DAYTONA BEACH, Fla., Oct. 8 /PRNewswire-FirstCall/ -- International
Speedway Corporation (Nasdaq Global Select Market: ISCA; OTC
Bulletin Board: ISCB) ("ISC") today reported results for its fiscal
third quarter ended August 31, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20091005/FL87045LOGO ) "We
remain encouraged by the strength of our Company and the results of
our events held to date," stated ISC Chief Executive Officer Lesa
France Kennedy. "The year-over-year comparison for the quarter was
impacted by Auto Club Speedway's fall NASCAR race weekend being
moved from the 2008 fiscal third quarter into the Company's 2009
fiscal fourth quarter. The protracted macroeconomic downturn
continues to impact our business. However, as a result of the
success of many innovative strategies such as our lowered pricing
for entry level tickets, coupled with focused cost containment
initiatives, we anticipate achieving full-year earnings per share
within our previously issued guidance." Ms. France Kennedy
continued, "Based on the challenging economic outlook for next year
and its potential impact on our fan base, we have expanded our
reduced pricing initiatives for the 2010 season to include over a
half million NASCAR Sprint Cup tickets. Also for next year, our
ticket pricing initiatives will focus on and reward our best
customers, those that renew early. We will continue our long
standing philosophy to maintain price integrity and not reduce
pricing once in the sales cycle. We believe, based on experience,
research and analysis, that we have priced our events appropriately
to meet demand." Third Quarter Comparison Total revenues for the
third quarter decreased to $172.9 million, compared to revenues of
$213.2 million in the prior-year period. Operating income was $15.6
million during the period compared to $61.0 million in the third
quarter of fiscal 2008. In addition to the macroeconomic
challenges, quarter-over-quarter comparability was impacted by: --
An IndyCar® series event held at Chicagoland in the fourth quarter
of fiscal 2008 was conducted in the third quarter of fiscal 2009.
-- The fall NASCAR Sprint Cup and Nationwide events at Auto Club
Speedway held in the third quarter of fiscal 2008 which will be
conducted in the fourth quarter of fiscal 2009. -- As a result of
executing certain purchase and lease agreements, the operations of
Stock-Car Montreal are now reflected in the Company's consolidated
financial statements, compared to the prior year's results
recognized in net income from equity investments when the Company
promoted the events with its partner Group Motorise International.
In the fiscal third quarter 2009, Stock-Car Montreal successfully
hosted NASCAR Nationwide, Grand-Am Sports Car, and NASCAR Canadian
Tire series events at Circuit Gilles-Villeneuve. -- During the
third quarter of fiscal 2009, the Company recorded a $13.7 million,
or $0.17 per diluted share after-tax, impairment charge of
long-lived assets. Approximately $13.0 million, or $0.16 per
diluted share after tax, was associated with the Company adjusting
its current carrying value of its Staten Island property to a fair
market value based on its understanding of the metro New York real
estate market and ongoing discussions with interested parties. Net
income for the third quarter was $4.4 million, or $0.09 per diluted
share, compared to net income of $38.8 million, or $0.79 per
diluted share, in the prior year. Excluding discontinued
operations; the operating results from the Company's equity
investment; and, impairment of long-lived assets, non-GAAP (defined
below) net income for the third quarter of 2009 was $15.9 million,
or $0.33 per diluted share. Non-GAAP net income for the third
quarter of 2008 was $35.6 million, or $0.73 per diluted share.
