International Speedway Corporation Reports Financial Results for the Second Quarter of Fiscal 2009
~ Reiterates Full Year Financial Outlook ~
DAYTONA BEACH, Fla., July 7 -- International Speedway Corporation (OTC:ISCB) (BULLETIN BOARD: ISCB) ("ISC") today reported results for its fiscal second quarter ended May 31, 2009.
"From a core operations standpoint, considering the economic pressures on discretionary consumer and corporate spending, we are pleased with the results of the first six months of fiscal 2009 which are generally in line with our revised expectations," stated ISC Chief Executive Officer Lesa France Kennedy. "While the economic environment is challenging for us, our fans and business partners alike, we remain in a strong financial position to weather this protracted downturn. Our balance sheet was further solidified with the recently announced definitive settlement entered into with the Internal Revenue Service that returned approximately $112 million to the Company. These funds will be used, in part, to pay down debt and make opportunistic open-market share repurchases."
Ms. France Kennedy continued, "While advance ticket sales continue to trail last year's trends considerably, we remain encouraged by the strong ticket demand witnessed in the weeks and days leading up to our events. This was most recently demonstrated in sales for the Coke Zero 400 at Daytona, where robust sales in the last few weeks before the event pushed attendance above our expectations. In addition, we continue to closely analyze our business operations to lower costs where possible and maximize efficiencies. However, it is important to note that the fan experience remains our primary concern and our cost reduction efforts have not been to the detriment of the experience for our guests or business partners. We are cautiously optimistic for a gradual economic recovery beginning next year, and believe we have taken the necessary steps that will allow ISC to emerge a more efficient business positioned for long-term growth."
Second Quarter Comparison
Total revenues for the second quarter decreased to $152.4 million, compared to revenues of $174.9 million in the prior-year period. Operating income was $31.7 million during the period compared to $42.9 million in the second quarter of fiscal 2008. In addition to the macroeconomic challenges, quarter-over-quarter comparability was impacted by:
-- An IndyCar(R) and Grand-Am Rolex Sports Car series weekend held at
Homestead-Miami Speedway in the second quarter of 2008 which will be
held in ISC's fiscal fourth quarter 2009.
-- The 2009 second quarter results include interest income, net of tax,
of approximately $8.9 million, or $0.18 per diluted share after tax,
for interest earned on the deposited funds which were ultimately
returned to the Company as a result of the definitive settlement
agreement entered into with the Internal Revenue Service in connection
with the previously disclosed federal income tax examination for its
1999 through 2005 fiscal years.
-- The second quarter of 2008 included an impairment charge of $1.2
million, or $0.01 per diluted share after tax, related to charges for
the fill removal process on the Company's Staten Island property and,
to a lesser extent, the net book value of certain assets retired from
service.
-- The second quarter of 2009 recognized a $57.3 million, or $1.17 per
diluted share after tax, charge for equity in net loss from equity
investments related to Motorsports Authentics, LLC ("MA"), the
Company's motorsports-related merchandise 50/50 joint venture with
Speedway Motorsports Inc. Included is an approximately $55.6 million,
or $1.14 per diluted share after tax, non-cash charge to reflect an
impairment recognized by ISC on its equity investment in MA. The 2008
second quarter included equity income of $3.0 million, or $0.04 per
diluted share after tax.
Net loss for the second quarter was $31.7 million, or $0.65 per diluted share, compared to net income of $26.0 million, or $0.52 per diluted share, in the prior year. Excluding discontinued operations, the aforementioned interest income from the IRS settlement; impairment charges; operating results from the Company's equity investment including the related impairment taken by ISC; and, accelerated depreciation of $0.5 million, or $0.01 per diluted share after tax, for certain office and related buildings in Daytona Beach associated with the Company's previously announced Daytona Live! project (the 2008 second quarter also included similar accelerated depreciation charges), non-GAAP (defined below) net income for the second quarter of 2009 was $17.0 million, or $0.35 per diluted share. Non-GAAP net income for the second quarter of 2008 was $25.2 million, or $0.50 per diluted share.
Year-to-Date Comparison
For the six months ended May 31, 2009, total revenues were $318.5 million, compared to $368.8 million in 2008. Operating income for the six-month period was $81.7 million compared to $109.8 million in the prior year.
