- Company Reiterates Full-Year Financial Guidance - DAYTONA BEACH,
Fla., April 9, 2008 /PRNewswire-FirstCall/ -- International
Speedway Corporation (NASDAQ:ISCA)(OTC:ISCB) (BULLETIN BOARD: ISCB)
("ISC") today reported results for the fiscal first quarter ended
February 29, 2008. "We are pleased to report near record revenues
for the 2008 first quarter due in large part to a very successful
DIRECTV Speedweeks anchored by the 50th running of the Daytona
500," said ISC President Lesa France Kennedy. "Driving our success
was a comprehensive marketing program whereby companies spent a
combined $100 million in activation for 'The Great American Race.'
This resulted in increased consumer and corporate awareness, which
helped grow revenues in all major categories. The first quarter was
also highlighted by an exciting NASCAR triple-header weekend in
California that included the announcement of a new long-term,
facility naming rights agreement with Auto Club of Southern
California in the country's second largest media market." First
Quarter Comparison Total revenues for the first quarter increased
to $193.9 million, compared to revenues of $184.9 million in the
prior-year period. Operating income was $66.9 million during the
period compared to $65.8 million in the first quarter of fiscal
2007. Year-over-year comparability was impacted by: -- Accelerated
depreciation of $0.5 million, or $0.01 per diluted share after tax,
in the first quarter of 2008 for certain office and related
buildings in Daytona Beach associated with the Company's previously
announced Daytona Live! project. The 2007 first quarter included
Daytona Live!-related accelerated depreciation charges of $2.6
million, or $0.03 per diluted share after tax. -- The first quarter
of 2008 includes an impairment charge of $0.7 million, or $0.01 per
diluted share after tax, related to charges for the fill removal
process on the Company's Staten Island property and, to a lesser
extent, the net book value of certain assets retired from service.
-- The 2008 first quarter also includes a non-cash charge of $3.8
million, or $0.07 per diluted share after tax, to correct the
carrying value of certain other assets as of November 30, 2007. Net
income was $36.2 million, or $0.71 per diluted share, compared to
net income of $35.8 million, or $0.67 per diluted share, in the
prior year. Excluding the aforementioned accelerated depreciation,
correction of certain other assets' carrying value amounts, and
impairment charges, non-GAAP (defined below) net income for the
first quarter of 2008 was $40.8 million, or $0.80 per diluted
share. Non-GAAP net income for the first quarter of 2007 was $37.5
million, or $0.70 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 adjustment relates
to the additional depreciation in the first quarter associated with
building structures in the Company's office complex in Daytona
Beach, which have since been razed. The adjustments for 2008 relate
to: -- 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; and, -- A non-cash charge to correct the carrying value of
certain other assets. 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 2/28/2007
2/29/2008 Net income $35,819 $36,211 Net loss from discontinued
operations, net of tax 20 31 Income from continuing operations
35,839 36,242 Adjustments, net of tax: Additional depreciation
1,612 320 Impairment of long-lived assets - 448 Correction of
certain other assets' carrying value - 3,758 Non-GAAP net income
$37,451 $40,768 Per share data: Diluted earnings per share $0.67
$0.71 Net loss from discontinued operations, net of tax - - Income
from continuing operations 0.67 0.71 Adjustments, net of tax:
Additional depreciation 0.03 0.01 Impairment of long-lived assets -
0.01 Correction of certain other assets' carrying value - 0.07
Non-GAAP diluted earnings per share $0.70 $0.80 2008 First Quarter
Highlights An overview of the significant major event weekends held
in the first quarter of 2008 includes: -- The 2008 race season
began with an outstanding DIRECTV Speedweeks at Daytona
International Speedway, which was kicked off by the exciting 46th
running of the Grand-Am Rolex 24 at Daytona. The premier weekend in
sports car racing was a solid success featuring outstanding
on-track competition that resulted in a record 15 different leaders
and 695 laps completed. -- The 30th annual Budweiser Shootout was
highlighted by Dale Earnhardt Jr.'s debut in the No. 88 car and his
first victory at Hendrick Motorsports. The event also posted a
seven percent increase in average household television viewership.
-- Dale Earnhardt Jr. posted his second victory of the week and
secured a second-row starting position for the Daytona 500 having
won the first Gatorade Duel at Daytona. Denny Hamlin won the second
qualifying race. The event recorded a five percent increase in
attendance. -- The NASCAR Nationwide Series Camping World 300 and
Craftsman Truck Series Chevy Silverado 250 were also successful and
highlighted by a five percent increase in combined attendance. The
Camping World 300 was the fourth most viewed Nationwide event on
cable in the history of the series and the Chevy Silverado 250 was
the second most viewed Craftsman Truck event in the history of the
SPEED network. -- The historic 50th running of the Daytona 500 was
a huge success highlighted by the earliest grandstand sell-out for
the race in modern history and increased television viewership.