Year-to-Date Comparison For the nine months ended August 31, 2009,
total revenues were $491.4 million, compared to $582.0 million in
2008. Operating income for the nine-month period was $97.3 million
compared to $170.9 million in the prior year. Year-over-year
comparability was impacted by: -- Exceptionally strong consumer and
corporate demand for the 50th running of the DAYTONA 500 and
surrounding events in the first quarter of 2008. The historic race
provided unique opportunities to drive revenue above the otherwise
strong appeal of one of sport's most marquee events. -- An IndyCar®
and Grand-Am Rolex Sports Car series weekend held at
Homestead-Miami Speedway in the second quarter of 2008 which will
be held in ISC's fiscal fourth quarter 2009. -- An IndyCar® series
event held at Chicagoland in the fourth quarter of fiscal 2008 was
conducted in the third quarter of fiscal 2009. -- The fall NASCAR
Sprint Cup and Nationwide events at Auto Club Speedway held in the
third quarter of fiscal 2008 which will be conducted in the fourth
quarter of fiscal 2009. -- The aforementioned operations of
Stock-Car Montreal being reflected in the Company's consolidated
financial statements, compared to prior year's results recognized
in net income from equity investments when the Company promoted the
events with its partner Group Motorise International. -- The 2009
second quarter results include interest income, net of tax, of
approximately $8.9 million, or $0.18 per diluted share after tax,
for interest earned on the deposited funds which were ultimately
returned to the Company as a result of the definitive settlement
agreement entered into with the Internal Revenue Service in
connection with the previously disclosed federal income tax
examination for its 1999 through 2005 fiscal years. -- Accelerated
depreciation of approximately $1.0 million, or $0.01 per diluted
share after tax, in 2009 as compared to approximately $1.6 million,
or $0.02 per diluted share after tax in 2008 for certain office and
related buildings in Daytona Beach associated with the Company's
previously announced Daytona Live! project. -- The $13.8 million,
or $0.17 per diluted share after-tax, impairment charge of
long-lived assets in its results of operations substantially
related to the aforementioned 2009 fiscal third quarter Staten
Island property carrying value adjustment. 2008 impairment charges
of $1.9 million, or $0.02 per diluted share after tax, associated
with the fill removal costs on Staten Island and net book value of
certain assets retired from service. -- The 2008 third quarter
recognition of a tax benefit of $3.5 million, or $0.07 per diluted
share after tax, associated with certain restructuring initiatives.
-- A 2008 first quarter non-cash charge of $3.8 million, or $0.08
per diluted share after tax, to correct the carrying value of
certain other assets as of November 30, 2007. -- The nine months
ended August 31, 2009, included a $62.2 million, or $1.28 per
diluted share after tax, charge for equity in net loss from equity
investments related to Motorsports Authentics ("MA"), which
includes a previously announced impairment on MA. The same period
in 2008, included equity income of approximately $3.0 million, or
$0.06 per diluted share after tax. Net loss for the nine months
ended August 31, 2009, was $2.2 million, or $0.04 per diluted
share, compared to net income of $101.0 million, or $2.02 per
diluted share in 2008. Excluding discontinued operations, the
operating results from the Company's equity investment including
the related impairment taken by ISC in its 2009 fiscal second
quarter; the interest income from the IRS settlement; accelerated
depreciation for certain office and related buildings in Daytona
Beach; and impairment of long-lived assets, non-GAAP (defined
below) net income for the nine months ended August 31, 2009, was
$60.1 million, or $1.24 per diluted share. This is compared to
non-GAAP net income for the first nine months of 2008 of $100.5
million, or $2.01 per diluted share. 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 2008 adjustments relate
