DAYTONA BEACH, Fla.,
Jan. 27, 2015 /PRNewswire/ --
International Speedway Corporation (NASDAQ Global Select Market:
ISCA; OTC Bulletin Board: ISCB) ("ISC") today reported
financial results for its fiscal fourth quarter and full-year ended
November 30, 2014.
"We are pleased to report solid financial performance for 2014,
including results for our fourth quarter which exceeded our
expectations," stated Lesa France
Kennedy, ISC Chief Executive Officer. "With positive
momentum from capacity management and consumer marketing
strategies, coupled with strong corporate sales and excitement
generated by the new Chase for the Sprint Cup Championship format,
we achieved sellouts at Phoenix
and Homestead-Miami as well as pleasing TV rating increases
for the later Cup events of the season."
Ms. France Kennedy continued,
"2015 is shaping up nicely, entering the first year of the new
10 year TV broadcast agreements with Fox and NBC. We are
optimistic that the sport can carry forward the fan enthusiasm that
peaked during the final rounds of the Chase, and, with some tail
wind from strengthening consumer confidence, translate it into
solid consumer sales and TV ratings in the coming year."
"DAYTONA Rising continues to progress on time and on budget,
debuting approximately 40,000 newly constructed seats and
supporting infrastructure for Speedweeks 2015. In
October 2014, Florida Hospital was
announced as the project's second Founding Partner as part of one
of the Company's longest term deals to date. We are
optimistic that elevating the experience at the most iconic
motorsports facility in North
America will take the Daytona 500 brand to a whole new
level, not to mention the impact on our 12 other major motorsports
facilities' brands."
"We are confident about our financial condition and our
strategic initiatives to grow our business. We maintain a
solid balance sheet that makes possible strategic developments and
acquisitions that build shareholder value. As well we are
executing consumer and corporate programs that compliment our
industry's long-term broadcast agreements, all supporting revenue
growth."
Fourth Quarter Comparison
Total revenues for the fourth quarter ended November 30,
2014 were approximately $199.8
million, compared to revenues of approximately $188.7 million in the fourth quarter of fiscal
2013. Operating income was approximately $39.8 million during the period compared to
approximately $29.5 million in the
fourth quarter of fiscal 2013. In addition to the
macroeconomic challenges, quarter-over-quarter comparability was
impacted by:
- The IndyCar Series event held at Auto Club Speedway of
Southern California ("Auto Club
Speedway") in the third quarter of fiscal 2014 was held in the
fourth quarter of fiscal 2013.
- Drag racing events were held at Auto Club Speedway in the
fourth quarter of fiscal 2014 that were not held in the fourth
quarter of fiscal 2013.
- On January 31, 2014, SMI
abandoned its interest and rights in MA, consequently bringing our
ownership of MA to 100.0 percent. MA's operations are included in
our consolidated operations subsequent to the date of SMI's
abandonment. Prior to January 31,
2014, MA was accounted for as an equity investment in our
financial statements. As a result of SMI's abandonment of their
interest in MA, during the fourth quarter of fiscal 2014, we
recognized tax benefits relating to MA of approximately
$0.2 million. In addition, we
recognized an impairment of a long-lived intangible asset, related
to MA, of approximately $0.6 million, or $0.01 per diluted share, in the fourth quarter of
fiscal 2014. There were no comparable items in the same period of
fiscal 2013.
- During the fourth quarter of fiscal 2014, we received a
favorable settlement relating to a legal judgment of litigation
involving certain ancillary operations of approximately
0.6 million, or $0.01 per
diluted share. There were no comparable items in the same
period of fiscal 2013.
- During the fourth quarter of fiscal 2014, we recognized
approximately $0.2 million, or
$0.01 per diluted share, in marketing
and consulting costs, that are included in general and
administrative expense, related to DAYTONA Rising. During the
fourth quarter of fiscal 2013, we recognized approximately
$0.4 million, or $0.01 per diluted share, of similar costs.
- During the fourth quarter of fiscal 2014, we recognized
accelerated depreciation of $2.4
million, or $0.03 per diluted
share, due to shortening the service lives of certain assets
associated with DAYTONA Rising. During the fourth quarter of
fiscal 2013, we recognized approximately $8.0 million, or $0.10 per diluted share, due to shortening
the service lives of certain assets associated with DAYTONA Rising
and capacity management initiatives.
- During the fourth quarter of fiscal 2014, we recognized charges
of approximately $2.8 million, or
$0.03 per diluted share, for
losses associated with asset retirements including the removal of
assets not fully depreciated in connection with DAYTONA
Rising. Included in these losses were approximately
$0.8 million of expenditures
related to demolition and/or asset relocation costs, the remaining
charges were non-cash, which included an impairment of a long-lived
intangible asset related to MA, discussed above. In the fourth
quarter of fiscal 2013, we recognized approximately $6.3 million, or $0.08 per diluted share, of similar charges,
of which approximately $3.0 million of expenditures related to
demolition and/or asset relocation costs, the remaining charges
were non-cash.
- During the fourth quarter of fiscal 2014, we received a
settlement of interest income related to a long term receivable of
$1.8 million, or $0.02 per diluted share. There were no
comparable items in the same period of fiscal 2013.
- During the fourth quarter of fiscal 2014, we recognized
approximately $2.7 million, or
$0.04 per diluted share, in
capitalized interest related to DAYTONA Rising. During the fourth
quarter of fiscal 2013, we recognized $0.5
million or $0.01 per diluted
share, of similar capitalized interest.
Net income for the fourth quarter was approximately $25.8 million, or $0.55 per diluted share, compared to net income
of approximately $17.2 million, or
$0.37 per diluted share, in the prior
year period. Excluding legal settlement, marketing and
consulting costs incurred associated with DAYTONA Rising,
accelerated depreciation, losses associated with the retirements of
certain other long-lived assets, impairment of MA long-lived
intangible asset, settlement of interest income related to a
long-term receivable, DAYTONA Rising project capitalized interest,
MA income tax benefits and a de minimis net gain on sale of certain
assets, non-GAAP (defined below) net income for the fourth quarter
of 2014 was $26.1 million, or
$0.56 per diluted share.
Non-GAAP net income for the fourth quarter of fiscal 2013 was
$25.8 million, or $0.55 per diluted share.
Full-Year Comparison
For the year ended November 30, 2014, total revenues were
$651.9 million, compared to
$612.6 million in 2013.
Operating income for the full-year period was $93.4 million compared to $78.7 million in the prior year.
