UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended November 30, 1995.
Commission file Number 0-2384
International Speedway Corporation
(Exact name of registrant as specified in its charter.)
Florida, U.S.A. 59-0709342
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1801 West International Speedway Boulevard, Daytona Beach, Florida 32114-1243
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (904) 254-2700
Indicate by check mark whether the registrant(1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. YES [X] NO [ ]
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practical date:
Common Stock, $0.10 Par Value - 2,299,870 shares as of January 5, 1996.
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PART I. - FINANCIAL INFORMATION
Item 1. - Financial Statements
INTERNATIONAL SPEEDWAY CORPORATION
Condensed Consolidated Balance Sheets
November 30, August 31,
1995 1995
(Unaudited)
_______________________
(In Thousands)
ASSETS
Current Assets:
Cash and cash equivalents........................... $ 8,661 $ 7,871
Short-term investments.............................. 10,144 30,950
Receivables, less allowance of $35.................. 3,656 1,794
Inventories......................................... 1,031 1,158
Prepaid expenses and other current assets........... 2,001 3,122
Deferred income taxes............................... 728 -
___________ __________
Total Current Assets.................................. 26,221 44,895
Property and Equipment - at cost - less accumulated
depreciation of $31,964 ($30,692 at August 31)....... 77,246 70,299
Other Assets:
Cash surrender value of life insurance (Note 3)..... 1,229 489
Equity investments (Note 5)......................... 17,772 2,913
Long-term investments............................... 500 747
Other............................................... 217 228
___________ __________
19,718 4,377
___________ __________
Total Assets.......................................... $123,185 $119,571
=========== ==========
See accompanying notes and accountants' review report.
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November 30, August 31,
1995 1995
(Unaudited)
_______________________
(In Thousands)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable.................................... $ 2,584 $ 2,619
Income taxes payable................................ 106 324
Deferred income..................................... 25,072 19,852
Other current liabilities........................... 586 1,279
___________ __________
Total Current Liabilities............................. 28,348 24,074
Deferred income taxes................................. 10,530 10,250
Shareholders' Equity:
Common stock, $.10 par value, 5,000,000 shares
authorized; 3,502,585 issued at November 30
and August 31..................................... 350 350
Capital in excess of par value...................... 2,350 2,350
Retained earnings................................... 87,922 88,942
__________ __________
90,622 91,642
Less: Treasury stock - at cost, 1,209,520 shares.... 5,599 5,599
Unearned compensation - restricted stock...... 716 796
__________ __________
Total Shareholders' Equity............................ 84,307 85,247
__________ __________
Total Liabilities and Shareholders' Equity............ $123,185 $119,571
========== ==========
See accompanying notes and accountants' review report.
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INTERNATIONAL SPEEDWAY CORPORATION
Condensed Consolidated Statements of Operations
Three Months ended
November 30
1995 1994
(Unaudited) (Unaudited)
_________________________
(In Thousands, Except
for Per Share Amounts)
REVENUES:
Admissions, net.................................... $ 3,458 $ 2,874
Food, beverage and souvenir income................. 1,747 1,315
Other related income............................... 3,183 2,374
Interest income.................................... 290 327
___________ ___________
8,678 6,890
EXPENSES:
Direct expenses:
Prize and point fund monies
and NASCAR sanction fees....................... 1,442 1,125
Food, beverage and souvenir expenses............. 1,648 1,225
Other direct expenses............................ 854 824
___________ ___________
3,944 3,174
Promotion, general and administrative expenses..... 3,848 3,335
Other related expenses............................. 937 690
Depreciation....................................... 1,287 1,102
___________ ___________
10,016 8,301
___________ ___________
Loss before income tax benefit....................... (1,338) (1,411)
Income tax benefit................................... 318 540
___________ ___________
Net Loss............................................. $(1,020) $ (871)
=========== ===========
Loss per share (Note 2).............................. $ (.44) $ (.38)
=========== ===========
Dividends per share.................................. $ -- $ --
=========== ===========
See accompanying notes and accountants' review report.