to: net income from equity investment; accelerated depreciation for
certain office and related buildings in Daytona Beach; the
impairment of long-lived assets associated with the fill removal
process on the Staten Island property and the net book value of
certain assets retired from service; a tax benefit associated with
certain restructuring initiatives; and, a non-cash charge to
correct the carrying value of certain other assets. The adjustments
for 2009 relate to: a loss from equity investment; interest earned
on the deposited funds returned to the Company as a result of the
definitive settlement agreement it entered into with the Internal
Revenue Service; accelerated depreciation for certain office and
related buildings in Daytona Beach; and, the impairment of
long-lived assets associated with the Staten Island property and
other net book value of certain assets retired from service. The
Company believes such non-GAAP information is useful and meaningful
to investors, and is used by investors and ISC to assess 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 Nine Months Ended Aug. 31, Aug. 31,
Aug. 31, Aug. 31, 2008 2009 2008 2009 -------- -------- --------
-------- Net income (loss) $38,791 $4,413 $100,974 $(2,181) Loss
from discontinued operations, net of tax 51 43 118 130 -- -- ---
--- Income (loss) from continuing operations 38,842 4,456 101,092
(2,051) Equity in net (income) loss from equity investments, net of
tax (120) 3,239 (3,039) 62,152 ---- ----- ------ ------
Consolidated income from continuing operations excluding equity in
net (income) loss from equity investments 38,722 7,695 98,053
60,101 Adjustments, net of tax: Interest income from IRS Settlement
- - - (8,923) Additional depreciation 320 - 960 638 Impairment of
long-lived assets 20 8,229 1,175 8,281 Tax benefit associated with
restructuring initiatives (3,477) - (3,477) - Correction of certain
other assets' carrying value - - 3,758 - --- --- ----- --- Non-GAAP
net income $35,585 $15,924 $100,469 $60,097 ======= =======
======== ======= Per share data: Diluted earnings (loss) per share
$0.79 $0.09 $2.02 $(0.04) Loss from discontinued operations, net of
tax - - - - --- --- --- --- Income (loss) from continuing
operations 0.79 0.09 2.02 (0.04) Equity in net (income) loss from
equity investments - 0.07 (0.06) 1.28 --- ---- ----- ----
Consolidated income from continuing operations excluding equity in
net (income) loss from equity investments 0.79 0.16 1.96 1.24
Adjustments, net of tax: Interest income from IRS Settlement - - -
(0.18) Additional depreciation 0.01 - 0.02 0.01 Impairment of
long-lived assets 0.00 0.17 0.02 0.17 Tax benefit associated with
restructuring initiatives (0.07) - (0.07) - Correction of certain
other assets' carrying value - - 0.08 - --- --- ---- --- Non-GAAP
diluted earnings per share $0.73 $0.33 $2.01 $1.24 ===== =====
===== ===== Recent Events Fiscal Third Quarter Events Facility
Dates Major Event Hosted -------- ----- ------------------ Watkins
Glen International June 5-6 Grand-Am Rolex Sports Car Michigan
International Speedway June 12-14 NASCAR Sprint Cup; NASCAR Camping
World Truck; and, RE/MAX ARCA Richmond International Raceway June
27 IndyCar Daytona International Speedway July 2-4 NASCAR Sprint
Cup; NASCAR Nationwide; and, Grand-Am Rolex Sports Car Watkins Glen
International July 3-5 IndyCar Chicagoland Speedway July 10-11
NASCAR Sprint Cup and NASCAR Nationwide Watkins Glen International
Aug. 6-9 NASCAR Sprint Cup; NASCAR Nationwide; and, Grand-Am Rolex
Sports Car Michigan International Speedway Aug. 15-16 NASCAR Sprint
Cup and NASCAR Nationwide Chicagoland Speedway Aug. 28-29 IndyCar;
NASCAR Camping World Truck ; and, RE/MAX ARCA Circuit Gilles
Villeneuve, Montreal Aug. 29-30 NASCAR Nationwide; Grand-Am Rolex
Sports Car; and, NASCAR Canadian Tire Fiscal Fourth Quarter Events
Facility Dates Major Event Hosted -------- ----- ------------------
Richmond International Raceway Sept. 11-12 NASCAR Sprint Cup and
NASCAR Nationwide Kansas Speedway Oct. 1-4 NASCAR Sprint Cup;
NASCAR Nationwide; and, RE/MAX ARCA Homestead Miami Speedway Oct.
9-10 IndyCar and Grand-Am Rolex Sports Car Auto Club Speedway Oct.
