FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 4, 2000
INTERNATIONAL SPEEDWAY CORPORATION
(Exact name of registrant as specified in its charter)
FLORIDA O-2384 59-0709342
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1801 WEST INTERNATIONAL SPEEDWAY BOULEVARD, DAYTONA BEACH, FLORIDA 32114
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (904) 254-2700
No Change
(Former name or address, if changed since last report)
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
The following Exhibits are provided in accordance with the
provisions of Item 601 of Regulation S-K and are filed herewith unless
otherwise noted.
EXHIBIT INDEX
99.1 Condensed Consolidating Financial Statements of International Speedway
Corporation.
<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: 1/4/2000 By: /s/ Susan G. Schandel
_____________ __________________________________
Susan G. Schandel,
Vice President and Chief Financial Officer
Note 15 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
On October 6, 1999, International Speedway Corporation (the Company) sold $225
million aggregate principal amount of Senior Notes due October 15, 2004 in a
private placement offering. The unsecured Senior Notes bear interest at
7.875% and rank equally with all of the Company's other senior unsecured and
unsubordinated indebtedness. The Senior Notes require semi-annual interest
payments beginning on April 15, 2000 through maturity on October 15, 2004.
The Senior Notes may be redeemed in whole or in part, at the option of the
Company, at any time or from time to time at a redemption price as defined in
the indenture. The Senior Notes are jointly and severally, fully and
unconditionally guaranteed by certain of the Company's wholly-owned
subsidiaries on a senior unsecured basis, pursuant to guaranties. The Senior
Notes also contain various restrictive covenants. In connection with the sale
of the Senior Notes, the Company has entered into a registration rights
agreement pursuant to which the Company has agreed to exchange the Senior
Notes for registered senior notes in a registered exchange offer. Pursuant to
the registered exchange offer, the Company is required to provide condensed
consolidating financial information for its subsidiary guarantors. The
Company has not presented separate financial statements for each of the
guarantors, because it has deemed that such financial statements would not
provide the investors with any material additional information.
Below are condensed consolidating balance sheets as of November 30, 1997 and
1998 and August 31, 1999 (unaudited) and the consolidated statements of income
and cash flows for the year ended August 31, 1996, the three months ended
November 30, 1996, the years ended November 30, 1997 and 1998 and the nine
months ended August 31, 1999 (unaudited), respectively, of: (a) the Parent;
(b) the guarantor subsidiaries; (c) the non-guarantor subsidiaries; (d)
elimination entries necessary to consolidate Parent with guarantor and non-
guarantor subsidiaries; and (e) the Company on a consolidated basis. In the
1997 and 1996 condensed consolidated financial statements all subsidiaries
were guarantors.
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING BALANCE SHEET
August 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------ ------------
(in thousands)
ASSETS
<S> <C> <C> <C> <C> <C>
Current Assets:
Cash and cash equivalents ......................... $ 35,284 $ 22,879 $ 947 $ - $ 59,110
Short-term investments ............................ 681 - - - 681
Receivables, net................................... 14,991 21,609 1,313 (10,191) 27,722
Other current assets .............................. 1,774 14,446 2,742 - 18,962
------------- ------------ ------------ ------------ ------------
Total Current Assets ................................ 52,730 58,934 5,002 (10,191) 106,475
Property and Equipment, net.......................... 161,997 369,938 82,105 - 614,040
Other Assets:
Investment in Subsidiaries......................... 907,977 2,661 - (910,638) -
Equity investments......... ....................... - 11,083 - - 11,083
Goodwill........................................... - 514,676 32,189 - 546,865
Restricted investments............................. - - 96,246 - 96,246
Other ............................................. 6,759 1,315 5,803 - 13,877
------------- ------------ ------------ ------------ ------------
914,736 529,735 134,238 (910,638) 668,071
------------- ------------ ------------ ------------ ------------
Total Assets ........................................ $ 1,129,463 $ 958,607 $ 221,345 $ (920,829) $ 1,388,586
