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



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

PR Newswire

DAYTONA BEACH, Fla., Oct. 3, 2013

DAYTONA BEACH, Fla., Oct. 3, 2013 /PRNewswire/ -- International Speedway
Corporation (NASDAQ Global Select Market: ISCA; OTC Bulletin Board: ISCB)
("ISC") today reported financial results for its fiscal third quarter ended
August 31, 2013.

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

"We remain encouraged with our quarter and year-to-date financial results;
generating increased total revenue for the periods," stated ISC Chief
Executive Officer Lesa France Kennedy.  "Adjusting for comparable events, our
attendance revenue, which has been our principal risk, was down less than one
percent for the quarter delivering results within our range of expectations
and showing further signs of stabilization in our business. 

"Also during the quarter, we realized a number of significant objectives that
puts ISC in a much stronger position for the long-term.  NASCAR signed the
largest broadcast rights deals in the sport's 65-year history, providing ISC
contracted revenue through 2024.  With broadcast revenue representing our
largest revenue source, almost 50 percent of total revenue, having this
visibility through 2024 places us in an enviable position compared to other
industries and will provide us unparalleled long-term cash flow.

"We also finalized the sale of our Staten Island property that will provide
ISC with incremental cash flow of roughly $118.0 million over the next several
years while eliminating approximately $4.0 million of annual carrying costs. 
This sale puts us in a strong position to balance the ongoing capital needs of
our business with ancillary growth opportunities, such as the recently
announced ONE DAYTONA project.  We envision this proposed mixed-use and
entertainment destination located directly across from Daytona International
Speedway will become a vibrant and exciting upscale year-round
destination.     

"Also during the quarter, we had one of the most exciting groundbreaking
ceremonies in recent memory to launch DAYTONA Rising.  Today, the
redevelopment of Daytona International Speedway is moving forward on time and
on budget. This historic step will ensure the Speedway remains the unrivaled
pinnacle of motorsports entertainment facilities for years to come.

"We are confident that elevating the fan experience at the most important
motorsports facility in North America will enhance the DAYTONA 500 brand, our
12 other major motorsports facilities' brands and NASCAR's brand.  And,
ultimately we expect it will influence attendance trends, corporate
involvement in the sport and the long-term strength of future broadcast media
rights revenues."

Third Quarter Comparison

Total revenue for the third quarter ended August 31, 2013 was approximately
$117.0 million, compared to revenue of approximately $115.9 million in the
prior-year period.  Operating loss was approximately $13.1 million during the
period compared to operating income of approximately $0.7 million in the third
quarter of fiscal 2012.  Year-over-year comparability was impacted by:

  o The NASCAR Camping World Truck Series event held at Chicagoland Speedway
    in the third quarter of fiscal 2012 was held in the fourth quarter of
    fiscal 2013.
  o During the third quarter of fiscal 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 third
    quarter of fiscal 2012, the Company expensed approximately $1.4 million,
    or $0.01 per diluted share, of similar costs.
  o During the third quarter of fiscal 2013, the Company recognized $0.5
    million in marketing and consulting costs that is included in general and
    administrative expense related to DAYTONA Rising.
  o Accelerated depreciation of $7.4 million, or $0.10 per diluted share, in
    the fiscal third quarter of 2013 was recorded due to shortening the
    service lives of certain assets associated with DAYTONA Rising and
    capacity management initiatives. 
  o During the third quarter of fiscal 2013, the Company recognized
    approximately $8.1 million, or $0.11 per diluted share, of losses
    associated with asset retirements primarily attributable to the removal of
    assets not fully depreciated in connection with DAYTONA Rising, capacity
    management initiatives and other capital improvements.  In the third
    quarter of fiscal 2012, the Company recognized approximately $1.4 million,
    or $0.02 per diluted share, of losses associated with asset retirements
    primarily attributable to the removal of assets not fully depreciated in
    connection with certain capital improvements.

Net loss for the third quarter ended August 31, 2013 was approximately $7.9
million, or $0.17 per diluted share, compared to net loss of approximately
$1.0 million, or $0.02 per diluted share, in the prior year period.  Excluding
certain carrying costs related to the Staten Island property, legal judgment,
marketing and consulting costs incurred with DAYTONA Rising, accelerated
depreciation and losses associated with the retirements of certain other
long-lived assets, non-GAAP (defined below) net income for the third quarter
of 2013 was $2.3 million, or $0.05 per diluted share.  Non-GAAP net income for
the fiscal third quarter of 2012 was $0.6 million, or $0.01 per diluted
share. 

