International Speedway Corporation Reports Q3 Results
6 October 1998
International Speedway Corporation Reports Third Quarter Results
DAYTONA BEACH, Fla.--Oct. 6, 1998--International Speedway Corporation today reported results for the third quarter and nine months ended August 31, 1998.
The Company's results for the 1998 third quarter and nine month periods are not comparable with the corresponding periods from 1997 due to a shift in two major NASCAR Winston Cup Series events -- the Pepsi 400 at Daytona and the Pepsi Southern 500 at Darlington -- from the third quarter in 1997 to the fourth quarter in 1998. The Pepsi 400 at Daytona, originally scheduled for July 4, 1998, was rescheduled for October 17, 1998 due to the government-declared "state of emergency," mandatory evacuations, and related closure of roads and highways as a result of wildfires throughout Florida in early July 1998. The Pepsi Southern 500 at Darlington, held annually over Labor Day weekend, occurred in the fourth quarter of fiscal 1998 due to the timing of Labor Day. The only NASCAR Winston Cup Series event held in both the third quarter of 1997 and 1998 was The Bud at the Glen at Watkins Glen International.
Total revenues for the fiscal 1998 third quarter were $17.8 million compared to $33.1 million in the prior-year period. The Company reported an operating loss of $4.7 million for the 1998 third quarter and a net loss of $1.9 million, or $0.05 per diluted share. Net income for the 1997 third quarter was $6.0 million, or $0.16 per diluted share.
"Our third quarter was unusual and reflected the impact of the devastating wildfires in Florida during the period," said William C. France, Chairman and Chief Executive Officer of International Speedway Corporation. "We continue to expect that the rescheduling of the Pepsi 400 at Daytona will have no material adverse impact on our financial condition or results of operations for the full fiscal year. The costs associated with the postponement of the event and our support of the local firefighting efforts was slightly less than $0.01 per share in the 1998 third quarter.
"During the quarter, we held one NASCAR Winston Cup Series event, The Bud at the Glen at Watkins Glen," Mr. France continued. "The event was a great success and produced record results in revenues and profitability. We also completed a follow-on offering of 4.6 million shares of Class A Common Stock which raised net proceeds of approximately $118 million. As a result of the offering, the Company is in an excellent position to continue to pursue its expansion strategy."
For the nine months ended August 31, 1998, revenues increased to $124.3 million compared to $114.6 million in the prior-year period. Operating income was $36.1 million and net income was $24.3 million, or $0.62 per diluted share. This compares with net income of $27.9 million, or $0.73 per diluted share, for the corresponding period of fiscal 1997. Net income for the nine month period ended August 31, 1998 includes a second quarter after-tax gain of approximately $850,000 related to the previously announced sale of the Company's equity interest in Grand Prix Association of Long Beach, Inc. (formerly Nasdaq: GPLB).
Mr. France concluded, "We are anticipating solid earnings growth in the fourth quarter. The Pepsi Southern 500 at Darlington was a successful start to the quarter, and we are looking forward to the three NASCAR Winston Cup Series events scheduled in October: the Winston 500 at Talladega Superspeedway on October 11th, the Pepsi 400 on the evening of October 17th which will mark the first running of a NASCAR event under the lights at Daytona, and the Dura-Lube 500 at Phoenix International Raceway on October 25th. Ticket sales have been strong, and we are expecting record attendance for all three events."
International Speedway Corporation is a leading promoter of motorsports activities in the United States, currently promoting more than 80 events annually. The Company owns and/or operates five premier motorsports facilities, including Daytona International Speedway in Florida (home of the Daytona 500), Talladega Superspeedway in Alabama, Phoenix International Raceway in Arizona, Darlington Raceway in South Carolina and Watkins Glen International in New York. Other track interests include the operation of Tucson (AZ) Raceway Park, a 45% stake in Metro-Dade Homestead Motorsports Complex, and an approximate 11% holding in Penske Motorsports, Inc. . The Company also owns and operates MRN Radio, the nation's largest independent sports radio network, and DAYTONA USA, the award-winning "Ultimate Motorsports Attraction" in Daytona Beach, FL.
Statements made in this release that state the Company's 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 or implied by such forward looking statements. 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.
INTERNATIONAL SPEEDWAY CORPORATION
Consolidated Statements of Income
(Unaudited)
(In thousands, except for share and per share data)
Three months ended Nine months ended
August 31, August 31,
8/31/98 8/31/97 8/31/98 8/31/97
REVENUES:
Admissions, net $ 5,184 $ 16,337 $ 54,432 $ 56,946
Motorsports related income 9,187 11,159 50,104 37,033
Food, beverage, and
souvenir income 3,054 5,064 18,666 19,362
Other income 397 546 1,095 1,261
17,822 33,106 124,297 114,602
EXPENSES:
Direct race expenses:
Nascar direct expenses 2,443 5,718 19,727 16,831
Motorsports related
expenses 5,449 5,813 22,119 16,520
Food, beverage, and
souvenir expenses 2,288 2,941 10,396 11,264
General & administrative
expenses 9,020 7,161 26,365 20,097
Depreciation & amortization 3,309 2,711 9,593 6,950
22,509 24,344 88,200 71,662
Operating income (loss) (4,687) 8,762 36,097 42,940
Interest income, net 1,385 460 2,013 2,624
Equity in net income (loss)
from equity investments 131 697 (111) (95)
Gain on sale of equity
investment 0 0 1,245 0
Income (loss) before
income taxes (3,171) 9,919 39,244 45,469
Provision for income
taxes (benefit) (1,227) 3,934 14,993 17,523
Net income (loss) $ (1,944) $ 5,985 $ 24,251 $ 27,946
Basic earnings (loss)
per share $ (0.05) $ 0.16 $ 0.62 $ 0.73
Diluted earnings (loss)
per share $ (0.05) $ 0.16 $ 0.62 $ 0.73
Dividends per share $ 0.00 $ 0.00 $ 0.06 $ 0.06
Basic weighted average
shares outstanding 40,864,391 38,189,652 39,100,175 38,184,085
Diluted weighted average
shares outstanding 40,864,391 38,329,197 39,259,164 38,314,226