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Previous: INTERNATIONAL SPEEDWAY CORP, 8-K, 2000-07-14 |
Next: RNC CAPITAL MANAGEMENT LLC, 13F-HR, 2000-07-14 |
For the six month period ended May 31, 2000, total revenues increased to $210.3 million as compared to $127.9 million in the same period in 1999. Operating income rose to $57.4 million from $49.8 million in the six month prior-year period. Net income for the six months ended May 31, 2000 was $19.8 million, or $0.37 per diluted share versus $32.8 million, or $0.76 per diluted share in the comparable 1999 period. The Company’s results for year-to-date are not comparable due to the Penske merger, the Richmond acquisition and the litigation judgment after-tax charge of $5.2 million, or $0.10 per diluted share. During the second quarter, ISC hosted thirteen major races at seven facilities, including nine stock car, one truck and three open wheel events. Highlights of the quarter included four weekends of NASCAR Winston Cup and Busch Series events at Darlington Raceway, Talladega Superspeedway, California Speedway and Richmond International Raceway.
Mr. James C. France, President and Chief Operating Officer of International Speedway Corporation, said, "The second quarter benefited from a busy and successful racing schedule. The Winston Cup events at California and Richmond yielded record results and marked our first Winston Cup events since acquiring the facilities last year. Both of these events as well as the Winston Cup event at Talledega were sold out. During the quarter, we continued to make solid progress on our development projects in Kansas City and Chicago. Both projects remain on budget and on schedule for completion in Spring, 2001. In addition, marketing programs at both locations continue to be well received by the marketplace. We were extremely pleased when NASCAR and the IRL announced that both Kansas City and Chicago were awarded major events for 2001. Each of these facilities will host both the NASCAR Winston Cup and Busch Series as well as the Indy Racing Northern Light Series. Lastly, we are making steady progress in our study to determine feasibility of developing a major motorsports facility at the Meadowlands Sports Complex located near New York City."
On July 1, the Company hosted the NASCAR Winston Cup Series Pepsi 400 at Daytona. Primarily as a result of lower than expected attendance-related revenue for the event, the Company’s third quarter diluted earnings per share could decrease by $0.02 to $0.03. Mr. France commented, "Ticket sales for the Pepsi 400 at Daytona were impacted by a number of factors including the threat of wildfires, the effect of higher fuel prices, and heavy rain during the week prior to the event. Although attendance was below our internal expectations, the event was more profitable than the prior year and remains one of the highest attended races on the Winston Cup circuit."
"For the remainder of the year, advanced ticket sales are ahead for some events and behind for others. Although there are no definitive trends to point to, it appears that, at least for the short term, ticket demand continues to grow, though not quite as quickly as in the past. Our philosophy continues to be one of prudent expansion in which we strive to match supply and demand. Therefore, we have decided to slow seat expansion for 2001."
The combination of the impact of building fewer grandstand seats than originally expected and the coupon component associated with the previously disclosed souvenir litigation may cause the Company’s 2001 results to be $0.06 to $0.08 lower than the current consensus estimate of $1.72. Mr. France continued, "We remain positive about our accomplishments and are extremely optimistic about the opportunities that lie ahead. Throughout the year we have had strong attendance for all our NASCAR events, with all but three of our Winston Cup points events conducted before sold out crowds. In addition, we are beginning to realize the expected revenue synergies created through last year’s merger with Penske Motosports and acquisition of Richmond International Raceway by capitalizing on opportunities with large national marketing partners due to our expanded national footprint." "Finally, we are excited about the new media landscape which begins in 2001. In addition to the domestic television agreement which results in significant increases in broadcast right fees and guaranteed revenue for the next six years, we expect the increased promotion by our partners will attract new fans and sponsors and benefit ISC through incremental ticket sales and marketing partnerships", Mr. France concluded.
The management of ISC will host a conference call today with investors at 9:00 a.m. Eastern Time which may also be accessed via the Internet at: http://www.vcall.com.