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International Speedway Corporation
Condensed Consolidated Statements of Shareholders' Equity
Unearned
Common Capital Compen- Total
Stock In Excess Treas- sation - Share-
$.10 Par of Par Retained ury Restricted holders'
Value Value Earnings Stock Stock Equity
___________________________________________________________
(In Thousands)
Balance at
August 31, 1994... $ 350 $1,861 $72,290 $(5,599) $(625) $68,277
Activity 9/1/94-
11/30/94:
Net Loss --
Unaudited...... - - (871) - - (871)
Amortization of
unearned
compensation
- unaudited.... 50 50
______ ________ ___________ _________ _______ ________
Balance at
November 30, 1994
- - Unaudited....... 350 1,861 71,419 (5,599) (575) 67,456
Activity 12/1/94-
8/31/95:
Net income -
Unaudited...... - - 19,234 - - 19,234
Cash dividends
($.70 per share)
- unaudited... - - (1,605) - - (1,605)
Reacquisition of
previously
issued common
stock
- unaudited.... - - (106) - - (106)
Restricted stock
granted
- unaudited.... - 489 - - (489) -
Amortization of
unearned
compensation -
unaudited...... - - - - 268 268
____________________________________________________________
Balance at
August 31, 1995... 350 2,350 88,942 (5,599) (796) 85,247
Activity 9/1/95-
11/30/95:
Net loss -
Unaudited...... - - (1,020) - - (1,020)
Amortization of
unearned
compensation -
unaudited...... - - - - 80 80
____________________________________________________________
Balance at
November 30, 1995
- - Unaudited....... $350 $2,350 $87,922 $(5,599) $(716) $84,307
============================================================
See accompanying notes and accountants' review report.
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International Speedway Corporation
Condensed Consolidated Statements of Cash Flows
Three Months ended
November 30
1995 1994
(Unaudited) (Unaudited)
______________________________
(In Thousands)
OPERATING ACTIVITIES
Net loss........................................ $(1,020) $ (871)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Depreciation................................ 1,287 1,102
Amortization of unearned compensation....... 80 50
Deferred income taxes....................... (448) (605)
Undistributed loss of affiliate............. 116 153
Gain on disposition of property and
equipment.................................. (8) -
Changes in operating assets and liabilities:
Receivables................................. (1,862) (617)
Inventories................................. 127 47
Prepaid expenses and other current assets... 1,121 388
Cash surrender value of life insurance...... (740) (2)
Other assets................................ 6 (52)
Accounts payable............................ (35) (423)
Income taxes payable........................ (218) (52)
Deferred income............................. 5,220 4,508
Other current liabilities................... (693) (677)
______________________________
Net cash provided by operating activities....... 2,933 2,949
INVESTING ACTIVITIES
Acquisition of investments.................... (12,987) (5,679)
Proceeds from maturities of investments....... 34,040 5,402
Capital expenditures.......................... (8,229) (2,870)
Investment in PSH Corp........................ (14,975) -
Proceeds from sale of assets.................. 8 -
______________________________
Net cash used in investing activities........... (2,143) (3,147)
Net increase (decrease) in cash
and cash equivalents.......................... 790 (198)
Cash and cash equivalents at
beginning of period........................... 7,871 5,227
______________________________
Cash and cash equivalents at end of period...... $ 8,661 $5,029
===============================
See accompanying notes and accountants' review report.
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International Speedway Corporation
Notes to Condensed Consolidated Financial Statements
November 30, 1995 and August 31, 1995
(Unaudited - See Accountants' Review Report)
1. Basis of Presentation
The accompanying condensed consolidated financial statements have been
prepared in compliance with Rule 10-01 of Regulation S-X and generally
accepted accounting principles but do not include all of the information and
disclosures required for complete financial statements. The statements should
be read in conjunction with the consolidated financial statements and notes
thereto included in the Company's latest annual report on Form 10-K. The
statements have been reviewed by the Company's independent accountants. In
management's opinion, the statements include all adjustments which are
necessary for a fair presentation of the results for the interim periods. All
such adjustments are of a normal recurring nature. Certain reclassifications
have been made to conform to the financial presentation at November 30, 1995.
Because of the seasonal concentration of racing events, the results of
operations for the three-month periods ended November 30, 1995 and 1994 are
not indicative of the results to be expected for the year.
