Camping World for Watkins Glen's IRL
IndyCar race and Daytona's spring NASCAR Busch Series event
beginning in 2008. Lastly, Firestone has agreed to sponsor Michigan
International Speedway's IRL IndyCar race in July. ISC has two
remaining NASCAR NEXTEL Cup entitlements open for fiscal 2007 and
is in discussion with several potential partners. "Corporate
partner spending remains our fastest growing revenue stream," Ms.
France Kennedy added. "We continue to see strong interest from
Fortune 500 corporations and regional businesses, all looking to
grow their business by capitalizing on a motorsports partnership.
These businesses choose to partner with ISC due to our premier
events, nationwide presence, compelling media and intellectual
property assets and professional expertise." Third Quarter Events
To date in the fiscal third quarter: -- Watkins Glen hosted a
successful Grand-Am weekend and Richmond posted higher overall
attendance for its weekend of open-wheel racing anchored by the IRL
IndyCar Series. Additionally, Watkins Glen hosted an exciting
weekend of open-wheel racing, highlighted by Scott Dixon's third
consecutive victory in the Camping World Watkins Glen Grand Prix.
-- Michigan hosted a weekend of NEXTEL Cup, Craftsman Truck and
ARCA racing. In addition to outstanding on-track competition,
several fan- friendly initiatives were put in place during the
weekend to help improve the guest experience. Most notably, traffic
following the Citizens Bank 400 was reduced to approximately two
hours, a vast improvement over prior years. However, financial
results for the weekend were less than expected, primarily due to
the ongoing weak economic conditions in the region. The Company
expects these challenges to impact Michigan's two remaining major
events weekends for 2007. -- Daytona hosted a NEXTEL Cup, Busch and
Grand-Am racing weekend, highlighted by the second closest finish
in Cup history. While the on- track action was outstanding,
financial results were lower than anticipated. The Pepsi 400
weekend has experienced inclement weather over the last few years.
The recent weather issues coupled with the regional nature of the
weekend from a consumer selling perspective has impacted ticket
sales. For the remainder of the third quarter, ISC will host NEXTEL
Cup and Busch series weekends at Chicagoland, Watkins Glen and
Michigan, as well as an IRL race weekend at Michigan. In addition,
through its limited partnership with Group Motorise International,
the inaugural NASCAR Busch and Grand-Am race weekend will be held
at Circuit Gilles Villeneuve in Montreal, Canada. External Growth
Initiatives During the second quarter, the Company announced it
entered into a 50/50 joint venture with The Cordish Company to
explore a commercial mixed-use development project on its acreage
owned across from Daytona International Speedway. Final design
plans will incorporate the results of local market studies and
further project analysis. If results of these analyses are
favorable and the joint venture proceeds with the development, it
is expected that certain existing corporate headquarter offices and
other buildings, which are not fully depreciated, will be razed
during the next six to 24 months. This will result in incremental
non-cash charges relating to accelerated depreciation of
approximately $7.5 million, or $0.09 per diluted share after tax,
over the last two quarters of fiscal 2007. As mentioned earlier,
the Company recorded $4.6 million, or $0.05 per diluted share after
tax, of accelerated depreciation in the fiscal second quarter. The
Company continues to pursue a public/private partnership in
Colorado to develop a motorsports entertainment facility in the
metropolitan Denver market. ISC is currently evaluating a number of
land parcels, and looks forward to working with public officials to
explore the feasibility of a public/private partnership that will
bring considerable economic impact to the region. While the Company
is disappointed it could not proceed with a speedway development in
Kitsap County, Washington, ISC still believes the Pacific Northwest
represents an attractive long-term opportunity and remains
interested in a speedway development project in the region. ISC has
resumed efforts to identify potential site locations in the
metropolitan New York area but at this point, the process is purely
exploratory. No specific proposals have been offered or received,
and the Company does not have a predetermined timetable for
concluding potential site evaluation efforts in the region. ISC
strongly believes a premier facility in the nation's number one
media market is a significant long-term opportunity. The Company
has also begun to market its Staten Island property for disposition
and expects to engage in discussions with interested parties and/or
potential joint venture partners in the next several months. In May
2007, ISC entered into a consent order with the New York Department
of Environmental Conservation to resolve several issues surrounding
the fill operations and acceptance of fill that did not comply with
certain regulatory standards. The order requires ISC to remove the
non-compliant fill pursuant to a comprehensive removal plan
developed with the DEC, and imposed a penalty of $562,000, half of
