International Speedway Reports Record Results for the First Quarter
of Fiscal 2005 ~First Quarter Revenue and Earnings Increase 37% and
48%, Respectively, Over 2004~ DAYTONA BEACH, Fla., April 5
/PRNewswire-FirstCall/ -- International Speedway Corporation
(NASDAQ:ISCA)(OTC:ISCB) (BULLETIN BOARD: ISCB) ("ISC") today
reported record results for the first quarter ended February 28,
2005. First Quarter Comparison Total revenues for the first quarter
were $179.4 million compared to revenues of $130.6 million in the
prior-year period. Operating income was $71.8 million during the
period compared to $47.1 million in the first quarter of fiscal
2004. Net income for the first quarter of fiscal 2005 was $41.1
million, or $0.77 per diluted share, compared to net income of
$27.8 million, or $0.52 per diluted share, in the prior-year
period. Prior year financial statements reflect the discontinued
operations, net of tax, of North Carolina Speedway, which was sold
in July 2004. In addition, the long- lived assets of Nazareth
Speedway are held for sale as of November 30, 2004, and its results
are recorded as discontinued operations, net of tax, for all
periods presented. Significantly contributing to the 2005 first
quarter results was the realignment of California Speedway's spring
NASCAR NEXTEL Cup Series weekend from the second to the first
quarter. Partially offsetting the increases for the quarter was the
timing of Homestead-Miami Speedway's IRL IndyCar Series weekend,
which was held in the first quarter of 2004 but scheduled for the
second quarter of 2005. "We are pleased to report record first
quarter results that exceeded our expectations," commented Lesa
France Kennedy, President of ISC. "The strong momentum of 2004 has
continued into this year, underscored by the increased attendance
and television viewership seen to date for the majority of our
first quarter events. The realignment of California's Spring NASCAR
weekend significantly contributed to our outstanding results. For
comparable events, we posted increases across all major revenue
streams led primarily by higher television and media revenue,
strong sponsorship and hospitality income, and increased
attendance-related revenues. In addition, we were extremely pleased
with the highly successful debut of the renovated infield at
Daytona International Speedway. The new infield was also a
financial success, as NEXTEL FANZONE admissions sold out for the
Daytona 500 and many guests enjoyed the unparalleled hospitality
amenities of the new Daytona 500 Club." 2005 First Quarter
Highlights Highlights of the first quarter of 2005 include: * The
Grand American Road Racing Series Rolex 24 at Daytona kicked off
2005 Speedweeks in dramatic fashion. The country's premier sports
car endurance race featured more than 60 entries and numerous
world-renowned drivers, including several NEXTEL Cup Champions.
More notably, the event posted a more than 25% increase in
attendance over the prior year. * The following weekend, the Bud
Shootout posted a more than 20% increase in attendance as fans
watched Jimmie Johnson claim his first victory at Daytona. In
addition, the Gatorade Duel, the twin qualifying races for the
Daytona 500, hosted larger crowds as compared to the prior year, as
did the Crown Royal IROC and Florida Dodge Dealers 250 NASCAR
Craftsman Truck races. * Continuing the Company's success at
Daytona, increased attendance was also recorded for the Hershey's
Take 5 300 Busch Series event. Highlighted by thrilling racing
action, Tony Stewart battled from 17th position in the closing laps
to capture his first ever Busch Series victory. The 2004 race was
postponed due to inclement weather and held on the following
Monday. * A capacity crowd witnessed one of the most exciting
Daytona 500s in the event's history. Ending in the race's first
ever green-white-checkered finish, Jeff Gordon emerged from a pack
of top drivers, including Kurt Busch and Dale Earnhardt Jr., to
capture his third Daytona 500. More than 35 million viewers
nationwide tuned in to watch NASCAR's richest, most prestigious
event. The 2005 Daytona 500 tied for the highest broadcast rating
in the event's history and drew the largest audience ever for a
NASCAR race broadcast on FOX. * Speedweeks was also highlighted by
the successful debut of Daytona's newly renovated infield.
