International Speedway Reports Record 2004 First Quarter Results -
Revenue and Net Income Post Double-Digit Increase - DAYTONA BEACH,
Fla., April 6 /PRNewswire-FirstCall/ -- International Speedway
Corporation ("ISC") (BULLETIN BOARD: ISCB) today reported record
results for the first quarter ended February 29, 2004. Total
revenues for the first quarter increased more than ten percent to
$144.2 million compared to revenues of $130.9 million in the
prior-year period. Operatingincome was $52.3 million during the
period compared to $48.8 million in the first quarter of fiscal
2003. Net income for the first quarter of fiscal 2004 was $27.8
million, or $0.52 per diluted share, compared to net income of
$25.4 million, or $0.48 per diluted share, in the first quarter of
2003. Included in the prior year's first quarter results was a
revenue contribution to ISC's Food, Beverage, and Merchandise
Income of approximately $1.6 million, or $0.02 per diluted share
after-tax, related to the Company's ongoing activities to audit
third party vendors' sales reports for prior years. The first
quarter of fiscal 2004 was highlighted by an exciting Speedweeks at
Daytona, culminating in the sold-out 46th running of the NASCAR
NEXTEL Cup Series Daytona 500. Over 33 million viewers, the second
highest in the event's history, tuned in to watch Dale Earnhardt
Jr. take the checkered flag for his first victory in "The Great
American Race." In addition, the NASCAR Craftsman Truck Series
Florida Dodge Dealer's 250 ran under the lights for the first time
in 2004. The event posted a more than 15 percent attendance
increase and 70 percent higher average household television
viewership as compared to 2003. Contributing to the quarter's
resultswas North Carolina's NEXTEL Cup and Busch series weekend,
which posted a strong double-digit increase in attendance over
2003, when the Busch race was postponed due to rain.
Homestead-Miami hosted a successful open-wheel weekend anchored by
the IRL IndyCar Series Toyota Indy 300. This event posted a
double-digit increase in attendance compared to the prior year,
when it was held in the second quarter. Finally, rain forced the
postponement of Daytona's NASCAR Busch Series Hershey's Kisses 300
untilthe following Monday, adversely impacting attendance-related
revenues for this year's event. "We are very pleased with our
record performance during the first quarter," commented Lesa France
Kennedy, President of ISC. "Domestic television revenue, which is
expected to grow at 21 percent for 2004, continues to drive
top-line growth. In addition, increased sponsorship and hospitality
revenue, as well as higher attendance at several events, helped
drive the quarter's results. The year has started ona very strong
note, and we continue to expect growth in all of our major revenue
categories for 2004. Finally, we are already seeing positive
results from Nextel's debut as Cup series sponsor in terms of
increased exposure for the sport, and we look forward to additional
benefits this year from other NASCAR initiatives, including
schedule realignment and the new Chase for the NASCAR NEXTEL Cup
format." In addition to benefiting from new multi-track official
status and display rights agreements, ISC secured several event
title sponsorships during the first quarter, including a multi-year
partnership with Gordon Food Services for Michigan's August NASCAR
NEXTEL Cup Series event, as well as agreements with Funai and
Goody's Powder for NASCAR Busch Series races at Richmond and North
Carolina, respectively. To date in the second quarter, ISC has
hosted several successful event weekends, including Bike Week at
Daytona, a NASCAR NEXTEL Cup and Busch series weekend at Darlington
and an IRL IndyCar Series weekend at Phoenix. Daytona's motorcycle
events posted higher attendance than in the prior year, when
inclement weather impacted several events. Darlington's Cup and
Busch weekend also posted year-over-year attendance growth,
highlighted by exciting racing and a record crowd for the NASCAR
NEXTEL Cup Series Carolina Dodge Dealer's 400. It is important to
note that Darlington's Busch event in 2003 was postponed due to
inclement weather. Finally, Phoenix's successful IRL weekend
included increased attendance for the Indy Car event as compared to
the prior year. For the remainder of the second quarter, the
Company will host NASCAR NEXTEL Cup and Busch series weekends at
Talladega, California and Richmond. Overall advanced ticket sales
for the remaining events in the quarter are trending ahead of 2003
highlighted by Talladega's event weekend, which is ahead of the
prior year due to an improved economy and aggressive consumer
marketing initiatives implemented in the second half of last year.
In addition, advanced ticket sales for Richmond's Busch event are
more than 50 percent ahead of 2003 levels. Finally, Richmond's Cup
race in May marks the 25th straight sold-out Cup event at the
storied facility. Ms. France Kennedy concluded, "We are extremely
optimistic for the remainder of the year. Total advanced ticket
sales are trending ahead of 2003 and we have already announced
sell-outs at Richmond and Kansas. We are seeing continued strength
in corporate spending for our events, and maintain our expectation
of mid- to high single-digit growth in this category for 2004. The
industry is growing and we are in an excellent position to
capitalize on new opportunities. We look forward to a successful
second quarter and balance of 2004." The Company reiterates its
previously announced financial guidance of second quarter revenue
and earnings of $125 to $130 million and $0.31 to $0.33 per diluted
share, respectively, and full year fiscal 2004 revenue and earnings
of $615 to $635 million and $2.30 to $2.38 per diluted share,
respectively. The management of ISC will host a conference call
today with investors at 9:00 a.m. Eastern Time which may be
accessed via the Internet at the Company's Web site,
http://www.iscmotorsports.com/, under the"Investor Relations"
section. International Speedway Corporation is a leading promoter
of motorsports activities in the United States, currently promoting
more than 100 events annually. The Company owns and/or operates 12
of the nation's major motorsports 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; North Carolina Speedway in
Rockingham; Darlington Raceway in South Carolina; Watkins Glen
International in New York;and Nazareth Speedway in Pennsylvania.
