~ Full-Year Total Revenues Increase 14 Percent ~ DAYTONA BEACH,
Fla., Jan. 26 /PRNewswire-FirstCall/ -- International Speedway
Corporation (NASDAQ:ISCA) (OTC:ISCB) (BULLETIN BOARD: ISCB) ("ISC")
today reported record results for the fiscal fourth quarter and
full year ended November 30, 2005. "This past year was highlighted
by significant Company and industry developments, as well as
increased revenue in all our major categories," commented Lesa
France Kennedy, President of ISC. "Television and media contributed
to full year revenue growth, led by the 17 percent average increase
in contracted industry broadcast rights fees for the NASCAR NEXTEL
Cup and Busch series. In addition, double-digit growth in corporate
partner spending as well as higher admissions-related revenue
contributed to the increase. During the year we completed major
facility enhancements at Daytona, Michigan and Homestead-Miami that
are designed to enhance the fan experience and create incremental
revenue opportunities for the Company. Finally, we are excited
about the future prospects of Motorsports Authentics, our
merchandising joint venture with Speedway Motorsports." Fourth
Quarter Comparison Total revenues for the fourth quarter increased
to $236.7 million, compared to revenues of $231.3 million in the
prior-year period. Operating income was $90.5 million during the
period compared to $92.6 million in the fourth quarter of fiscal
2004. Net income was $55.0 million, or $1.03 per diluted share,
compared to net income of $54.4 million, or $1.02 per diluted
share, in the prior year. The realignment of Darlington Raceway's
NEXTEL Cup and Busch weekend, held in the fourth quarter of 2004,
to Phoenix International Raceway in the second quarter of 2005
significantly impacted year-over-year results. In addition, 2005
fourth-quarter results include the IRL IndyCar event at Watkins
Glen International, which was realigned from Nazareth Speedway
after the 2004 race season. The long-lived assets of Nazareth are
held for sale as of November 30, 2005. Therefore, its results are
recorded as discontinued operations, net of tax, for all periods
presented. Full Year Comparison For the twelve months ended
November 30, 2005, total revenues increased to $740.1 million from
$647.8 million in 2004. Operating income for the twelve- month
period was $265.3 million compared to $228.4 million in the prior
year. Net income for the twelve months ended November 30, 2005, was
$159.4 million, or $2.99 per diluted share, and impacted by the
following: * The July 2004 acquisition of Martinsville Speedway
resulted in an incremental NASCAR NEXTEL Cup and Craftsman Truck
weekend in the second quarter of 2005. * The inclusion of the
NASCAR Busch Series and aforementioned IRL event weekends at
Watkins Glen in the 2005 third and fourth quarters, respectively,
which were realigned from Nazareth. * The 2005 second quarter
recovery of approximately $1.8 million, or $0.02 per diluted share,
associated with ISC's allowable claim in the CART bankruptcy. The
claim was based on the failure to return ISC's sanction fee paid to
CART, less allowable expenses, for the 2003 event scheduled at
California Speedway, which CART canceled because of the state of
emergency due to wildfires in Southern California at the time. Net
income for the twelve months ended November 30, 2004 was $156.3
million, or $2.94 per diluted share, and included the following: *
A combined pre-tax charge included in the 2004 second quarter of
$6.6 million, or $0.08 per diluted share, associated with
refinancing the Company's Senior Notes. * An after-tax gain of
$36.3 million, or $0.68 per diluted share, on the sale of North
Carolina Speedway's assets. * A combined pre-tax non-cash charge of
$1.0 million, or $0.01 per diluted share, related to the Daytona
International Speedway infield and Michigan International Speedway
frontstretch renovation projects. 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 adjustments relate to: (1) the presentation
of the operations of North Carolina and Nazareth as discontinued;
(2) the presentation of the sale of North Carolina as discontinued;
(3) charges associated with refinancing the majority of the
Company's long-term debt; and (4) the write-off of the net book
value of certain undepreciated assets removed in connection with
major track renovation projects at Daytona and Michigan. We believe
such non-GAAP information is useful and meaningful to investors,
and is used by investors and us to assess our 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 Nov. 30, Nov. 30, Nov. 30, Nov. 30, 2004
2005 2004 2005 Net income $54,376 $55,044 $156,318 $159,361 Net
loss (income), net of tax, from: Discontinued operations of North
Carolina and Nazareth 65 (432) 6,315 (289) Gain on the sale of
discontinued operations -- -- (36,337) -- Income from continuing
operations 54,441 54,612 126,296 159,072 Adjustments, net of tax:
Interim interest on debt redeemed -- -- 995 -- Loss on early
redemption of debt -- -- 3,028 -- Track renovation projects at
Daytona and Michigan 204 -- 608 -- Non-GAAP net income $54,645
$54,612 $130,927 $159,072 Diluted earnings per share $1.02 $1.03
$2.94 $2.99 Net loss (income), net of tax, from: Discontinued
operations of North Carolina and Nazareth -- -- 0.11 -- Gain on the