Year-to-Date Comparison

For the nine months ended August 31, 2013, total revenues were $424.0 million,
compared to $422.9 million in 2012.  Operating income for the nine-month
period was $49.2 million compared to $63.6 million in the prior year. 
Year-over-year comparability was impacted by:

  o The aforementioned NASCAR Camping World Truck Series event held at
    Chicagoland Speedway in the third quarter of fiscal 2012 was held in the
    fourth quarter of fiscal 2013.
  o During the nine months ended August 31, 2013, the Company expensed
    approximately $2.8 million, or $0.04 per diluted share, of certain ongoing
    carrying costs related to its Staten Island property.  During the nine
    months ended August 31, 2012, the Company expensed approximately
    $3.1 million, or $0.04 per diluted share, of certain ongoing carrying
    costs related to its Staten Island property.
  o During the nine months ended August 31, 2013, the Company recognized
    approximately $0.5 million, or $0.01 per diluted share, related to a
    judgment following litigation involving certain ancillary facility
    operations. For the comparable period in 2012, the Company recognized
    approximately $1.2 million, or $0.02 per diluted share, related to a
    settlement of litigation involving certain ancillary facility operations.
  o During the nine months ended August 31, 2013, the Company recognized
    $1.1 million, or $0.01 per diluted share, in marketing and consulting
    costs that is included in general and administrative expense related to
    DAYTONA Rising.
  o Accelerated depreciation of $7.4 million, or $0.10 per diluted share, in
    the fiscal third quarter of 2013 was recorded due to shortening the
    service lives of certain assets associated with DAYTONA Rising and
    capacity management initiatives. 
  o During the nine months ended August 31, 2013, the Company recognized
    approximately $10.4 million, or $0.13 per diluted share, of losses
    associated with asset retirements primarily attributable to the removal of
    assets not fully depreciated in connection with DAYTONA Rising, capacity
    management initiatives and other capital improvements.  During the nine
    months ended August 31, 2012, the Company recognized approximately
    $7.1 million, or $0.09 per diluted share, of losses associated with asset
    retirements primarily attributable to the removal of assets not fully
    depreciated in connection with certain capital improvements.
  o During the nine months ended August 31, 2012, the Company recognized
    approximately $9.1 million in expenses, or $0.12 per diluted share,
    related to the redemption of its remaining $87.0 million principal
    5.40 percent Senior Notes.
  o During the nine months ended August 31, 2012, the Company recorded
    approximately $0.9 million, or $0.01 per diluted share, net gain on the
    sale of certain assets.   

Net income for the nine months ended August 31, 2013 was $28.1 million, or
$0.60 per diluted share, compared to a net income of $29.8 million, or $0.64
per diluted share in 2012.  Excluding certain carrying costs related to the
Staten Island property, legal judgment, marketing and consulting costs
incurred with DAYTONA Rising, accelerated depreciation and losses associated
with the retirement of certain other long-lived assets, non-GAAP (defined
below) net income for the for the nine months ended August 31, 2013, was
$41.5 million, or $0.89 per diluted share.  This is compared to non-GAAP net
income for the first nine months of 2012 of $41.8 million, or $0.90 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, settlement of litigation, losses associated with the retirements of
certain other long-lived assets, loss on early redemption of debt, and net
gain on sale of certain assets.

The adjustments for 2013 relate to carrying costs of ISC's Staten Island
property, legal judgment, marketing and consulting costs incurred associated
with DAYTONA Rising, accelerated depreciation, losses associated with the
retirements of certain other long-lived assets and net gain on sale of certain
assets. 

The Company believes such non-GAAP information is useful and meaningful and is
used by investors to assess its core operations, which consist of the ongoing
promotion of racing events at its major motorsports entertainment facilities.
Such non-GAAP information adjusts for items that are not considered to be
reflective of the Company's continuing core operations at its motorsports
entertainment facilities. The Company believes that such non-GAAP information
improves the comparability of its operating results and provides a better
understanding of the performance of its core operations for the periods
presented. The Company uses this non-GAAP information to analyze the current
performance and trends and make decisions regarding future ongoing operations.
This non-GAAP financial information may not be comparable to similarly titled
measures used by other entities and should not be considered as an alternative
to operating income, net income or diluted earnings per share, which are
determined in accordance with GAAP. The presentation of this non-GAAP
financial information is not intended to be considered independent of or as a
substitute for results prepared in accordance with GAAP. The Company uses both
GAAP and non-GAAP information in evaluating and operating its business and as
such deemed it important to provide such information to investors.