Other track interests include 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." 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-Q's. 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 29, 2003 2004 (Unaudited)
REVENUES: Admissions, net $47,048 $47,269 Motorsports related
income 66,465 79,141 Food, beverage and merchandise income 16,022
16,347 Other income 1,347 1,415 130,882 144,172 EXPENSES: Direct
expenses: Prize and point fund monies and NASCAR sanction fees
23,534 26,333 Motorsports related expenses 19,362 22,585 Food,
beverage and merchandise expenses 8,041 9,583 General and
administrative expenses 20,551 21,889 Depreciation and amortization
10,553 11,497 82,041 91,887 Operating income 48,841 52,285 Interest
income 222 659 Interest expense (5,933) (5,475) Equity in net loss
from equity investments (1,550) (1,681) Income before income taxes
41,580 45,788 Income taxes 16,216 17,995 Net income $25,364 $27,793
Basic earnings per share $0.48 $0.52 Diluted earnings per share
$0.48 $0.52 Dividends per share $0.00 $0.00 Basic weighted average
shares outstanding 53,041,210 53,065,938 Diluted weighted average
sharesoutstanding 53,120,970 53,162,847 Consolidated Statements of
Cash Flows (In Thousands) November 30, February 29, 2003 2004
(Unaudited) ASSETS Current Assets: Cash and cash equivalents
$223,973 $251,071 Short-term investments 201 201 Receivables, less
allowance of $1,500 in 2003 and 2004 37,996 83,833 Inventories
5,496 8,033 Prepaid expenses and other current assets 4,078 11,237
Total Current Assets 271,744 354,375 Property and Equipment, net of
accumulated depreciation of $235,672 and $247,092, respectively
884,623 895,318 Other Assets: Equity investments 33,706 32,024
Goodwill 92,542 92,542 Other 21,177 21,121 147,425 145,687 Total
Assets $1,303,792 $1,395,380 LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities: Current portion of long-term debt$232,963
$233,554 Accounts payable 15,739 20,824 Deferred income 106,998
147,637 Income taxes payable 6,877 14,638 Other current liabilities
13,928 20,290 Total Current Liabilities 376,505 436,943 Long-Term
Debt 75,168 68,188 Deferred Income Taxes 113,414 123,064 Long-Term
Deferred Income 11,894 11,933 Other Long-Term Liabilities 346 515
Commitments and Contingencies -- -- Shareholders' Equity: Class A
Common Stock, $.01 par value, 80,000,000 shares authorized;
28,359,173 and 28,417,522 issued and outstanding at November 30,
2003 and February 29, 2004, respectively 283 284 Class B Common
Stock, $.01 par value, 40,000,000 shares authorized; 24,858,610 and
24,800,261 issued and outstanding at November 30, 2003 and February
29, 2004, respectively 249 248 Additional paid-in capital 694,719
694,719 Retained earnings 34,602 62,395 Accumulated other
comprehensive loss (333) (258) 729,520 757,388 Less: unearned
compensation-restricted stock 3,055 2,651 Total Shareholders'
Equity 726,465 754,737 Total Liabilities and Shareholders' Equity
$1,303,792 $1,395,380 Consolidated Statements of Cash Flows (In
Thousands) Three Months Ended February 28, February 29, 2003 2004
(Unaudited) OPERATING ACTIVITIES Net income $25,364 $27,793
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 10,553 11,497
Amortization of unearned compensation 407 404 Amortization of
financing costs 80 (6) Deferred income taxes 9,016 9,650
Undistributed loss from equity investments 1,550 1,681 Other, net
(50) 4 Changes in operating assets and liabilities: Receivables,
net (49,803) (45,837) Inventories, prepaid expenses and other
current assets (10,254) (9,712) Accounts payable and other
liabilities 6,240 11,646 Deferred income 53,305 40,678 Income taxes
payable 6,847 7,761 Net cashprovided by operating activities 53,255
55,559 INVESTING ACTIVITIES Capital expenditures (12,145) (22,177)
Proceeds from asset disposals 50 5 Proceeds fromaffiliate 4,075 --
Other, net (256) (333) Net cash used in investing activities
(8,276) (22,505) FINANCING ACTIVITIES Payment of long-termdebt
(5,500) (6,500) Proceeds from interest rate swap -- 544 Net cash
used in financing activities (5,500) (5,956) Net increase in cash
and cash equivalents 39,479 27,098 Cash and cash equivalents at
beginning of period 109,263 223,973 Cash and cash equivalents at
end of period $148,742 $251,071 DATASOURCE: International Speedway
Corporation CONTACT: Wes Harris, Director of Investor Relations,
International Speedway Corporation, +1-386-947-6465 Web site:
http://www.iscmotorsports.com/
Copyright