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International Speedway Corporation Reports Results for the Fourth Quarter and Full Year of Fiscal 2008


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DAYTONA BEACH, Fla., January 29, 2009: International Speedway Corporation today reported results for the fourth quarter and full year ended November 30, 2008.

"Given the impact the economic environment had on consumers and our corporate partners in 2008, we were pleased with our overall results," said ISC President Lesa France Kennedy. "NASCAR fans remain the most avid and brand loyal in all of sports, and continue to attend live events in huge numbers. They are attracted to a sport that provides thrilling on-track competition by teams of highly-skilled athletes, which has been a hallmark of NASCAR racing for the last 60 years and will continue into the future. This backdrop will serve us well as we operate in a continued challenging landscape during 2009."

Ms. France Kennedy continued, "Clearly we are sensitive to the financial pressures many of our fans are experiencing. To address this, we recently reduced ticket prices on over 150,000 seats, or 15 percent of capacity, for Sprint Cup events across the Company. Additionally, we are working closely with community partners to lower the overall race weekend cost for fans, such as reducing the number of minimum night stays at local hotels. We have seen a strong and favorable response to our efforts, and will continue to look for opportunities to support our fans during these unprecedented times."

Fourth Quarter Comparison

Total revenues for the fourth quarter were $205.3 million, compared to revenues of $252.8 million in the prior-year period. Operating income decreased to $64.9 million during the period compared to $92.7 million in the fourth quarter of fiscal 2007.

In addition to adverse economic conditions affecting consumer and corporate spending, quarter-over-quarter comparability was impacted by:


  --  The NASCAR Sprint Cup and Nationwide series race weekend at Auto Club
      Speedway which was conducted in the third quarter of 2008 as compared
      to the fourth quarter of 2007.

  --  Accelerated depreciation of $0.5 million, or $0.01 per diluted share
      after tax, in the fourth quarter of 2008 for certain office and
      related buildings in Daytona Beach associated with the Company's
      previously announced Daytona Live! project.  The 2007 fourth quarter
      included accelerated depreciation charges of $0.5 million, or $0.01
      per diluted share after tax.

  --  The fourth quarter of 2007 includes impairment charges of $3.9
      million, or $0.05 per diluted share after tax, for costs associated
      with the fill removal process on the Staten Island property and the
      impairment of certain other long-lived assets.  By comparison, the
      2008 fourth quarter includes impairment charges of approximately
      $323,000 to remove the net book value of certain assets retired from
      service.

  --  The 2007 fourth quarter impairment of Motorsports Authentics' ("MA")
      goodwill and intangible assets as of November 30, 2007.  ISC's 50
      percent portion was $34.8 million, or $0.65 per diluted share after
      tax.

  --  A 2007 fourth quarter recognition of a deferred income tax credit of
      $1.6 million, or $0.03 per diluted share after tax, attributable to a
      revision to the income-based tax system in the State of Michigan.  In
      accordance with the enacted legislation, the credit was equal to the
      deferred income tax liability recognized in ISC's 2007 third quarter
      results.

  --  The 2008 fourth quarter includes a charge to provide for working
      capital advances of $2.3 million, or $0.03 per diluted share after
      tax, associated with our joint venture project in Kansas for the
      development of a gaming and entertainment destination.

Net income for the fourth quarter of 2008 increased to $33.6 million, or $0.69 per diluted share, compared to net income of $22.5 million, or $0.43 per diluted share, in the prior year's fourth quarter. Excluding discontinued operations and the aforementioned accelerated deprecation associated with the Daytona Live! project, impairment of long-lived assets and allowances against working capital advances associated with the development of a gaming and entertainment destination, non-GAAP (defined below) net income for the fourth quarter of 2008 was $35.6 million, or $0.73 per diluted share. This is compared to non-GAAP net income for the fourth quarter of 2007 of $57.6 million, or $1.11 per diluted share.

Full Year Comparison

For the year ended November 30, 2008, total revenues were $787.3 million, compared to $814.2 million in 2007. Operating income for the fiscal year was $235.8 million compared to $241.7 million in the prior year.

Year-over-year comparability was impacted by:

  --  Accelerated depreciation charges in fiscal 2008 of $2.1 million, or
      $0.02 per diluted share after tax, associated with the previously
      discussed Daytona Live! project.  Results for the year ended November
      30, 2007, included accelerated depreciation charges of $14.7 million,
      or $0.17 per diluted share after tax.

  --  2008 impairment charges of $2.2 million, or $0.03 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.  Results for the year ended November 30, 2007, included an
      impairment charge of $13.1 million, or $0.16 per diluted share after
      tax related to the Company's decision to discontinue speedway
      development efforts in Kitsap County, Washington, and to a lesser
      extent, estimated costs for fill removal on the Company's Staten
      Island property.

  --  The aforementioned 2007 fourth quarter impairments combined with the
      2007 third quarter write-down by MA of certain inventory and related
      assets, which was included in ISC's equity losses totaled $47.2
      million, or $0.88 per diluted share after tax.

  --  The recognition of a tax benefit of $3.5 million, or $0.07 per diluted
      share after tax, associated with certain restructuring initiatives in
      the third quarter of 2008.

  --  A 2008 first quarter non-cash charge of $3.8 million, or $0.08 per
      diluted share after tax, to correct the carrying value of certain
      other assets as of November 30, 2007.

  --  The aforementioned 2008 fourth quarter costs of $2.3 million, or $0.03
      per diluted share after tax, associated with the pursuit of a casino
      management contract at Wyandotte County, Kansas.
Net income for the year ended November 30, 2008, was $134.6 million, or $2.71 per diluted share, compared to $86.2 million, or $1.64 per diluted share in 2007. Excluding discontinued operations and the aforementioned accelerated depreciation, impairment of long-lived assets, the recognition of a tax benefit, the correction of certain other assets' carrying value amounts, and allowances against working capital advances associated with the development of a gaming and entertainment destination, non-GAAP net income for the year ended November 30, 2008, was $139.1 million, or $2.80 per diluted share. This is compared to non-GAAP net income for the 2007 fiscal year end of $150.0 million, or $2.85 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 2007 adjustments relate to accelerated depreciation of certain office and related building structures in Daytona Beach; impairment of long-lived assets primarily related to ISC's decision to discontinue speedway development efforts in Kitsap County, Washington, and, to a lesser extent, fill removal costs related to the Company's Staten Island property; increased deferred income tax expense related to the change in Michigan state tax laws; and, the impairment of goodwill and intangible assets and write-down of certain inventory and related assets at MA.

The adjustments for 2008 relate to accelerated depreciation of certain office and related buildings in Daytona Beach; the impairment of long-lived assets associated with the fill removal process of the Staten Island property and the net book value of certain assets retired from service; a tax benefit associated with certain restructuring initiatives; a non-cash charge to correct the carrying value of certain other assets; and, an allowance against working capital advances associated with our joint venture project in Kansas for the development of a gaming and entertainment destination.

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.