10-11 NASCAR Sprint Cup and NASCAR Nationwide Martinsville Raceway
Oct. 24-25 NASCAR Sprint Cup and NASCAR Camping World Truck
Talladega Superspeedway Oct. 31-Nov. 1 NASCAR Sprint Cup and NASCAR
Camping World Truck Phoenix International Raceway Nov. 13-15 NASCAR
Sprint Cup; NASCAR Nationwide; and NASCAR Camping World Truck
Homestead Miami Speedway Nov. 20-22 NASCAR Sprint Cup; NASCAR
Nationwide; and NASCAR Camping World Truck From a marketing
partnership perspective, the Company has agreements in place for
substantially its entire revised gross marketing partnership
revenue target for fiscal 2009. In addition, ISC has sold all of
its 2009 NASCAR Sprint Cup and Nationwide series event
entitlements. "We are pleased with this performance given the state
of the economy," stated Ms. France Kennedy. "We are confident that
sponsorship in NASCAR provides our partners with a strong return on
investment. However, looking ahead into next year, we expect to
continue to face a difficult climate regarding the sales and
renewals of corporate sponsorships. Our team is doing a great job
of managing this process by active prospecting and working with
existing partners to ensure their ROI and keep them involved in the
sport." Motorsports Authentics During the fiscal third quarter, MA,
the Company's 50/50 merchandising joint venture with Speedway
Motorsports, for various strategic purposes to improve its
operations, ceased paying certain guaranteed royalties under
several license agreements where estimated royalties payable based
on projected sales were less than stipulated guaranteed minimum
royalties payable. All earned royalties that were due have been
paid. MA has received notices from certain licensors alleging
default under the license agreements if it does not pay unearned
royalties within stipulated cure periods. MA's management team is
attempting to obtain extensions from licensors where cure periods,
including any subsequent extension, have lapsed or are near
termination. External Growth and Other Initiatives Last month, ISC
announced that Penn National Gaming, Inc. ("Penn") has entered into
an agreement with The Cordish Company ("Cordish") to acquire
Cordish's 50 percent interest in Kansas Entertainment, LLC for the
development of a Hollywood-themed casino and hotel at Kansas
Speedway. Penn will serve as the managing member and will be
responsible for the development and operation of the casino and
hotel. The development of future phases of the project will depend
on market demand. The Kansas Lottery Gaming Facility Review Board
has requested that the Governor grant an extension of 60 days for
its final selection of the gaming facility operator in the
Northeast Zone (Wyandotte County). A final decision by the Kansas
Lottery Gaming Facility Review Board is expected when that body
meets on December 1, 2009. Thereafter, the Kansas Racing and Gaming
Commission must complete its background investigation of the gaming
facility manager before the contract with the Kansas Lottery
Commission becomes effective. The Company expects the entire
process to be completed in December 2009 or in early January 2010.
The initial phase of the project, which is planned to comprise
approximately 190,000 square feet, includes a 100,000 square foot
casino gaming floor with approximately 2,300 slot machines and 86
table games, a high-energy center bar, and dining and entertainment
options and is projected to cost approximately $390 million. The
full budget of all potential phases is projected at over $800
million, and would be financed by the joint venture. Regarding
Daytona Live!, a mixed-use entertainment destination development
that the Company is also pursuing in a 50/50 joint venture, the
headquarters building component is nearing completion and will be
ready for occupancy later this month. "The retail, dining and
entertainment portion of this development is expected to move
forward once we feel the economy makes this project more feasible
and we can reach sufficient leasing levels," stated Ms. France
Kennedy. "Obviously given the current environment, we are taking a
more measured approach as we are not under a mandatory timetable to
get this project completed." On Staten Island, ISC continues to
have discussions with interested buyers for its 676 acre parcel,
and remains hopeful that a transaction will take place in the near
future. Capital Spending Capital expenditures totaled approximately
$65.5 million for the nine months ended August 31, 2009, compared
to approximately $87.4 million for the nine months ended August 31,
2008. Capital expenditures during the nine months ended August 31,
2009, included approximately $24.1 million related to construction
of the new ISC headquarters in Daytona Beach, Florida which is
funded from long-term restricted cash and investments provided by
the headquarters financing; the balance of the spending for the
period relates to grandstand seating enhancements at Michigan;
grandstand seating enhancements and new vehicle parking areas at
Daytona; and, a variety of other improvements and renovations to
ISC's facilities. At August 31, 2009, we had approximately $90.5
million in capital projects currently approved of which
approximately $45.6 million is expected to be incurred during the
remainder of fiscal 2009. Included in this amount is the
installation of a new prototype leader board in Homestead;
grandstand seating enhancements and infield improvements at
Michigan; grandstand seating enhancements and parking improvements
at Daytona; acquisition of land and land improvements at various
facilities for expansion of parking, camping capacity and other
uses; and, a variety of other improvements and renovations to our
facilities that enable us to effectively compete with other sports
