International Speedway Initiates 2005 Financial Guidance
December 15 2004 - 4:57PM
PR Newswire (US)
International Speedway Initiates 2005 Financial Guidance -
Subsidiary Closes on Land Purchase in New York City - DAYTONA
BEACH, Fla., Dec. 15 /PRNewswire-FirstCall/ -- International
Speedway Corporation (NASDAQ:ISCA) (OTC:ISCB) (BULLETIN BOARD:
ISCB) ("ISC") today initiated financial guidance for the fiscal
year ending November 30, 2005. In addition, the Company announced
that it has closed on the purchase of approximately 450 acres of
waterfront property in the New York City borough of Staten Island,
through its majority-owned subsidiary, 380 Development, LLC ("380
Development"). 2005 Financial Guidance Overview: For the twelve
months ending November 30, 2005, the Company anticipates total
revenues to range between $705 and $725 million, and earnings to
range between $2.77 and $2.85 per diluted share. Revenues and
Earnings per Share: Quarter Quarter Quarter Quarter Year Ending
Ending Ending Ending Ending 02/28/05 05/31/05 08/31/05 11/30/05
11/30/05 Total Revenues (in millions) $170-$175 $150-$155 $160-$165
$225-$230 $705-$725 Diluted Earnings per Share $0.69-$0.71
$0.45-$0.47 $0.64-$0.66 $0.99-$1.01 $2.77-$2.85 Operating Income
Margin: The Company currently anticipates its Operating Income
margin will be between 35% and 36% of total revenues for the full
year, with the four quarters ranging from a low of approximately
28% to a high of approximately 40% of total revenues. Major Event
Schedule Comparison: First Second Third Fourth Full Fiscal
Quarter(a) Quarter Quarter Quarter Year Series Name 2004 2005 2004
2005 2004 2005 2004 2005 2004 2005 NASCAR NEXTEL Cup 3 4 4 5 5 5 8
7 20 21 NASCAR Busch 1 2 5 4 3 4 6 5 15 15 NASCAR Craftsman Truck 1
2 0 1 2 2 6 4 9 9 IRL IndyCar 1 0 1 2 4 3 2 3 8 8 Crown Royal IROC
1 1 0 0 0 0 1 1 2 2 ARCA RE/MAX 1 1 0 0 2 3 2 2 5 6 Grand Am Rolex
Sports Car 2 1 1 2 3 3 2 2 8 8 AMA Superbike 0 0 3 2 0 0 0 0 3 2 10
11 14 16 19 20 27 24 70 71 (a) North Carolina operations are
reflected as discontinued in 2004. As a result, its events are not
included in this comparison. Land Purchases in New York City As
part of its ongoing effort to develop a motorsports facility in the
nation's number one media market, a majority-owned subsidiary of
ISC has closed on the purchase of approximately 450 acres of
waterfront property in Staten Island. The land was acquired from a
wholly owned subsidiary of GATX Corporation for approximately $100
million. In addition, 380 Development previously closed on the
purchase of an adjacent one-acre parcel of land from a private
party. 380 Development is currently under contract to purchase an
adjacent 236- acre parcel owned by Duke Energy and expects to close
on the acquisition by the end of January 2005. The estimated
purchase price of $10 million is subject to potential reductions
based on costs of required environmental remediation, if any.
Closing is contingent upon 380 Development's determination of a
successful outcome of property due diligence. The aggregate
660-acre parcel represents the largest block of undeveloped land in
the five boroughs of New York City. "We are excited to take this
important step in our endeavor to construct a major motorsports
facility in the New York metropolitan area," stated Lesa France
Kennedy, President of ISC. "New York City is a key market for
corporate marketing partners, and we have been actively searching
for potential sites to bring the excitement of NASCAR racing to the
Big Apple for several years. Moreover, the development is expected
to bring hundreds of millions of dollars in potential annual
economic impact for Staten Island and the surrounding areas." The
properties are part of a proposed motorsports and retail
development project the Company is pursuing with Related Retail
Corporation (minority member of 380 Development), a retail
specialist whose developments include the Time Warner Center in
Manhattan and the Gateway Retail Center in Brooklyn. The proposed
project is expected to consist of a three-quarter-mile, high-
banked motorsports facility with approximately 80,000 grandstand
seats and 64 luxury suites, complemented by a 50-acre retail center
featuring nationally known stores offering year-round shopping
opportunities. ISC currently expects the speedway portion of the
development will cost between $550 and $600 million, including the
aforementioned land purchases, and could open in late 2009 or 2010.
Ms. France Kennedy concluded, "While we believe a facility in New
York provides significant long-term strategic value for ISC, these
property acquisitions are only small steps in a long and complex
process. In addition to working closely with the appropriate
governmental agencies responsible for approval and permitting, we
are conducting a detailed feasibility study to further analyze
construction costs, determine the level of public incentives, and
review environmental impacts including traffic, noise, air quality
and remediation required, if any. Whether we ultimately construct a
track or pursue alternative options for the development of this
prime New York real estate will largely depend on the results of
this study." Conference Call Scheduled The management of ISC will
host a conference call with investors on Thursday, December 16 at
9:00 a.m. Eastern time. To participate, dial (973) 582-2710 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. This section has been expanded to include a full range of
company, financial, corporate governance and other data that is
useful to the financial community. A replay will be available one
hour after the end of the call through midnight Thursday, December
30, 2004. To access, dial (973) 341-3080 and enter the code
5435179, 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 events annually. The Company owns and/or operates 11
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; Martinsville Speedway in
Virginia; Darlington Raceway in South Carolina; and Watkins Glen
International in New York. Other track ownership includes Nazareth
Speedway in Pennsylvania and 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-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 of International Speedway Corporation, +1-386-947-6465
Web site: http://www.iscmotorsports.com/
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