 

                                Three Months Ended      Nine Months Ended
                                August 31,  August 31,  August 31,  August 31,
                                2012        2013        2012        2013
                                            (Unaudited)
                                ( In Thousands, Except Per Share Amounts )
Net (loss) income               $ (1,037)   $ (7,866)   $  29,842   $  28,087
Adjustments, net of tax:
Carrying costs related to       825         542         1,864       1,718
Staten Island
Legal settlement/judgment       —           (41)        716         310
DAYTONA Rising project          —           285         —           683
Accelerated depreciation        —           4,511       —           4,511
Losses on asset retirements     858         4,902       4,330       6,297
Loss on early redemption of     —           —           5,568       —
debt
Net gain on sale of certain     —           (81)        (557)       (82)
assets
Non-GAAP net income             $ 646       $ 2,252     $  41,763   $  41,524
Per share data:
Diluted (loss) earnings per     $ (0.02)    $ (0.17)    $  0.64     $  0.60
share
Adjustments, net of tax:
Carrying costs related to       0.01        0.01        0.04        0.04
Staten Island
Legal settlement/judgment       —           —           0.02        0.01
DAYTONA Rising project          —           —           —           0.01
Accelerated depreciation        —           0.10        —           0.10
Losses on asset retirements     0.02        0.11        0.09        0.13
Loss on early redemption of     —           —           0.12        —
debt
Net gain on sale of certain     —           —           (0.01)      —
assets
Non-GAAP diluted earnings per   $ 0.01      $ 0.05      $  0.90     $  0.89
share

 

ISC's corporate sales team continues to secure multi-year deals with its
corporate partners.  Recently it was announced that Richmond International
Speedway and Federated Auto Parts entered into an extension of their
partnership with a new multi-year contract. The partnership began last year
with the inaugural Federated Auto Parts 400, and the extension keeps the
Virginia-based auto parts distributor's name on the traditional September
NASCAR Sprint Cup Series race.  In addition to its contract extension,
Federated Auto Parts, which hosts nearly 2,000 guests in hospitality and
suites on race weekends, will remain the Official Auto Parts Supplier of
Richmond.

From an entitlement perspective, the Company has secured all NASCAR Sprint
Cup, Nationwide and Camping World Truck series event entitlements for the
year, allowing the sales team to focus its resources on prospecting and
growing official status categories. For our 2013 fiscal year, we expect to be
within a couple percentage points of our 2013 target, despite ongoing softness
in media advertising.

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

In June 2013, ISC's board of directors endorsed a capital allocation plan for
fiscal 2013 to fiscal 2017 to not exceed $600.0 million in capital
expenditures over that period.  The five-year capital expenditure plan
encompasses all the capital expenditures for ISC's 13 major motorsports
facilities, including DAYTONA Rising, as well as any equity commitments to
undertake ONE Daytona.  Of the endorsed five-year capital expenditure plan,
DAYTONA Rising will account for between $375.0 million to $400.0 million of
the $600.0 million.   

Capital expenditures for projects at existing facilities, including those
related to DAYTONA Rising, will be approximately $90.0 million for ISC's 2013
fiscal year.  With the majority of the capital expenditures for DAYTONA Rising
occurring in fiscal 2014 and 2015, the Company estimates capital expenditures,
exclusive of capitalized interest, across all of ISC's existing facilities
will be approximately $190.0 million for fiscal 2014 and approximately $180.0
million for fiscal 2015.  With a target completion date of DAYTONA Rising in
January 2016, capital expenditures will then decrease significantly with an
expectation of capital expenditures for projects at all of ISC's existing
facilities, exclusive of capitalized interest, to be between $60.0 to $70.0
million in fiscal 2016 and fiscal 2017.  

For the nine months ended August 31, 2013, the Company spent approximately
$46.9 million on capital expenditures for projects at its existing facilities.
In comparison, the Company spent approximately $48.6 million for the nine
months ended August 31, 2012, on capital expenditures for projects at its
existing facilities.

The Company reviews its capital expenditure program periodically and modifies
it as required to meet current business needs.