============= ============ ============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and other current liabilities..... $ 2,145 $ 37,275 $ 5,546 $ (10,192) $ 34,774
Deferred income ................................... 58,488 37,264 18,904 - 114,656
------------- ------------ ------------ ------------ ------------
Total Current Liabilities ........................... 60,633 74,539 24,450 (10,192) 149,430
Long Term Debt ...................................... 176,000 74,620 149,980 (118,060) 282,540
Deferred Income Taxes ............................... 30,950 35,651 (149) - 66,452
Minority Interest ................................... - - 2,178 - 2,178
Shareholders' Equity:
Class B Common Stock............................... 303 - - - 303
Class A Common Stock............................... 228 - - - 228
Additional paid-in capital ........................ 687,321 - - - 687,321
Intercompany capital............................... - 765,698 26,001 (791,699) -
Retained earnings ................................. 176,131 8,099 18,885 (878) 202,237
------------- ------------ ------------ ------------ ------------
863,983 773,797 44,886 (792,577) 890,089
Less unearned compensation......................... (2,103) - - - (2,103)
------------- ------------ ------------ ------------ ------------
Total Shareholders' Equity .......................... 861,880 773,797 44,886 (792,577) 887,986
------------- ------------ ------------ ------------ ------------
Total Liabilities and Shareholders' Equity .......... $ 1,129,463 $ 958,607 $ 221,345 $ (920,829) $ 1,388,586
============= ============ ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING BALANCE SHEET
November 30, 1998
(Audited)
<TABLE>
<CAPTION>
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------ ------------
(in thousands)
ASSETS
<S> <C> <C> <C> <C> <C>
Current Assets:
Cash and cash equivalents ......................... $ 27,000 $ 11,543 $ 133 $ - $ 38,676
Short-term investments ............................ 54,127 - - - 54,127
Receivables, net................................... 8,469 1,998 - (1,022) 9,445
Other current assets............................... 5,561 1,272 (637) - 6,196
------------- ------------ ------------ ------------ ------------
Total Current Assets ................................ 95,157 14,813 (504) (1,022) 108,444
Property and Equipment, net.......................... 144,006 60,311 21,514 - 225,831
Other Assets:
Investment in Subsidiaries......................... 128,544 2,661 - (131,205) -
Equity investments......... ....................... - 44,087 - - 44,087
Goodwill........................................... - 38,927 - - 38,927
Restricted investments............................. 53,500 - - - 53,500
Other ............................................. 5,937 92 - - 6,029
------------- ------------ ------------ ------------ ------------
187,981 85,767 - (131,205) 142,543
------------- ------------ ------------ ------------ ------------
Total Assets ........................................ $ 427,144 $ 160,891 $ 21,010 $ (132,227) $ 476,818
============= ============ ============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and other current liabilities..... $ 14,400 $ 5,246 $ 77 $ (1,022) $ 18,701
Deferred income ................................... 56,742 5,511 - - 62,253
------------- ------------ ------------ ------------ ------------
Total Current Liabilities ........................... 71,142 10,757 77 (1,022) 80,954
Long Term Debt ...................................... - 71,696 13 (68,934) 2,775
Deferred Income Taxes ............................... 21,251 5,013 (30) - 26,234
Shareholders' Equity:
Class B Common Stock............................... 316 - - - 316
Class A Common Stock............................... 115 - - - 115
Additional paid-in capital ........................ 198,156 6,933 - - 205,089
Intercompany capital............................... - 40,109 21,284 (61,393) -
Retained earnings ................................. 138,030 26,383 (334) (878) 163,201
------------- ------------ ------------ ------------ ------------
336,617 73,425 20,950 (62,271) 368,721
Less unearned compensation......................... (1,866) - - - (1,866)
------------- ------------ ------------ ------------ ------------
Total Shareholders' Equity .......................... 334,751 73,425 20,950 (62,271) 366,855
------------- ------------ ------------ ------------ ------------
Total Liabilities and Shareholders' Equity .......... $ 427,144 $ 160,891 $ 21,010 $ (132,227) $ 476,818
============= ============ ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING BALANCE SHEET