Thousands of guests enjoyed the NEXTEL FANZONE, which featured
specialty cuisine from the upscale "Bistro," various forms of
entertainment, live national television and radio broadcasts and
interactive displays. Fans also received behind-the-scenes viewing
access to pre-race activities from atop the NEXTEL Cup garages and
watched their favorite teams in action through garage windows
amidst the festive atmosphere. In addition, fans enjoyed Daytona's
new signature structure, the Daytona 500 Club, which overlooks the
new Gatorade Victory lane. * California hosted a NASCAR
triple-header weekend for the second weekend of the season. The
Craftsman Truck and Busch series races both finished in East coast
prime time and posted strong television viewership results. In
addition, the Auto Club 500 recorded the second-highest broadcast
rating ever for a non-Daytona 500 Cup event. Partially offsetting
the significant positives of the weekend was lower-than-expected
ticket sales. With the addition of a second Cup weekend beginning
in the fall of 2004 and a shorter selling window for the 2005
spring weekend, the Company expected ticket sales to be
challenging. However, attendance was further impacted by record-
breaking rainfall during the final month leading up to the race
weekend. During the first quarter, the Company benefited from new
multi-year official status agreements with several well-known
companies, including Checkers/Rally's Restaurants, American
Automobile Association, ConAgra Foods, Goodyear and XM Satellite
Radio. 2005 first quarter results also include the impact of
renewed or expanded agreements with companies such as UPS and
Valvoline, and ISC expanded its Nextel relationship to include
entitlement of Daytona's FANZONE and pre-race activities. In
addition, ISC signed multi-year entitlement agreements with the
United Auto Workers and Ford for Talladega Superspeedway's fall Cup
event, and the Automobile Club of Southern California for
California's spring Cup race. Including the positive impact of an
additional Martinsville Speedway Cup weekend, the Company continues
to expect growth in sponsorship and hospitality revenue in the low
to mid double-digits for fiscal 2005. Ms. France Kennedy commented,
"We continue to see strong interest from corporations seeking to
leverage our national footprint and desirable fan demographics to
further expand their brand awareness and customer base. During the
quarter, we signed several noteworthy multi-track agreements,
including our first Quick Service Restaurant official status
category partnership with Checkers and Rally's Restaurants. We are
also seeing an increase of non-traditional motorsports sponsors as
a result of the sport's expanding appeal. Finally, given our
portfolio of premier events and facilities, and significant
attention to sponsor satisfaction, we can effectively tailor
marketing partnerships to meet the needs of large national
corporations as well as smaller regional businesses." Recent
Developments To date in the second quarter, Daytona hosted Bike
Week in early March. In addition, Homestead-Miami Speedway held a
successful IRL IndyCar weekend, highlighted by exciting
wheel-to-wheel racing as Dan Wheldon took the checkered flag in the
IRL IndyCar season opener. Finally, Phoenix International Raceway's
IndyCar weekend featured thrilling on-track competition as Sam
Hornish Jr. held off a charging field to win in a green-
white-checkered finish. Upcoming second quarter events include a
NASCAR NEXTEL Cup and Craftsman Truck weekend at Martinsville,
followed by four consecutive NEXTEL Cup and Busch weekends at
Phoenix, Talladega, Darlington Raceway and Richmond International
Raceway. Advanced ticket sales for upcoming events continue to be
strong. A sold out crowd is expected at Martinsville for the NEXTEL
Cup Advance Auto Parts 500, and the Company anticipates strong
attendance for the inaugural SUBWAY Fresh 500 Cup event at Phoenix,
which will finish "under the lights" during East coast prime time.