Year-over-year comparability was impacted by:
-- Exceptionally strong consumer and corporate demand for the 50th
running of the DAYTONA 500 and surrounding events in the first quarter
of 2008. The historic race provided unique opportunities to drive
revenue above the otherwise strong appeal of one of sport's most
marquee events.
-- 2008 impairment charges of $1.9 million, or $0.02 per diluted share
after tax, associated with the previously discussed fill removal costs
on Staten Island and net book value of certain assets retired from
service.
-- A 2008 first quarter non-cash charge of $3.8 million, or $0.07 per
diluted share after tax, to correct the carrying value of certain
other assets as of November 30, 2007.
-- The previously mentioned interest earned on the deposited funds
returned to the Company as a result of the definitive settlement
agreement it entered into with the Internal Revenue Service, and the
IndyCar and Grand-Am Rolex Sports Car series weekend moving to the
Company's fiscal 2009 fourth quarter.
-- The six months ended May 31, 2009, included a $58.9 million, or $1.21
per diluted share after tax, charge for equity in net loss from equity
investments related to MA, which includes the previously discussed
impairment on MA. The same period in 2008, included equity income of
$4.8 million, or $0.06 per diluted share after tax.
Net loss for the six months ended May 31, 2009, was $6.6 million, or $0.13 per diluted share, compared to $62.2 million, or $1.23 per diluted share in 2008. Excluding discontinued operations, the aforementioned interest income from the IRS settlement; impairment charges; operating results from the Company's equity investment including the related impairment taken by ISC; and, accelerated depreciation of $1.0 million, or $0.01 per diluted share after tax, for certain office and related buildings in Daytona Beach associated with the Company's previously announced Daytona Live! project (the six months ended May 31, 2008 also included similar accelerated depreciation charges), non-GAAP (defined below) net income for the six months ended May 31, 2009, was $44.2 million, or $0.91 per diluted share. This is compared to non-GAAP net income for the first six months of 2008 of $64.9 million, or $1.29 per diluted share.
GAAP to Non-GAAP Reconciliation
The following financial information is presented below using other than 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 2008 adjustments relate to: a benefit for equity in net income from equity investment; accelerated depreciation for certain office and related buildings in Daytona Beach; the impairment of long-lived assets associated with the fill removal process on the Staten Island property and the net book value of certain assets retired from service; and, a non-cash charge to correct the carrying value of certain other assets.
The adjustments for 2009 relate to: a charge for equity in net loss from equity investment; accelerated depreciation for certain office and related buildings in Daytona Beach; interest earned on the deposited funds returned to the Company as a result of the definitive settlement agreement it entered into with the Internal Revenue Service; and, the impairment of long-lived assets associated with the net book value of certain assets retired from service.
The Company believes such non-GAAP information is useful and meaningful to investors, and is used by investors and ISC to assess core 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.
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
May 31, May 31, May 31, May 31,
2008 2009 2008 2009
-------- -------- -------- --------
Net (loss) income $25,972 $(31,740) $62,183 $(6,594)
Loss from discontinued
operations, net of tax 36 45 67 87
-- -- -- --
Income from continuing operations 26,008 (31,695) 62,250 (6,507)
Equity in net (income) loss from
equity investments, net of tax (1,817) 57,274 (2,919) 58,913
------ ------ ------ ------
Consolidated income from continuing
operations excluding equity in net
(income) loss from equity
investments 24,191 25,579 59,331 52,406
Adjustments, net of tax:
Interest income from IRS
Settlement - (8,923) - (8,923)
Additional depreciation 320 319 640 638
Impairment of long-lived assets 706 9 1,154 52
Correction of certain other
assets' carrying value - - 3,758 -
--- --- ----- ---
Non-GAAP net income $25,217 $16,984 $64,883 $44,173
======= ======= ======= =======
Per share data:
Diluted earnings (loss) per share $0.52 $(0.65) $1.23 $(0.13)
Loss from discontinued
operations, net of tax - - - -
--- --- --- ---
Income from continuing operations 0.52 (0.65) 1.23 (0.13)
Equity in net (income) loss from
equity investments (0.04) 1.17 (0.05) 1.21
----- ---- ----- ----
Consolidated income from continuing
operations excluding equity in net
(income) loss from equity
investments 0.48 0.52 1.18 1.08
Adjustments, net of tax:
Interest income from IRS
Settlement - (0.18) - (0.18)
Additional depreciation 0.01 0.01 0.02 0.01
Impairment of long-lived assets 0.01 0.00 0.02 0.00
Correction of certain other
assets' carrying value - - 0.07 -
--- --- ---- ---
Non-GAAP diluted earnings per
share $0.50 $0.35 $1.29 $0.91
===== ===== ===== =====
Recent Events
During the Company's fiscal second quarter, it hosted a weekend of NASCAR Sprint Cup and Camping World Truck series events at Martinsville Speedway. ISC also hosted Sprint Cup and Nationwide series weekends at Phoenix International Raceway, Talladega Superspeedway, Richmond International Raceway and Darlington Raceway. Kansas Speedway hosted a weekend of NASCAR Camping World Truck and IndyCar series events.
