International Speedway Corporation Reports Record Third Quarter Results
DAYTONA BEACH, Fla.--Oct. 9, 2001--International Speedway Corporation ("ISC") today reported record results for the third quarter and nine months ended August 31, 2001.Total revenues for the 2001 third quarter increased to $132.1 million from $107.2 million in 2000. Operating income for the third quarter increased to $39.4 million compared to $27.5 million in the prior-year period. Net income was $21.8 million, or $0.41 per diluted share, compared to $12.8 million, or $0.24 per diluted share, in the 2000 third quarter.
For the nine months ended August 31, 2001, total revenues increased to $364.8 million from $317.5 million in 2000. Operating income for the nine-month period increased to $111.3 million compared to $84.9 million in the prior year. Net income was $57.8 million, or $1.09 per diluted share, versus $32.6 million, or $0.61 per diluted share, for the comparable period in 2000. Excluding a one-time litigation judgment after-tax charge of $5.2 million in the second quarter of 2000, net income for the nine-month period of 2000 would have been $37.8 million, or $0.71 per diluted share.
ISC hosted eleven major event weekends at several facilities during the third quarter, including Michigan, Richmond, Daytona, Watkins Glen and Nazareth. The NASCAR Winston Cup Series anchored five of the successful event weekends, with capacity crowds on hand for Michigan's two Winston Cup events. The third quarter also marked the much-anticipated opening of the Kansas and Chicagoland Speedways, with both facilities receiving high marks from the fans, drivers and media. Kansas Speedway opened on June 2nd with a double-header featuring exciting ARCA RE/MAX and NASCAR Winston West racing. The facility's successful inaugural season continued in July with a sold-out weekend of exciting Indy Racing Northern Light Series and NASCAR Craftsman Truck Series competition. Also in July, a capacity crowd at Chicagoland Speedway witnessed the top talent of NASCAR competing for bragging rights in the facility's inaugural Winston Cup and Busch Series races.
"In addition to a significant increase in television broadcast rights fees, during the third quarter we benefited from better than expected inaugural merchandise sales associated with the opening of Kansas and Chicagoland. These two new world-class facilities are located in key media markets which expand our premier portfolio of racing facilities and events while broadening our marketing reach and appeal," commented Mr. James C. France, President and Chief Operating Officer of International Speedway Corporation.
To date, ISC has hosted four major event weekends for the fourth quarter, highlighted by sold-out crowds at Chicagoland Speedway, Richmond International Raceway and Kansas Speedway, as well as attendance increases at Darlington Raceway. Five major events are slated for the remainder of the quarter, including back-to-back Winston Cup race weekends at Talladega Superspeedway, Phoenix International Raceway, North Carolina Speedway and Homestead-Miami Speedway, as well as a CART event weekend at California Speedway.
"We are pleased with the performance of our events held to date this quarter. In addition, we expect our fourth quarter to be positively impacted by NASCAR's media rights agreements as well as corporate marketing partnerships which extend beyond race entitlements," continued Mr. France. "Currently, we have approximately 75 corporate partners that work with us on a multi-track basis, including companies such as Home Depot, Pfizer, Dodge, UPS, SunTrust and Microsoft. In addition, recently signed multi-year Winston Cup race entitlement agreements with Electronic Arts in Talladega, Protection One in Kansas, and Checker Auto Parts in Phoenix will contribute to the Company's performance beginning in the fourth quarter."
Although operating in a challenging economic environment, the Company currently expects to generate earnings for the 2001 fourth quarter in line with its previously announced earnings guidance of $0.54 to $0.56 per diluted share.
"We posted solid results for the third quarter and anticipate a strong finish to the year," continued Mr. France. "As we look to fiscal 2002, we continue to assess the impact of the economy and world events on certain aspects of our business, particularly in the areas of ticket pricing, seating capacity and corporate spending. To best position the Company in this challenging operating environment, we are maintaining our disciplined approach to supply and demand as we budget capital spending for fiscal 2002. As such, we currently do not anticipate any seating additions for 2002 and are scaling back other capital spending plans as well."
Mr. France further commented, "We continue to aggressively market our premiere network of facilities and events to corporate partners who can benefit from our major market presence and geographic diversification, as well as access to the most loyal, attractive fan base in sports. In addition, television viewership for the NASCAR Winston Cup Series continues to exceed expectations, with average households increasing approximately 40% from the prior year as a result of FOX and NBC's increased promotional activities and top-quality coverage combined with exciting on-track competition. This should, in the longer term, generate expanded interest for our events from new fans and sponsors."
Mr. France concluded, "We expect certain areas of our business to be impacted by anticipated market conditions in the coming year. As we complete the budgeting process for 2002, we will be in a better position to assess the impact of the economy on our anticipated growth. As we did last year, we will provide specific 2002 financial guidance later this year following completion of the budget."