Competition for the race was outstanding as evidenced by 42 lead
changes among 16 different drivers, and a last lap shootout with
Ryan Newman capturing the checkered flag. -- The Auto Club Speedway
of Southern California, despite challenging weather conditions that
pushed the Nationwide Stater Bros. 300 and Sprint Cup Auto Club 500
races to Monday, hosted a successful weekend of exciting racing
action. ISC's 2008 first quarter results include $1.8 million in
equity income associated with its 50/50 joint venture in
Motorsports Authentics ("MA"). The Company is pleased with the
progress MA's management team has made in executing on its
multi-faceted turnaround plan designed to grow top line revenue and
control expenses. While the results for the first quarter are
encouraging, ISC reiterates its guidance of break-even financial
results for MA in fiscal 2008. The Company continues to experience
strong growth in corporate sponsorship revenue, including a
high-single digit increase over the first quarter in 2007. The most
significant sponsorship announced during the 2008 first quarter was
the 10-year, multi-million dollar partnership with the Automobile
Club of Southern California, the nation's largest member of the AAA
federation, to re-name California Speedway as Auto Club Speedway of
Southern California. "The partnership with the Auto Club of
Southern California is a landmark achievement for both ISC and the
motorsports industry," added Ms. France Kennedy. "As the premier
organization within AAA's family of regional membership clubs, Auto
Club of Southern California is capitalizing on its long-time
relationship with the speedway to enhance the guest experience with
a number of special initiatives aimed at the approximately 50
million AAA members located across North America. In addition, the
partnership will help accelerate a series of capital improvements
that will make the racetrack more comfortable, accessible and
enjoyable for our fans, which will help drive the continued
long-term success of the facility." Recent Developments To date in
the fiscal second quarter: -- Daytona hosted a successful weekend
of motorcycle racing that included the Daytona Supercross and the
67th running of the Daytona 200. -- At the end of the March,
Martinsville Speedway played host to both the NASCAR Craftsman
Truck and Sprint Cup series. Despite exciting on- track competition
that is the hallmark of the historic short track, Martinsville
recorded attendance related revenues that were less than expected,
in part, due to inclement weather. -- Homestead-Miami Speedway
hosted a Grand-Am and IRL weekend, anchored by the first unified
IndyCar series race in over a decade. The exciting IndyCar series
race featured eight cars from teams that formerly competed in the
Champ Car World Series. ISC looks forward to the long- term
opportunities available from both a consumer and corporate sales
perspective as a result of combining these two open wheel series.
For the remainder of the second quarter, ISC will host four
weekends of Sprint Cup and Nationwide series racing at Phoenix
International Raceway, Talladega Superspeedway, Richmond
International Raceway and Darlington Raceway. In addition, Kansas
Speedway will host an IRL, Craftsman Truck and ARCA weekend, and
Auto Club Speedway will run an AMA motorcycle weekend. From a race
entitlement perspective, the Company recently announced a
three-year agreement with Pepsi for the Labor Day weekend Sprint
Cup race at Auto Club Speedway. In addition, LifeLock has entered
into a three-year partnership for Sprint Cup events at both
Michigan International Speedway and Chicagoland Speedway, and
Martinsville has secured an entitlement sponsor for its October
Sprint Cup series race. As a result, ISC has one Sprint Cup and two
Nationwide title sponsorships for the 2008 season that are either
open or unannounced. This is compared to this time last year when
there were three Cup and two Busch (the predecessor to Nationwide)
entitlements open or unannounced for the 2007 season. Including
these relationships, agreements are in place for approximately 88
percent of the Company's 2008 gross marketing partnership revenue
target, which compares favorably to this time last year when
slightly more than 80 percent was secured. External Growth
Initiatives ISC continues to make progress on its mixed-use
entertainment destination development, Daytona Live!, that the
Company is pursuing in a 50/50 joint venture with The Cordish
Company ("Cordish"). The joint venture expects construction on the
office building to begin later this year. ISC is also partnered in
a joint venture with Cordish on an exciting opportunity for the
development of a Hard Rock Hotel & Casino on property adjacent
to the Kansas Speedway. In December 2007, the joint venture's
proposal and certain others were endorsed and sent to the Kansas
Lottery Commission for further consideration. The Kansas Lottery
Commission is evaluating the proposals and will recommend one or
more to the Kansas Gaming Commission, which has final approval in
selecting the company to manage the casino. By statute, the
timeline for the process should take between 150 and 270 days, with
an outside selection date of October 2008. On Staten Island, ISC is
continuing with its site remediation efforts and is in discussions
with interested buyers for the 676 acre parcel. The Company looks
forward to securing an agreement in the coming months. Share
Repurchase Program In the 2008 first quarter, ISC purchased
approximately 1.2 million shares of its Class A Common Stock for
$50.0 million, bringing the total number of shares purchased from
December 2006 through February 2008, to approximately 2.8 million
shares, leaving $119 million remaining capacity on the Company's
$250 million authorization as of the quarter end. ISC believes its
capital allocation strategy reflects a balanced approach that will
enhance shareholder value and further position the Company for
long-term success. Outlook ISC reiterates its 2008 total revenue
guidance range of $805 million to $825 million. In addition, the
Company is maintaining its fiscal 2008 earnings guidance range of
$3.05 to $3.15 per diluted share. Given the challenging economic
environment and that it is still early in the fiscal year, ISC
remains more comfortable at the lower end of the earnings range.
