International Speedway Initiates 2006 Financial Guidance
December 15 2005 - 7:00AM
PR Newswire (US)
DAYTONA BEACH, Fla., Dec. 15 /PRNewswire-FirstCall/ --
International Speedway Corporation (NASDAQ:ISCA)(OTC:ISCB)
(BULLETIN BOARD: ISCB) ("ISC") today initiated financial guidance
for the fiscal year ending November 30, 2006. "ISC will continue to
leverage strategic internal initiatives and positive industry
trends to fuel its near- and long-term growth," commented Lesa
France Kennedy, President of ISC. "Supported by a portfolio of
premier events located in key markets across the country, we remain
well positioned to successfully execute our long-term business plan
and drive increases in all of our major revenue categories. At the
industry level, NASCAR racing will benefit from increased awareness
generated by the promotional commitment from all of the major
networks involved in the recently announced broadcast rights
agreements. The sport will maintain a substantial network presence,
and will reach a broader fan base through the use of other content
platforms. In addition, the new agreements provide the company with
significant long-term revenue and cash flow visibility. We are
committed to prudently investing capital to maintain our track
record of building value for our shareholders, and look forward to
a strong 2006 and beyond." Revenues and Earnings per Share: For the
twelve months ending November 30, 2006, the Company anticipates
total revenues to range between $780 and $800 million. In addition,
earnings are expected to range between $3.20 and $3.30 per diluted
share, excluding potential legal expenses associated with the
Kentucky Speedway, LLC civil action filed in July 2005 against
NASCAR and ISC. The United States District Court, Eastern District
of Kentucky (the "Court") is expected to render a decision on the
Company's motion to dismiss following a hearing which is scheduled
on January 12, 2006. If the Court denies ISC's motion, the Company
will proceed with its defense, which could result in additional
expenses in the low seven figures, or up to $0.04 per diluted share
in earnings, for fiscal 2006. Margins: Quarter Quarter Quarter
Quarter Year Ending Ending Ending Ending Ending 02/28/06 05/31/06
08/31/06 11/30/06 11/30/06 EBITDA (1) 46% - 47% 38% - 39% 40% - 41%
46% - 47% 43% - 44% Operating 39% - 40% 30% - 31% 32% - 33% 40% -
41% 36% - 37% (1) EBITDA is a non-GAAP financial measure used by
the Company as an important indicator if it's operating margin. It
is defined as earnings before interest, taxes, depreciation and
amortization. Major Event Schedule Comparison: First Second Third
Fourth Full Fiscal Quarter Quarter Quarter Quarter Year Series Name
2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 NASCAR NEXTEL Cup
4 4 5 5 5 5 7 7 21 21 NASCAR Busch 2 2 4 4 4 5 5 5 15 16 NASCAR
Craftsman Truck 2 2 1 1 2 2 4 4 9 9 IRL IndyCar 0 0 2 1 3 4 3 1 8 6
Crown Royal IROC 1 1 0 0 0 0 1 1 2 2 ARCA RE/MAX 1 1 0 0 3 3 2 2 6
6 Grand Am Rolex Sports Car 1 1 2 2 3 3 2 0 8 6 AMA Superbike/
Supercross 0 0 3 3 0 0 0 0 3 3 11 11 17 16 20 22 24 20 72 69
Capital Spending: The Company expects spending for capital projects
at its existing facilities to range between $80 and $100 million
annually for fiscal 2006 and the next several years. Spending for
fiscal 2006 includes: seat and/or suite expansion at Phoenix
International Raceway and Darlington Raceway; track repaving at
Talladega Superspeedway; frontstretch/midway improvements at
California Speedway; land and land improvements at various
facilities for expansion of parking, camping capacity and other
uses; and a variety of other improvements and fan enhancements to
ISC's facilities. It is important to note the above range does not
include capital expenditures associated with: the Company's
facility development projects (New York and Seattle); business
acquisitions; the potential joint venture retail, entertainment,
office and residential project near Daytona International Speedway;
and other external strategic initiatives. Conference Call Scheduled
The management of ISC will host a conference call today with
investors at 9:00 a.m. Eastern time. To participate, dial
888-693-3477 five to ten minutes prior to the scheduled start time
and request to be connected to the ISC guidance 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. A replay will be available one hour after the
end of the call through midnight Friday, December 30, 2005. To
access, dial 877-519-4471 and enter the code 6812940, 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 racing events annually as well as numerous other
motorsports-related activities. The Company owns and/or operates 11
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; Homestead-Miami Speedway in
Florida; Martinsville Speedway in Virginia; Darlington Raceway in
South Carolina; and Watkins Glen International in New York. Other
motorsports entertainment facility 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."
In addition, the Company 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. DATASOURCE: International Speedway
Corporation CONTACT: Wes Harris, Senior Director, Investor
Relations of International Speedway Corporation, +1-386-947-6465
Web site: http://www.iscmotorsports.com/
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