Year-over-year comparability was impacted by:
- Drag racing events were held at Auto Club Speedway in fiscal
2014 that were not held in fiscal 2013.
- The second annual Faster Horses music festival held during the
third quarter of fiscal 2014 includes consolidation of concessions
revenue and expense as compared to similar services provided by a
third party for this event, for which we received a rights fee as
revenue, held the same period in fiscal 2013.
- On January 31, 2014, SMI
abandoned its interest and rights in MA, consequently bringing our
ownership of MA to 100.0 percent. MA's operations are included in
our consolidated operations subsequent to the date of SMI's
abandonment. Prior to January 31,
2014, MA was accounted for as an equity investment in our
financial statements. As a result of SMI's abandonment of their
interest in MA, we recorded other income of approximately
$5.4 million representing the fair
value of MA, over the carrying value, as of January 31, 2014. We also recognized tax benefits
relating to MA of approximately $4.0 million for fiscal 2014. In addition,
we recognized an impairment of a long-lived intangible asset
related to MA of approximately $0.6 million, or $0.01 per diluted share. There were no comparable
items in the same period of fiscal 2013.
- During fiscal 2013, we expensed approximately $2.8 million, or $0.04 per diluted share, of certain ongoing
carrying costs related to our Staten
Island property. There were no comparable costs in the
same period of fiscal 2014.
- During fiscal 2014, we received a favorable settlement relating
to a legal judgment of litigation involving certain ancillary
operations of approximately $0.6 million, or $0.01 per diluted share. During fiscal 2013, we
recognized a charge relating to a settlement of a litigation
involving certain ancillary facility operations of approximately
$0.5 million, or $0.01 per diluted share. There was no
relationship between the judgment in 2013 and the settlement in
2014.
- In fiscal 2014, we recognized approximately $1.1 million, or $0.02 per diluted share, in marketing and
consulting costs that are included in general and administrative
expense related to DAYTONA Rising. During fiscal 2013, we
recognized approximately $1.5 million, or $0.02 per diluted share, of similar costs.
- During fiscal 2014, we recognized approximately $11.1 million, or $0.14 per diluted share, of accelerated
depreciation that was recorded due to shortening the service lives
of certain assets associated with DAYTONA Rising. During
fiscal 2013, we recognized approximately $15.4 million, or $0.20 per diluted share, of accelerated
depreciation due to shortening the service lives of certain assets
associated with DAYTONA Rising and capacity management
initiatives.
- In fiscal 2014, we recognized charges of approximately
$10.1 million, or $0.12 per diluted share, of losses associated
with asset retirements primarily attributable to demolition and/or
asset relocation costs in connection with DAYTONA Rising, capacity
management initiatives and other capital projects. Included in
these losses were approximately $7.5 million of expenditures related to
demolition and/or asset relocation costs, the remaining charges
were non-cash, which included an impairment of a long-lived
intangible asset related to MA, discussed above. During fiscal
2013, we recognized approximately $16.6 million, or $0.21 per diluted share, of similar charges, of
which approximately $6.6 million
of expenditures related to demolition and/or asset relocation
costs, the remaining charges were non-cash.
- During fiscal 2014, we received a settlement of interest income
related to a long term receivable of $1.8 million, or $0.02 per diluted share. There was no
comparable item in the same period of fiscal 2013.
- In fiscal 2014, we recognized approximately $7.2 million, or $0.09 per diluted share, in capitalized interest
related to DAYTONA Rising. During fiscal 2013, we recognized
approximately $0.8 million, or
$0.01 per diluted share, of similar
capitalized interest.
- During fiscal 2014, we recognized approximately $8.9 million of income from equity investments
associated with our Hollywood Casino at Kansas Speedway.
During fiscal 2013, we recognized income of approximately
$9.4 million from this equity
investment, which included a $1.1 million credit for previously paid
property taxes related to resolution of amounts under appeal.
Net income for the year-ended November 30, 2014, was
$67.4 million, or $1.45 per diluted share, compared to a net income
of $45.3 million, or $0.97 per diluted share in 2013. Excluding
adjustments for legal settlement, marketing and consulting costs
incurred associated with DAYTONA Rising, accelerated depreciation,
losses associated with the retirements of certain other long-lived
assets, impairment of MA long-lived intangible asset, settlement of
interest income related to long-term receivable, DAYTONA Rising
project capitalized interest, MA fair value adjustment and income
tax benefits, and a de minimis net loss on sale of certain assets,
non-GAAP (defined below) net income for fiscal 2014, was
$65.9 million, or $1.42 per diluted share. This is compared
to non-GAAP net income for fiscal 2013 of $67.2 million, or $1.44 per diluted share.
GAAP to Non-GAAP Reconciliation
The following financial information is presented below using
other than U.S. 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 adjustments for 2013 relate to carrying costs of our
Staten Island property, legal
judgment, marketing and consulting costs incurred associated with
DAYTONA Rising, accelerated depreciation associated with DAYTONA
Rising and capacity management initiatives, losses associated with
the retirements of certain other long-lived assets, capitalized
interest associated with DAYTONA Rising and net gain on sale of
certain assets.
The adjustments for 2014 relate to legal settlement, marketing
and consulting costs incurred associated with DAYTONA Rising,
accelerated depreciation, losses associated with the retirements of
certain other long-lived assets, impairment of MA long-lived
intangible asset, settlement of interest income related to
long-term receivable, DAYTONA Rising project capitalized interest,
MA fair value adjustment and income tax benefits, and net loss on
sale of certain assets.
The Company believes such non-GAAP information is useful and
meaningful, and is used by investors to assess its core operations,
which consist of the ongoing promotion of racing events at its
major motorsports entertainment facilities. Such non-GAAP
information adjusts for items that are not considered to be
reflective of the Company's continuing core operations at its
motorsports entertainment facilities. The Company believes that
such non-GAAP information improves the comparability of its
operating results and provides a better understanding of the
performance of its core operations for the periods presented. The
Company uses this non-GAAP information to analyze the current
performance and trends and make decisions regarding future ongoing
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. The presentation of this non-GAAP financial
information is not intended to be considered independent of or as a
substitute for results prepared in accordance with GAAP. The
Company uses both GAAP and non-GAAP information in evaluating and
operating its business and as such deemed it important to provide
such information to investors.
