International Speedway Extends Lease Agreement for Daytona International Speedway
March 29 2006 - 5:10PM
PR Newswire (US)
DAYTONA BEACH, Fla., March 29 /PRNewswire-FirstCall/ --
International Speedway Corporation (NASDAQ:ISCA) (OTC:ISCB)
(BULLETIN BOARD: ISCB) ("ISC") today announced that, through its
wholly owned subsidiary Daytona International Speedway, LLC
("Daytona"), it has amended its lease agreement with the Daytona
Beach Racing and Recreational Facilities District (the "District").
The amended lease (the "DIS lease") extends the relationship
between Daytona and the District through November 7, 2054. The
annual cash lease payment, excluding applicable sales taxes, of
$500,000 for 2007 will increase every five years, resulting in an
average annual cash payment over the 48-year (2007-2054) period of
approximately $750,000. The original lease provided for annual cash
payments of $10,000 per year through 2007, increasing to $20,000
per year from 2008 through 2032. Accounting principles generally
accepted in the United States require annual lease expense to be
recognized on a straight-line basis over the revised term of the
lease. As a result, ISC expects to record approximately $500,000 in
additional DIS lease-related expenses for fiscal 2006, including
sales taxes. For fiscal years 2007 through 2054, the Company
anticipates DIS lease-related expenses, including sales taxes, to
approximate $800,000 per year. "The successful lease extension
further demonstrates the significant, long-term commitment of ISC
and my family to the Daytona Beach community," said ISC President
Lesa France Kennedy. "My grandparents signed the initial lease in
1957, which helped create the World Center of Racing and NASCAR's
preeminent event -- the Daytona 500. The extension is a win-win for
all involved, as it enables our continued investment in the area
and provides an increased source of funds for the District to
utilize for worthy community projects." 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. DATASOURCE:
International Speedway Corporation CONTACT: Wes Harris, Senior
Director, Investor Relations, International Speedway Corporation,
+1-386-947-6465 Web site: http://www.iscmotorsports.com/
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