Subsequent to the fiscal second quarter, the Company hosted a Grand-Am Rolex Sports Car Series race at Watkins Glen International; a weekend of NASCAR Sprint Cup and Camping World Truck series events at Michigan International Speedway; an IndyCar weekend at Richmond; and, a NASCAR Sprint Cup, Nationwide and Grand-Am Rolex Sports Car series weekend at Daytona International Speedway.
For the remainder of the third quarter, ISC will host Sprint Cup and Nationwide series weekends at Chicagoland Speedway, Watkins Glen, and Michigan. The Watkins Glen weekend will also include a Grand-Am Rolex Sports Car Series event. Chicagoland will host a weekend of NASCAR Camping World Truck and IndyCar series events in late August. Lastly, through our wholly owned subsidiary, Stock-Car Montreal, the Company will host the third annual NASCAR Nationwide, Grand-Am Rolex Sports Car and NASCAR Canadian Tire series weekend at Circuit Gilles Villeneuve in Montreal, Quebec.
From a marketing partnership perspective, the Company has agreements in place for 94 percent of its revised gross marketing partnership revenue target for fiscal 2009. ISC recently announced event entitlement partners for its NASCAR Nationwide races at Phoenix and Michigan. As a result, ISC has only one Sprint Cup and one Nationwide title sponsorship open at Michigan and Richmond, respectively. The Company expects to announce these agreements in the coming weeks.
"Motorsports and NASCAR racing in particular, remains a viable and proven marketing channel for corporate sponsors looking to build their brands and sell products," stated Ms. France Kennedy. "However, we have recently seen the bankruptcies of both Chrysler and GM, two very high-profile partners in our sport. While this is unfortunate, we are hopeful they will emerge as healthier businesses. From a financial perspective, since less than 10 percent of our gross marketing partner revenue comes from all auto manufacturers, the financial impact of these bankruptcies to ISC is minimal.
"Looking ahead, while future partnerships with the manufacturers will likely be below historical monetary levels, we do not envision either GM or Chrysler will abandon the sport entirely. In addition, we have seen several new partners enter the sport and other existing partners expand their positions, which further demonstrate that our product continues to deliver a tangible return on investment."
Ms. France Kennedy continued, "One area that has the potential to open up our sport to new non-traditional corporate partners is through NASCAR's Green Clean Air initiative. In addition to being a good corporate citizen by taking active steps to improve the environment, we believe ISC's 'Green' efforts will provide a good marketing platform for companies that want to promote their environmentally friendly products and services. The official renewable energy provider at Daytona and Homestead-Miami, NextEra Energy Resources, the nation's largest provider of wind and solar energy, is a good example of a company that is in this niche. We also see this as a logical way for the auto manufacturers to showcase their next generation of fuel-efficient and hybrid vehicles to the most brand loyal fans in all of sports."
Motorsports Authentics
ISC remains committed to the long-term success of MA, but as with any business in this adverse economic environment, management must find the optimal business model for long-term viability. MA's leadership, with support of the joint venture's ownership, is undertaking certain initiatives to make MA a more efficiently operated and profitable company. MA excels in the distribution of merchandise trackside at racing events and in the design and distribution of die-cast vehicles. Both are areas of business in which MA is expected to maintain and grow its leadership position for the foreseeable future.
MA's other current channels of distribution include licensed apparel and memorabilia to mass retailers. In recent months, various approaches have been considered to optimize MA's performance in these distribution channels for its future growth, as well as the benefit of its licensees and the industry as a whole. However, after further analysis, it has become apparent that there is significant risk in future business initiatives in mass apparel, memorabilia and other yet-to-be-developed products that had been previously deemed achievable and included in projections that supported the carrying value of inventory, goodwill and other intangible assets on MA's balance sheet.