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
November 30,
2013
|
|
November 30,
2014
|
|
November 30,
2013
|
|
November 30,
2014
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
( In Thousands,
Except Per Share Amounts )
|
Net income
|
|
$
|
17,205
|
|
|
$
|
25,824
|
|
|
$
|
45,292
|
|
|
$
|
67,379
|
|
Adjustments, net of
tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying costs
related to Staten Island
|
|
8
|
|
|
—
|
|
|
1,728
|
|
|
—
|
|
Legal
settlement/judgment
|
|
—
|
|
|
(386)
|
|
|
310
|
|
|
(386)
|
|
DAYTONA Rising
project
|
|
230
|
|
|
144
|
|
|
913
|
|
|
672
|
|
Accelerated
depreciation
|
|
4,848
|
|
|
1,480
|
|
|
9,358
|
|
|
6,758
|
|
Losses on retirements
of long-lived assets
|
|
3,801
|
|
|
1,362
|
|
|
10,097
|
|
|
5,802
|
|
Impairment of MA's
long lived intangible asset
|
|
—
|
|
|
605
|
|
|
—
|
|
|
605
|
|
Interest settlement
on long-term receivable
|
|
—
|
|
|
(1,116)
|
|
|
—
|
|
|
(1,116)
|
|
DAYTONA Rising
project capitalized interest
|
|
(297)
|
|
|
(1,650)
|
|
|
(467)
|
|
|
(4,387)
|
|
MA fair value
adjustment and income tax benefits
|
|
—
|
|
|
(183)
|
|
|
—
|
|
|
(9,455)
|
|
Net loss (gain) on
sale of certain assets
|
|
36
|
|
|
(2)
|
|
|
(46)
|
|
|
41
|
|
Non-GAAP net
income
|
|
$
|
25,831
|
|
|
$
|
26,078
|
|
|
$
|
67,185
|
|
|
$
|
65,913
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
0.37
|
|
|
$
|
0.55
|
|
|
$
|
0.97
|
|
|
$
|
1.45
|
|
Adjustments, net of
tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying costs
related to Staten Island
|
|
—
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
Legal
settlement/judgment
|
|
—
|
|
|
(0.01)
|
|
|
0.01
|
|
|
(0.01)
|
|
DAYTONA Rising
project
|
|
0.01
|
|
|
0.01
|
|
|
0.02
|
|
|
0.02
|
|
Accelerated
depreciation
|
|
0.10
|
|
|
0.03
|
|
|
0.20
|
|
|
0.14
|
|
Losses on retirements
of long-lived assets
|
|
0.08
|
|
|
0.03
|
|
|
0.21
|
|
|
0.12
|
|
Impairment of MA's
long lived intangible asset
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Interest settlement
on long-term receivable
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
|
(0.02)
|
|
DAYTONA Rising
project capitalized interest
|
|
(0.01)
|
|
|
(0.04)
|
|
|
(0.01)
|
|
|
(0.09)
|
|
MA fair value
adjustment and income tax benefits
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.20)
|
|
Net loss (gain) on
sale of certain assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP diluted
earnings per share
|
|
$
|
0.55
|
|
|
$
|
0.56
|
|
|
$
|
1.44
|
|
|
$
|
1.42
|
|
From a marketing partnership perspective, the Company sold all
of its 2014 NASCAR Sprint Cup and Xfinity (formerly Nationwide)
series event entitlements and was within one percent of gross
marketing partnership revenue target for the year. NASCAR is
a powerful brand with a loyal fan base that is aware of,
appreciates and supports corporate participation to a greater
extent than fans of any other sports property. The
combination of brand power and fan loyalty provides an attractive
platform for robust corporate partnerships. The number of Fortune
500 companies invested in NASCAR remains higher than any other
sport. Approximately one-in-four Fortune 500 companies use NASCAR
as part of their marketing strategy and the trend is increasing.
The number of Fortune 500 companies investing in NASCAR increased
three percent in 2014 versus prior year; and is an eleven percent
improvement versus 2008.
For fiscal 2015, ISC has agreements in place for approximately
74.0 percent of its gross marketing partnership revenue target.
The Company has one of its available 20 NASCAR Sprint Cup
Series event entitlements either open or not announced and three of
its fifteen NASCAR Xfinity Series event entitlements either open or
not announced. This is compared to last year at this time
when it had approximately 72.0 percent of its gross marketing
partnership revenue target sold and had entitlements for three
NASCAR Sprint Cup and eight NASCAR Xfinity entitlements either open
or not announced. With the vast majority of its event
entitlements secured, ISC can focus more resources on official
status categories, which will better position the Company to meet
its gross marketing partnership revenue target for 2015.
External Growth, Financing-Related and Other
Initiatives
Capital Spending
The Company competes for the consumers' discretionary dollar
with many entertainment options such as concerts and other major
sporting events, not just other motorsport events. To better meet
its customers' expectations, ISC is committed to improving the
guest experience at its facilities through on-going capital
improvements that position it for long-term growth.
In June 2013, ISC's board of
directors endorsed a capital allocation plan for fiscal 2013
through fiscal 2017 to not exceed $600.0
million in capital expenditures over that period. The
five-year capital expenditure plan encompasses all the capital
expenditures for ISC's 13 major motorsports facilities, including
DAYTONA Rising, as well as any equity commitments to undertake ONE
DAYTONA. Of the endorsed five-year capital expenditure plan,
DAYTONA Rising will account for approximately $400.0 million of the $600.0 million.
Capital expenditures for projects at existing facilities,
including those related to DAYTONA Rising, was approximately
$183.9 million for ISC's 2014 fiscal
year. In comparison, the Company spent approximately
$85.5 million on capital
expenditures for projects at its existing facilities in fiscal
2013. With the majority of the capital expenditures for DAYTONA
Rising occurring in fiscal 2014 and 2015, the Company estimates
capital expenditures, exclusive of capitalized interest, across all
of ISC's existing facilities will be approximately $200.0 million for fiscal 2015, based on the
timing of construction payments. With a target completion
date for DAYTONA Rising in January
2016, capital expenditures will then decrease significantly
with an expectation of capital expenditures for projects at all of
ISC's existing facilities, exclusive of capitalized interest, to be
between $60.0 to $70.0 million in
fiscal 2016 and fiscal 2017.
DAYTONA Rising: Reimagining an American Icon
DAYTONA Rising is the redevelopment of the frontstretch of
Daytona International Speedway, ISC's 55 year-old flagship
motorsports facility, to enhance the event experience for fans,
marketing partners, broadcasters and the motorsports industry.
