International Speedway Corporation Reports Financial Results For The First Quarter Of Fiscal 2013

  International Speedway Corporation Reports Financial Results For The First
                            Quarter Of Fiscal 2013

~55th DAYTONA 500® was the Highest Rated Since 2008

~Company Reiterates Full-Year Financial Guidance

PR Newswire

DAYTONA BEACH, Fla., April 4, 2013

DAYTONA BEACH, Fla., April 4, 2013 /PRNewswire/ --International Speedway
Corporation (NASDAQ Global Select Market: ISCA; OTC Bulletin Board: ISCB)
("ISC") today reported financial results for its fiscal first quarter ended
February 28, 2013.

(Logo: http://photos.prnewswire.com/prnh/20091005/FL87045LOGO)

"The solid financial performance in the first quarter demonstrates the
continued strength of not only our business but also the motorsports
industry," stated ISC Chief Executive Officer Lesa France Kennedy. "Our first
quarter results, which saw year-over-year growth in total revenues, benefited
from a successful Budweiser Speedweeks at Daytona, highlighted by increased
corporate sponsorship, hospitality and ancillary rights revenues. 'The Great
American Race', with over 31 million people watching a portion of the race,
was the highest-rated Daytona 500 since 2008.

"We continue to support NASCAR's Industry Action Plan on a number of fronts,
which means meeting and exceeding our fans' expectations through on-going
capital enhancements at our motorsports facilities, including at our iconic
Daytona International Speedway. We recognize the prominence of the Daytona
500, which is among the most valuable sporting event brands in the world, and
it is essential that we focus on maintaining and growing its brand. To
accomplish this we are reviewing a proposed redevelopment project at the
legendary speedway. Elevating the live event experience and the value it
represents to our race fans at Daytona, or any of our other major motorsports
facilities, will improve attendance trends, which will ultimately increase
corporate sales and influence the long-term health of broadcast media rights
fees."

First Quarter Comparison

Total revenue for the first quarter ended February 28, 2013 was approximately
$128.6 million, compared to revenue of approximately $127.4 million in the
prior-year period. Operating income was approximately $25.1million during
the period compared to approximately $29.7 million in the first quarter of
fiscal 2012. In addition to the macroeconomic challenges,
quarter-over-quarter comparability was impacted by:

  oDuring the three months ended February28, 2013, the Company expensed
    approximately 0.9 million, or $0.01 per diluted share, of certain ongoing
    carrying costs related to its Staten Island property. During the three
    months ended February29, 2012, ISC expensed approximately $0.7 million,
    or $0.01 per diluted share, of similar costs.
  oDuring the three months ended February28, 2013, the Company recognized
    approximately $0.6million, or $0.01 per diluted share, related to a
    judgment following litigation involving certain ancillary facility
    operations.
  oDuring the three months ended February 28, 2013, the Company recognized
    approximately $1.5million, or $0.02 per diluted share, of losses
    associated with the retirement of long-lived assets primarily attributable
    to the removal of assets not fully depreciated in connection with certain
    capital improvements.
  oFor the three months ended February28, 2013, the Company recognized $0.3
    million in certain costs related to the potential Daytona redevelopment
    project.
  oFor the three months ended February28, 2013, the Company recognized
    approximately $1.0 million of income from equity investments associated
    with its Hollywood Casino at Kansas Speedway. During the three months
    ended February29, 2012, ISC recognized a loss of approximately $0.3
    million from this equity investment, which included results of operations
    beginning in February 2012, net of charges related to certain start up
    costs through the opening.
  oDuring the first quarter of fiscal 2012, the Company recorded
    approximately $0.8 million, or $0.01 per diluted share, net gain on the
    sale of certain assets.

Net income for the first quarter was approximately $13.5 million, or $0.29 per
diluted share, compared to net income of approximately $17.1 million, or $0.37
per diluted share, in the prior year period. Excluding certain carrying costs
related to the Staten Island property; judgment following litigation; losses
associated with the retirement of certain other long-lived assets; and certain
costs associated with our potential Daytona International Speedway
redevelopment, non-GAAP (defined below) net income for the first quarter of
2013 was $15.5 million, or $0.33 per diluted share. Non-GAAP net income for
the fiscal first quarter of 2012 was $17.1 million, or $0.37 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 2012 relate to carrying costs of ISC's Staten Island
property, losses associated with the retirement of certain other long-lived
assets and net gain on sale of certain assets.