2. Loss Per Share
Loss per share has been computed on the weighted average total number of
common shares outstanding during the respective periods. Weighted average
shares outstanding for the three-month periods ended November 30, 1995 and
1994 were 2,293,065 and 2,289,248, respectively.
3. Related Party Disclosures and Transactions
All of the racing events that take place during the Company's fiscal year are
sanctioned by various racing organizations such as the Sports Car Club of
America (SCCA), Automobile Racing Club of America (ARCA), American
Motorcyclist Association (AMA), the Championship Cup Series (CCS),
International Motor Sports Association (IMSA), World Karting Association
(WKA), Federation Internationale de l'Automobile (FIA), Federation
Internationale Motorcycliste (FIM), and the National Association for Stock Car
Auto Racing, Inc. (NASCAR). NASCAR, which sanctions some of the Company's
principal racing events, is a member of the France Family Group which controls
in excess of 60% of the outstanding stock of the Company and some members of
which serve as directors and officers. Standard NASCAR sanction agreements
require racetrack operators to pay sanction fees and prize and point fund
monies for each sanctioned event conducted. The prize and point fund monies
are distributed by NASCAR to participants in the events. Prize and point fund
monies paid by the Company to NASCAR for disbursement to competitors totaled
approximately $1,218,000 and $991,000 for the three-month periods ended
November 30, 1995 and 1994, respectively.
In October 1995 the Company entered into collateral assignment split-dollar
insurance agreements covering the lives of William C. France and James C.
France and their respective spouses. Pursuant to the agreements, the Company
will advance the annual premiums of approximately $1,205,000 each year for a
period of eight years. Upon surrender of the policies or payment of the death
benefits thereunder, the Company is entitled to repayment of an amount equal
to the cumulative premiums previously paid by the Company. The Company may
cause the agreements to be terminated and the policies surrendered at any time
after the cash surrender value of the policies equals the cumulative premiums
advanced under the agreements. During the quarter ended November 30, 1995,
the Company recorded a net insurance expense of approximately $81,000
representing the excess of the premiums paid over the increase in cash
surrender value of the policies associated with these agreements.
Poe & Brown, Inc., the servicing agent for the split-dollar insurance
agreements, received a commission for its participation in the transactions.
J. Hyatt Brown, President and Chief Executive Officer of Poe & Brown, Inc., is
a Director of the Company.
4. Supplemental Disclosures of Cash Flow Information
Cash paid for income taxes for the three months ended November 30, 1995 and
1994 is as follows:
1995 1994
______________________________
(Thousands of Dollars)
Income taxes paid $ 347 $59
==============================
5. Equity Investments
On November 22, 1995, Facility Investments, Inc., a newly formed wholly-owned
subsidiary of the Company, purchased 200 shares of the common stock,
representing 20% of the outstanding shares, of PSH Corp., a newly formed
Delaware corporation, for $14,975,000 in cash. Penske Corporation contributed
100% of the outstanding shares of Penske Speedway, Inc. and its subsidiaries
and the sum of $5,000,000 in cash for an indirect beneficial interest in the
remaining 80% of the outstanding shares of PSH Corp.
PSH Corp. owns 85% of the outstanding shares of Penske Speedways Holding Corp.
The remaining 15% of Penske Speedways Holding Corp., represented by
convertible preferred stock, is owned by Kaiser Ventures Inc., for which
Kaiser contributed all of the issued and outstanding stock of Speedway
Development Corporation, its wholly owned subsidiary, which owned
approximately 460 acres of real property near Ontario, California.
Penske Speedways Holding Corp. owns 100% of the outstanding shares of Penske
Speedway, Inc., which owns and operates Michigan International Speedway, owns
approximately 85% of Nazareth Speedway in Pennsylvania, 2% of North Carolina
Motor Speedway (Rockingham), 100% of a racing souvenir retailer called
Motorsports International Corp and 100% of The California Speedway
Corporation, which is constructing the California Speedway on the land
formerly owned by Kaiser.