November 30, 1997
(Audited)
<TABLE>
<CAPTION>
COMBINED
PARENT GUARANTOR
COMPANY SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------
(in thousands)
ASSETS
<S> <C> <C> <C> <C>
Current Assets:
Cash and cash equivalents ......................... $ 3,394 $ 6,580 $ - $ 9,974
Short-term investments ............................ 21,606 1,995 - 23,601
Receivables, net................................... 6,016 1,818 (409) 7,425
Other current assets............................... 3,551 1,392 - 4,943
------------- ------------ ------------ ------------
Total Current Assets ................................ 34,567 11,785 (409) 45,943
Property and Equipment, net.......................... 114,048 52,030 - 166,078
Other Assets:
Investment in Subsidiaries......................... 91,755 2,462 (94,217) -
Equity investments......... ....................... - 45,844 - 45,844
Goodwill........................................... - 40,400 - 40,400
Other ............................................. 4,266 292 - 4,558
------------- ------------ ------------ ------------
96,021 88,998 (94,217) 90,802
------------- ------------ ------------ ------------
Total Assets ........................................ $ 244,636 $ 152,813 $ (94,626) $ 302,823
============= ============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and other current liabilities..... $ 6,092 $ 15,898 $ (409) $ 21,581
Deferred income ................................... 44,434 4,904 - 49,338
------------- ------------ ------------ ------------
Total Current Liabilities ........................... 50,526 20,802 (409) 70,919
Long Term Debt ...................................... - 53,442 (52,435) 1,007
Deferred Income Taxes ............................... 15,801 5,189 - 20,990
Shareholders' Equity:
Class B Common Stock............................... 332 - - 332
Class A Common Stock............................... 53 - - 53
Additional paid-in capital ........................ 79,487 6,950 - 86,437
Intercompany capital............................... - 40,904 (40,904) -
Retained earnings ................................. 100,809 25,526 (878) 125,457
------------- ------------ ------------ ------------
180,681 73,380 (41,782) 212,279
Less unearned compensation......................... (2,372) - - (2,372)
------------- ------------ ------------ ------------
Total Shareholders' Equity .......................... 178,309 73,380 (41,782) 209,907
------------- ------------ ------------ ------------
Total Liabilities and Shareholders' Equity .......... $ 244,636 $ 152,813 $ (94,626) $ 302,823
============= ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED AUGUST 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------ ------------
(in thousands)
<S> <C> <C> <C> <C> <C>
Revenues:
Admissions, net.................................... $ 66,923 $ 23,227 $ - $ (14) $ 90,136
Motorsports Related Income......................... 55,941 18,745 84 (1,965) 72,805
Food, Beverage and Merchandise Income.............. 7,754 28,349 1 (6,191) 29,913
Other Income....................................... 1,039 4,730 4 (4,530) 1,243
------------- ------------ ------------ ------------ ------------
Total Revenues................................... 131,657 75,051 89 (12,700) 194,097
Expenses:
Direct Expenses:
Prize and point fund monies and NASCAR sanction fees 18,727 9,525 - - 28,252
Motorsports Related Expenses....................... 25,642 10,230 59 (3,473) 32,458
Food, Beverage and Merchandise Expenses............ 1,990 22,198 - (8,193) 15,995
General and administrative expenses.................. 21,778 14,840 1,230 (1,034) 36,814
Depreciation and Amortization........................ 7,593 6,109 234 - 13,936
------------- ------------ ------------ ------------ ------------
Total Expenses.................................. 75,730 62,902 1,523 (12,700) 127,455
------------- ------------ ------------ ------------ ------------
Operating Income..................................... 55,927 12,149 (1,434) - 66,642
Interest Income...................................... 8,197 461 3,084 (4,959) 6,783
Interest Expense..................................... (999) (3,336) (3,135) 4,959 (2,511)
Equity in net income (loss ) from equity investments. - (1,472) - - (1,472)
Minority interest.................................... - - 77 - 77
------------- ------------ ------------ ------------ ------------
Income (loss) before income taxes 63,125 7,802 (1,408) - 69,519
Income taxes (benefit) 21,954 5,475 (328) - 27,101
------------- ------------ ------------ ------------ ------------