The management of ISC will host a conference call today at 9:00 a.m. Eastern Time, which may also be accessed via the Internet at: http://www.vcall.com. During the call, management will discuss results for the third quarter and its future outlook.
International Speedway Corporation is a leading promoter of motorsports activities in the United States, currently promoting more than 100 events annually. The Company owns and/or operates 12 major motorsports facilities, including Daytona International Speedway in Florida (home of the Daytona 500); Talladega Superspeedway in Alabama; Michigan International Speedway located outside Detroit, Michigan; California Speedway near Los Angeles, California; Kansas Speedway in Kansas City, Kansas; Homestead-Miami Speedway in Florida; Phoenix International Raceway in Arizona; Richmond International Raceway in Virginia; Darlington Raceway in South Carolina; North Carolina Speedway in Rockingham, North Carolina; Watkins Glen International in New York; and Nazareth Speedway in Pennsylvania.
Other track interests include the operation of Tucson (Arizona) Raceway Park and an indirect 37.5% interest in Raceway Associates, LLC, which owns Chicagoland Speedway and Route 66 Raceway in Illinois.
The Company also owns and operates MRN Radio, the nation's largest independent sports radio network; DAYTONA USA, the "Ultimate Motorsports Attraction" in Daytona Beach, Florida, the official attraction of NASCAR; Americrown Service Corporation, a provider of catering services, food and beverage concessions, and merchandise sales, and Motorsports International, a provider of catering services, food and beverage concessions, and a producer and marketer of motorsports-related merchandise. For more information, visit the Company's Web site at www.iscmotorsports.com.
Statements made in this release that state the Company or management's beliefs or expectations and which are not historical facts or which apply 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 the risk factors discussed elsewhere, including, but not limited to, the success of and 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-Q's. 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 made 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.
Consolidated Statements of Income
(In thousands, except for per share data)
Three months ended Nine months ended
8/31/00 8/31/01 8/31/00 8/31/01
------- ------- ------- -------
(Unaudited) (Unaudited)
REVENUES
Admissions, net $ 49,615 $ 56,964 $ 141,273 $ 151,608
Motorsports related
income 36,935 53,215 120,928 159,893
Food, beverage, and
merchandise income 19,704 20,631 52,178 49,629
Other income 921 1,312 3,139 3,677
------- ------- ------- --------
107,175 132,122 317,518 364,807
EXPENSES
Direct race expenses:
NASCAR direct
expenses 14,171 16,803 48,349 56,277
Motorsports related
expenses 21,380 29,071 60,132 70,521
Food, beverage, and
merchandise
expenses 12,247 11,369 30,302 26,760
General and
administrative
expenses 19,275 21,170 55,909 60,004
Depreciation and
amortization 12,617 14,326 37,924 39,954
------- ------- ------- --------
Total expenses 79,690 92,739 232,616 253,516
------- ------- ------- --------
Operating income 27,485 39,383 84,902 111,291
Interest income 1,443 754 4,861 2,963
Interest expense (7,406) (7,575) (23,336) (19,164)
Equity in net income
(loss) from equity
investments 477 4,458 (552) 3,180
Minority interest 238 316 537 901
North Carolina
Speedway litigation 0 0 (5,523) 0
------- ------- ------- --------
Income before
income taxes 22,237 37,336 60,889 99,171
Income taxes 9,454 15,569 28,287 41,354
------- ------- ------- --------
Net income $ 12,783 $ 21,767 $ 32,602 $ 57,817
======= ======= ======= ========
Basic earnings
per share $ 0.24 $ 0.41 $ 0.62 $ 1.09
======= ======= ======= ========
Diluted earnings
per share $ 0.24 $ 0.41 $ 0.61 $ 1.09
======= ======= ======= ========
Dividends per
share $ 0.00 $ 0.00 $ 0.06 $ 0.06
======= ======= ======= ========
Basic weighted
average shares
outstanding 52,967,222 53,000,854 52,961,132 52,994,646
========== ========== ========== ==========
Diluted weighted
average shares
outstanding 53,050,983 53,081,623 53,045,819 53,072,063
========== ========== ========== ==========
Consolidated Balance Sheet Data
(In thousands)
November 30, August 31,
2000 2001
---- ----
(Unaudited)
Cash, cash equivalents and
short-term investments $ 50,792 $ 48,330
Current assets 86,510 110,805
Restricted investments 35,193 5,577
Total assets 1,665,438 1,702,953
Deferred income 111,492 133,942
Current liabilities 140,551 174,046
Long-term debt 470,551 400,615
Shareholders' equity 950,871 1,005,521