The acquisition of the 20% interest in PSH Corp. is accounted for using the
equity method of accounting and is included in equity investments on the
condensed consolidated balance sheet, along with the Company's equity
investment in Watkins Glen International, Inc. The Company's share of
undistributed equity in the earnings of PSH Corp. for the quarter ended
November 30, 1995, was not significant.
The Company's preliminary determination is that the investment exceeded its
share of the underlying net assets of PSH Corp. by approximately $7 million.
The excess is being amortized into expense by decreasing the equity in income
of equity investments using the straight-line method over twenty years. The
amount amortized for the quarter ended November 30, 1995, was not significant.
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PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Financial Condition
Liquidity
Management believes that a high degree of liquidity is desirable due to the
inherent insurance and weather risks associated with the production of large
outdoor sporting and entertainment events. The trend during the past several
years has been for the Company to have increasing liquidity. This trend has
been due to a general increase in interest in motor sports, reflected in
increased live and broadcast audiences, and generally favorable weather
conditions for the events conducted at the Company's facilities. However, the
Company experienced a decrease in liquidity from August 31, 1995 to November
30, 1995 as it began to utilize its liquid assets for capital projects and
investments as described below under the caption "Capital Resources".
Liquidity is expected to continue to decrease as the Company completes the
Daytona USA (R) and Winston Tower capital projects described below.
The Company's combined position in cash and cash equivalents and short- and
long-term investments at November 30, 1995 decreased from August 31, 1995
primarily as a result of payments made for capital projects and the investment
in PSH Corp. The decrease was offset in part by cash flows from operations.
The Company's working capital at November 30, 1995 decreased from August 31,
1995 due primarily to the use of cash for the investment in PSH Corp. and to
finance capital improvements. Working capital also decreased due to the
decrease in inventories and the recognition of the August 31, 1995 prepaid
expenses related to the September 1995 events held at the Darlington Raceway.
These working capital decreases were offset in part by the deferred income tax
asset which arises from the tax benefit of the carryforward of the first
quarter's loss from operations. This loss and related deferred tax asset
result from the seasonal fluctuation in the Company's business.
Receivables and deferred revenue increased for the three months ended November
30, 1995, as compared to the three months ended November 30, 1994, primarily
due to an increase in advance billings for promotions and facility rentals for
the 1996 Daytona racing season. Deferred revenue also increased for the three
months ended November 30, 1995, as compared to the same period of 1994, due to
an increase in seating capacity and certain ticket prices for future
motorsports events to be held at the Company's Daytona and Talladega
facilities.
The increase in cash surrender value of life insurance for the three-months
ended November 30, 1995, as compared to the three-months ended November 30,
1994, is due to collateral assignment split-dollar insurance agreements
entered into by the Company during the first quarter of fiscal 1996. These
agreements cover the lives of the Company's Chief Executive Officer and
President, and their respective spouses. Pursuant to the agreements, the
Company will advance the annual premiums of approximately $1,205,000 each year
for a period of eight years. Upon surrender of the policies or payment of the
death benefits thereunder, the Company is entitled to repayment of an amount
equal to the cumulative premiums previously paid by the Company. The Company
may cause the agreements to be terminated and the policies surrendered at any
time after the cash surrender value of the policies equals the cumulative
premiums advanced under the agreements.
The increase in proceeds from and acquisitions of investments during the three
months ended November 30, 1995, as compared to the corresponding period of
1994, is due to increased short-term investment activity. This increased
activity resulted from a shift in the Company's investment portfolio and the
use of proceeds from the Company's liquid assets to finance capital projects
and the investment in PSH Corp.
The Company intends to continue to maintain the policy of investing excess
cash primarily in short-term investments. The staggered maturities of these
short-term investments would provide the Company with sufficient cash to cover
the expenses arising from a delay, postponement or cancellation of an event
due to poor weather conditions or other contingencies.
Management believes that the Company has the ability to generate adequate
amounts of cash through operations and outside financing, if necessary, to
meet the Company's operational needs on both a long- and short-term basis.
Capital Resources
The Company continues to invest in the general improvement and expansion of
its aging facilities. The amount of capital expenditures, however, can
materially change from year to year based on approved projects and the
availability of working capital resources.