sale of discontinued operations -- -- (0.68) -- Income from
continuing operations 1.02 1.03 2.37 2.99 Adjustments, net of tax:
Interim interest on debt redeemed -- -- 0.02 -- Loss on early
redemption of debt -- -- 0.06 -- Track renovation projects at
Daytona and Michigan -- -- 0.01 -- Non-GAAP diluted earnings per
share $1.02 $1.03 $2.46 $2.99 2005 Fourth Quarter Highlights An
overview of the significant major event weekends held in the fourth
quarter of 2005 includes: * California hosted near-capacity crowds
for its Labor Day NASCAR NEXTEL Cup race. Television viewership was
again strong for the weekend. The Sony HD 500 posted record
broadcast ratings for a Labor Day weekend Cup race, and the NASCAR
Busch Series Ameriquest 300 event posted a 28 percent increase in
average households. * The following weekend, Richmond International
Raceway hosted a capacity crowd for the NEXTEL Cup Chevy Rock and
Roll 400, and record attendance for the Emerson Electronics 250
Busch series event. * ISC hosted successful open wheel racing
events during the fourth quarter, including IRL races at
Chicagoland Speedway, Watkins Glen, and California, as well as
Grand American Road Racing events at Phoenix and Watkins Glen. *
Talladega Superspeedway hosted NEXTEL Cup and ARCA racing
highlighted by exciting on-track competition including 50 lead
changes for the UAW-Ford 500 NEXTEL Cup event. As previously
reported, the weekend's attendance-related revenue was below
expectations primarily due to the impacts of the recent hurricanes
on the Gulf Coast, a key selling region for the facility. * Kansas
Speedway once again hosted a sold-out crowd for its NEXTEL Cup and
Busch weekend. The sell-out includes an additional 1,600 seats
added this year, demonstrating the outstanding consumer demand in
this key market. Television results for the weekend were very
strong as the NEXTEL Cup Banquet 400 posted a six percent increase
in average households. * Martinsville hosted a capacity crowd for
the sixth race in the Chase for the NASCAR NEXTEL Cup. In addition,
the NEXTEL Cup Subway 500 posted a seven percent increase in
average household viewership over the prior year. * Phoenix hosted
a NASCAR triple-header weekend in November, anchored by the
sold-out Checker Auto Parts 500 NEXTEL Cup race. The event weekend
also posted increased overall attendance from the prior year,
highlighted by record attendance for the Chevy Silverado 150
Craftsman Truck race. * The 2005 NASCAR season came to a thrilling
conclusion at Homestead-Miami Speedway. Consumer demand for the
NASCAR Ford Championship Weekend was outstanding. The NEXTEL Cup
Ford 400 was sold out nearly three months in advance, and the
facility's Busch and Craftsman Truck events posted significant
double-digit attendance increases over the prior year. Corporate
sponsor spending contributed to the Company's record revenue for
the fourth quarter of fiscal 2005. During the quarter the Company
announced significant long-term official status agreements with
Texas Instruments and Ford, which renewed its relationship with ISC
and Homestead-Miami as the title sponsor of the NASCAR Championship
Weekend. For the full year fiscal 2005, corporate partner spending
posted a double-digit increase on a comparable event basis,
demonstrating the continued strong interest by marketing partners
in ISC. The Company leveraged relationships with over 450 corporate
partners in 2005, including well-known brands like The Home Depot,
AAA, Crown Royal and Office Depot. "Corporate demand continues to
strengthen due to the ongoing growth in NASCAR's popularity coupled
with our unparalleled schedule of events," Ms. France Kennedy
continued. "We posted significant increases in sponsorship and
hospitality revenues during 2005, and we look forward to another
strong year in sponsor related spending in 2006. Our corporate
marketing initiatives and focus on partnership management allows us
to identify new growth opportunities, while helping partners
maximize their return on investment." Recent Developments The
Company continues to make progress in its major development
projects. In Metro New York, the Company continues with its local
and governmental outreach efforts on Staten Island, while
proceeding with the land use approval process and other aspects of
its feasibility study. ISC is also conducting site improvement
work, which is critical to the overall construction plan of the
proposed facility and improves the marketability of the site should
the speedway project not proceed. In Seattle, ISC is continuing
with its project due diligence to evaluate, among other factors,
environmental impacts including traffic, noise, air quality and
others, if necessary. Washington state legislation is required to
create the public financing mechanism for construction of the
facility. While the Company has secured significant local support,
it believes it is in the best long-term interest of the project to
not introduce the necessary legislation in the shortened session of
the 2006 Washington Legislature. This session concludes in March
2006 and is already facing a full agenda of action items. ISC is
currently evaluating all of its options, including introducing the
legislation in the full 2007 session, and will decide on the best
course of action for the project over the next several months.
