~ Company Reiterates Full-Year Financial Guidance ~ DAYTONA BEACH,
Fla., April 6 /PRNewswire-FirstCall/ -- International Speedway
Corporation (NASDAQ:ISCA) (OTC:ISCB) (BULLETIN BOARD: ISCB) ("ISC")
today reported record results for the fiscal first quarter ended
February 28, 2006. "Our strong financial results for the first
quarter demonstrate the continued strength of our business and the
motorsports industry," commented ISC President Lesa France Kennedy.
"Television and media revenues contributed to top-line growth,
fueled by an approximate 15 percent increase in broadcast rights
fees for the NASCAR NEXTEL Cup and Busch series. In addition,
higher corporate sponsorship and hospitality revenues, as well as
other motorsports- related revenue helped drive our overall
results. The first quarter benefited from a successful Speedweeks
at Daytona, highlighted by record television viewership for the
Daytona 500. Looking forward, we remain on-track to post another
record year during fiscal 2006." First Quarter Comparison Total
revenues for the first quarter increased to $193.9 million,
compared to revenues of $179.4 million in the prior-year period.
Operating income was $78.5 million during the period compared to
$71.8 million in the first quarter of fiscal 2005. Net income was
$44.1 million, or $0.83 per diluted share, compared to net income
of $41.1 million, or $0.77 per diluted share, in the prior year.
2006 First Quarter Highlights An overview of the significant major
event weekends held in the first quarter of 2006 includes: *
Speedweeks 2006 kicked off in exciting fashion with the Grand
American Road Racing Series Rolex 24 at Daytona International
Speedway. World class competitors from several national and
international racing series competed in the country's premier
sports car endurance race. The on-track competition was
outstanding, and the event posted a double-digit percentage
increase in attendance over the prior year. * Inclement weather
forced the postponement of the NEXTEL Cup Budweiser Shootout to the
following day. In addition, the NEXTEL Cup Gatorade Duel was
impacted by inclement weather on race day, which affected walk-up
sales for the event. * The NASCAR Craftsman Truck Series GM
FlexFuel 250 and Busch Series Hershey's Kissables 300 races posted
strong attendance increases over the prior year. Mark Martin
captured the checkered flag for the Craftsman Truck event and Tony
Stewart survived a wild finish to capture his second consecutive
Speedweeks Busch Series victory. * A capacity crowd was on-hand to
witness this year's NEXTEL Cup Daytona 500. Ending in dramatic
fashion, Jimmie Johnson held off several charging drivers to
capture his first victory in The Great American Race. The event
also posted record television results as more than 37 million
viewers nationwide tuned in to watch NASCAR's richest, most
prestigious event. The 11.3 broadcast rating recorded by the 2006
Daytona 500 is the highest ever for a NASCAR race. * The following
week California Speedway hosted a NEXTEL Cup, Busch and Craftsman
Truck weekend highlighted by strong on-track competition. While
attendance related revenues for the weekend were lower than
anticipated, ISC remains confident in its long-term plan of growing
the fan base in this strategically important and underserved
market. Corporate spending continues to drive both top and
bottom-line success for the Company. During the first quarter of
2006, ISC announced significant long-term official status
agreements with Bank of America and Anheuser-Busch, as well as
Elizabeth Arden, which launched the Daytona 500 men's fragrance
during Speedweeks in February. Results for fiscal 2006 will also
benefit from recently announced major NASCAR event entitlements
with DirecTV, 3M and Pepsi. ISC currently has three NEXTEL Cup and
two Busch race title sponsorships open for 2006, and expects to
announce additional agreements over the coming months. "Corporate
advertisers are continuing to increase their presence in the sport,
particularly in non-traditional motorsports categories like beauty,
technology, and financial services," Ms. France Kennedy continued.