The vision for DAYTONA Rising places an emphasis on enhancing
the complete fan experience, beginning with five expanded and
redesigned fan entrances, or injectors. Each injector will
lead directly to a series of escalators and elevators that will
transport fans to any of three different concourse levels, each
featuring spacious and strategically-placed social "neighborhoods"
along the nearly mile-long frontstretch.
A total of 11 neighborhoods, each measuring the size of a
football field, will enable fans to meet and socialize during
events without ever missing any on-track action, thanks to dozens
of strategically-placed video screens in every neighborhood. The
central neighborhood, dubbed the "World Center of Racing," features
open sight-lines enabling fans to catch all the on-track action
while celebrating the history of Daytona International Speedway and
its many unforgettable moments throughout more than 50 years of
racing.
Every seat on Daytona's frontstretch will be replaced with
wider, more comfortable seating that will provide pristine
sight-lines. There will also be more restrooms and concession
stands per customer throughout the facility. For Budweiser
Speedweeks 2015, the Company will preview some of the new amenities
for DAYTONA Rising such as vertical transportation, concessions and
restrooms, as well as approximately 40,000 new grandstand seats on
the frontstretch near Turn 1. There have been several
significant accomplishments since inception of the DAYTONA Rising
project:
- In February 2014, Daytona
International Speedway announced Toyota as its first Founding
Partner for DAYTONA Rising. Through this partnership, Toyota will
sponsor Injector 4 and one of the neighborhoods, as well as receive
20,000 square feet of innovative fan engagement space that will
enhance the overall guest experience, and nearly 50,000 square feet
of interior and exterior branding space. The partnership runs
through 2025.
- In August 2014, Daytona
International Speedway announced that CommScope, Inc.
("CommScope"), a global leader in infrastructure solutions for
communications networks, has become the first technology partner in
the expanding DAYTONA Rising "We Built Daytona" marketing platform.
CommScope will deploy a new communications infrastructure at
Daytona providing the facility with the bandwidth and flexibility
to offer services that will enhance a fan's experience, as well as
improve stadium operations. The "We Built Daytona" platform
is designed to showcase partners involved in the construction of
DAYTONA Rising through a marketing presence (once their role in the
project begins). CommScope joins eight other companies including
Kingspan, a market leader in sustainable building product
technology; USG Corporation, a leading building products company;
Sherwin-Williams, an industry leader in the development of
technologically advanced paint and coatings; Big Ass Fans, a
ceiling fan design and engineering company; P&S Paving, asphalt
and paving company; Jones Signs,
leading national sign company; Schneider Electric, global
specialist in energy management; and ROSSETTI, an award-winning
architectural design and planning firm that is leading the master
planning of the DAYTONA Rising project.
- On October 15, Daytona hosted
DAYTONA Rising's topping out ceremony, commemorating a significant
milestone - the midway mark of construction. Speedway officials,
the France family and Barton Malow
presided over the installation of the highest piece of steel on the
project.
- In November 2014, Florida
Hospital was announced as the stadium's second Founding Partner,
sponsoring Injector 1 in one of the Company's longest term deals to
date. As with Toyota, the Florida Hospital brand will be
represented on one of five fan injectors, including more than
20,000 square feet of engagement space. Within this injector,
Florida Hospital will also have a presence in one of the
"neighborhoods".
- Beginning in January 2015,
Florida Hospital will be the exclusive healthcare provider of
Daytona, which includes providing medical equipment and personnel
for all events, managing the care center operations and providing
ambulances to handle emergency situations.
The Company currently anticipates DAYTONA Rising to cost
approximately $400.0 million,
excluding capitalized interest, which we expect to fund from cash
on hand, cash from its operations, and it may use borrowings on its
credit facility for a limited period of time. In June 2014, Florida Governor Rick
Scott signed House Bill 7095 creating the Florida
Sports Development Program, establishing a process for distributing
state tax revenue for the construction or improvement of
professional sports facilities. The DAYTONA Rising project is among
the eligible applicants to receive sales tax incentives based on
the project's capital investment and amount of sales tax generated
by the facility. The Company filed its application and recently
received approval from the state's Department of Economic
Opportunity. The final approval must come from the
Legislative Budget Committee, whose decision is anticipated later
in the first quarter of fiscal 2015. The new bill could
potentially provide additional capital for the project.
Total spending incurred for DAYTONA Rising was approximately
$119.3 million for fiscal 2014,
totaling approximately $170.5 million since the inception of the
project. Based on the Company's current plans for DAYTONA
Rising, it has identified existing assets that are expected to be
impacted by the redevelopment and will require accelerated
depreciation, or losses on asset retirements, totaling
approximately $50.0 million over the
approximate 26-month project time span. During fiscal 2014, the
Company recognized accelerated depreciation and losses on
retirements of assets totaling approximately $15.8 million, with a total of approximately
$28.0 million recognized since
the inception of the project.
Despite the Company not anticipating the need for additional
long-term debt to fund this project, accounting rules dictate that
the Company capitalize a portion of the interest on existing
outstanding debt during the construction period. The Company
estimates it will record approximately $11.0
million to $13.0 million of capitalized interest from fiscal
2013 through fiscal 2016, with roughly half of the capitalized
interest recorded in fiscal 2014. The lowering of the
capitalized interest estimate from previously released amounts is
due to plans for a portion of the new grandstand construction to go
into service for Speedweeks 2015, thus suspending capitalization of
interest on those assets on their in-service date. As a
result of these assets going into service during fiscal 2015 and
2016, depreciation expense, related directly to DAYTONA Rising,
will increase incrementally by approximately $12.0 million to $14.0 million in fiscal 2015,
and an additional $9.0 million
to $10.0 million in fiscal 2016,
respectively. Accordingly, the Company's total depreciation expense
for fiscal 2015 is estimated to be between approximately
$93.0 million and $97.0 million,
and approximately $100.0 million to
$105.0 million in fiscal 2016,
and then decreasing, due to lower capital spending, to
approximately $85.0 million to $90.0
million beginning in fiscal 2019.
The Company expects that by providing its fans with a superior
event day as well as an expansive platform for its marketing
partners, including an elevated hospitality experience, DAYTONA
Rising, upon completion in 2016, is expected to provide an
immediate incremental lift in Daytona International Speedway's
revenues of approximately $20.0
million, and earnings before interest, taxes, depreciation
and amortization ("EBITDA") lift of approximately $15.0 million with a mid-single-digit growth
rate. The Company also currently anticipates the project to be
accretive to its net income per share within three years of
completion. While these forward looking amounts are management's
projections and the Company believes they are reasonable, actual
results may vary from these estimates due to unanticipated changes
in projected attendance, lower than expected ticket prices, or
lower than forecasted corporate sponsorships.