which was paid in May. The other half is held in abeyance so long
as ISC complies with the terms of the consent order. In addition to
the penalty payment, ISC accrued in the 2007 second quarter
approximately $2.6 million for total costs associated with the fill
removal process. The Company is currently evaluating the liability
of and potential recoveries from other parties associated with the
fill removal. ISC continues to work closely with the DEC and other
agencies to resolve these issues and expects to resume fill
operations within the next several months after appropriate
regulatory approvals are obtained. Other Developments Regarding the
Kentucky Speedway, LLC, civil action filed in July 2005 against
NASCAR and ISC, the Company is proceeding with the preparation of
its defense. ISC now expects fiscal 2007 litigation costs related
to its defense will range between $6.0 million and $7.0 million, or
$0.07 to $0.08 per diluted share after tax. Pretrial discovery in
the case was recently concluded and, based on the all of the
evidentiary materials reviewed, ISC believes more strongly than
ever that the vague allegations of the complaint are totally
without merit. At this point the Company also believes the
likelihood of a materially adverse result appears to be remote,
although there is always a level of uncertainty in litigation. ISC
will continue to vigorously defend itself in this matter. Regarding
Motorsports Authentics, the Company's 50/50 merchandising joint
venture with Speedway Motorsports, Mark Dyer recently joined the
business as President and CEO. Dyer has over 25 years of sports
business experience and most recently was the Vice President of
Licensing at NASCAR. Dyer and his team have initiated a
comprehensive review of the business, and the results of his team's
preliminary evaluation to date are included in ISC's revised full
year fiscal 2007 guidance. Motorsports Authentics now expects to
post a loss of between $15 and $20 million for 2007, resulting in
an approximate $0.15 to $0.20 reduction in full year earnings per
share for ISC. This impact assumes a limited income tax benefit
from the loss. More than half of the decline is associated with
Dale Earnhardt Jr.'s decision to leave DEI at the end of 2007,
resulting in lower merchandise sales in multiple distribution
channels. To a lesser extent, some of the shortfall is driven by a
more challenging consumer economic environment than was anticipated
at the beginning of the year by the joint venture. Despite the
lowered outlook, ISC continues to believe Motorsports Authentics
has significant potential for generating solid growth in earnings
and cash flow over the longer term. Share Repurchase Program
Separately, the Company announced today that its Board of Directors
has increased the authorized limit for ISC's previously announced
share repurchase program to $150 million. This increase reflects
senior management's confidence in the Company's strong financial
position and the significant visibility of its future operating
results. Even with the increased limit, ISC continues to have the
financial flexibility to execute on long-term strategic growth
initiatives including external development and potential
acquisitions. In the second quarter, the Company purchased 291,696
shares of its Class A Common Stock for $15.0 million, bringing the
total number of shares purchased to 501,432 since the program was
initiated in December 2006. ISC believes its capital allocation
strategy reflects a balanced approach that will enhance shareholder
value and further position the Company for long-term success. 2007
Financial Outlook ISC has refined its financial guidance for fiscal
2007. The Company now expects full year total revenues to range
between $810 million and $820 million. ISC also expects non-GAAP
earnings for fiscal 2007 to range between $2.80 and $2.90 per
diluted share. The most significant factor in the lowered earnings
guidance is the aforementioned revised outlook for Motorsports
Authentics. ISC expects its portion of losses from Motorsports
Authentics to range between $2 million and $3 million, or $0.04 to
$0.06 per diluted share after-tax, for each of the third and fourth
quarters of fiscal 2007. Higher expenses associated with the
Kentucky litigation and less than anticipated results at Michigan
and Daytona also contributed to the decrease. Finally, the
Company's guidance assumes an income tax rate of between 39.5% and
40.0% for the final two quarters. ISC expects earnings before
interest, taxes, depreciation and amortization ("EBITDA")(1) and
operating margins for the 2007 third quarter, fourth quarter and
full year to range as follows: Quarter Quarter Year Ending Ending
Ending 8/31/2007 11/30/2007 11/30/2007 EBITDA margin 36% - 37% 45%
- 46% 41% - 42% Operating margin 28% - 29% 38% - 39% 33% - 34% (1)
EBITDA is a non-GAAP financial measure used by the Company as an
important indicator of its operating margin. It is important to
note that the financial guidance does not include the accelerated
depreciation for certain office and related buildings in Daytona,
as well as impairment charges related to the Company's decision to
discontinue development efforts in Kitsap County, Washington, and
costs related to fill removal on ISC's Staten Island property. Ms.