This analysis, combined with a less-robust long-term macroeconomic outlook than previously expected, triggered MA's review of certain assets under SFAS 142 and SFAS 144. MA is currently performing an evaluation of impairment on its goodwill, intangible and other long-lived assets, which it expects to be completed by September.
ISC has evaluated the carrying value of its equity investment in MA at May 31, 2009, in accordance with APB 18, "The Equity Method of Accounting for Investments in Common Stock." As a result of this evaluation, the Company recognized an impairment charge of $55.6 million or $1.14 per diluted share after tax, which is included in ISC's equity investment losses for the fiscal quarter ended May 31, 2009.
Ms. France Kennedy added, "The protracted economic downturn has unfortunately exacerbated the financial condition of Motorsports Authentics. While we are disappointed in the joint-venture's performance to date in 2009, we believe that streamlining the operations of MA by focusing on its core competencies will enable it to reduce operating costs and inventory risk, thereby resulting in a leaner and more profitable operation in the future. These are its core competencies that we believe can grow over time."
External Growth and Other Initiatives
Last month, the proposal of ISC's joint venture with The Cordish Company ("Cordish") for the development of a Hard Rock Casino and that of the other casino project proposed for Wyandotte County were endorsed by the Unified Government and sent to the Kansas Lottery Commission for further consideration. The Kansas Lottery Commission is in the process of negotiating management agreements with the respective parties. The Kansas Lottery Commission is also reviewing our proposal and that of the other casino project proposed for Wyandotte County and it will recommend one or both to the Kansas Lottery Gaming Facility Review Board by August 28, for review and background checks by the Kansas Racing and Gaming Commission. The Kansas Lottery Gaming Facility Review Board is expected to take 60 days after receipt of the Kansas Lottery Commission recommendation to award the management agreement and development rights for Wyandotte County. The entire process is expected to be completed by late 2009.
The initial phase of the project, the casino and certain dining and entertainment options on property adjacent to the Kansas Speedway, will comprise approximately 190,000 square feet, and include a 100,000 square foot casino gaming floor with approximately 2,300 slot machines and 86 table games, a high-energy center bar, and dining and entertainment options. This phase is projected to cost approximately $390 million, of which $100 million pertains to land and approximately $42 million is leased gaming equipment. The full budget of all potential phases is projected to be over $700 million, and would be financed by the joint venture. The full proposal contemplates the development, depending upon market conditions and demand, of a hotel, convention facility, and a retail and entertainment district.
Daytona Live!, a mixed-use entertainment destination development that the Company is also pursuing in a 50/50 joint venture with Cordish, is expected to have the ISC and NASCAR headquarters building completed and open in the fourth quarter of 2009. The retail, dining and entertainment portions of this development are experiencing strong interest from a variety of notable national and regional tenants, despite challenges in the economy and the related pullback in retail expansion nationwide. That portion of the project is planned to proceed once sufficient leasing levels have been achieved. It is important to note that the Company is not under a mandatory timetable to get this project completed.
On Staten Island, ISC continues to have discussions with interested buyers for its 676 acre parcel, and remains hopeful that a transaction will occur during this fiscal year.
Capital Spending
The Company continues to estimate between $50 million and $55 million in capital expenditures at its existing facilities for fiscal 2009. Excluded from this estimate is approximately $45 million in spending for ISC's headquarters building as part of Daytona Live!, of which approximately $41 million is funded by the construction loan secured in July 2008. Also excluded is $2 million to $3 million of capitalized costs, including property taxes, for Staten Island. ISC also anticipates other capital spending outside of its existing facilities.
Share Repurchase Program
ISC suspended purchases under the collective $250 million Stock Purchase Plans in September 2008 as a result of its desire to build cash balances due to the challenges facing the credit markets. As a result of its definitive settlement with the Internal Revenue Service in May 2009, the Company reactivated its open market share repurchase programs which allows purchases under certain parameters, including price, corporate and regulatory requirements, capital availability and other market conditions. Currently, there is approximately $42 million in remaining repurchase authority under the Stock Purchase Plans.