DAYTONA Rising: Reimagining an American Icon

DAYTONA Rising is the redevelopment of the frontstretch of Daytona
International Speedway, ISC's 54-year-old flagship motorsports facility, to
enhance the event experience for fans, marketing partners, broadcasters and
the motorsports industry.

The Company currently anticipates DAYTONA Rising to cost between $375.0
million to $400.0 million, excluding capitalized interest, which it expects to
fund from cash on hand, cash from its operations, and it may use borrowings on
its credit facility for a limited period of time. 

Total spending incurred for DAYTONA Rising was $29.4 million and
$44.4 million, during the three and nine months ended August 31, 2013,
respectively.  Based on the Company's current expectations of DAYTONA Rising,
it has identified existing assets that are expected to be impacted by the
redevelopment and that those assets will require accelerated depreciation or
losses on asset retirements, totaling approximately $50.0 million over the
approximate 26-month project time span. During the three and nine months ended
August 31, 2013, the Company recognized accelerated depreciation and non-cash
losses on disposal of assets totaling approximately $4.7 million.

Despite the Company not anticipating the need for additional long-term debt to
fund this project, accounting rules dictate that the Company capitalizes a
portion of the interest on existing outstanding debt during the construction
period.  The Company estimates it will record approximately $22.0 million of
capitalized interest from fiscal 2014 through fiscal 2016, with roughly half
of the capitalized interest will be recorded in fiscal 2015.  In addition
ISC's depreciation expense will increase between $17.0 million to $20.0
million beginning in fiscal 2016 to approximately $90.0 to $105.0 million
annually and then decrease due to lower capital spending to approximately
$95.0 million beginning in fiscal 2019.

The vision for DAYTONA Rising places an emphasis on enhancing the complete fan
experience, beginning with five expanded and redesigned fan entrances, or
injectors.  Each injector will lead directly to a series of escalators and
elevators that will transport fans to any of three different concourse levels,
each featuring spacious and strategically-placed social "neighborhoods" along
the nearly mile-long frontstretch.

A total of 11 neighborhoods, each measuring the size of a football field, will
enable fans to meet and socialize during events without ever missing any
on-track action, thanks to dozens of strategically-placed video screens in
every neighborhood. The central neighborhood, dubbed the "World Center of
Racing," features open sight-lines enabling fans to catch all the on-track
action while celebrating the history of Daytona International Speedway and its
many unforgettable moments throughout more than 50 years of racing.

Every seat in the Speedway frontstretch will be replaced with wider, more
comfortable seating that will provide pristine sight-lines.  There will also
be more restrooms and concession stands per customer throughout the facility. 

The Company expects that by providing its fans with a better experience as
well as an expansive platform for its marketing partners, including an
elevated hospitality experience, DAYTONA Rising, upon completion in 2016, will
provide an immediate incremental lift in Daytona International Speedway's
revenues of approximately $20.0 million, and earnings before interest, taxes,
depreciation and amortization ("EBITDA") lift of approximately $15.0 million
with a mid-single-digit growth rate. The Company also currently anticipates
the project to be accretive to its net income per share within three years of
completion.    

ONE DAYTONA

In August 2013, ISC entered into a 50/50 joint venture ("Joint Venture") with
Atlanta-based Jacoby Development, Inc. ("Jacoby") to develop a mixed-use and
entertainment destination, named ONE DAYTONA, located adjacent to our 188,000
square foot office building, the International Motorsports Center, on 181
acres the Company owns located directly across from its Daytona motorsports
entertainment facility. 

The preliminary conceptual designs for the first phase of ONE DAYTONA include
1.1 million square feet of world-class shopping, fine dining, hotel, theater
and other entertainment. Bass Pro Shops®, America's most popular outdoor
store, and Cobb Theatres, the highly respected Southeastern-based exhibitor,
have both signed letters of intent to anchor ONE DAYTONA. The Joint Venture is
in active discussions with other potential anchor tenants for ONE DAYTONA.

The Company has approved land use entitlements for ONE DAYTONA to allow for up
to 1.4 million square feet of retail/dining/entertainment, 2,500 seats in a
movie theater, 660 hotel rooms, 1,350 units of residential, 567,000 square
feet of additional office space and 500,000 square feet of
commercial/industrial space.