"We are closely monitoring the current macro-economic trends and
their potential impact on consumer discretionary spending," stated
Ms. France Kennedy. "Similar to what we experienced in other
downturns, it appears consumers are making purchasing decisions
closer to race day, which impacts advance ticket sales trends.
During these challenging periods, it is important to reinvest in
our events and facilities to ensure we offer fans a premium
experience so that they will return year-after-year." It should be
noted that the Company's business model provides substantial
earnings and cash flow visibility, as a significant portion of its
earnings are associated with multi-year contracts with staggered
maturities. Approximately 75 percent of ISC's earnings per diluted
share guidance for fiscal 2008 is contracted under NASCAR's
domestic television broadcast and ancillary media rights
agreements. Visibility becomes substantially higher after including
advance sales for tickets, sponsorship, advertising, hospitality
and other revenues already under agreement for 2008. Ms. France
Kennedy concluded, "ISC remains well positioned to benefit from the
continued popularity of the sport. The competition on the track is
better than ever from a driver, team and car manufacturer
perspective, and new industry sponsors, such as Nationwide, are
increasing overall awareness. Specifically at ISC, we are
experiencing growing demand from national corporations and regional
businesses attracted by the Company's premier events, nationwide
presence, compelling intellectual property assets and professional
expertise. As always we remain committed to building long-term
value for our shareholders and look forward to a continued
successful 2008 season." 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 42058128. 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 two hours after the
end of the call through midnight Wednesday, April 16, 2008. To
access, dial toll free (800) 642-1687 and enter the code 42058128,
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(R) in Florida (home of the Daytona 500(R));
Talladega Superspeedway(R) in Alabama; Michigan International
Speedway(R) located outside Detroit; Richmond International
Raceway(R) in Virginia; Auto Club Speedway of Southern
California(SM) near Los Angeles; Kansas Speedway(R) in Kansas City,
Kansas; Phoenix International Raceway(R) in Arizona; Chicagoland
Speedway(R) and Route 66 Raceway(SM) near Chicago, Illinois;
Homestead-Miami Speedway(SM) in Florida; Martinsville Speedway(R)
in Virginia; Darlington Raceway(R) in South Carolina; and Watkins
Glen International(R) 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(R) Radio,
the nation's largest independent sport radio network; the Daytona
500 Experience(SM), the "Ultimate Motorsports Attraction" in
Daytona Beach, Florida, the official attraction of NASCAR(R); and
Americrown Service Corporation, 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 a business called Motorsports Authentics(R),
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. (Tables
Follow) Consolidated Statements of Operations (In Thousands, Except
Per Share Amounts) Three Months Ended 2/28/2007 2/29/2008
(Unaudited) REVENUES: Admissions, net $55,310 $56,113 Motorsports
related 108,114 112,845 Food, beverage and merchandise 19,164
22,690 Other 2,272 2,211 184,860 193,859 EXPENSES: Direct expenses:
Prize and point fund monies and NASCAR sanction fees 32,462 33,053
Motorsports related 30,624 35,336 Food, beverage and merchandise
10,849 12,784 General and administrative 27,248 27,711 Depreciation
and amortization 17,907 17,317 Impairment of long-lived assets -
731 119,090 126,932 Operating income 65,770 66,927 Interest income
and other 1,358 (3,060) Interest expense (4,040) (3,593) Equity in
net (loss) income from equity investments (4,317) 1,794 Income from
continuing operations before income taxes 58,771 62,068 Income
taxes 22,932 25,826 Income from continuing operations 35,839 36,242
Loss from discontinued operations, net of income tax benefits of