France Kennedy concluded, "We continue to have a strong outlook on
the industry and our business. The sport remains healthy and
several industry developments are raising awareness. The Car of
Tomorrow is making progress in the areas of competition, safety and
cost reduction, and Toyota is beginning to have success on the
track. Over the next few months, we look forward to ABC/ESPN's
coverage of the NEXTEL Cup Series and the revised Chase for
Championship format. We also eagerly anticipate the naming of a new
title sponsor for the NASCAR Busch Series, which will help raise
that series to new heights. Finally, we look forward to working
closely with Sprint in the re- branding of the Cup series and
increasing visibility for the sport. "As for ISC, the overall
fundamentals of our business are solid and we remain well
positioned for continued success. For the remainder of fiscal 2007
and beyond, we look forward to Mark Dyer and his team's
contributions at Motorsports Authentics to help that business begin
to realize its full potential. We also expect to leverage ISC's
recently announced enhanced management structure to identify ways
to elevate the fan experience, as well as allow us to take
advantage of other key growth opportunities to build long- term
shareholder value." 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 (800) 322-9079 five to
ten minutes prior to the scheduled start time and request to be
connected to the ISC earnings call, identification number 8926749.
A live Webcast will also be available at that time on the Company's
Web site, http://www.iscmotorsports.com/, under the "Investor
Relations" section. A replay will be available one hour after the
end of the call through midnight Tuesday, July 17, 2007. To access,
dial (877) 519-4471 and enter the code 8926749, 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; California Speedway near Los Angeles; Kansas Speedway in
Kansas City, Kansas; Phoenix International Raceway in Arizona;
Chicagoland Speedway and Route 66 Raceway near Chicago, Illinois;
Homestead-Miami Speedway in Florida; Martinsville Speedway in
Virginia; Darlington Raceway in South Carolina; and Watkins Glen
International in New York. In addition, ISC is a limited partner
with Group Motorise International in the organization and promotion
of certain events at Circuit Gilles Villeneuve in Montreal, Canada.
The Company also owns and operates MRN Radio, the nation's largest
independent sports radio network; the Daytona 500 Experience, the
"Ultimate Motorsports Attraction" in Daytona Beach, Florida, the
official attraction of NASCAR; and subsidiaries which provide
catering services, food and beverage concessions, and produce and
market motorsports-related merchandise under the trade name
"Americrown." In addition, ISC has an indirect 50 percent interest
in a business called 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.iscmotorsports.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. Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts) (Unaudited) Three Months
Ended Six Months Ended May 31, May 31, May 31, May 31, 2006 2007
2006 2007 REVENUES: Admissions, net $49,279 $57,238 $104,799
$112,548 Motorsports related 101,925 101,973 216,247 210,406 Food,
beverage and merchandise 18,162 20,201 40,025 39,365 Other 2,717
2,130 4,945 4,402 172,083 181,542 366,016 366,721 EXPENSES: Direct
expenses: Prize and point fund monies and NASCAR sanction fees
34,566 33,812 69,101 66,274 Motorsports related 32,453 38,844
63,266 69,787 Food, beverage and merchandise 11,404 12,052 24,570
22,901 General and administrative 27,705 31,496 51,198 58,744
Depreciation and amortization 13,779 21,241 27,242 39,148
Impairment of long- lived assets - 9,076 - 9,076 119,907 146,521
235,377 265,930 Operating income 52,176 35,021 130,639 100,791
Interest income 1,087 939 2,021 2,297 Interest expense (2,832)
(3,700) (6,900) (7,740) Equity in net loss from equity investments
(2,186) (294) (4,683) (4,611) Income from continuing operations
before income taxes 48,245 31,966 121,077 90,737 Income taxes
17,518 13,570 46,219 36,502 Income from continuing operations
30,727 18,396 74,858 54,235 Loss from discontinued operations, net
of income tax benefits of $65, $37, $148 and $85, respectively (40)
(6) (118) (26) Net income $30,687 $18,390 $74,740 $54,209 Basic
earnings per share: Income from continuing operations $0.58 $0.35