The adjustments for 2013 relate to carrying costs of ISC's Staten Island
property, judgment following litigation, losses associated with the retirement
of certain other long-lived assets and certain costs incurred associated with
our potential Daytona International Speedway redevelopment.

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
                                    February29, 2012      February28, 2013
                                    (Unaudited)
                                    ( In Thousands, Except Per Share Amounts )
Net income                          $     17,139           $     13,513
Adjustments, net of tax:
Carrying costs related to Staten    417                    533
Island
Legal judgment                      —                      345
Losses on asset retirements         30                     940
Daytona International Speedway      —                      194
redevelopment
Net gain on sale of certain assets  (511)                  —
Non-GAAP net income                 $     17,075           $     15,525
Per share data:
Diluted earnings per share          $     0.37             $     0.29
Adjustments, net of tax:
Carrying costs related to Staten    0.01                   0.01
Island
Legal judgment                      —                      0.01
Losses on asset retirements         —                      0.02
Daytona International Speedway      —                      0.00
redevelopment
Net gain on sale of certain assets  (0.01)                 —
Non-GAAP diluted earnings per       $     0.37             $     0.33
share

ISC's corporate sales team continues to generate strong levels of interest
from corporate prospects. Entering the 2013 motorsports season, the Company
had less open entitlement inventory compared to the beginning of the 2012
motorsports season. For fiscal 2013, the Company has agreements in place for
approximately 88.0 percent of its gross marketing partnership revenue target.
All of the Company's available NASCAR Sprint Cup Series entitlements have been
sold for the year. The remaining open NASCAR entitlements include one
Nationwide Series and two Camping World Truck Series entitlement.

The Company continues to secure multi-year official status deals and has
recently announced MillerCoors to a multi-year sponsorship renewal that will
keep Miller Lite as the Official Beer of Chicagoland Speedway and Route 66
Raceway.

External Growth 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 customer's expectations, ISC
is committed to improving the guest experience at its facilities through
on-going capital improvements that position it for long-term growth.

For the three months ended February 28, 2013, the Company spent approximately
$6.1 million on capital expenditures for projects at its existing facilities.
In comparison, capital expenditures for the three months ended February 29,
2012, totaled approximately $12.8 million for projects at its existing
facilities.

At February 28, 2013, the Company had approximately $26.7 million remaining in
capital projects currently approved for its existing facilities. These
projects include:

  ograndstand seating enhancements at Talladega;
  ograndstand concourse improvements at Richmond; and
  oimprovements at various facilities for expansion of parking, camping
    capacity and other uses.

As a result of these currently approved projects and anticipated additional
approvals in fiscal 2013, the Company expects its total fiscal 2013 capital
expenditures at its existing facilities will be close to $90.0 million,
depending on the timing of certain projects. The Company reviews the capital
expenditure program periodically and modifies it as required to meet current
business needs.

Daytona International Speedway

The Company is currently in the process of reviewing a proposed redevelopment
project at Daytona International Speedway. While many aspects of this
redevelopment project are yet to be determined including potential capacity
modifications, such a project could include a complete overhaul of the entire
frontstretch grandstand creating a world-class motorsports entertainment
facility. Features such as new seats, suites and guest amenities, as well as
new entry points, improved fan conveyance, a modern exterior, first-class
interior areas, and a redesigned midway for fans would be focal points.

There are multiple internal and external factors that will influence project
feasibility, including a stable economic operating environment and,
preferably, the sale of ISC's Staten Island property. We anticipate that
moving forward with the Daytona International Speedway redevelopment project
would increase the Company's total annual capital expenditures to an average
range of between $100 million to $120 million for several years.

Daytona International Speedway and ISC's operations in Daytona Beach generate
$1.6 billion in annual economic benefit to the state of Florida. As such, the
Company is pursuing a public / private partnership with the state of Florida
to receive a number of incentives including a sales-tax rebate. This is an
identical rebate that has benefited Florida's other professional sports venues
for over two decades. ISC is committed to invest at least $250 million to the
potential partnership and the proposed legislation is currently being reviewed
by the Florida Legislature. The Company is hopeful for a successful outcome
in the near future.