venues for consumer and corporate spending. In addition to the
approved capital projects noted above, the Company expects to spend
the remaining long-term restricted cash and investments on its
headquarters building, of which approximately $8.3 million is
expected to be spent in fiscal 2009. As a result of these currently
approved projects and anticipated additional approvals in fiscal
2009 as well as the long-term restricted cash and investments
related to the headquarters office building, the Company expects
its total fiscal 2009 capital expenditures will be approximately
$115 million to $125 million, depending on the timing of certain
projects. The Company expects approximately $68 million in spending
for existing facilities; $32.4 million on its headquarters
building; and the balance in land purchases, Staten Island and
Stock Car Montreal spending. The Company reviews its capital
expenditure program periodically and modifies it as required to
meet current business needs. Share Repurchase Program In June 2009,
ISC reactivated its Stock Purchase Plans and authorized its agent
to purchase shares under certain opportunistic parameters, which
encompass price, corporate and regulatory requirements, capital
availability and other market conditions. During the 2009 fiscal
third quarter, the Company purchased approximately 112,000 shares
of its Class A stock for $2.8 million, bringing the total number of
shares purchased from December 2006 through August 2009 to
approximately 4.8 million shares. ISC currently has approximately
$39 million in remaining capacity on its $250 million
authorization. On a quarterly basis and pursuant to the trading
plan under Rule10b5-1, the Company reviews and adjusts, if
necessary, the parameters of its Stock Purchase Plans. Outlook ISC
has narrowed its financial guidance for fiscal 2009. The Company
reiterates the lower range of its 2009 full year total revenue
guidance of $700 million and revises the top end range to $710
million. ISC also reiterates its lower range non-GAAP earnings per
diluted share guidance for 2009 of $1.80 and revises the top-end
range to $1.90. The non-GAAP earnings per share estimates exclude
interest earned on the deposited funds returned to the Company as a
result of the definitive settlement agreement it entered into with
the Internal Revenue Service; additional depreciation associated
with the Daytona Live! project; the impairment of long-lived assets
associated with the Staten Island property and net book value of
assets retired from service; and, the operating results and
impairment charge from ISC's equity investment in MA. ISC expects
non-GAAP earnings before interest, taxes, depreciation and
amortization ("EBITDA")(1) margins, operating margins, and
effective income tax rates for the 2009 full year to range as
follows: Year Ending 11/30/2009 ---------- EBITDA margin 33% - 35%
Operating margin 22% - 24% Effective tax rate 38% - 39% 1. EBITDA
is a non-GAAP financial measure used by the Company as an important
indicator of its operating margin. The Company expects consumer and
corporate spending trends to continue to be impacted by challenging
economic conditions well into next year. ISC will provide 2010
guidance during the January release of its fourth quarter and
full-year 2009 results. This is approximately one month later than
it has provided guidance in previous years. In January, the Company
expects to have greater visibility as to its expected 2010
performance, particularly in light of the late buying trends that
have persisted through 2009. In closing, Ms. France Kennedy added,
"We are encouraged by the modestly improving economic environment
but remain cautious as to how quickly the economy will recover.
Unfortunately, unemployment is expected to remain high through next
year. In light of this outlook, I feel confident that the ticket
pricing initiatives we are undertaking will help our fans to
continue to be able to experience live NASCAR racing, which
benefits the sport and ultimately, ISC." 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) 694-4641 five to ten minutes prior to the scheduled start
time and request to be connected to the ISC earnings call, ID
number 32194911. 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 two
hours after the end of the call through midnight Thursday, October
22, 2009. To access, dial toll free (800) 642-1687 and enter the
code 32194911, or visit the "Investor Relations" section of the
Company's Web site. International Speedway Corporation is a leading
promoter of motorsports activities, currently promoting more than
100 racing events annually as well as numerous other
motorsports-related activities. The Company owns and/or operates 13
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; Auto Club Speedway of Southern
California(sm) near Los Angeles; Kansas Speedway® in Kansas City,
Kansas; Phoenix International Raceway® in Arizona; Chicagoland
Speedway® and Route 66 Raceway(sm) near Chicago, Illinois;
Homestead-Miami Speedway(sm) in Florida; Martinsville Speedway® in
Virginia; Darlington Raceway® in South Carolina; and Watkins Glen
International® in New York. In addition, ISC promotes major
motorsports activities in Montreal, Quebec, through its wholly
owned subsidiary, Stock-Car Montreal. The Company also owns and
operates MRN® Radio, the nation's largest independent sports radio
network; the DAYTONA 500 Experience(sm), the "Ultimate Motorsports
Attraction" in Daytona Beach, Florida, and official attraction of
NASCAR®; and Americrown Service Corporation(sm), a subsidiary that
provides catering services, food and beverage concessions, and
produces and markets motorsports-related merchandise. In addition,
ISC has an indirect 50 percent interest in 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.