ONE DAYTONA
The Company entered into a 50/50 joint venture with Atlanta-based Jacoby Development, Inc. to
develop a mixed-use entertainment destination, named ONE DAYTONA,
located adjacent to our 188,000 square foot office building, the
International Motorsports Center, on 189 acres we own located
directly across from our Daytona motorsports entertainment
facility.
The Company has announced that the ONE DAYTONA joint venture has
selected Shaner Hotels and Prime Hospitality Group ("PHG") as its
hotel partners. Shaner Hotels and PHG are planning a 145-room
full-service boutique property and are working with global
hospitality leader Marriott International to bring an exclusive
Marriott Autograph Collection hotel to Daytona Beach and ONE DAYTONA.
The joint venture continues to refine the conceptual design for
the first phase of ONE DAYTONA. Bass Pro Shops®, America's most
popular outdoor store, and Cobb Theatres, the highly respected
Southeastern-based exhibitor, have executed leases to anchor ONE
DAYTONA. The joint venture is in active discussions with other
potential anchor tenants for ONE DAYTONA. We have approved land use
entitlements for ONE DAYTONA to allow for up to 1.4
million square feet of retail/dining/entertainment, 2,500
seats in a movie theater, 660 hotel rooms, 1,350 units of
residential, 567,000 square feet of additional office space
and 500,000 square feet of commercial/industrial space. Final
designs are being completed for phase one of ONE DAYTONA, and the
joint venture will incorporate the results of market studies,
project costs and financing structures.
The joint venture has formed a Community Development District
("CDD") for the purpose of installing and maintaining public
infrastructure at ONE DAYTONA. The CDD is a local, special purpose
government framework authorized by Chapter 190 of the Florida
Statutes for managing and financing infrastructure to support
community development.
The CDD has negotiated agreements with the City of Daytona Beach and Volusia County for a total of $40.0 million in incentives to finance a portion
of the estimated $53.0 million in
infrastructure required to move forward with the ONE DAYTONA
project. We are currently proceeding with the leasing phase of the
project while simultaneously completing the various necessary
requirements for the CDD to access the incentives to start
infrastructure work.
Hollywood Casino at Kansas Speedway
Kansas Entertainment, LLC, ("Kansas Entertainment") a 50/50
joint venture of Penn Hollywood Kansas, Inc. ("Penn"), a subsidiary
of Penn National Gaming, Inc. and Kansas Speedway Development
Corporation ("KSDC"), a wholly owned indirect subsidiary of ISC,
operates the Hollywood-themed
casino and branded destination entertainment facility, overlooking
turn two at Kansas Speedway. Penn is the managing member of Kansas
Entertainment and is responsible for the operations of the
casino.
ISC has accounted for Kansas Entertainment as an equity
investment in our financial statements as of November 30,
2014. Our 50.0 percent portion of Kansas Entertainment's
net income was approximately $9.4 million and $8.9
million for fiscal years 2013 and 2014, respectively, and is
included in equity in net income from equity investments in our
consolidated statements of operations. Included in our fiscal 2013
income from equity investment amount is approximately $1.1 million related to a one-time property
tax refund.
Per the Development Agreement with the Unified Government of
Wyandotte County/Kansas City, Kansas ("Unified Government"),
the casino is subject to a 1.0 percent of gross gaming revenue
penalty if it had not commenced construction on an adjacent hotel
by the second anniversary of its opening, which was February 2014. In June
2014, the Unified Government approved an extension of the
construction commencement date to give the Unified Government time
to complete a feasibility analysis for a new convention center that
could be integrated with the hotel. Recently, the Unified
Government decided not to proceed with the integrated development,
leaving Kansas Entertainment 100 days after the Unified
Government's notification of its decision to commence
construction. Consequently, Kansas Entertainment has until
April 10, 2015, subject to any
additional time taking into account that groundbreaking cannot
realistically occur during winter conditions, to commence
construction prior to the enforcement of the aforementioned
penalty.
The final decision to move forward with the proposed hotel will
be market-based and subject to approval by Kansas Entertainment's
board. Should Kansas Entertainment ultimately not build the hotel
it will be subject to the penalty from the second anniversary of
its opening forward. Accordingly, beginning February 2014, Kansas Entertainment began
recording expense equal to 1.0 percent of gross gaming revenue
since it did not proceed with construction of a hotel by the
original deadline. Included in our income from equity investment
amounts for fiscal 2014 is approximately $0.6 million expense related to this
penalty.
The Company has received cash distributions from the casino
totaling $22.0 million and
$21.5 million for fiscal years 2014
and 2013, respectively. Subsequent to November 30, 2014,
we received an additional $5.5 million distribution from Kansas
Entertainment.
Fiscal 2015 Financial Outlook
Fiscal 2015 will feature certain activities and business changes
that will significantly impact the comparability to the prior
year. These changes include:
- Certain elements of the DAYTONA Rising project placed in
service beginning in 2015; and
- The Company and industry's strategic change in the business
model for merchandising officially licensed apparel and
souvenirs.
As noted above, Budweiser Speedweeks 2015 will introduce several
aforementioned amenities of the DAYTONA Rising project. As a
result of these assets being placed in service in 2015, the Company
will begin to recognize approximately $12.0
million to $14.0 million, or approximately $0.15 to $0.18 per diluted share, of incremental
annual depreciation expense. Additional ongoing operating
expenses related to new technology, maintenance and event
operations associated with opening certain sections of DAYTONA
Rising will be offset by incremental revenue recognized for DAYTONA
Rising related benefits provided to sponsors in 2015. The
revenue, operating expenses and depreciation impacting 2015 were
contemplated in the DAYTONA Rising project pro-forma expectations
at full build-out. The Company remains confident it will
achieve its communicated targets for the project, including
incremental revenues of approximately $20.0
million, and EBITDA of approximately $15.0 million to be recognized by fiscal 2016,
when DAYTONA Rising is expected to be complete and all assets fully
in service.