Outlook
While the Company expects consumer and corporate spending trends to continue to be impacted by challenging economic conditions throughout the year, ISC reiterates its 2009 total revenue guidance range of $700 million to $720 million. In addition, the Company is maintaining its fiscal 2009 non-GAAP earnings guidance range of $1.80 to $2.00 per diluted share. Given the uncertain economic environment, ISC remains more comfortable at the lower end of the earnings range. The non-GAAP earnings per share estimates exclude additional depreciation associated with the Daytona Live! project; impairment of long-lived assets associated with the net book value of assets retired from service; interest earned on the deposited funds returned to the Company as a result of the definitive settlement agreement it entered into with the Internal Revenue Service; and, the operating results from ISC's equity investment in MA.
In closing, Ms. France Kennedy added, "We continue to manage our business with a long-term view and with prudent financial discipline, which has served us well during this economic downturn. In addition, the sport of NASCAR remains healthy and continues to provide fans with an outstanding on-track product, while solidly remaining the number two sport on television. We remain bullish on the motorsports industry in the long term, and our management team remains focused driving future revenue by providing superior, innovative and thrilling experiences for our guests and partners."
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 16479135. A live Webcast will also be available at that time on the Company's Web site, www.iscmotorsports.com, under the "Investor Relations" section.
A replay will be available two hours after the end of the call through midnight Tuesday, July 14, 2009. To access, dial toll free (800) 642-1687 and enter the code 16479135, 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(R) in Florida (home of the DAYTONA 500(R)); Talladega Superspeedway(R) in Alabama; Michigan International Speedway(R) located outside Detroit; Richmond International Raceway(R) in Virginia; Auto Club Speedway of Southern California(SM) near Los Angeles; Kansas Speedway(R) in Kansas City, Kansas; Phoenix International Raceway(R) in Arizona; Chicagoland Speedway(R) and Route 66 Raceway(SM) near Chicago, Illinois; Homestead-Miami Speedway(SM) in Florida; Martinsville Speedway(R) in Virginia; Darlington Raceway(R) in South Carolina; and Watkins Glen International(R) in New York. In addition, ISC promotes major motorsports activities in Montreal, Quebec, through its wholly owned subsidiary, Stock-Car Montreal.
The Company also owns and operates MRN(R) Radio, the nation's largest independent sports radio network; the DAYTONA 500 Experience(SM), the "Ultimate Motorsports Attraction" in Daytona Beach, Florida, and official attraction of NASCAR(R); and Americrown Service Corporation(SM), a subsidiary that provides catering services, food and beverage concessions, and produces and markets motorsports-related merchandise. In addition, ISC has an indirect 50 percent interest in Motorsports Authentics(R), which markets and distributes motorsports-related merchandise licensed by certain competitors in NASCAR racing. For more information, visit the Company's Web site at www.iscmotorsports.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 Six Months Ended
May 31, May 31, May 31, May 31,
2008 2009 2008 2009
-------- -------- -------- --------
(Unaudited)
REVENUES:
Admissions, net $53,432 $43,680 $109,545 $91,516
Motorsports related 101,240 92,908 214,085 195,442
Food, beverage and
merchandise 17,738 13,392 40,428 26,801
Other 2,527 2,398 4,738 4,738
----- ----- ----- -----
174,937 152,378 368,796 318,497
EXPENSES:
Direct:
Prize and point fund
monies and NASCAR
sanction fees 34,728 35,390 67,781 69,532
Motorsports related 38,688 31,953 74,024 61,062
Food, beverage and
merchandise 11,747 9,249 24,531 18,726
General and
administrative 28,269 25,569 55,980 50,504