$48 and $33 (20) (31) Net income $35,819 $36,211 Basic earnings per
share: Income from continuing operations $0.67 $0.71 Loss from
discontinued operations - - Net income $0.67 $0.71 Diluted earnings
per share: Income from continuing operations $0.67 $0.71 Loss from
discontinued operations - - Net income $0.67 $0.71 Basic weighted
average shares outstanding 53,093,944 50,928,554 Diluted weighted
average shares outstanding 53,216,404 51,038,079 Consolidated
Balance Sheets (In Thousands) November 30, February 29, 2007 2008
(Unaudited) ASSETS Current Assets: Cash and cash equivalents
$57,316 $74,125 Short-term investments 39,250 200 Receivables, less
allowance of $1,200 in 2007 and 2008, respectively 46,860 118,255
Inventories 4,508 5,224 Deferred income taxes 1,345 1,424 Prepaid
expenses and other current assets 10,547 15,605 Total Current
Assets 159,826 214,833 Property and Equipment, net of accumulated
depreciation of $410,192 and $422,075, respectively 1,303,178
1,310,803 Other Assets: Equity investments 76,839 78,781 Intangible
assets, net 178,984 178,948 Goodwill 118,791 118,791 Deposits with
Internal Revenue Service 117,936 117,936 Other 26,563 23,362
519,113 517,818 Total Assets $1,982,117 $2,043,454 LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities: Current portion of
long-term debt $2,538 $2,553 Accounts payable 37,508 29,114
Deferred income 128,631 171,592 Income taxes payable 22,179 17,961
Other current liabilities 21,447 23,251 Total Current Liabilities
212,303 244,471 Long-Term Debt 375,009 393,795 Deferred Income
Taxes 214,109 78,177 Long-Term Tax Liabilities - 159,836 Long-Term
Deferred Income 15,531 15,201 Other Long-Term Liabilities 6,077
5,738 Commitments and Contingencies - - Shareholders' Equity: Class
A Common Stock, $.01 par value, 80,000,000 shares authorized;
30,010,422 and 28,889,093 issued and outstanding in 2007 and 2008,
respectively 300 289 Class B Common Stock, $.01 par value,
40,000,000 shares authorized; 21,593,025 and 21,525,928 issued and
outstanding in 2007 and 2008, respectively 216 215 Additional
paid-in capital 621,528 572,477 Retained earnings 537,044 573,255
Total Shareholders' Equity 1,159,088 1,146,236 Total Liabilities
and Shareholders' Equity $1,982,117 $2,043,454 Consolidated
Statements of Cash Flows (In Thousands) Three Months Ended
2/28/2007 2/29/2008 (Unaudited) OPERATING ACTIVITIES Net income
$35,819 $36,211 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
17,907 17,317 Stock-based compensation 695 937 Amortization of
financing costs 128 129 Deferred income taxes 4,536 4,418 Loss
(income) from equity investments 4,317 (1,794) Impairment of
long-lived assets, non-cash - 328 Other, net 42 3,707 Changes in
operating assets and liabilities: Receivables, net (67,775)
(71,395) Inventories, prepaid expenses and other assets (10,217)
(5,774) Deposits with Internal Revenue Service (7,123) - Accounts
payable and other liabilities 8,260 5,744 Deferred income 63,614
42,631 Income taxes 9,188 15,188 Net cash provided by operating
activities 59,391 47,647 INVESTING ACTIVITIES Capital expenditures
(37,107) (37,981) Acquisition of business, net of cash acquired
(87,002) - Proceeds from affiliate 67 - Proceeds from short-term
investments 83,250 41,300 Purchases of short-term investments
(5,450) (2,250) Other, net (8) (781) Net cash (used in) provided by
investing activities (46,250) 288 FINANCING ACTIVITIES Proceeds
under credit facility 65,000 20,000 Payment of long-term debt
(28,452) (1,126) Exercise of Class A common stock options 256 -
Reacquisition of previously issued common stock (11,000) (50,000)
Net cash provided by (used in) financing activities 25,804 (31,126)
Net increase in cash and cash equivalents 38,945 16,809 Cash and
cash equivalents at beginning of period 59,681 57,316 Cash and cash
equivalents at end of period $98,626 $74,125 DATASOURCE:
International Speedway Corporation CONTACT: Wes Harris, Senior
Director, Corporate and Investor Communications, +1-386-947-6465
Web site: http://www.iscmotorsports.com/
Copyright