Consolidated Statements of Operations (In Thousands, Except Share
and Per Share Amounts) Three Months Ended Nine Months Ended August
31, August 31, August 31, August 31, 2008 2009 2008 2009 ----------
---------- ---------- ---------- (Unaudited) REVENUES: Admissions,
net $62,697 $52,354 $172,242 $143,870 Motorsports related 129,572
105,965 343,657 301,407 Food, beverage and merchandise 18,393
12,625 58,821 39,426 Other 2,546 1,969 7,284 6,707 ----- -----
----- ----- 213,208 172,913 582,004 491,410 EXPENSES: Direct: Prize
and point fund monies and NASCAR sanction fees 44,076 41,228
111,857 110,760 Motorsports related 50,888 49,135 124,912 110,197
Food, beverage and merchandise 11,670 8,857 36,201 27,583 General
and administrative 27,651 26,521 83,631 77,025 Depreciation and
amortization 17,865 17,888 52,618 54,768 Impairment of long-lived
assets 33 13,716 1,914 13,801 -- ------ ----- ------ 152,183
157,345 411,133 394,134 ------- ------- ------- ------- Operating
income 61,025 15,568 170,871 97,276 Interest income and other 398
237 (2,278) 932 Interest expense (4,012) (3,793) (10,899) (15,572)
Equity in net (loss) income from equity investments (140) (3,239)
4,614 (62,152) Minority interest 130 97 130 430 --- -- --- ---
Income from continuing operations before income taxes 57,401 8,870
162,438 20,914 Income taxes 18,559 4,414 61,346 22,965 ------ -----
------ ------ Income (loss) from continuing operations 38,842 4,456
101,092 (2,051) Loss from discontinued operations, net of income
tax benefits (51) (43) (118) (130) --- --- ---- ---- Net income
(loss) $38,791 $4,413 $100,974 $(2,181) ------- ------ --------
------- Basic earnings per share: Income (loss) from continuing
operations $0.79 $0.09 $2.02 $(0.04) Loss from discontinued
operations - - - - --- --- --- --- Net income (loss) $0.79 $0.09
$2.02 $(0.04) ----- ----- ----- ------ Diluted earnings per share:
Income (loss) from continuing operations $0.79 $0.09 $2.02 $(0.04)
Loss from discontinued operations - - - - --- --- --- --- Net
income (loss) $0.79 $0.09 $2.02 $(0.04) ----- ----- ----- ------
Dividends per share $- $- $0.12 $0.14 --- --- ----- ----- Basic
weighted average shares outstanding 49,035,405 48,523,495
49,929,943 48,545,757 ---------- ---------- ---------- ----------
Diluted weighted average shares outstanding 49,123,363 48,627,020
50,025,969 48,545,757 ---------- ---------- ---------- ----------
Consolidated Balance Sheets (In Thousands, Except Share and Per
Share Amounts) November 30, August 31, 2008 2009 ------------
------------ (Unaudited) ASSETS Current Assets: Cash and cash
equivalents $218,920 $217,408 Short-term investments 200 200
Restricted cash 2,405 534 Receivables, less allowance of $1,200 in
2008 and 2009, respectively 47,558 46,267 Inventories 3,763 3,802
Deferred income taxes 1,838 2,316 Prepaid expenses and other
current assets 7,194 14,066 ----- ------ Total Current Assets
281,878 284,593 Property and Equipment, net 1,331,231 1,319,838
Other Assets: Long-term restricted cash and investments 40,187
17,072 Equity investments 77,613 15,586 Intangible assets, net
178,841 178,765 Goodwill 118,791 118,791 Deposits with Internal
Revenue Service 117,936 - Other 34,342 20,955 ------ ------ 567,710
351,169 ------- ------- Total Assets $2,180,819 $1,955,600
---------- ---------- LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities: Current portion of long-term debt $153,002 $3,182
Accounts payable 26,393 22,730 Deferred income 103,549 111,638