Talladega is experiencing a significant increase in advanced ticket
sales for its Aaron's 499 Cup weekend, as is Darlington for the
Dodge Charger 500. Lastly, Richmond anticipates strong weekend
attendance, and the Chevy American Revolution 400 NEXTEL Cup event
is expected to sell out. The Company continues to make progress in
its facility development efforts in the New York City borough of
Staten Island. ISC has begun the permitting process with the city
of New York, while concurrently proceeding with its detailed
feasibility study to further evaluate project costs, public
incentives availability, environmental impact assessments and
remediation required, if any. In addition, Company representatives
continue to meet with local resident groups and public officials to
discuss the proposed project. In the Pacific Northwest, ISC
continues to evaluate suitable locations for the development of a
motorsports facility. Several municipalities, along with State
representatives, continue to indicate a high level of interest in
the project, and the Company remains optimistic of its prospects in
this underserved region of the country. Lastly, the Company
recently reached settlement with the CART Liquidation Trust ("the
Trust") that allows a claim in ISC's favor of $2.0 million in the
CART bankruptcy. The claim is based on the failure to return ISC's
sanction fee paid to CART, less allowable expenses, for the 2003
event scheduled in California that was canceled because of the
state of emergency due to wildfires in Southern California at the
time. Once the U.S. Bankruptcy Court, Southern District of Indiana,
has approved the good faith settlement at a hearing scheduled for
mid-April, the Company will be positioned to recover the first $1.5
million of the claim. If there are not sufficient funds remaining
in the Trust to fully satisfy the allowed claim of $2.0 million,
the Company will pursue the remaining funds, or up to $500,000,
from Champ Car World Series (formerly Open Wheel Racing Series), as
represented and agreed to at the CART bankruptcy hearing held in
January 2004. Outlook ISC reiterates its 2005 second quarter
revenue guidance of $150 to $155 million. However, as a result of
the anticipated $1.5 million before-tax CART settlement, ISC is
raising its second quarter earnings guidance to $0.47 to $0.49 per
diluted share. ISC is also increasing its full year guidance, with
revenue expected between $715 and $730 million and earnings of
$2.87 to $2.93 per diluted share. "ISC posted an exceptional first
quarter, and we are on track for continued success," Ms. France
Kennedy continued. "We look forward to hosting several successful
events this quarter, particularly the realigned spring Cup weekend
at Phoenix. We believe the Western U.S. is a growing market for
motorsports, and an additional Cup race in the region will continue
to cultivate that fan base and further strengthen our national
footprint. We are excited for the future growth prospects this area
of the country represents for ISC and the industry." Ms. France
Kennedy concluded, "We anticipate solid growth across all major
revenue streams for 2005, resulting in another record year for the
Company. We also we remain optimistic for our development projects
in New York and the Pacific Northwest, which will provide
additional opportunities for long-term growth. At the industry
level, NASCAR's increasing popularity continues to lead to higher
television viewership and event attendance, as well as increased
corporate participation at all levels of the sport. The industry's
outlook is positive and, combined with our internal growth
initiatives and solid business fundamentals, we remain excited
about our future." 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 (973) 582-2710 five to ten
minutes prior to the scheduled start time and request to be
connected to the ISC earnings call. 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. This section has been expanded to include a full range of
company, financial, corporate governance and other data that is
useful to the financial community. A replay will be available one
hour after the end of the call through midnight Tuesday, April 12,
2005. To access, dial (973) 341-3080 and enter the code 5869645, or
visit the "Investor Relations" section of the Company's Web site.
International Speedway Corporation is a leading promoter of
motorsports activities in the United States, currently promoting
more than 100 events annually. The Company owns and/or operates 11
of the nation's major motorsports 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;
Homestead-Miami Speedway in Florida; Martinsville Speedway in
Virginia; Darlington Raceway in South Carolina; and Watkins Glen
International in New York. Other track ownership includes an
indirect 37.5% interest in Raceway Associates, LLC, which owns and
operates Chicagoland Speedway and Route 66 Raceway near Chicago,
Illinois. The Company also owns and operates MRN Radio, the