Net income (loss).................................... $ 41,171 $ 2,327 $ (1,080) $ - $ 42,418
============= ============ ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED NOVEMBER 30, 1998
(Audited)
<TABLE>
<CAPTION>
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------ ------------
(in thousands)
<S> <C> <C> <C> <C> <C>
Revenues:
Admissions, net.................................... $ 66,653 $ 20,295 $ - $ (2) $ 86,946
Motorsports Related Income......................... 52,348 20,412 - (967) 71,793
Food, Beverage and Merchandise Income.............. 8,727 27,058 - (7,188) 28,597
Other Income....................................... 1,174 5,369 - (4,911) 1,632
------------- ------------ ------------ ------------ ------------
Total Revenues................................... 128,902 73,134 - (13,068) 188,968
Expenses:
Direct Expenses:
Prize and point fund monies and NASCAR sanction fees 18,289 10,478 - - 28,767
Motorsports Related Expenses....................... 24,283 12,019 25 (3,044) 33,283
Food, Beverage and Merchandise Expenses............ 2,393 21,434 - (8,802) 15,025
General and administrative expenses.................. 26,415 12,312 337 (1,222) 37,842
Depreciation and Amortization........................ 8,342 4,795 - - 13,137
------------- ------------ ------------ ------------ ------------
Total Expenses.................................. 79,722 61,038 362 (13,068) 128,054
------------- ------------ ------------ ------------ ------------
Operating Income..................................... 49,180 12,096 (362) - 60,914
Interest Income...................................... 15,758 565 - (11,909) 4,414
Interest Expense..................................... - (4,304) (1) 3,723 (582)
Equity in net income (loss ) from equity investments. - (905) - - (905)
Gain on sale of equity investments................... - 1,245 - - 1,245
------------- ------------ ------------ ------------ ------------
Income (loss) before income taxes 64,938 8,697 (363) (8,186) 65,086
Income taxes (benefit) 24,472 452 (30) - 24,894
------------- ------------ ------------ ------------ ------------
Net income (loss).................................... $ 40,466 $ 8,245 $ (333) $ (8,186) $ 40,192
============= ============ ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED NOVEMBER 30, 1997
(Audited)
<TABLE>
<CAPTION>
COMBINED
PARENT GUARANTOR
COMPANY SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------
(in thousands)
<S> <C> <C> <C> <C>
Revenues:
Admissions, net.................................... $ 53,245 $ 16,244 $ (2) $ 69,487
Motorsports Related Income......................... 35,911 11,490 (751) 46,650
Food, Beverage and Merchandise Income.............. 6,915 22,774 (6,281) 23,408
Other Income....................................... 1,030 4,772 (3,973) 1,829
------------- ------------ ------------ ------------
Total Revenues................................... 97,101 55,280 (11,007) 141,374
Expenses:
Direct Expenses:
Prize and point fund monies and NASCAR sanction fees 12,388 8,179 - 20,567
Motorsports Related Expenses....................... 18,373 6,745 (2,043) 23,075
Food, Beverage and Merchandise Expenses............ 2,124 19,189 (7,878) 13,435
General and administrative expenses.................. 21,623 8,949 (1,086) 29,486
Depreciation and Amortization........................ 6,912 2,998 - 9,910
------------- ------------ ------------ ------------
Total Expenses.................................. 61,420 46,060 (11,007) 96,473
------------- ------------ ------------ ------------
Operating Income..................................... 35,681 9,220 - 44,901
Interest Income...................................... 4,873 448 (2,125) 3,196
Interest Expense..................................... (28) (2,056) 1,575 (509)
Equity in net income (loss ) from equity investments. - 366 - 366
------------- ------------ ------------ ------------
Income (loss) before income taxes 40,526 7,978 (550) 47,954
Income taxes (benefit) 17,472 686 - 18,158
------------- ------------ ------------ ------------
Net income (loss).................................... $ 23,054 $ 7,292 $ (550) $ 29,796
============= ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED NOVEMBER 30, 1996
(Audited)
<TABLE>
<CAPTION>
COMBINED
PARENT GUARANTOR
COMPANY SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------
(in thousands)
<S> <C> <C> <C> <C>
Revenues:
Admissions, net.................................... $ 820 $ 3,371 $ - $ 4,191
Motorsports Related Income......................... 2,344 1,680 (52) 3,972
Food, Beverage and Merchandise Income.............. 123 1,929 (109) 1,943