"These sponsors recognize the significant value of partnering with
ISC given our broad national reach and ability to deliver a
fully-integrated marketing platform to help maximize their at-track
presence and generate brand awareness. We continue to expect strong
growth in corporate sponsorship and hospitality revenue for the
next several years." Recent Developments To date in the fiscal
second quarter, Daytona hosted a successful Bike Week in early
March highlighted by increased overall attendance. In addition,
Homestead-Miami Speedway hosted increased crowds for its open-wheel
and Grand American racing weekend. Most recently, Martinsville
Speedway hosted a weekend of Craftsman Truck and NEXTEL Cup racing,
highlighted by a sold-out crowd and record television viewership
for the NEXTEL Cup DirecTV 500. For the remainder of the second
quarter, ISC will host four consecutive weekends of NEXTEL Cup and
Busch series racing at Phoenix International Raceway, Talladega
Superspeedway, Richmond International Raceway and Darlington
Raceway. Overall advance ticket sales are currently trending ahead
of the prior year. ISC continues to make important progress on its
facility development projects. In New York, the Company expects to
enter the public scoping phase of the land-use change process in
the next several weeks. This phase of the regulatory process is
expected to last through mid-2007. Concurrently, ISC is proceeding
with its overall feasibility study as well as 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 Washington state, ISC
continues to generate local and statewide support for its proposed
facility development project from civic groups, trade organizations
and businesses. The Company is exploring all of its options related
to the Kitsap County location, including introducing the necessary
public financing legislation in the 2007 session of the Washington
State Legislature. ISC expects to 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 United States District Court, Eastern District
of Kentucky (the "Court") has denied ISC's motion to dismiss the
litigation. The Company is now proceeding into the discovery
process of its defense, which will result in additional legal and
related expenses in the low seven figures, 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 Fueled by the Company's solid outlook for 2006, ISC
reiterates its previous full year guidance range of revenues
between $780 and $800 million, and earnings of $3.20 to $3.30 per
diluted share. In addition, the Company continues to expect second
quarter earnings before interest, taxes, depreciation and
amortization ("EBITDA")(1) and operating margins to range from 38
to 39 percent and 30 to 31 percent, respectively. "We are very
excited with the outstanding start to this year," Ms. France
Kennedy concluded. "Looking toward the remainder of 2006, consumer
and corporate demand remain strong and we expect both to contribute
to our overall revenue growth. Complementing these efforts, we are
also exploring opportunities to maximize efficiencies and
strengthen future operating margins. Finally, we are well
positioned to capitalize on external initiatives designed to
complement our long-term revenue growth trends and further enhance
shareholder value." (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, April 13,
2006. To access, dial toll free 877-519-4471 and enter the code
7216292, 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 February 28, February 28, 2005 2006 (Unaudited)
REVENUES: Admissions, net $55,784 $55,520 Motorsports related
100,269 114,323 Food, beverage and merchandise 20,949 21,863 Other
2,430 2,228 179,432 193,934 EXPENSES: Direct expenses: Prize and
point fund monies and NASCAR sanction fees 31,484 34,536
Motorsports related 28,435 30,814 Food, beverage and merchandise
12,632 13,165 General and administrative 23,171 23,493 Depreciation
and amortization 11,863 13,463 107,585 115,471 Operating income
71,847 78,463 Interest income 970 934 Interest expense (3,055)
(4,068) Equity in net loss from equity investments (1,531) (2,497)
Income from continuing operations before income taxes 68,231 72,832