The Company's Board of Directors has approved general improvement and
expansion projects with an estimated cost to complete of approximately $6
million at November 30, 1995. These projects consist primarily of additions
and renovations to spectator capacity, paving, concession facilities and
equipment. Management anticipates the completion of these projects within the
next 24 months based on the availability of working capital resources.
In addition to the general capital projects described above, the Company's
Board of Directors approved two significant new capital expenditures in
fiscal 1994 - an addition to the Winston Tower at the Daytona International
Speedway and the development of a motor sports themed amusement complex at the
Daytona facility to be called "Daytona USA"(R).
The Winston Tower addition will encompass additional grandstands and suites,
as well as catering and concession facilities. Construction began in July
1995. The project is expected to be completed in the fall of 1996. The total
anticipated cost remaining for this project is approximately $7.8 million.
"Daytona USA"(R) will combine interactive mediums, theaters and numerous
historical memorabilia and exhibits to form a motor sports themed amusement
complex. The complex is being constructed adjacent to the existing Visitors
Center at Daytona International Speedway. Construction began in July 1995 and
opening is scheduled for the summer of 1996. Total remaining costs related to
this project are expected to approximate $10.5 million.
During the three-months ended November 30, 1995, capital expenditures for
increased spectator capacity and general improvement and expansion projects
were relatively consistent with the same period of the preceding year.
However, during the first quarter of fiscal 1996 the Company spent
approximately $1.5 million for expansion of the Company's administrative
facilities and approximately $2.3 million and $2 million for the Daytona USA
(R) and Winston Tower projects, respectively, as described above.
Based on the Company's current liquidity, cash and investment positions, as
well as the Company's unused lines of credit of approximately $16 million,
management believes that its present capital resources are sufficient to meet
anticipated financing requirements in fiscal 1996. As both the Winston Tower
addition and "Daytona USA"(R) projects are under construction concurrently,
the Company may negotiate outside financing as needed. In management's
opinion, financing resources are available to provide sufficient liquidity
for continuing operations.
Equity investments increased from August 31, 1995 as a result of the purchase
by Facilities Investments, Inc., a newly formed wholly-owned subsidiary of the
Company, of 200 shares of the common stock, representing 20% of the
outstanding shares, of PSH Corp. for $14,975,000 in cash. PSH Corp. owns 85%
of the outstanding shares of Penske Speedways Holdings Corp. Penske Speedways
Holding Corp. owns 100% of the outstanding shares of Penske Speedway, Inc.,
which owns and operates Michigan International Speedway, owns approximately
85% of Nazareth Speedway in Pennsylvania, 2% of North Carolina Motor Speedway
(Rockingham), 100% of a racing souvenir retailer called Motorsports
International Corp., and 100% of The California Speedway Corporation, which is
constructing the California Speedway on 460 acres of land near Ontario,
California. The acquisition of the 20% interest in PSH Corp. is accounted for
using the equity method of accounting. The Company's share of undistributed
equity in the earnings of PSH Corp. for the quarter ended November 30, 1995
was not significant.
The increase in equity investments from August 31, 1995 was partially offset
by the recognition of the Company's 50% share of the current loss from
operations at Watkins Glen International. The Company uses the equity method
to account for its investment in Watkins Glen. Due to the concentration of
Watkins Glen's events during the summer months, the results at November 30,
1995 are not indicative of the results to be expected for the year.
Income Taxes
The Company incurs a net operating loss during its first quarter due to the
seasonal fluctuation of its business. As a result, the financial statements
reflect a deferred income tax asset for the tax benefit of the loss
carryforward. The first quarter is not indicative of the results to be
expected for the year and, therefore, management believes the operations of
the Company during the remainder of the fiscal year will eliminate this
deferred income tax asset.
The deferred income tax liability increased from August 31, 1995 primarily as
a result of differences between financial and tax accounting treatments
relating to depreciation expense.
Inflation
Management does not believe that inflation has had a material impact on
operating costs and earnings of the Company. The Company has demonstrated the
ability to appropriately adjust prices in reaction to changing costs and has
aggressively pursued an ongoing cost improvement effort.