International Speedway Corporation is a leading promoter of motorsports activities in the United States, currently promoting more than 100 events annually. The Company owns and/or operates 11 major motorsports facilities, including Daytona International Speedway in Florida (home of the Daytona 500); Talladega Superspeedway in Alabama; Michigan Speedway located outside Detroit, Michigan; California Speedway near Los Angeles, California; Homestead-Miami Speedway in Florida; Phoenix International Raceway in Arizona; Richmond International Raceway in Virginia; Darlington Raceway in South Carolina; North Carolina Speedway in Rockingham, North Carolina; Watkins Glen International in New York, and Nazareth Speedway in Pennsylvania. In addition, the Company is developing a superspeedway in Kansas City, Kansas. Other track interests include the operation of Tucson (Arizona) Raceway Park and an indirect 37.5% interest in Raceway Associates, LLC, which owns the Route 66 Raceway and is developing a superspeedway in the Chicago area. The Company also owns and operates MRN Radio, the nation’s largest independent sports radio network; DAYTONA USA, the "Ultimate Motorsports Attraction" in Daytona Beach, Florida, the official attraction of NASCAR; Americrown Service Corporation, a provider of catering services, food and beverage concessions, and merchandise sales, and Motorsports International, a producer and marketer of motorsports-related merchandise. For more information, visit the Company’s Web site at www.iscmotorsports.com
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Three months ended |
Six months ended |
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05/31/1999 |
05/31/2000 |
05/31/1999 |
05/31/2000 |
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(Unaudited) |
(Unaudited) |
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REVENUES |
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Admissions, net |
$20,665 |
$43,064 |
$58,279 |
$91,658 |
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Motorsports related income |
16,005 |
38,219 |
50,449 |
83,993 |
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Food, beverage, and merchandise income |
7,479 |
16,237 |
18,313 |
32,474 |
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Other income |
486 |
1,228 |
830 |
2,218 |
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44,635 |
98,748 |
127,871 |
210,343 |
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EXPENSES |
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Direct race expenses: |
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NASCAR direct expenses |
6,645 |
15,386 |
19,449 |
34,178 |
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Motorsports related expenses |
10,420 |
21,610 |
21,500 |
38,752 |
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Food, beverage, and merchandise expenses |
4,126 |
9,502 |
9,365 |
18,055 |
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General and administrative expenses |
9,952 |
17,553 |
20,206 |
36,634 |
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Depreciation and amortization |
3,905 |
12,467 |
7,531 |
25,307 |
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Total expenses |
35,048 |
76,518 |
78,051 |
152,926 |
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Operating income |
9,587 |
22,230 |
49,820 |
57,417 |
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Interest income |
2,627 |
1,869 |
4,713 |
3,418 |
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Interest expense |
-628 |
-7,868 |
-925 |
-15,930 |
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Equity in net loss from equity investments |
-491 |
-477 |
-466 |
-1,029 |
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Minority interest |
-- |
36 |
-- |
299 |
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North Carolina Speedway litigation |
-- |
-5,523 |
-- |
-5,523 |
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Income before income taxes |
11,095 |
10,267 |
53,142 |
38,652 |
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Income taxes |
4,251 |
6,545 |
20,359 |
18,833 |
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Net income |
$6,844 |
$3,722 |
$32,783 |
$19,819 |
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Basic and diluted earnings per share |
$0.16 |
$0.07 |
$0.76 |
$0.37 |
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Dividends per share |
$0.06 |
$0.06 |
$0.06 |
$0.06 |
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Basic weighted average shares |
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; |
42,883 |
52,967 |
42,871 |
52,958 |
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Diluted weighted average 0; |
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outstanding |
43,001 |
53,046 |
42,998 |
53,043 |
Consolidated Balance Sheet Data
(In thousands)
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November 30,
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May 31, 2000
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Cash, cash equivalents and |
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short-term investments |
$38,501 |
$51,010 |
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Current assets |
64,975 |
94,897 |
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Restricted investments |
295,929 |
65,486 |
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Total assets |
1,599,127 |
1,649,533 |
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Deferred income |
77,119 |
130,492 |
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Current liabilities |
116,872 |
169,001 |
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Long-term debt |
496,067 |
475,641 |
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Shareholders’ equity |
902,470 |
919,606 |
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FOR: International Speedway
Corporation
APPROVED BY: Wes Harris, Director of Investor Relations
(904) 947-6465
CONTACT: Betsy Brod/Karen Pagonis
Media: Michael
McMullan/Jennifer Kirksey
Morgen-Walke Associates, Inc.
FOR IMMEDIATE RELEASE
(212) 850-5600
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Copyright © 2000 |
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