$1.41 $1.02 Loss from discontinued operations - - - - Net income
$0.58 $0.35 $1.41 $1.02 Diluted earnings per share: Income from
continuing operations $0.58 $0.35 $1.40 $1.02 Loss from
discontinued operations - - - - Net income $0.58 $0.35 $1.40 $1.02
Dividends per share $0.08 $0.10 $0.08 $0.10 Basic weighted average
shares outstanding 53,165,845 52,813,292 53,155,050 52,952,076
Diluted weighted average shares outstanding 53,266,521 52,923,911
53,258,199 53,068,615 Consolidated Balance Sheets (In Thousands)
(Unaudited) November 30, 2006 May 31, 2007 ASSETS Current Assets:
Cash and cash equivalents $59,681 $80,091 Short-term investments
78,000 19,185 Receivables, less allowance of $1,000 in 2006 and
2007 52,699 78,842 Inventories 3,976 6,776 Deferred income taxes
995 1,179 Prepaid expenses and other current assets 8,251 19,097
Total Current Assets 203,602 205,170 Property and Equipment, net of
accumulated depreciation of $371,219 and $407,234, respectively
1,157,313 1,291,027 Other Assets: Equity investments 175,915
129,346 Intangible assets, net 149,314 179,055 Goodwill 99,507
118,587 Deposits with Internal Revenue Service 110,813 117,936
Other 25,595 27,658 561,144 572,582 Total Assets $1,922,059
$2,068,779 LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities: Current portion of long-term debt $770 $2,521 Accounts
payable 29,577 21,338 Deferred income 124,254 219,541 Income taxes
payable 22,477 25,345 Other current liabilities 19,226 24,633 Total
Current Liabilities 196,304 293,378 Long-Term Debt 367,324 376,404
Deferred Income Taxes 191,642 198,452 Long-Term Deferred Income
10,808 16,026 Other Long-Term Liabilities 866 5,119 Commitments and
Contingencies - - Shareholders' Equity: Class A Common Stock, $.01
par value, 80,000,000 shares authorized; 31,078,307 and 30,937,406
issued and outstanding in 2006 and 2007, respectively 311 309 Class
B Common Stock, $.01 par value, 40,000,000 shares authorized;
22,100,263 and 21,780,416 issued and outstanding in 2006 and 2007,
respectively 221 218 Additional paid-in capital 698,396 673,823
Retained earnings 456,187 505,050 Total Shareholders' Equity
1,155,115 1,179,400 Total Liabilities and Shareholders' Equity
$1,922,059 $2,068,779 Consolidated Statements of Cash Flows (In
Thousands) (Unaudited) Six Months Ended May 31, 2006 May 31, 2007
OPERATING ACTIVITIES Net income $74,740 $54,209 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 27,242 39,148 Stock-based
compensation 1,283 1,470 Amortization of financing costs 282 259
Deferred income taxes 8,868 7,883 Loss from equity investments
4,683 4,611 Impairment of long-lived assets - 6,143 Excess tax
benefits relating to stock-based compensation (185) (131) Other,
net (105) 729 Changes in operating assets and liabilities:
Receivables, net (30,370) (24,271) Inventories, prepaid expenses
and other assets (12,437) (13,188) Deposits with Internal Revenue
Service - (7,123) Accounts payable and other liabilities 2,824
1,029 Deferred income 78,917 85,693 Income taxes 5,342 3,013 Net
cash provided by operating activities 161,084 159,474 INVESTING
ACTIVITIES Capital expenditures (54,290) (56,112) Proceeds from
asset disposals 161 - Purchase of equity investments (124,577) -
Acquisition of businesses, net of cash acquired - (87,093) Proceeds
from affiliate 128 67 Proceeds from short-term investments 50,600
83,450 Purchases of short-term investments (77,700) (24,635) Other,
net 549 54 Net cash used in investing activities (205,129) (84,269)
FINANCING ACTIVITIES Proceeds under credit facility 80,000 65,000
Payments under credit facility (80,000) (65,000) Payment of
long-term debt - (28,679) Exercise of Class A common stock options
145 272 Excess tax benefits relating to stock-based compensation
185 131 Reacquisition of previously issued common stock (460)
(26,519) Net cash used in financing activities (130) (54,795) Net
(decrease) increase in cash and cash equivalents (44,175) 20,410
Cash and cash equivalents at beginning of period 130,758 59,681
Cash and cash equivalents at end of period $86,583 $80,091
DATASOURCE: International Speedway Corporation CONTACT: Wes Harris,
Senior Director, Corporate and Investor Communications,
+1-386-947-6465, for International Speedway Corporation Web site:
http://www.iscmotorsports.com/
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