Other Income....................................... 480 497 (587) 390
------------- ------------ ------------ ------------
Total Revenues................................... 3,767 7,477 (748) 10,496
Expenses:
Direct Expenses:
Prize and point fund monies and NASCAR sanction fees - 1,301 - 1,301
Motorsports Related Expenses....................... 2,291 755 (232) 2,814
Food, Beverage and Merchandise Expenses............ 177 1,587 (228) 1,536
General and administrative expenses.................. 4,277 1,068 (288) 5,057
Depreciation and Amortization........................ 1,859 494 - 2,353
------------- ------------ ------------ ------------
Total Expenses.................................. 8,604 5,205 (748) 13,061
------------- ------------ ------------ ------------
Operating Income..................................... (4,837) 2,272 - (2,565)
Interest Income...................................... 478 21 (169) 330
Interest Expense..................................... (69) (169) 169 (69)
Equity in net income (loss ) from equity investments. - (304) - (304)
------------- ------------ ------------ ------------
Income (loss) before income taxes (4,428) 1,820 - (2,608)
Income taxes (benefit) (857) 116 - (741)
------------- ------------ ------------ ------------
Net income (loss).................................... $ (3,571) $ 1,704 $ - $ (1,867)
============= ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED AUGUST 31, 1996
(Audited)
<TABLE>
<CAPTION>
COMBINED
PARENT GUARANTOR
COMPANY SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------
(in thousands)
<S> <C> <C> <C> <C>
Revenues:
Admissions, net.................................... $ 42,470 $ 7,674 $ (4) $ 50,140
Motorsports Related Income......................... 24,034 3,926 (527) 27,433
Food, Beverage and Merchandise Income.............. 2,292 16,266 (1,053) 17,505
Other Income....................................... 1,375 2,848 (3,259) 964
------------- ------------ ------------ ------------
Total Revenues................................... 70,171 30,714 (4,843) 96,042
Expenses:
Direct Expenses:
Prize and point fund monies and NASCAR sanction fees 10,043 3,822 - 13,865
Motorsports Related Expenses....................... 13,950 2,697 (1,311) 15,336
Food, Beverage and Merchandise Expenses............ 1,612 11,071 (2,405) 10,278
General and administrative expenses.................. 16,967 5,090 (1,127) 20,930
Depreciation and Amortization........................ 4,465 1,837 - 6,302
------------- ------------ ------------ ------------
Total Expenses.................................. 47,037 24,517 (4,843) 66,711
------------- ------------ ------------ ------------
Operating Income..................................... 23,134 6,197 - 29,331
Interest Income...................................... 7,715 3,703 (10,546) 872
Interest Expense..................................... - (546) 546 -
Equity in net income (loss ) from equity investments. - 1,441 - 1,441
------------- ------------ ------------ ------------
Income (loss) before income taxes 30,849 10,795 (10,000) 31,644
Income taxes (benefit) 11,792 171 - 11,963
------------- ------------ ------------ ------------
Net income (loss).................................... $ 19,057 $ 10,624 $ (10,000) $ 19,681
============= ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED AUGUST 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------ ------------
(in thousands)
<S> <C> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income ........................................... $ 41,171 $ 2,327 $ (1,080) $ - $ 42,418
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation and amortization ........................ 7,593 6,109 234 - 13,936
Amortization of unearned compensation ................ 798 - - - 798
Deferred income taxes ................................ 9,699 (4,510) (119) - 5,070
Undistributed (income) loss from
equity investment................................... - 1,472 - - 1,472
Minority Interest..................................... - (77) - - (77)
Changes in Operating Assets and Liabilities:
Receivables, net.................................... (6,522) (8,628) (16) 9,169 (5,997)
Other current assets................................ 3,787 (3,074) (2,209) - (1,496)
Other assets ....................................... 6,008 (1,427) (5,953) - (1,372)
Accounts payable and other current liabilities...... (11,126) 20,732 1,055 (9,169) 1,492
Deferred income .................................... 1,746 2,688 7,938 - 12,372
------------- ------------ ------------ ------------ ------------
Net Cash Provided by (Used in ) Operating Activities .. 53,154 15,612 (150) - 68,616