Income taxes 27,113 28,701 Income from continuing operations 41,118
44,131 Loss from discontinued operations, net of income tax
benefits of $64 and $83 (53) (78) Net income $41,065 $44,053 Basic
earnings per share: Income from continuing operations $0.77 $0.83
Loss from discontinued operations -- -- Net income $0.77 $0.83
Diluted earnings per share: Income from continuing operations $0.77
$0.83 Loss from discontinued operations -- -- Net income $0.77
$0.83 Dividends per share -- -- Basic weighted average shares
outstanding 53,101,260 53,144,014 Diluted weighted average shares
outstanding 53,223,241 53,249,635 Consolidated Balance Sheets (In
Thousands) November 30, February 28, 2005 2006 (Unaudited) ASSETS
Current Assets: Cash and cash equivalents $130,758 $99,211
Short-term investments 8,200 200 Receivables, less allowance of
$1,500 in 2005 and 2006 45,557 128,306 Inventories 6,528 7,895
Prepaid expenses and other current assets 6,335 12,412 Total
Current Assets 197,378 248,024 Property and Equipment, net of
accumulated depreciation of $315,313 and $328,732, respectively
1,178,682 1,186,663 Other Assets: Equity investments 51,160 173,139
Intangible assets, net 149,464 149,429 Goodwill 99,507 99,507
Deposits with Internal Revenue Service 96,913 96,913 Other 23,965
23,260 421,009 542,248 Total Assets $1,797,069 $1,976,935
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current
portion of long-term debt $635 $635 Accounts payable 19,274 24,562
Deferred income 123,870 178,377 Income taxes payable 20,067 34,532
Other current liabilities 18,645 24,170 Total Current Liabilities
182,491 262,276 Long-Term Debt 368,387 418,314 Deferred Income
Taxes 194,825 200,499 Long-Term Deferred Income 11,342 11,117 Other
Long-Term Liabilities 69 57 Commitments and Contingencies -- --
Shareholders' Equity: Class A Common Stock, $.01 par value,
80,000,000 shares authorized; 29,215,778 and 29,471,515 issued and
outstanding at November 30, 2005 and February 28, 2006,
respectively 292 295 Class B Common Stock, $.01 par value,
40,000,000 shares authorized; 23,928,058 and 23,673,321 issued and
outstanding at November 30, 2005 and February 28, 2006,
respectively 239 236 Additional paid-in capital 695,658 696,322
Retained earnings 343,766 387,819 Total Shareholders' Equity
1,039,955 1,084,672 Total Liabilities and Shareholders' Equity
$1,797,069 $1,976,935 Consolidated Statements of Cash Flows (In
Thousands) Three Months Ended February 28, February 28, 2005 2006
(Unaudited) OPERATING ACTIVITIES Net income $41,065 $44,053
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 11,863 13,463
Stock-based compensation 453 620 Amortization of financing costs
148 141 Deferred income taxes 9,689 5,674 Loss from equity
investments 1,531 2,497 Other, net 13 -- Changes in operating
assets and liabilities: Receivables, net (54,399) (82,749)
Inventories, prepaid expenses and other assets (12,548) (7,476)
Accounts payable and other liabilities 4,695 12,154 Deferred income
48,614 54,282 Income taxes 937 14,466 Net cash provided by
operating activities 52,061 57,125 INVESTING ACTIVITIES Capital
expenditures (130,211) (22,811) Proceeds from asset disposals 27 49
Purchase of equity investments -- (124,476) Acquisition of
businesses (764) -- Proceeds from affiliate 487 -- Proceeds from
short-term investments 99,040 28,000 Purchases of short-term
investments (68,685) (20,000) Other, net (11) 523 Net cash used in
investing activities (100,117) (138,715) FINANCING ACTIVITIES
Proceeds under credit facility -- 80,000 Payments under credit
facility -- (30,000) Payment of long-term debt (7,000) -- Exercise
of Class A common stock options 147 43 Deferred financing costs
(10) -- Net cash (used in) provided by financing activities (6,863)
50,043 Net decrease in cash and cash equivalents (54,919) (31,547)
Cash and cash equivalents at beginning of period 160,978 130,758
Cash and cash equivalents at end of period $106,059 $99,211
DATASOURCE: International Speedway Corporation CONTACT: Wes Harris,
Senior Director, Corporate and Investor Communications,
International Speedway, +1-386-947-6465 Web site:
http://www.iscmotorsports.com/
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