Regarding the Kentucky Speedway, LLC civil action filed in July
2005 against NASCAR and ISC, the Company is awaiting a ruling on
its motion to dismiss from the United States District Court,
Eastern District of Kentucky (the "Court"). Should the Court deny
ISC's motion, the Company will proceed with its defense, which
could result in additional legal and related expenses in the low
seven digits, or up to $0.04 per diluted share in earnings, for
fiscal 2006. ISC maintains that the lawsuit is without merit, and
intends to vigorously defend itself. Outlook Speedweeks 2006 kicks
off on January 28 with the 44th running of the 24-hour Grand Am
Rolex 24 at Daytona. SPEED Channel will air 13 1/2 hours of live
coverage from the nation's premier endurance race, and will also
air the NASCAR Craftsman Truck Series race from Daytona. Speedweeks
culminates with the 48th annual Daytona 500, the Great American
Race. NBC and TNT will partner to air the NASCAR NEXTEL Cup
Budweiser Shootout, the Gatorade Duel and Daytona 500, as well as
the NASCAR Busch Series Hershey's Kissables 300. ISC reiterates its
previous financial estimates for full year revenues between $780
and $800 million, and net income of $3.20 to $3.30 per diluted
share. In addition, the Company expects first quarter earnings
before interest, taxes, depreciation and amortization ("EBITDA")(1)
and operating margins to range from 46 to 47 percent and 39 to 40
percent, respectively. These estimates do not include the potential
impact of legal expenses associated with the aforementioned
Kentucky civil action. "We are very excited for the start of the
2006 race season," concluded Ms. France Kennedy. "We expect to
build off our success in 2005 and post another record year for the
Company. Consumer and corporate demand remain very strong and we
will continue to execute on our marketing initiatives designed to
capitalize on the growing popularity of NASCAR racing. In addition,
we continue to explore additional business opportunities to
leverage our core competencies and drive future results. As always,
our focus throughout all our endeavors is to provide long-term
value to our shareholders." (1) EBITDA is a non-GAAP financial
measure used by the Company as an important indicator of its
operating margin. 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 888-693-3477 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. A replay will be available one hour after the end of the
call through midnight Thursday, February 2, 2006. To access, dial
toll free 877-519-4471 and enter the code 6904030, 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 percent 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. (Tables Follow) Consolidated
Statements of Operations (In Thousands, Except Per Share Amounts)
Three Months Ended Twelve Months Ended Nov. 30, Nov. 30, Nov. 30,
Nov. 30, 2004 2005 2004 2005 (Unaudited) REVENUES: Admissions, net
$76,388 $71,563 $222,545 $234,768 Motorsports related 125,247
134,325 334,943 408,514 Food, beverage and merchandise 27,523
28,093 83,236 87,269 Other 2,096 2,749 7,124 9,578 231,254 236,730
647,848 740,129 EXPENSES: Direct expenses: Prize and point fund
monies and NASCAR sanction fees 50,497 47,296 119,322 136,816
Motorsports related 35,485 42,173 113,073 134,395 Food, beverage
and merchandise 16,439 18,561 52,285 56,773 General and
administrative 24,585 24,812 90,307 95,987 Depreciation and
amortization 11,666 13,355 44,443 50,893 138,672 146,197 419,430
474,864 Operating income 92,582 90,533 228,418 265,265 Interest
income 1,233 1,299 4,053 4,860 Interest expense (4,422) (3,107)
(21,723) (12,693) Loss on early redemption of debt -- -- (4,988) --
Equity in net income from equity investments 436 480 2,754 3,516
Income from continuing operations before income taxes 89,829 89,205
208,514 260,948 Income taxes 35,388 34,593 82,218 101,876 Income
from continuing operations 54,441 54,612 126,296 159,072 (Loss)
income from discontinued operations, net of income taxes of ($0.3)
million and $0.2 million, and ($3.7) million and $0, respectively
(65) 432 (6,315) 289 Gain on the sale of discontinued operations,
net of income taxes of $27.6 million -- -- 36,337 -- Net income
$54,376 $55,044 $156,318 $159,361 Basic earnings per share: Income
from continuing operations $1.03 $1.03 $2.38 $2.99 (Loss) income
from discontinued operations (0.01) 0.01 (0.12) 0.01 Gain on sale
of discontinued operations -- -- 0.68 -- Net income $1.02 $1.04