nation's largest independent sports radio network; DAYTONA USA, 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." 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 Feb. 29, 2004 Feb. 28, 2005
(Unaudited) REVENUES: Admissions, net $44,433 $55,784 Motorsports
related 68,489 100,269 Food, beverage and merchandise 16,290 20,949
Other 1,413 2,430 130,625 179,432 EXPENSES: Direct expenses: Prize
and point fund monies and NASCAR sanction fees 20,788 31,484
Motorsports related 21,218 28,435 Food, beverage and merchandise
9,583 12,632 General and administrative 21,222 23,171 Depreciation
and amortization 10,746 11,863 83,557 107,585 Operating income
47,068 71,847 Interest income 654 970 Interest expense (5,475)
(3,055) Equity in net loss from equity investments (1,681) (1,531)
Income from continuing operations before income taxes 40,566 68,231
Income taxes 16,116 27,113 Income from continuing operations 24,450
41,118 Income (loss) from discontinued operations, net of income
taxes of $1,879 and $(64) 3,343 (53) Net income $27,793 $41,065
Basic earnings per share: Income from continuing operations $0.46
$0.77 Income (loss) from discontinued operations 0.06 -- Net income
$0.52 $0.77 Diluted earnings per share: Income from continuing
operations $0.46 $0.77 Income (loss) from discontinued operations
0.06 -- Net income $0.52 $0.77 Dividends per share $0.00 $0.00
Basic weighted average shares outstanding 53,065,938 53,101,260
Diluted weighted average shares outstanding 53,162,847 53,223,241
Consolidated Balance Sheets (In Thousands) Nov. 30, 2004 Feb. 28,
2005 (Unaudited) ASSETS Current Assets: Cash and cash equivalents
$160,978 $106,059 Short-term investments 115,000 84,645
Receivables, less allowance of $1,500 in 2004 and 2005 52,798
107,260 Inventories 7,267 9,779 Prepaid expenses and other current
assets 5,032 15,050 Total Current Assets 341,075 322,793 Property
and Equipment, net of accumulated depreciation of $265,489 969,095
1,088,618 and $277,174, respectively Other Assets: Equity
investments 36,489 34,471 Intangible assets, net 148,989 149,580
Goodwill 99,265 99,331 Other 24,597 24,389 309,340 307,771 Total
Assets $1,619,510 $1,719,182 LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities: Current portion of long-term debt $7,505 $505
Accounts payable 28,854 29,324 Deferred income 114,518 163,207
Income taxes payable 25,241 26,178 Other current liabilities 15,078
20,460 Total Current Liabilities 191,196 239,674 Long-Term Debt
369,315 369,242 Deferred Income Taxes 165,617 175,306 Long-Term
Deferred Income 11,503 11,428 Other Long-Term Liabilities 141 107
Commitments and Contingencies -- -- Shareholders' Equity: Class A
Common Stock, $.01 par value, 80,000,000 shares authorized;
28,858,934 and 29,048,327 issued and outstanding at November 30,
2004 and February 28, 2005, respectively 289 291 Class B Common
Stock, $.01 par value, 40,000,000 shares authorized; 24,409,903 and
24,224,360 issued and outstanding at November 30, 2004 and February
28, 2005, respectively 244 242 Additional paid-in capital 696,882
697,029 Retained earnings 187,689 228,754 Accumulated other
comprehensive loss (22) -- 885,082 926,316 Less: unearned
compensation- restricted stock 3,344 2,891 Total Shareholders'
Equity 881,738 923,425 Total Liabilities and Shareholders' Equity
$1,619,510 $1,719,182 Consolidated Statements of Cash Flows (In
Thousands) Three Months Ended Feb. 29, 2004 Feb. 28, 2005
(Unaudited) OPERATING ACTIVITIES Net income $27,793 $41,065
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 11,497 11,863
Amortization of unearned compensation 404 453 Amortization of
financing costs (6) 148 Deferred income taxes 9,650 9,689
Undistributed losses from equity investments 1,681 1,531 Other, net
4 13 Changes in operating assets and liabilities: Receivables, net
(45,837) (54,399) Inventories, prepaid expenses and other assets
(9,712) (12,548) Accounts payable and other liabilities 11,646
4,695 Deferred income 40,678 48,614 Income taxes payable 7,761 937
Net cash provided by operating activities 55,559 52,061 INVESTING
ACTIVITIES Capital expenditures (22,177) (130,211) Proceeds from
asset disposals 5 27 Acquisition of businesses -- (764) Proceeds
from affiliate -- 487 Proceeds from short-term investments --
99,040 Purchases of short-term investments -- (68,685) Other, net
(333) (11) Net cash used in investing activities (22,505) (100,117)
FINANCING ACTIVITIES Payment of long-term debt (6,500) (7,000)
Proceeds from interest rate swap 544 -- Exercise of Class A common
stock options -- 147 Other, net -- (10) Net cash used in financing
activities (5,956) (6,863) Net increase (decrease) in cash and cash
equivalents 27,098 (54,919) Cash and cash equivalents at beginning
of period 223,973 160,978 Cash and cash equivalents at end of
period $251,071 $106,059 http://www.iscmotorsports.com/DATASOURCE:
International Speedway Corporation CONTACT: Wes Harris of
International Speedway Corporation, Senior Director, Investor
Relations, +1-386-947-6465 Web site: http://www.iscmotorsports.com/
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