Results of Operations
Revenues
Admission income increased during the first quarter of fiscal 1996, as
compared to the first quarter of fiscal 1995, due to increased attendance
and increases in certain ticket prices. Attendance at the September NASCAR
Winston Cup event conducted at the Company's Darlington facility during the
three months ended November 30, 1995 increased approximately 7% over
attendance at the comparable event in the prior year. This increased
attendance is due to both the continued overall increased interest in
motorsports and increased seating capacity at the Company's Darlington
facility.
During the first quarter of fiscal 1996, the Company's wholly-owned
subsidiary, Americrown Service Corporation, continued to expand its operations
by providing food and beverage services at an outdoor sporting event unrelated
to International Speedway Corporation. The revenue generated by this new
business opportunity accounted for over 80% of the increase in food, beverage
and souvenir income during the first quarter of fiscal 1996 as compared to the
first quarter of fiscal 1995.
Substantially all of the remaining increase in food, beverage and souvenir
income for the period ended November 30, 1995, as compared to the period ended
November 30, 1994, resulted from increased attendance at the September events
conducted at the Company's Darlington facility and related concession and
souvenir sales.
The increased interest in motorsports is reflected in both live and broadcast
audiences. This continued interest has enabled the Company to successfully
negotiate favorable current year contracts for broadcast rights, promotional
fees and advertising. The combined effect of these contracts accounted for
substantially all of the increase in other related income for the three-months
ended November 30, 1995 as compared to the same period of the preceding year.
The motor sports industry generates significant revenues each year from the
promotion, sponsorship and advertising of various companies and their
products. General economic conditions and government regulation can adversely
impact the availability to motor sports of these promotion, sponsorship and
advertising revenues. In August 1995, the federal Food and Drug Administration
("FDA") announced proposed regulations that, if implemented, could potentially
restrict tobacco industry sponsorship of sporting events. Revenue generated by
tobacco industry sponsorship of the Company's events accounted for less than
1% of other related income for the three months ended November 30, 1995 and
1994.
The lengthy regulatory rulemaking process related to the FDA's proposed
regulations encompasses several phases. The first phase of the process, which
entailed an opportunity for official comment, came to a close on January 2,
1996. There are several legal challenges pending which will likely extend
the process. The final outcome of these proposed regulations is uncertain, and
the impact on International Speedway Corporation, if any, is unclear.
Expenses
Standard NASCAR sanction agreements require a percentage of broadcast revenues
be paid as prize money to participants in the events. As a result of increased
broadcast revenues, the Company experienced a corresponding increase in prize
money. This increased prize money, combined with increased point fund money,
accounted for approximately 71% of the increase in prize and point fund monies
and NASCAR sanction fees for the three-month period ended November 30, 1995 as
compared to the three-month period ended November 30, 1994.
As food, beverage and souvenir income increases, the Company experiences a
corresponding increase in related expenses. Food, beverage and souvenir
expenses, as a percent of food, beverage and souvenir income, remained
relatively constant at 94% and 93% for the periods ended November 30, 1995 and
1994, respectively. The high percentage of expenses in relation to income for
the first quarter of the Company's fiscal year is due to the seasonal
concentration of racing and other outdoor sporting events and is not
indicative of the results to be expected for the current year.
Promotion, general and administrative expense increased during the first
quarter of fiscal 1996, as compared to the first quarter of fiscal 1995, due
primarily to increased payroll and personnel costs and professional fees.
However, combined admissions and other related income increased approximately
27% in the first quarter of fiscal 1996 as compared to the first quarter of
fiscal 1995, while payroll and personnel costs increased only 7%. As a
result, promotion, general and administrative expenses decreased as a
percentage of combined admissions income and other related income during the
three-months ended November 30, 1995 as compared to the three-months ended
November 30, 1994.
Other related expenses remained constant at approximately 29% of other related
revenue for the three-months ended November 30, 1995 and 1994.
Because of the seasonal concentration of racing events, the results of
operations for the three-month periods ended November 30, 1995 and 1994 are
not indicative of the results to be expected for the year.
<PAGE>
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Review Report of Independent Certified Public Accountants
The Board of Directors
International Speedway Corporation
We have reviewed the accompanying condensed consolidated balance sheet of
International Speedway Corporation as of November 30, 1995, and the related
condensed consolidated statements of operations, shareholders' equity and cash
flows for the three-month periods ended November 30, 1995 and 1994. These
financial statements are the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements taken as a whole. Accordingly, we
do not express such an opinion.