Depreciation and
amortization 17,436 18,489 34,753 36,880
Impairment of long-
lived assets 1,150 15 1,881 85
----- -- ----- --
132,018 120,665 258,950 236,789
------- ------- ------- -------
Operating income 42,919 31,713 109,846 81,708
Interest income and
other 384 230 (2,676) 694
Interest expense (3,294) (5,509) (6,887) (11,779)
Equity in net income
(loss) from equity
investments 2,960 (57,274) 4,754 (58,913)
Minority interest - 163 - 334
--- --- --- ---
Income (loss) from
continuing operations
before income taxes 42,969 (30,677) 105,037 12,044
Income taxes 16,961 1,018 42,787 18,551
------ ----- ------ ------
Income (loss) from
continuing operations 26,008 (31,695) 62,250 (6,507)
Loss from discontinued
operations (36) (45) (67) (87)
--- --- --- ---
Net income (loss) $25,972 $(31,740) $62,183 $(6,594)
------- -------- ------- -------
Basic earnings per share:
Income (loss) from
continuing
operations $0.52 $(0.65) $1.23 $(0.13)
Loss from discontinued
operations - - - -
--- --- --- ---
Net income (loss) $0.52 $(0.65) $1.23 $(0.13)
----- ------ ----- ------
Diluted earnings per share:
Income (loss) from
continuing operations $0.52 $(0.65) $1.23 $(0.13)
Loss from discontinued
operations - - - -
--- --- --- ---
Net income (loss) $0.52 $(0.65) $1.23 $(0.13)
----- ------ ----- ------
Dividends per share $0.12 $0.14 $0.12 $0.14
----- ----- ----- -----
Basic weighted average
shares outstanding 49,836,724 48,565,438 50,379,656 48,557,010
---------- ---------- ---------- ----------
Diluted weighted
average shares
outstanding 49,927,320 48,565,438 50,479,717 48,557,010
---------- ---------- ---------- ----------
Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Amounts)
November 30, 2008 May 31, 2009
----------------- ------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $218,920 $146,336
Short-term investments 200 200
Restricted cash 2,405 802
Receivables, less allowance of $1,200
in 2008 and 2009 47,558 66,897
Receivable from Internal Revenue Service - 111,984
Inventories 3,763 4,080
Deferred income taxes 1,838 2,191
Prepaid expenses and other current assets 7,194 20,138
----- ------
Total Current Assets 281,878 352,628
Property and Equipment, net 1,331,231 1,334,777
Other Assets:
Long-term restricted cash and investments 40,187 26,859
Equity investments 77,613 18,825
Intangible assets, net 178,841 178,790
Goodwill 118,791 118,791
Deposits with Internal Revenue Service 117,936 -
Other 34,342 21,202
------ ------
567,710 364,467
------- -------
Total Assets $2,180,819 $2,051,872
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $153,002 $3,060
Accounts payable 26,393 21,026
Deferred income 103,549 151,925
Income taxes payable 8,659 3,735
Other current liabilities 18,035 22,113
------ ------
Total Current Liabilities 309,638 201,859
Long-Term Debt 422,045 421,019
Deferred Income Taxes 104,172 237,089
Long-Term Tax Liabilities 161,834 22,543
Long-Term Deferred Income 13,646 13,327
Other Long-Term Liabilities 28,125 23,517
Commitments and Contingencies - -
Shareholders' Equity:
Class A Common Stock, $.01 par value,
80,000,000 shares authorized; 27,397,924
and 27,848,593 issued and outstanding
in 2008 and 2009, respectively 274 278
Class B Common Stock, $.01 par value,
40,000,000 shares authorized; 21,150,471
and 20,725,506 issued and outstanding
in 2008 and 2009, respectively 211 207
Additional paid-in capital 497,277 497,496
Retained earnings 665,405 651,957
Accumulated other comprehensive loss (21,808) (17,420)
------- -------
Total Shareholders' Equity 1,141,359 1,132,518
--------- ---------
Total Liabilities and Shareholders' Equity $2,180,819 $2,051,872
---------- ----------
Consolidated Statements of Cash Flows
(In Thousands)
Six Months Ended
May 31, 2008 May 31, 2009
------------ ------------
(unaudited)
OPERATING ACTIVITIES
Net income $62,183 $(6,594)
Adjustments to reconcile net income to net
cash provided by
Operating activities:
Depreciation and amortization 34,753 36,880
Minority interest - (334)
Stock-based compensation 1,616 1,187