Hollywood Casino at Kansas Speedway

The Hollywood Casino at Kansas Speedway, a 50/50 joint venture with Penn
National Gaming, Inc., which opened in February 2012, features a 95,000
square-foot casino with 2,000 slot machines and 52 table games, a 1,253 space
parking structure as well as a sports-themed bar, dining and entertainment
options. Penn National Gaming, Inc. is responsible for the development and
operation of the casino.

For ISC's 2012 fiscal year, total cash to ISC from the casino JV, including
cash from operations used to complete construction and to fund working
capital, was approximately $15 million. During the fiscal 2013 first quarter,
the Company received a distribution from the casino of approximately $4.5
million. Subsequent to the quarter, ISC received another distribution from the
casino of approximately $5.0 million. For 2013, The Company currently expects
cash distributions from the casino to ISC to be in the $15.0 million to $20.0
million dollar range.

Return of Capital

The Company has authorized its agent to purchase shares under certain
opportunistic parameters, which encompass price, corporate and regulatory
requirements, capital availability and other market conditions. ISC did not
purchase any shares of its Class A common shares during its fiscal 2013 first
quarter. From December 2006 through February 2013, the Company purchased
approximately 7.1 million shares. At the end of fiscal 2013 first quarter,
the Company had approximately $61.7 million in remaining capacity on its
$330.0 million authorization. On a quarterly basis and pursuant to the
trading plan under Rule10b5-1, the Company reviews and adjusts, if necessary,
the parameters of its Stock Purchase Plans.

Outlook

ISC reiterates its 2013 total revenue guidance range of $610.0 million to
$625.0 million. In addition, the Company is maintaining its fiscal 2013 full
year non-GAAP earnings range of $1.35 to $1.55 per diluted share after-tax.

ISC's fiscal 2013 non-GAAP earnings per share guidance excludes any
accelerated depreciation and future impairments / losses on disposals of
certain long-lived assets which could be recorded as part of capital
improvements resulting in removal of assets prior to the end of their actual
useful life; any income statement impact attributable to the Company's
proposed redevelopment project at Daytona International Speedway; legal
judgments/settlements; certain carrying costs as well as any gain or loss on
the sale of its Staten Island property and unanticipated further impairment of
the property.

In closing, Ms. France Kennedy stated, "We are optimistic regarding the
remainder of the motorsports season; however, we realize that our
attendance-related revenues will continue to be a significant near-term
business risk. Fortunately the economy is showing signs of sustained growth.
As it strengthens, we have a tremendous opportunity to grow revenues through
improved consumer and corporate spending trends.

"Our Hollywood Casino at Kansas Speedway joint venture, which provides strong
cash flow, will contribute to earnings and shareholder value for years to
come. There is a tremendous opportunity for the Company to grow even stronger
as we continue to successfully execute our strategic initiatives. With
careful financial oversight, we are well-positioned to balance the ongoing
capital needs of our business as well as our other strategic opportunities,
while returning capital to our shareholders. We benefit from a solid
financial position that we have maintained over the years which allows us to
continue with our disciplined capital allocation strategy to maintain our
leadership position in the industry."

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 28930054.

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 Thursday, April 18, 2013. To access, dial (855) 859-2056 and
enter the code 28930054, 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 California^SM near Los Angeles; Kansas Speedway® in
Kansas City, Kansas; Phoenix International Raceway® in Arizona; Chicagoland
Speedway® and Route 66 Raceway^SM near Chicago, Illinois; Homestead-Miami
Speedway^SM 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 Network^SM, the nation's
largest independent sports radio network and Americrown Service
Corporation^SM, a subsidiary that provides catering services, food and
beverage concessions, and produces and markets motorsports-related
merchandise. In addition, the Company has a 50 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)
(Unaudited)
                                          Three Months Ended
                                          February29, 2012  February28, 2013
REVENUES:
Admissions, net                           $    32,526        $    30,737
Motorsports related                       80,746             84,605
Food, beverage and merchandise            11,045             10,174
Other                                     3,081              3,036
                                          127,398            128,552
EXPENSES:
Direct:
Prize and point fund monies and NASCAR    25,252             26,345
sanction fees
Motorsports related                       21,965             22,302
Food, beverage and merchandise            7,737              7,283
General and administrative                23,236             26,088
Depreciation and amortization             19,459             19,842
Losses on asset retirements               50                 1,545
                                          97,699             103,405
Operating income                          29,699             25,147
Interest income                           27                 20
Interest expense                          (3,437)            (3,962)
Equity in net (loss) income from equity   (301)              1,020
investments
Other                                     839                —
Income before income taxes                26,827             22,225
Income taxes                              9,688              8,712
Net income                                $    17,139        $    13,513
Earnings per share:
Basic and diluted                         $    0.37          $    0.29
Basic weighted average shares             46,391,006         46,423,324
outstanding
Diluted weighted average shares           46,395,912         46,436,343
outstanding
Comprehensive income                      $    17,322        $    13,677



Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
                       November30, 2012  February29, 2012  February28, 2013
ASSETS
Current Assets:
Cash and cash          $   78,379         $   98,742         $   111,269
equivalents
Receivables, less      30,830             89,859             78,957
allowance
Inventories            3,020              4,542              4,190
Income taxes           6,202              —                  5,129
receivable
Deferred income taxes  2,029              2,487              1,870
Prepaid expenses and   7,159              15,433             17,894
other current assets
Total Current Assets   127,619            211,063            219,309
Property and           1,362,186          1,366,356          1,350,921
Equipment, net
Other Assets:
Equity investments     146,378            150,402            142,899
Intangible assets,     178,649            178,689            178,642
net
Goodwill               118,791            118,791            118,791
Other                  8,118              7,745              8,098
                       451,936            455,627            448,430
Total Assets           $   1,941,741      $   2,033,046      $   2,018,660
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of     $   2,513          $   2,275          $   2,522
long-term debt
Accounts payable       12,630             19,034             16,706
Deferred income        42,818             94,278             88,585
Income taxes payable   1,507              1,750              8,694
Current tax            434                755                436
liabilities
Other current          16,849             17,724             21,878
liabilities
Total Current          76,751             135,816            138,821
Liabilities
Long-Term Debt         274,419            343,740            274,261
Deferred Income Taxes  328,223            318,750            328,851
Long-Term Tax          1,790              1,911              1,875
Liabilities
Long-Term Deferred     10,455             11,707             10,355
Income
Other Long-Term        1,293              1,314              1,487
Liabilities
Shareholders' Equity:
ClassA Common Stock,
$.01 par value,
80,000,000             260                260                260

shares authorized
ClassB Common Stock,
$.01 par value,
40,000,000             200                200                200

shares authorized
Additional paid-in     442,474            442,090            442,997
capital
Retained earnings      811,172            783,016            824,685
Accumulated other      (5,296)            (5,758)            (5,132)
comprehensive loss
Total Shareholders'    1,248,810          1,219,808          1,263,010
Equity
Total Liabilities and  $   1,941,741      $   2,033,046      $   2,018,660
Shareholders' Equity



Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
                                          Three Months Ended
                                          February29, 2012  February28, 2013
OPERATING ACTIVITIES
Net income                                $    17,139        $    13,513
Adjustments to reconcile net income to
net cash provided

by operating activities:
Depreciation and amortization             19,459             19,842
Stock-based compensation                  319                523
Amortization of financing costs           349                379
Deferred income taxes                     6,413              710
Loss (income) from equity investments     301                (1,020)
Loss on asset retirements, non-cash       50                 719
Other, net                                (804)              (44)
Changes in operating assets and
liabilities:
Receivables, net                          (53,761)           (48,127)
Inventories, prepaid expenses and other   (10,499)           (12,040)
assets
Accounts payable and other liabilities    1,280              6,116
Deferred income                           49,689             45,667
Income taxes                              1,296              8,424
Net cash provided by operating            31,231             34,662
activities
INVESTING ACTIVITIES
Capital expenditures                      (12,796)           (6,106)
Distribution from equity investee and     —                  4,500
affiliate
Equity investments and advances to        (50,566)           —
affiliate
Other, net                                1,250              —
Net cash used in investing activities     (62,112)           (1,606)
FINANCING ACTIVITIES
Proceeds from credit facility             30,000             —
Payment of long-term debt                 (156)              (166)
Reacquisition of previously issued        (10,299)           —
common stock
Net cash provided by (used in) financing  19,545             (166)
activities
Net (decrease) increase in cash and cash  (11,336)           32,890
equivalents
Cash and cash equivalents at beginning    110,078            78,379
of period
Cash and cash equivalents at end of       $    98,742        $    111,269
period



SOURCE International Speedway Corporation

Website: http://www.internationalspeedwaycorporation.com
Contact: Charles N. Talbert, Senior Director, Investor and Corporate
Communications, (386) 681-4281
 
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