$2.94 $3.00 Diluted earnings per share: Income from continuing
operations $1.02 $1.03 $2.37 $2.99 Loss from discontinued
operations -- -- (0.11) -- Gain on sale of discontinued operations
-- -- 0.68 -- Net income $1.02 $1.03 $2.94 $2.99 Dividends per
share $-- $-- $0.06 $0.06 Basic weighted average shares outstanding
53,098,185 53,143,565 53,084,437 53,128,533 Diluted weighted
average shares outstanding 53,205,911 53,250,512 53,182,776
53,240,183 Consolidated Balance Sheets (In Thousands) November 30,
2004 2005 ASSETS Current Assets: Cash and cash equivalents $160,978
$130,758 Short-term investments 115,000 8,200 Receivables, less
allowance of $1,500 in 2004 and 2005 52,798 45,557 Inventories
7,267 6,528 Prepaid expenses and other current assets 5,032 6,335
Total Current Assets 341,075 197,378 Property and Equipment, net
969,095 1,178,682 Other Assets: Equity investments 36,489 51,160
Intangible assets, net 148,989 149,464 Goodwill 99,265 99,507
Deposits with Internal Revenue Service -- 96,913 Other 24,597
23,965 309,340 421,009 Total Assets $1,619,510 $1,797,069
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current
portion of long-term debt $7,505 $635 Accounts payable 28,854
19,274 Deferred income 114,518 123,870 Income taxes payable 25,241
20,067 Other current liabilities 15,078 18,645 Total Current
Liabilities 191,196 182,491 Long-Term Debt 369,315 368,387 Deferred
Income Taxes 165,617 194,825 Long-Term Deferred Income 11,503
11,342 Other Long-Term Liabilities 141 69 Commitments and
Contingencies -- -- Shareholders' Equity: Class A Common Stock,
$.01 par value, 80,000,000 shares authorized; 28,858,934 and
29,394,344 issued and outstanding in 2004 and 2005, respectively
289 295 Class B Common Stock, $.01 par value, 40,000,000 shares
authorized; 24,409,903 and 23,928,058 issued and outstanding in
2004 and 2005, respectively 244 239 Additional paid-in capital
696,882 699,879 Retained earnings 187,689 343,766 Accumulated other
comprehensive loss (22) -- 885,082 1,044,179 Less: unearned
compensation- restricted stock 3,344 4,224 Total Shareholders'
Equity 881,738 1,039,955 Total Liabilities and Shareholders' Equity
$1,619,510 $1,797,069 Consolidated Statements of Cash Flows (In
Thousands) Year Ended November 30, 2004 2005 OPERATING ACTIVITIES
Net income $156,318 $159,361 Adjustments to reconcile net income to
net cash provided by operating activities: Depreciation and
amortization 44,443 50,893 Discontinued operations depreciation
1,244 -- Amortization of unearned compensation 1,734 1,953
Amortization of financing costs 250 569 Deferred income taxes
52,146 29,208 Undistributed income from equity investments (2,754)
(3,516) Impairment of long-lived assets 13,217 -- Gain on sale of
discontinued operations (63,926) -- Loss on early redemption of
debt 4,988 -- Other, net 1,028 (248) Changes in operating assets
and liabilities: Receivables, net (10,959) 7,304 Inventories,
prepaid expenses and other assets (2,569) (644) Deposits with
Internal Revenue Service -- (96,913) Accounts payable and other
liabilities 9,215 (5,359) Deferred income 3,187 9,191 Income taxes
18,424 (5,027) Net cash provided by operating activities 225,986
146,772 INVESTING ACTIVITIES Capital expenditures (135,218)
(248,850) Proceeds from asset disposals 86 31 Acquisition of
businesses (195,325) (12,660) Proceeds from sale of discontinued
operations 100,391 -- Equity investments (2,008) (11,642) Proceeds
from short-term investments 147,650 430,950 Purchases of short-term
investments (262,450) (324,150) Proceeds from affiliate -- 487
Other, net (1,442) (377) Net cash used in investing activities
(348,316) (166,211) FINANCING ACTIVITIES Proceeds from long-term
debt 299,570 -- Payment of long-term debt (231,890) (7,505) Payment
of long-term debt redemption premium (5,340) -- Deferred financing
fees (2,626) (10) Proceeds from interest rate swaps 2,771 -- Cash
dividends paid (3,196) (3,199) Reacquisition of previously issued
common stock (396) (511) Exercise of Class A common stock options
442 444 Net cash provided by (used in) financing activities 59,335
(10,781) Net decrease in cash and cash equivalents (62,995)
(30,220) Cash and cash equivalents at beginning of period 223,973
160,978 Cash and cash equivalents at end of period $160,978
$130,758 DATASOURCE: International Speedway Corporation CONTACT:
Wes Harris, Senior Director, Investor Relations, International
Speedway, +1-386-947-6465 Web site: http://www.iscmotorsports.com/
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