Amortization of financing costs 259 270
Translation loss - (74)
Deferred income taxes 7,304 4,650
(Income) Loss from equity investments (4,754) 58,913
Excess tax benefits relating to stock-based
compensation (7) -
Impairment of long-lived assets, non-
cash 460 85
Other, net 3,778 74
Changes in operating assets and
liabilities:
Receivables, net (25,504) (19,380)
Inventories, prepaid expenses and
other assets (8,798) (13,445)
Accounts payable and other
liabilities (7,598) (5,836)
Deferred income 70,775 48,057
Income taxes 13,034 (10,533)
------ -------
Net cash provided by operating activities 147,501 93,920
INVESTING ACTIVITIES
Capital expenditures (69,844) (41,382)
Proceeds from affiliate - 12,500
Advance to affiliate (1,296) (432)
Decrease in restricted cash - 14,931
Proceeds from short-term investments 41,500 -
Purchases of short-term investments (2,450) -
Purchases of equity investments (81) -
Other, net 75 (1,016)
-- ------
Net cash used in investing activities (32,096) (15,399)
FINANCING ACTIVITIES
Proceeds under credit facility 20,000 -
Payments under credit facility (20,000) -
Payment of long-term debt (1,235) (150,859)
Excess tax benefits relating to stock-based
compensation 7 -
Reacquisition of previously issued common
stock (90,397) (246)
------- ----
Net cash used in financing activities (91,625) (151,105)
------- --------
Net increase (decrease) in cash and cash
equivalents 23,780 (72,584)
Cash and cash equivalents at beginning of
period 57,316 218,920
------ -------
Cash and cash equivalents at end of period $81,096 $146,336
------- --------
- 2009 Tokyo Motor Show
- BLOG: Waiting For Freedom From Gasoline
- EV-Motoring - Electric Vehicles
- Automotive News Archive Indexed By Topic
- DECISION INFORMATION AND BUYER EDUCATION
- 2010 New Car Research - 4 Steps To Becoming a Smart(er) Vehicle Buyer
- New Cars and Trucks Listed By Monthly Payments
- Total Cost of Ownership
- Used Car Buyers Guide-1997-2009
- Compare New and Used Cars and Trucks 1997-2010
- 2010 2009 New Car Buyers Guide
- Auto Buyer's Guides by Brand 1997-2010
- Used Car Research Tools
- How to Buy a Safer Car or Truck
- IIHS 2009 Top Safety Picks
- 2009 Hybrid Buyers Guide
- Find MPG 2010-1997 Cars and Trucks
- Used Car Buyers Guide 1997-2009
- Total Cost To Own
- RV Buyer's Guides by Make-Compare Specs Prices
- 2009 Top Car and Truck Safety Picks
- Car and Truck Recalls 2009-1949
- 2010-1993 Car Reviews; 2010-1993 Truck Reviews
- 2009 Fuel Economy Guide
- RV Buyer's Guide-Compare Specs
- Rank 2010 2009 Cars-Rank 2010 2009 Trucks
- MPG-Sedans
- MPG-Minivans
- MPG-SUVs, CUVs
- MPG-Wagons
- MPG-Pickups
- MPG-Convertibles
- Rank Cars and Trucks By Dimensions/Capacities
- New Car Crash Damage Ratings
- Hybrid Car Buyers Guide: Spec-Price-Compare
- Compare Hybrid Vs.Gasoline
- 30+MPG Sedans
- 27+MPG Coupes
- 20+MPG Minivans
- 20+MPG SUVs
- 29+MPG Wagons
- 20+MPG Pickups
- 10+MPG Convertibles
- Compare 2009 6-8 Passenger Vehicles
- Compare 2009 6 Passenger Pick-ups
- Compare "Cost to Drive"
- 2009 Crash Test Results
- ALT FUEL VEHICLES
- Toyota Hybrid Reviews-2010-2000
- Alternative Fuel "Filling" Stations - CNG,H2,E85,LPG
- E85 Filling Stations
- Electric Vehicles Now Being Served
- Alternative Fuels News Daily
- EV-Motoring - Electric Vehicles
- U.S. State and Federal Alt Fuel Tax Incentives and Laws
- 2009 National Clean Energy Project Video Coverage
- Plug-In 2008 Conference Video Coverage
- 2008 Alt Fuel Conference Video Coverage
- 2008 Propane Engine Fuel Summit Video Coverage
- Plug-In Electric Buyers Guide
- AltCar Expo
- Fuels from Alage
- AUTO SHOWS
- 2009 Frankfurt Motor Show
- 2009 New York Auto Show
- 2009 Geneva Motor Show Video Coverage
- 2009 Chicago Auto Show Video Coverage
- 2009 Detroit Auto Show Video Coverage
- 2008 LA Auto Show Video Coverage
- 2008 SEMA Show Video Coverage
- 2008 Geneva Motor Show
- 2008 New York Auto Show
- 2008 Chicago Auto Show
- 2008 Detroit Auto Show
- SMARTER BUYER
- Up and Down Fuel Costs Can Make You GOOFY!