Final designs are being completed for ONE DAYTONA, and the Joint Venture will
incorporate the results of market studies, project costs and financing
structures.  Assuming favorable results, appropriate leasing considerations
and potential local and state support, the Joint Venture expects to move
forward with ONE DAYTONA within the next six to 12 months. The Company
believes that a mixed-use retail/dining/entertainment development located
across from its Daytona motorsports entertainment facility will be a
successful project.

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 operations of the
casino.

For the first nine months of the Company's 2013 fiscal year, it has received
distributions from the casino totaling approximately $13.5 million. Subsequent
to the quarter, the Company received an additional approximate $8.0 million,
bringing the total cash distributions for its 2013 fiscal year from the casino
to ISC of approximately $21.5 million. 

The Company's expectation of its equity income for the year will be
approximately $8.5 million. As previously discussed, the casino, in June 2013,
received a property tax credit as a result of the casino successfully
negotiating a resolution to its property tax appeal. ISC's share of the
resolution of the appeal attributable to prior years' property taxes will
contribute approximately $1.0 million to its fiscal 2013 estimates. 

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 third
quarter.  From December 2006 through August 2013, the Company purchased
approximately 7.1 million shares. 

At the end of fiscal 2013 third 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. 
Due to continued late ticket buying trends with the potential for inclement
weather and its associated impact on ticket sales, as experienced in its
fiscal 2013 fourth quarter at Chicagoland, the Company remains more
comfortable at the low- to mid-range of the guidance.  

ISC's fiscal 2013 non-GAAP earnings per share guidance excludes any
accelerated depreciation associated with shortening certain asset service
lives and future losses on disposals of certain long-lived assets, which could
be recorded as part of capital improvements resulting from removal of assets
prior to the end of their actual useful life; any income statement impact
attributable to the DAYTONA Rising project; legal judgments/settlements; and,
certain carrying costs of its Staten Island property. 

In closing, Ms. France Kennedy stated, "Fan engagement is central to growing
our sport and is fundamental to NASCAR's Industry Action Plan. Focusing on the
event experience will develop a fan's affinity for the sport, and with full
and lively grandstands will confirm the sport's credibility and encourage the
millions of television viewers to leave the living room and seek the at-track
experience. 

"To accomplish this, we have been focusing our efforts on strategic
initiatives, such as DAYTONA Rising and capacity management initiatives as
well as the many other ongoing facility enhancements that are creating a more
personal experience for the fans. We see a tremendous opportunity for the
Company to grow even stronger as we successfully execute these strategic
initiatives." 

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 69156855. 

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, October 17, 2013.  To access, dial (855) 859-2056
and enter the code 69156855, 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, 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)
                            Three Months Ended        Nine Months Ended
                            August 31,   August 31,   August 31,   August 31,
                            2012         2013         2012         2013
                            (Unaudited)
REVENUES:
Admissions, net             $  26,083    $  25,393    $  95,953    $  91,908
Motorsports related         77,979       79,801       284,484      290,452
Food, beverage and          8,922        8,859        32,691       31,767
merchandise
Other                       2,942        2,993        9,791        9,845
                            115,926      117,046      422,919      423,972
EXPENSES:
Direct:
   Prize and point fund
monies and NASCAR           30,147       30,224       104,254      106,713

   sanction fees
   Motorsports related      30,020       30,267       86,744       87,458
   Food, beverage and       7,488        6,947        25,355       23,722
merchandise
General and administrative  26,837       27,451       77,935       79,902
Depreciation and            19,366       27,162       57,992       66,662
amortization
Losses on asset             1,372        8,062        7,075        10,355
retirements
                            115,230      130,113      359,355      374,812
Operating income (loss)     696          (13,067)     63,564       49,160
Interest income             22           19           80           58
Interest expense            (3,714)      (3,765)      (10,055)     (11,606)
Loss on early redemption    —            —            (9,144)      —
of debt
Equity in net income from   868          2,894        1,962        7,145
equity investments
Other                       —            133          916          135
(Loss) income before        (2,128)      (13,786)     47,323       44,892
income taxes
Income taxes                (1,091)      (5,920)      17,481       16,805
Net (loss) income           $  (1,037)   $  (7,866)   $  29,842    $  28,087
Dividends per share         $  —         $  —         $  0.20      $  0.22
(Loss) income per share:
Basic and diluted           $  (0.02)    $  (0.17)    $  0.64      $  0.60
Basic weighted average      46,422,879   46,503,220   46,373,280   46,459,022
shares outstanding
Diluted weighted average    46,422,879   46,503,220   46,383,313   46,474,960
shares outstanding
Comprehensive (loss)        $  (851)     $  (7,702)   $  30,356    $  28,580
income