Recently, NASCAR and NASCAR Team Properties announced a 10-year
agreement with Fanatics Retail Group Concessions, Inc. ("Fanatics")
to operate NASCAR's entire at-track merchandise business and
deliver fans an enhanced, experiential at-track shopping
environment. As part of the agreement, Fanatics will be the
exclusive retailer of NASCAR and driver merchandise at trackside
for all 38 NASCAR Sprint Cup Series events. In addition, Fanatics
has also contracted with ISC for 10 year exclusive retail
merchandise rights for its track trademarks and certain other
intellectual property at all ISC tracks. The new trackside retail
model operated by Fanatics will evolve from using solely haulers
for each specific team or driver to displaying all merchandise in a
climate-controlled superstore retail environment supported by, in
instances, smaller satellite retail touch points around the
track. The new model will provide a more personal and
convenient shopping experience for race fans. We believe this
improved trackside merchandise model, combined with an upgraded
online and mobile experience, will better position ISC and the
industry to maximize merchandise sales while delivering top quality
experience to our fans. Consequently, ISC's wholly owned
subsidiaries, Americrown and MA, will no longer provide at track
merchandise to fans at motorsports events and therefore will no
longer earn and recognize the related revenue. Instead, the
Company will receive a percentage of sales from Fanatics, recorded
as part of Food, Beverage and Merchandise Revenue. For fiscal
2015, the Company is projecting a reduction in operating income of
approximately $4.0 million to
$5.0 million, or $0.05 to $0.06 per diluted share, related to this
new merchandise business model. Contributing significantly to
this reduction are one-time, non-recurring operating expenses
totaling $3.5 million to $4.5 million
related to partial year operations, for which there is no
associated revenue, and restructuring costs to effectively
transition merchandise operations.
Financial results will also reflect:
- Elimination of consolidated trackside merchandise operations,
partially offset by percentage sales received from Fanatics,
resulting in lower food, beverage and merchandise revenue and
expense of approximately $37.0 million to
$38.0 million, and $33.0 million to
$34.0 million, respectively;
- Elimination of general and administrative expenses related to
trackside merchandise operations of approximately $2.0 million to $3.0 million;
Going forward, the Company's expectation is that the new
merchandising model will meet or exceed the historic contribution
from this line of business as well as enhance the experience for
our guests as noted above.
After considering the aforementioned business changes, for
fiscal 2015, the Company anticipates total revenues to range
between $615.0 million and $630.0
million. The Company expects revenue related to
admissions, corporate sales and food, beverage and merchandise to
be stable year-over-year, except as noted above, while television
rights for NASCAR's top three racing series are expected to
increase 3.8 percent to approximately $315.0 million. The low-end of the
range contemplates a decrease in consumer-related revenues, should
economic conditions deteriorate and/or our core business not
continue to show positive momentum.
The Company expects certain expense increases for the year,
including an approximate 3.1 percent increase in NASCAR's
sanction fees and prize and point fund monies, resulting from an
increase in broadcast revenue and to a lesser extent, an increase
in NASCAR Event Management Fees. Also, contributing to the
increase in operating expenses is an approximately 3.2 percent
increase to motorsports and general and administrative expenses,
primarily personnel related costs, strategic spend supporting
consumer marketing initiatives, the aforementioned operating
expenses associated with assets placed in service related to
DAYTONA Rising and one-time transition costs associated with the
change in merchandise strategy. The Company continues to
invest in strategies that target the younger demographics and
social media, as well as improving the guest experience at live
events, including enhanced data connectivity and multi-media
content distribution on mobile devices and high-definition video
screens.
As a result, the Company currently expects its fiscal 2015
non-GAAP EBITDA to be between $180.0 million
and $195.0 million, and EBITDA margin to range between 29.5
percent and 31.0 percent of total revenues. This compares to
fiscal 2014 EBITDA and margin of approximately $194.4 million and 29.8 percent,
respectively. Deprecation and amortization expense is
expected to be approximately $89.0 million
to $91.0 million, on a non-GAAP basis, which includes an
incremental approximately $12.0 million to
$14.0 million related to assets placed in service for
DAYTONA Rising. The Company currently expects its 2015
operating margin to range between 15.0 percent and
16.5 percent of total revenues, on a non-GAAP basis. The
Company's effective tax rate in 2015 will be approximately 38.5
percent to 39.5 percent.
The Company expects fiscal 2015 cash distributions from the
casino joint venture to ISC will be approximately $20.0 million to $22.0 million. Cash
distributions anticipated for 2015 could be impacted should the
joint venture decide to commence construction on a hotel
development. Equity income from the casino is expected to be
approximately $8.0 million to $10.0
million for the year. The low end of projections for
2015 include the aforementioned penalty equal to 1.0 percent of
gross gaming revenue if the casino has not commenced construction
on a hotel development by April 10,
2015, subject to any additional time taking into account
that groundbreaking cannot realistically occur during winter
conditions.
The Company currently expects a $0.02 per share increase in its annual dividend
to $0.26 per share, contingent upon
approval from ISC's Board of Directors. The Company's share
repurchase program will continue to maintain opportunistic
parameters based on levels of ISC's stock price. On a
quarterly basis, the Company will review and adjust, if necessary,
the parameters of its Stock Purchase Plan. At this time, the
Company does not expect material share repurchases for fiscal
2015.
Based on all of the above assumptions, the Company expects
fiscal 2015 non-GAAP earnings between $1.10
and $1.30 per diluted share, which includes a charge of
approximately $0.15 to $0.18 per
diluted share related to additional depreciation for assets placed
in service during fiscal 2015 for DAYTONA Rising and approximately
$0.05 to $0.06 per diluted share
related to non-recurring charges associated with the aforementioned
merchandising strategy. Excluding these charges, non-GAAP
earnings for fiscal 2015 would have been between $1.30 and $1.50 per diluted share,
comparable to its non-GAAP earnings guidance for fiscal 2014.
From an earnings perspective the fourth quarter will be the
Company's most significant, followed by the second, first and third
quarters, respectively.
ISC's fiscal 2015 non-GAAP earnings per share guidance excludes
any income statement impact attributable to the completion of
the DAYTONA Rising project, including approximately $12.0 million non-capitalized costs and
accelerated depreciation for removal of assets not fully
depreciated, partially offset by approximately $4.0 million in capitalized interest
expense. Also excluded are potential non-capitalized costs or
charges that could be recognized related to our ONE DAYTONA
development, start up and/or financing costs should our Hollywood
Casino at Kansas Speedway joint venture pursue construction of an
adjacent hotel, any costs related to legal settlements; gain or
loss on sale of fixed assets; accelerated depreciation and future
loss on retirements or relocation of certain long-lived assets
which could be recorded as part of capital improvements other than
DAYTONA Rising resulting in removal of assets prior to the end of
their actual useful life.