- 2009 Vincentric Best Car and Truck Values in America Awards
- 2008 Vincentric Best Car and Truck Values in America Awards
- Heels On Wheels
- Carz4Girlz
- 2009 2008 Honda Research
- 2009 Sedans MPG
- 2009 Minivans MPG
- 2009 Crossover(CUV) MPG
- 2009 SUV MPG
- 2009 Wagon MPG
- 2009 Pickup MPG
- 2009 Convertibles MPG
- Best Fleet Value in America Awards by Vincentric
- NHTSA Recall Reports
- Auto News By Make
- Aftermarket Universe - Parts and Accesories
- Safer and Tuned-Up Driving - Research Tools
- News For "Auto Enthusiastics"
- Keeping Up! Automania
- Auto Industry News
- Special Research Features and Resources
- Why It's Good?
- TV and Radio Programs
- Motor Sports News and Features
- HAPPIER DRIVING
- Great Drives and Road Trips
- TACH Weather Channel
- 2009 EPA Fuel Economy Guide
- Gas Price Finder
- Tire Safety Guide
- Road Trip Fuel Cost Calculator
- TACH-TIK Driving Directions and Maps
- AUTOPEDIA
- Pissed Off-Op Eds
- The First 100 Years of the Automobile Industry in the United States
- Car and Truck Museums
- Car Art Inc
- The Car Guy® TV and Radio Show Library
- TACH Media Library
- Acura Buyers Guide
- Audi Buyers Guide
- BMW Buyers Guide
- Bentley Buyers Guide
- Buick Buyers Guide
- Cadillac Buyers Guide
- Chevrolet Buyers Guide
- Chrysler Buyers Guide
- Dodge Buyers Guide
- Ford Buyers Guide
- GMC Buyers Guide
- Honda Buyers Guide
- Hummer Buyers Guide
- Hyundai Buyers Guide
- Infiniti Buyers Guide
- Isuzu Buyers Guide
- Jaguar Buyers Guide
- Jeep Buyers Guide
- Kia Buyers Guide
- Lamborghini Buyers Guide
- Land Rover Buyers Guide
- Lexus Buyers Guide
- Lincoln Buyers Guide
- Maserati Buyers Guide
- Maybach Buyers Guide
- Mazda Buyers Guide
- Mercedes-Benz Buyers Guide
- Mercury Buyers Guide
- Mini Buyers Guide
- Mitsubishi Buyers Guide
- Nissan Buyers Guide
- Oldsmobile(RIP)
- Pontiac Buyers Guide
- Porsche Buyers Guide
- Rolls-Royce Buyers Guide
- Saab Buyers Guide
- Saturn Buyers Guide
- Scion Buyers Guide
- Subaru Buyers Guide
- Suzuki Buyers Guide
- Toyota Buyers Guide
- Volkswagen Buyers Guide
- Volvo Buyers Guide
- Airstream Buyers Guide
- Alpha Liesure Buyers Guide
- Beaver Buyers Guide
- Bigfoot Buyers Guide
- Blue Bird Buyers Guide
- Born Free Buyers Guide
- Chinook Buyers Guide
- Coachman Buyers Guide
- Country Coach Buyers Guide
- Crossroads RV Buyers Guide
- Damon Buyers Guide
- Dutchmen Buyers Guide
- Dynamax Buyers Guide
- Fleetwood Buyers Guide
- Forest River Buyers Guide
- Four Winds Buyers Guide
- Georgie Boy Buyers Guide
- Great West Van Buyers Guide
- Gulf Stream Buyers Guide
- Holiday Rambler Buyers Guide
- Park Motorhomes Buyers Guide
- Itasca Buyers Guide
- Jayco Buyers Guide
- K-Z Buyers Guide
- Keystone Buyers Guide
- King of the Road Buyers Guide
- Lazy Daze Buyers Guide
- Leisure Travel Vans Buyers Guide
- Mandalay Buyers Guide
- McKenzie Buyers Guide
- Monaco Buyers Guide
- National RV Buyers Guide
- Newmar Buyers Guide
- NuWa Buyers Guide
- Pleasure-Way Buyers Guide
- R-Vision Buyers Guide
- Rexhall Buyers Guide
- Safari Buyers Guide
- Skyline Buyers Guide
- Sportscoach Buyers Guide
- Sportsmobile Buyers Guide
- Starcraft Buyers Guide
- Sunline Buyers Guide
- Teton Homes Buyers Guide
- Thor Buyers Guide
- Tiffin Buyers Guide
- Travel Supreme Buyers Guide
- Triple E Buyers Guide
- Viking Buyers Guide
- Western RV Buyers Guide
- Winnebago Buyers Guide Buyers Guide