INVESTING ACTIVITIES
Change in short term investments, net................. 53,446 500 - - 53,946
Capital expenditures ................................. (25,550) (19,997) (29,840) - (75,387)
Equity investments ................................... - (11,038) - - (11,038)
Increase in restricted investments, net............... 53,500 - (96,246) - (42,746)
Acquisition net of cash acquired ..................... - (134,274) - - (134,274)
Intercompany investing, net........................... (224,912) 161,536 63,376 - -
Other, net............................................ (179) (106) - - (285)
------------- ------------ ------------ ------------ ------------
Net Cash Used in Investing Activities ................ (143,695) (3,379) (62,710) - (209,784)
FINANCING ACTIVITIES
Payment of long term debt............................. (73,479) (1,397) - - (74,876)
Reacquisition of previously issued common stock ...... (1,110) - - - (1,110)
Cash dividends paid ................................... (2,586) - - - (2,586)
Proceeds from long term debt........................... 176,000 500 63,674 - 240,174
------------- ------------ ------------ ------------ ------------
Net Cash Provided by (Used in) Financing Activities..... 98,825 (897) 63,674 - 161,602
------------- ------------ ------------ ------------ ------------
Net Increase in Cash and Cash Equivalents .............. 8,284 11,336 814 - 20,434
Cash and Cash Equivalents at Beginning of Period ....... 27,000 11,543 133 - 38,676
------------- ------------ ------------ ------------ ------------
Cash and Cash Equivalents at End of Period .............$ 35,284 $ 22,879 $ 947 $ - $ 59,110
============= ============ ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED NOVEMBER 30, 1998
(Audited)
<TABLE>
<CAPTION>
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------ ------------
(in thousands)
<S> <C> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income ........................................... $ 40,466 $ 8,245 $ (333) $ (8,186) $ 40,192
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation and amortization ........................ 8,342 4,795 - - 13,137
Amortization of unearned compensation ................ 1,076 - - - 1,076
Deferred income taxes ................................ 5,746 (171) (30) - 5,545
Undistributed (income) loss from
equity investment................................... - 905 - - 905
Gain on sale of equity investment..................... - (1,245) - - (1,245)
Changes in Operating Assets and Liabilities:
Receivables, net.................................... (2,453) (180) - 613 (2,020)
Other current assets ............................... (2,010) 120 637 - (1,253)
Other assets ....................................... (376) 200 - - (176)
Accounts payable and other current liabilities...... 8,504 2,468 77 (613) 10,436
Deferred income .................................... 12,308 607 - - 12,915
------------- ------------ ------------ ------------ ------------
Net Cash Provided by (Used in) Operating Activities .. 71,603 15,744 351 (8,186) 79,512
INVESTING ACTIVITIES
Change in short term investments, net................. (86,021) 7,265 - - (78,756)
Capital expenditures ................................. (38,220) (12,124) (21,514) - (71,858)
Equity investments ................................... - (410) - - (410)
Intercompany investing, net........................... (37,628) 16,332 21,296 - -
Other, net............................................ (1,323) - - - (1,323)
------------- ------------ ------------ ------------ ------------
Net Cash Provided by (Used in) Investing Activities.... (163,192) 11,063 (218) - (152,347)
FINANCING ACTIVITIES
Payment of long term debt............................. (13,658) - - (13,658)
Reacquisition of previously issued common stock ...... (195) - - - (195)
Cash dividends paid .................................. (2,310) (8,186) - 8,186 (2,310)
Issuance of Class A Common Stock...................... 117,700 - - - 117,700
------------- ------------ ------------ ------------ ------------
Net Cash Provided by (Used in) Financing Activities.... 115,195 (21,844) - 8,186 101,537
------------- ------------ ------------ ------------ ------------
Net Increase in Cash and Cash Equivalents ............. 23,606 4,963 133 - 28,702
Cash and Cash Equivalents at Beginning of Period ...... 3,394 6,580 - - 9,974
------------- ------------ ------------ ------------ ------------
Cash and Cash Equivalents at End of Period .............$ 27,000 $ 11,543 $ 133 $ - $ 38,676
============= ============ ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED NOVEMBER 30, 1997
(Audited)