Event
Schedule
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full Fiscal
Year
|
Series
Name
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
NASCAR Sprint
Cup
|
3
|
|
3
|
|
|
6
|
|
7
|
|
|
4
|
|
4
|
|
|
8
|
|
7
|
|
|
21
|
|
21
|
|
NASCAR
Xfinity
|
1
|
|
1
|
|
|
4
|
|
5
|
|
|
4
|
|
4
|
|
|
6
|
|
5
|
|
|
15
|
|
15
|
|
NASCAR Camping
World
|
1
|
|
1
|
|
|
2
|
|
2
|
|
|
1
|
|
1
|
|
|
5
|
|
5
|
|
|
9
|
|
9
|
|
IndyCar
Series
|
0
|
|
0
|
|
|
0
|
|
0
|
|
|
1
|
|
1
|
|
|
0
|
|
0
|
|
|
1
|
|
1
|
|
ARCA
RE/MAX
|
1
|
|
1
|
|
|
1
|
|
1
|
|
|
2
|
|
2
|
|
|
1
|
|
1
|
|
|
5
|
|
5
|
|
IMSA Tudor United
Sportscar Championship Series
|
1
|
|
1
|
|
|
0
|
|
0
|
|
|
1
|
|
1
|
|
|
0
|
|
0
|
|
|
2
|
|
2
|
|
AMA
Superbike/Supercross
|
0
|
|
0
|
|
|
1
|
|
1
|
|
|
0
|
|
0
|
|
|
0
|
|
0
|
|
|
1
|
|
1
|
|
|
7
|
|
7
|
|
|
14
|
|
16
|
|
|
13
|
|
13
|
|
|
20
|
|
18
|
|
|
54
|
|
54
|
|
NASCAR Sprint Cup and Xfinity Series
Darlington's NASCAR Sprint Cup weekend, which includes the
NASCAR Xfinity series, will move from the second quarter 2014 to
fourth quarter 2015.
In closing, Ms. France Kennedy
stated, "We maintain a solid financial position, developed
over many years, that affords us the ability to follow our
disciplined capital allocation strategy and maintain our leadership
position in the motorsports industry. Building on this
foundation we will continue to execute our five year,
$600 million capital allocation plan through 2017. For
the future, we are well positioned to balance the strategic capital
needs of our business with returning capital to our
shareholders."
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 69156946.
A live Webcast will also be available at that time on the
Company's Web site, www.internationalspeedwaycorporation.com, under
the "Investor Relations" section. A replay will be available
two hours after the end of the call through midnight Tuesday, February 10, 2014. To access, dial
(855) 859-2056 and enter the code 69156946, 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 CaliforniaSM
near Los Angeles; Kansas Speedway®
in Kansas City, Kansas; Phoenix
International Raceway® in Arizona;
Chicagoland Speedway® and Route 66 RacewaySM near
Chicago, Illinois;
Homestead-Miami SpeedwaySM in Florida; Martinsville Speedway® in
Virginia; Darlington Raceway® in
South Carolina; and Watkins Glen
International® in New York.
The Company also owns and operates Motor Racing
NetworkSM, the nation's largest independent sports radio
network and Americrown Service CorporationSM, a
subsidiary that provides catering services, food and beverage
concessions, and with its subsidiary Motorsports Authentics,
produces and markets motorsports-related merchandise. In
addition, the Company has a 50.0 percent interest in the Hollywood
Casino at Kansas Speedway. For more information, visit the
Company's Web site at www.internationalspeedwaycorporation.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
Share and Per Share Amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
November 30,
2013
|
|
November 30,
2014
|
|
November 30,
2013
|
|
November 30,
2014
|
|
|
(Unaudited)
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions,
net
|
|
$
|
37,916
|
|
|
$
|
37,667
|
|
|
$
|
129,824
|
|
|
$
|
129,688
|
|
Motorsports
related
|
|
135,078
|
|
|
138,134
|
|
|
425,530
|
|
|
433,738
|
|
Food, beverage and
merchandise
|
|
12,279
|
|
|
19,447
|
|
|
44,046
|
|
|
72,880
|
|
Other
|
|
3,395
|
|
|
4,505
|
|
|
13,240
|
|
|
15,630
|
|
|
|
188,668
|
|
|
199,753
|
|
|
612,640
|
|
|
651,936
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct:
|
|
|
|
|
|
|
|
|
|
|
|
|
Prize and point fund
monies and NASCAR sanction
fees
|
|
52,636
|
|
|
53,761
|
|
|
159,349
|
|
|
162,988
|
|
Motorsports
related
|
|
38,470
|
|
|
36,421
|
|
|
125,928
|
|
|
128,229
|
|
Food, beverage and
merchandise
|
|
9,428
|
|
|
16,177
|
|
|
33,150
|
|
|
58,265
|
|
General and
administrative
|
|
25,023
|
|
|
28,358
|
|
|
104,925
|
|
|
108,563
|
|
Depreciation and
amortization
|
|
27,327
|
|
|
22,353
|
|
|
93,989
|
|
|
90,352
|
|
Losses on retirements
of long-lived assets
|
|
6,252
|
|
|
2,845
|
|
|
16,607
|
|
|
10,148
|
|
|
|
159,136
|
|
|
159,915
|
|
|
533,948
|
|
|
558,545
|
|
Operating
income
|
|
29,532
|
|
|
39,838
|
|
|
78,692
|
|
|
93,391
|
|
Interest
income
|
|
38
|
|
|
2,005
|
|
|
96
|
|
|
2,107
|
|
Interest
expense
|
|
(3,615)
|
|
|
(1,386)
|
|
|
(15,221)
|
|
|
(9,182)
|
|
Other
|
|
(60)
|
|
|
3
|
|
|
75
|
|
|
5,380
|
|
Equity in net income
from equity investments
|
|
2,289
|
|
|
2,172
|
|
|
9,434
|
|
|
8,916
|
|
Income before income
taxes
|
|
28,184
|
|
|
42,632
|
|
|
73,076
|
|
|
100,612
|
|
Income
taxes
|
|
10,979
|
|
|
16,808
|
|
|
27,784
|
|
|
33,233
|
|
Net income
|
|
$
|
17,205
|
|
|
$
|
25,824
|
|
|
$
|
45,292
|
|
|
$
|
67,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per
share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.22
|
|
|
$
|
0.24