 

Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Amounts)
                           November 30, 2012  August 31, 2012  August 31, 2013
                           (Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents  $   78,379         $  87,428        $  163,373
Receivables, less          30,830             36,593           34,218
allowance
Inventories                3,020              4,240            3,692
Income taxes receivable    6,202              9,834            28,020
Deferred income taxes      2,029              2,319            2,032
Prepaid expenses and       7,159              19,165           23,735
other current assets
Total Current Assets       127,619            159,579          255,070
Property and Equipment,    1,362,186          1,367,202        1,263,694
net
Other Assets:
Equity investments         146,378            153,655          140,023
Intangible assets, net     178,649            178,658          178,632
Goodwill                   118,791            118,791          118,791
Other                      8,118              7,033            72,522
                           451,936            458,137          509,968
Total Assets               $   1,941,741      $  1,984,918     $  2,028,732
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of         $   2,513          $  2,293         $  2,542
long-term debt
Accounts payable           12,630             25,963           18,416
Deferred income            42,818             81,872           78,945
Income taxes payable       1,507              —                —
Current tax liabilities    434                819              444
Other current liabilities  16,849             15,657           19,083
Total Current Liabilities  76,751             126,604          119,430
Long-Term Debt             274,419            296,410          273,936
Deferred Income Taxes      328,223            323,628          353,442
Long-Term Tax Liabilities  1,790              1,670            2,045
Long-Term Deferred Income  10,455             10,839           9,127
Other Long-Term            1,293              1,695            1,876
Liabilities
Shareholders' Equity:
Class A Common Stock,
$.01 par value,
80,000,000                 260                260              261

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

shares authorized
Additional paid-in         442,474            442,603          444,188
capital
Retained earnings          811,172            786,436          829,030
Accumulated other          (5,296)            (5,427)          (4,803)
comprehensive loss
Total Shareholders'        1,248,810          1,224,072        1,268,876
Equity
Total Liabilities and      $   1,941,741      $  1,984,918     $  2,028,732
Shareholders' Equity

 

Consolidated Statements of Cash Flows
(In Thousands)
                                              Nine Months Ended
                                              August 31, 2012  August 31, 2013
                                              (Unaudited)
OPERATING ACTIVITIES
Net income                                    $   29,842       $   28,087
Adjustments to reconcile net income to net
cash

provided by operating activities:
   Depreciation and amortization              57,992           66,662
   Stock-based compensation                   1,346            1,887
   Amortization of financing costs            1,221            1,056
   Deferred income taxes                      8,043            16,684
   Income from equity investments             (1,962)          (7,145)
   Distribution from equity investee          —                9,000
   Loss on asset retirements, non-cash        5,480            6,738
   Other, net                                 (820)            (93)
   Changes in operating assets and
liabilities:
      Receivables, net                        (495)            (3,388)
      Inventories, prepaid expenses and       (11,908)         (11,369)
other assets
      Accounts payable and other liabilities  (4,273)          4,426
      Deferred income                         36,415           34,799
      Income taxes                            (7,306)          (14,519)
Net cash provided by operating activities     113,575          132,825
INVESTING ACTIVITIES
Capital expenditures                          (48,648)         (46,880)
Distribution from equity investee and         —                4,500
affiliate
Equity investments and advances to affiliate  (51,556)         —
Proceeds from sale of Staten Island property  —                5,322
Other, net                                    1,408            142
Net cash used in investing activities         (98,796)         (36,916)
FINANCING ACTIVITIES
Payment under credit facility                 (60,000)         —
Proceeds from credit facility                 130,000          —
Payment of long-term debt                     (87,517)         (505)
Deferred financing fees                       (73)             —
Exercise of Class A common stock options      —                78
Cash dividend paid                            (9,283)          (10,229)
Reacquisition of previously issued common     (10,556)         (259)
stock
Net cash used in financing activities         (37,429)         (10,915)
Net (decrease) increase in cash and cash      (22,650)         84,994
equivalents
Cash and cash equivalents at beginning of     110,078          78,379
period
Cash and cash equivalents at end of period    $   87,428       $   163,373

 

SOURCE International Speedway Corporation

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