<TABLE>
<CAPTION>
COMBINED
PARENT GUARANTOR
COMPANY SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------
(in thousands)
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income ........................................... $ 23,054 $ 7,292 $ (550) $ 29,796
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation and amortization ........................ 6,912 2,998 - 9,910
Amortization of unearned compensation ................ 1,063 - - 1,063
Deferred income taxes ................................ 1,138 3,287 - 4,425
Undistributed (income) loss from
equity investment................................... 3,290 (3,656) - (366)
Changes in Operating Assets and Liabilities:
Receivables, net.................................... (1,357) 367 323 (667)
Other current assets ............................... (609) 530 (125) (204)
Other assets ....................................... (3) (201) - (204)
Accounts payable and other current liabilities...... 2,370 2,218 (198) 4,390
Deferred income .................................... 10,809 (4,018) - 6,791
------------- ------------ ------------ ------------
Net Cash Provided by (Used in ) Operating Activities . 46,667 8,817 (550) 54,934
INVESTING ACTIVITIES
Change in short term investments, net................. 52,836 (880) - 51,956
Capital expenditures ................................. (30,194) (8,433) - (38,627)
Equity investments ................................... (112) (17,613) - (17,725)
Acquisition of PIR, net of cash acquired.............. - (43,868) - (43,868)
Acquisition of WGI, net of cash acquired.............. - (996) - (996)
Intercompany investing, net........................... (66,667) 66,667 - -
Other, net............................................ (1,253) - - (1,253)
------------- ------------ ------------ ------------
Net Cash Used in Investing Activities ................ (45,390) (5,123) - (50,513)
FINANCING ACTIVITIES
Reacquisition of previously issued common stock ...... (148) - - (148)
Additional expense of Class A Common Stock offering... (46) - - (46)
Cash dividends paid .................................. (2,310) (550) 550 (2,310)
------------ ------------ ------------ ------------
Net Cash Provided by (Used in) Financing Activities... (2,504) (550) 550 (2,504)
------------ ------------ ------------ ------------
Net Increase (Decrease) in Cash and Cash Equivalents .. (1,227) 3,144 - 1,917
Cash and Cash Equivalents at Beginning of Period ....... 4,621 3,436 - 8,057
------------ ------------ ------------ ------------
Cash and Cash Equivalents at End of Period ............. $ 3,394 $ 6,580 - 9,974
============ ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 1996
(Audited)
<TABLE>
<CAPTION>
COMBINED
PARENT GUARANTOR
COMPANY SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------
(in thousands)
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income ........................................... $ (3,571) $ 1,704 $ - $ (1,867)
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation and amortization ........................ 1,859 494 - 2,353
Amortization of unearned compensation ................ 122 - - 122
Deferred income taxes ................................ (786) 20 - (766)
Undistributed (income) loss from
equity investment................................... 45 259 - 304
Changes in Operating Assets and Liabilities:
Receivables, net.................................... (1,090) 1,118 (1,433) (1,405)
Other current assets ............................... (842) 1,525 125 808
Other assets ....................................... 2 (1) - 1
Accounts payable and other current liabilities...... (895) (5,917) 5,288 (1,524)
Deferred income .................................... 12,472 (2,675) - 9,797
------------- ------------ ------------ ------------
Net Cash Provided by (Used in ) Operating Activities .. 7,316 (3,473) 3,980 7,823
INVESTING ACTIVITIES
Change in short term investments, net................. (66,687) (501) - (67,188)
Capital expenditures ................................. (14,775) (89) - (14,864)
Investment in Subsidiaries............................ 3,980 - (3,980) -
Other, net............................................ (1,123) - - (1,123)
------------- ------------ ------------ ------------
Net Cash Used in Investing Activities ................. (78,605) (590) (3,980) (83,175)
FINANCING ACTIVITIES
Issuance of Class A Common Stock...................... 74,367 - - 74,367
Short-term borrowings................................. 7,800 - - 7,800
Repayment of short-term borrowings.................... (7,800) - - (7,800)
------------ ------------ ------------ ------------