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.37
|
|
|
$
|
0.55
|
|
|
$
|
0.97
|
|
|
$
|
1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
46,508,514
|
|
|
46,592,816
|
|
|
46,470,647
|
|
|
46,559,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
46,524,279
|
|
|
46,606,009
|
|
|
46,486,561
|
|
|
46,573,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
$
|
17,370
|
|
|
$
|
25,989
|
|
|
$
|
45,950
|
|
|
$
|
68,036
|
|
Consolidated
Balance Sheets
|
(In Thousands, Except
Share and Per Share Amounts)
|
|
|
|
|
|
|
|
November 30,
2013
|
|
November 30,
2014
|
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
172,827
|
|
|
$
|
158,847
|
|
Receivables, less
allowance
|
|
25,910
|
|
|
27,598
|
|
Inventories
|
|
2,619
|
|
|
4,030
|
|
Income taxes
receivable
|
|
17,399
|
|
|
6,202
|
|
Deferred income
taxes
|
|
3,122
|
|
|
2,789
|
|
Prepaid expenses and
other current assets
|
|
13,965
|
|
|
8,099
|
|
Total Current
Assets
|
|
235,842
|
|
|
207,565
|
|
|
|
|
|
|
|
|
Property and
Equipment, net
|
|
1,276,976
|
|
|
1,381,190
|
|
Other
Assets:
|
|
|
|
|
|
|
Equity
investments
|
|
134,327
|
|
|
122,565
|
|
Intangible assets,
net
|
|
178,628
|
|
|
178,629
|
|
Goodwill
|
|
118,791
|
|
|
118,791
|
|
Other
|
|
72,942
|
|
|
68,911
|
|
|
|
504,688
|
|
|
488,896
|
|
Total
Assets
|
|
$
|
2,017,506
|
|
|
$
|
2,077,651
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
2,807
|
|
|
$
|
3,435
|
|
Accounts
payable
|
|
27,669
|
|
|
41,491
|
|
Deferred
income
|
|
35,679
|
|
|
33,043
|
|
Other current
liabilities
|
|
15,907
|
|
|
18,813
|
|
Total Current
Liabilities
|
|
82,062
|
|
|
96,782
|
|
|
|
|
|
|
|
|
Long-Term
Debt
|
|
271,680
|
|
|
268,311
|
|
Deferred Income
Taxes
|
|
366,531
|
|
|
354,276
|
|
Long-Term Deferred
Income
|
|
8,604
|
|
|
9,548
|
|
Other Long-Term
Liabilities
|
|
1,474
|
|
|
2,302
|
|
Commitments and
Contingencies
|
|
—
|
|
|
—
|
|
Shareholders'
Equity:
|
|
|
|
|
|
|
Class A Common
Stock, $.01 par value, 80,000,000 shares authorized
|
|
261
|
|
|
262
|
|
Class B Common
Stock, $.01 par value, 40,000,000 shares authorized
|
|
200
|
|
|
200
|
|
Additional paid-in
capital
|
|
445,097
|
|
|
447,518
|
|
Retained
earnings
|
|
846,235
|
|
|
902,433
|
|
Accumulated other
comprehensive loss
|
|
(4,638)
|
|
|
(3,981)
|
|
Total Shareholders'
Equity
|
|
1,287,155
|
|
|
1,346,432
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
2,017,506
|
|
|
$
|
2,077,651
|
|
Consolidated
Statements of Cash Flows
|
(In
Thousands)
|
|
|
|
|
|
Year Ended
|
|
|
November 30,
2013
|
|
November 30,
2014
|
|
|
(Unaudited)
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
Net income
|
|
$
|
45,292
|
|
|
$
|
67,379
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Gain on assumption of
controlling interest in equity investee
|
|
—
|
|
|
(5,447)
|
|
Depreciation and
amortization
|
|
93,989
|
|
|
90,352
|
|
Stock-based
compensation
|
|
2,533
|
|
|
2,826
|
|
Amortization of
financing costs
|
|
1,397
|
|
|
1,779
|
|
Interest received on
Staten Island note receivable
|
|
—
|
|
|
5,087
|
|
Deferred income
taxes
|
|
36,012
|
|
|
(12,346)
|
|
Income from equity
investments
|
|
(9,434)
|
|
|
(8,916)
|
|
Distribution from
equity investee
|
|
8,216
|
|
|
10,076
|
|
Losses on retirements
of long-lived assets, non-cash
|
|
10,023
|
|
|
2,644
|
|
Other, net
|
|
(26)
|
|
|
380
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
Receivables,
net
|
|
4,920
|
|
|
(1,776)
|
|
Inventories, prepaid
expenses and other assets
|
|
(479)
|
|
|
1,977
|
|
Accounts payable and
other liabilities
|
|
3,658
|
|
|
(517)
|
|
Deferred
income
|
|
(8,990)
|
|
|
(1,692)
|
|
Income
taxes
|
|
(13,716)
|
|
|
11,041
|
|
Net cash provided by
operating activities
|
|
173,395
|
|
|
162,847
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
Capital
expenditures
|
|
(85,539)
|
|
|
(183,936)
|
|
Distribution from
equity investee and affiliate
|
|
13,284
|
|
|
11,924
|
|
Equity investments
and advances to affiliate
|
|
—
|
|
|
(1,322)
|
|
Proceeds from sale of
Staten Island property
|
|
5,322
|
|
|
6,100
|
|
Cash included in
assumption of ownership interest in equity investee
|
|
—
|
|
|
4,686
|
|
Other, net
|
|
646
|
|
|
32
|
|
Net cash used in
investing activities
|
|
(66,287)
|
|
|
(162,516)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
Payment of long-term
debt
|
|
(2,513)
|
|
|
(2,807)
|
|
Exercise of
Class A common stock options
|
|
341
|
|
|
—
|
|
Cash dividends
paid
|
|
(10,229)
|
|
|
(11,181)
|
|
Reacquisition of
previously issued common stock
|
|
(259)
|
|
|
(323)
|
|
Net cash used in
financing activities
|
|
(12,660)
|
|
|
(14,311)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
94,448
|
|
|
(13,980)
|
|
Cash and cash
equivalents at beginning of year
|
|
78,379
|
|
|
172,827
|
|
Cash and cash
equivalents at end of year
|
|
$
|
172,827
|
|
|
$
|
158,847
|
|
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SOURCE International Speedway Corporation