Income taxes payable 8,659 1,575 Other current liabilities 18,035
19,475 ------ ------ Total Current Liabilities 309,638 158,600
Long-Term Debt 422,045 370,227 Deferred Income Taxes 104,172
233,575 Long-Term Tax Liabilities 161,834 22,181 Long-Term Deferred
Income 13,646 13,043 Other Long-Term Liabilities 28,125 25,414
Commitments and Contingencies - - Shareholders' Equity: Class A
Common Stock, $.01 par value, 80,000,000 shares authorized;
27,397,924 and 27,831,416 issued and outstanding in 2008 and 2009,
respectively 274 278 Class B Common Stock, $.01 par value,
40,000,000 shares authorized; 21,150,471 and 20,630,432 issued and
outstanding in 2008 and 2009, respectively 211 206 Additional
paid-in capital 497,277 495,199 Retained earnings 665,405 656,274
Accumulated other comprehensive loss (21,808) (19,397) -------
------- Total Shareholders' Equity 1,141,359 1,132,560 ---------
--------- Total Liabilities and Shareholders' Equity $2,180,819
$1,955,600 ---------- ---------- Consolidated Statements of Cash
Flows (In Thousands) Nine Months Ended August 31, August 31, 2008
2009 ---------- ---------- (Unaudited) OPERATING ACTIVITIES Net
income (loss) $100,974 $(2,181) Adjustments to reconcile net income
(loss) to net cash provided by operating activities: Depreciation
and amortization 52,618 54,768 Minority interest (130) (430)
Stock-based compensation 2,291 1,663 Amortization of financing
costs 387 431 Translation loss - (347) Deferred income taxes 15,845
6,296 (Income) loss from equity investments (4,614) 62,152 Excess
tax benefits relating to stock-based compensation (7) - Impairment
of long-lived assets, non-cash 308 13,801 Other, net 3,826 136
Changes in operating assets and liabilities: Receivables, net
(13,825) 1,250 Inventories, prepaid expenses and other assets
(13,540) (6,833) Deposits with the Internal Revenue Service -
111,984 Accounts payable and other liabilities 5,090 7,736 Deferred
income 22,428 7,486 Income taxes 5,638 (18,340) ----- ------- Net
cash provided by operating activities 177,289 239,572 INVESTING
ACTIVITIES Capital expenditures (87,422) (65,519) Proceeds from
affiliate 4,700 12,500 Advance to affiliate (16,572) (632)
(Increase) decrease in restricted cash and investments (46,585)
24,986 Proceeds from short-term investments 41,500 - Purchases of
short-term investments (2,450) - Purchases of equity investments
(81) - Other, net 850 (1,027) --- ------ Net cash used in investing
activities (106,060) (29,692) FINANCING ACTIVITIES Proceeds under
credit facility 20,000 - Payments under credit facility (20,000)
(50,000) Proceeds from long-term debt 51,300 - Payment of long-term
debt (2,369) (151,550) Cash dividend paid (5,960) (6,822) Excess
tax benefits relating to stock-based compensation 7 - Reacquisition
of previously issued common stock (119,913) (3,020) -------- ------
Net cash used in financing activities (76,935) (211,392) -------
-------- Net decrease in cash and cash equivalents (5,706) (1,512)
Cash and cash equivalents at beginning of period 57,316 218,920
------ ------- Cash and cash equivalents at end of period $51,610
$217,408 ------- --------
http://www.newscom.com/cgi-bin/prnh/20091005/FL87045LOGODATASOURCE:
International Speedway Corporation CONTACT: Charles N. Talbert,
Director, Investor and Corporate Communications, International
Speedway Corporation, +1-386-947-6465 Web Site:
http://www.iscmotorsports.com/
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