Based on our reviews, we are not aware of any material modifications that
should be made to the accompanying condensed consolidated financial
statements referred to above for them to be in conformity with generally
accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of International Speedway
Corporation as of August 31, 1995, and the related consolidated statements of
income, shareholders' equity and cash flows for the year then ended (not
presented separately herein) and in our report dated October 20, 1995, we
expressed an unqualified opinion on those consolidated financial statements.
In our opinion, the information set forth in the accompanying condensed
consolidated balance sheet as of August 31, 1995, is fairly stated in all
material respects, in relation to the consolidated balance sheet from which it
has been derived.
/s/ Ernst & Young, LLP
Jacksonville, Florida
January 10, 1996
<PAGE>
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PART II - OTHER INFORMATION
Item #4 Submission of Matters to a Vote of Security Holders.
The company held its annual meeting of shareholders on January 10, 1996 --
after the close of the quarter being reported. The following persons were re-
elected to serve as directors for the indicated period at that meeting:
John R. Cooper
Brian Z. France
James C. France
Raymond K. Mason Jr.
to hold office until January 1999.
Lloyd E. Reuss was elected to serve as a director until January 1999.
Robert E. Smith was elected to serve as a director to fill the unexpired term
of Paul A. Cameron and hold office until January 1997.
The following persons' term of office as directors continued after the
meeting:
J. Hyatt Brown
H. Lee Combs
Robert W. Emerick
James H. Foster
William C. France
Christy F. Harris
Lesa D. Kennedy
Chapman J. Root, II
Thomas W. Staed
Item #6 Exhibits and Reports on Form 8-K
a. Exhibits
I. (27) - Article 5 Fin. Data Schedule for 1st Qtr 10-Q
B. Reports on Form 8-K
A report on Form 8-K dated November 22, 1995 was filed on December 7, 1995
reporting the acquisition of assets by Facility Investments, Inc., a newly
formed wholly-owned subsidiary of the Company, which purchased 200 shares of
the common stock, representing 20% of the outstanding shares, of PSH Corp., a
newly formed Delaware corporation, for $14,975,000 in cash. The acquisition
of the 20% interest in PSH Corp., which is accounted for by the equity method,
does not result in the direct or indirect acquisition of control of the
underlying assets, including businesses, indirectly controlled by PSH Corp.
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INTERNATIONAL SPEEDWAY CORPORATION
(Registrant)
Date January 11, 1995 /s/ James C. France
____________________________________
James C. France, President
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE ACCOMPANYING CONDENSED CONSOLIDATED BALANCE SHEET OF INTERNATIONAL
SPEEDWAY CORPORATION AS OF NOVEMBER 30, 1995, AND THE RELATED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS, SHAREHOLDERS' EQUITY AND CASH FLOWS FOR
THE THREE-MONTH PERIODS ENDED NOVEMBER 30, 1995 AND 1994 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> Aug-31-1995
<PERIOD-START> Sep-01-1995
<PERIOD-END> Nov-30-1995
<PERIOD-TYPE> 3-MOS
<CASH> 8,661
<SECURITIES> 10,144
<RECEIVABLES> 3,691
<ALLOWANCES> 35
<INVENTORY> 1,031
<CURRENT-ASSETS> 26,221
<PP&E> 109,210
<DEPRECIATION> 31,964
<TOTAL-ASSETS> 123,185
<CURRENT-LIABILITIES> 28,348
<BONDS> 0
0
0
<COMMON> 350
<OTHER-SE> 83,957
<TOTAL-LIABILITY-AND-EQUITY> 123,185
<SALES> 5,205
<TOTAL-REVENUES> 8,678
<CGS> 3,944
<TOTAL-COSTS> 4,881
<OTHER-EXPENSES> 5,135
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,338)
<INCOME-TAX> (318)
<INCOME-CONTINUING> (1,020)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,020)
<EPS-PRIMARY> (.44)
<EPS-DILUTED> (.44)
</TABLE>