Net Cash Provided by Financing Activities.............. 74,367 - - 74,367
------------ ------------ ------------ ------------
Net Increase (Decrease) in Cash and Cash Equivalents .. 3,078 (4,063) - (985)
Cash and Cash Equivalents at Beginning of Period ...... 1,543 7,499 - 9,042
------------ ------------ ------------ ------------
Cash and Cash Equivalents at End of Period ............ $ 4,621 $ 3,436 $ - $ 8,057
============ ============ ============ ============
</TABLE>
<PAGE>
INTERNATIONAL SPEEDWAY CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED AUGUST 31, 1996
(Audited)
<TABLE>
<CAPTION>
COMBINED
PARENT GUARANTOR
COMPANY SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------------- ------------ ------------ ------------
(in thousands)
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income ........................................... $ 19,057 $ 10,624 $ (10,000) $ 19,681
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation and amortization ........................ 4,465 1,837 - 6,302
Amortization of unearned compensation ................ 606 - - 606
Deferred income taxes ................................ 1,440 60 - 1,500
Undistributed (income) loss from
equity investment................................... (310) (1,141) - (1,451)
Changes in Operating Assets and Liabilities:
Receivables, net.................................... (1,939) (1,125) 1,403 (1,661)
Other current assets ............................... 710 (214) (37) 459
Other assets ....................................... (89) (26) - (115)
Accounts payable and other current liabilities...... 1,188 21,185 (21,122) 1,251
Deferred income .................................... 5,224 887 - 6,111
------------- ------------ ------------ ------------
Net Cash Provided by (Used in ) Operating Activities . 30,352 32,087 (29,756) 32,683
INVESTING ACTIVITIES
Change in short term investments, net................. 22,191 637 - 22,828
Capital expenditures ................................. (32,401) (2,383) - (34,784)
Equity investments.................................... - (15,287) - (15,287)
Intercompany investing, net........................... (19,835) 79 19,756 -
Other, net............................................ (725) - - (725)
------------- ------------ ------------ ------------
Net Cash Provided by (Used in) Investing Activities ... (30,770) (16,954) 19,756 (27,968)
FINANCING ACTIVITIES
Reacquisition of previously issued common stock....... (1,708) - - (1,708)
Cash dividends paid................................... (1,836) (10,000) 10,000 (1,836)
------------- ------------ ------------ ------------
Net Cash Provided by (Used in) Financing Activities.... (3,544) (10,000) 10,000 (3,544)
------------- ------------ ------------ ------------
Net Increase (Decrease) in Cash and Cash Equivalents .. (3,962) 5,133 - 1,171
Cash and Cash Equivalents at Beginning of Period ...... 5,505 2,366 - 7,871
------------- ------------ ------------ ------------
Cash and Cash Equivalents at End of Period ............ $ 1,543 $ 7,499 $ - $ 9,042
============= ============ ============ ============
</TABLE>
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors and Shareholders
International Speedway Corporation
We have audited the consolidated balance sheets of International Speedway
Corporation and subsidiaries as of November 30, 1997 and 1998, and the related
consolidated statements of income, shareholders' equity and cash flows for the
year ended August 31, 1996, the three month period ended November 30, 1996,
and the years ended November 30, 1997 and 1998 included in the Company's Form
10-K filed with the SEC for the year ended November 30, 1998 (not presented
herein). Our audits also included the financial statement schedule listed in
the index at Item 14(a). These financial statements and schedule are the
responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the consolidated financial position
of International Speedway Corporation and subsidiaries at November 30, 1997
and 1998, and the consolidated results of their operations and their cash
flows for the year ended August 31, 1996, the three month period ended
November 30, 1996 and the years ended November 30, 1997 and 1998, in
conformity with generally accepted accounting principles. Also, in our
opinion, the related financial statement schedule, when considered in relation
to the basic financial statements taken as a whole, presents fairly in all
material respects the information set forth therein.
Ernst & Young LLP
Jacksonville, Florida
January 22, 1999, except
for Note 15, as to which the
date is December 30, 1999.
