International Speedway Corp Reports Record 4Q and Year-end Results
26 January 1999
International Speedway Corporation Reports Record Fourth Quarter and Year-end Results
DAYTONA BEACH, Fla.--Jan. 26,1999-- International Speedway Corporation today reported record results for the fourth quarter and year ended November 30, 1998.The Company's results for the 1998 fourth quarter are not comparable with the corresponding period 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 held on 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 two NASCAR Winston Cup Series events held in both the fourth quarter of 1997 and 1998 were the Winston 500 at the Talladega Superspeedway and the Dura-Lube 500 presented by Kmart at the Phoenix International Raceway.
Total revenues for the fiscal 1998 fourth quarter increased to $64.7 million compared to $26.8 million in the prior-year period. Net income for the 1998 fourth quarter rose to $15.9 million, or $0.37 per diluted share, versus $1.9 million, or $0.05 per diluted share, in the corresponding quarter of 1997.
For the year ended November 30, 1998, revenues increased 34% to $189.0 million compared to $141.4 million in fiscal 1997. Operating income rose 36% to $60.9 million versus $44.9 million. Fiscal 1998 net income increased 35% to $40.2 million, or $1.00 per diluted share, compared with fiscal 1997 net income of $29.8 million, or $0.78 per diluted share. Net income for fiscal 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.
"We held four NASCAR Winston Cup Series events in the fourth quarter with each one hosting record attendance," said William C. France, Chairman and Chief Executive Officer of International Speedway Corporation. "We are delighted by the success of these events and are especially pleased by the overwhelming fan support of the Pepsi 400 at Daytona. Even with over 20,000 new grandstand seats added since last year's running of the Pepsi 400, this year's event marked the first time that it was sold out. With television ratings up 18% for the event and a sell-out crowd on hand, we look forward to the continued success of the Pepsi 400 at Daytona."
Mr. France continued, "Our successes in the fourth quarter capped off a year characterized by record results and focused growth. Throughout fiscal 1998, we continued to expand and enhance our existing facilities through our extensive capital spending program while pursuing new projects in Kansas City, Kansas and in the Chicago market through The Motorsports Alliance. In July, we raised additional proceeds to fuel our growth and enhanced our stock's trading liquidity through a successful follow-on equity offering."
"As we move into the start of the 1999 racing season, we will build upon the momentum of the successful 1998 season," concluded Mr. France. "A new NASCAR Winston Cup Series event at the Miami-Dade Homestead Motorsports Complex, in which we maintain a 45% interest, as well as a new NASCAR Busch Series, Grand National Division event at our Phoenix facility will add to our exciting portfolio of events. In the coming year, we also look forward to further developing and leveraging our relationships with new sponsors such as Visa and Frontier Corporation. The diverse nature of our sponsors speaks to the attractive fan demographic of motorsports and will continue to serve us well in fiscal 1999.
"Just days ago, the Unified Government of Wyandotte County/Kansas City, Kansas completed its sale of bonds in support of the Kansas City track. This represents a significant milestone in the project in that the key financing mechanisms are now in place. Also last week, The Motorsports Alliance, LLC, which is a 50/50 venture between International Speedway and Indianapolis Motor Speedway Corporation, announced that it has joined with the Route 66 Raceway, LLC to build a new $100 million oval track. The new track will be situated next to the existing Route 66 drag strip in Joliet, Illinois. These plans were unanimously approved by the Joliet City Council. In the coming year, we look forward to further progressing with the development of both of these projects."
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 Miami-Dade Homestead Motorsports Complex, and an approximate 12% 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 "Ultimate Motorsports Attraction" in Daytona Beach, FL, an official attraction of NASCAR.
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 in 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
(In thousands, except for share and per share data)
Three months ended Twelve months ended
November 30, November 30,
(Unaudited)
11/30/98 11/30/97 11/30/98 11/30/97
REVENUES:
Admissions, net $ 32,514 $ 12,541 $ 86,946 $ 69,487
Motorsports related
income 21,689 9,617 71,793 46,650
Food, beverage, and
souvenir income 9,931 4,046 28,597 23,408
Other income 537 568 1,632 1,829
64,671 26,772 188,968 141,374
EXPENSES:
Direct race expenses:
NASCAR direct
expenses 9,040 3,736 28,767 20,567
Motorsports related
expenses 11,164 6,555 33,283 23,075
Food, beverage, and
souvenir expenses 4,629 2,171 15,025 13,435
General & administrative
expenses 11,477 9,389 37,842 29,486
Depreciation &
amortization 3,544 2,960 13,137 9,910
Total Expenses: 39,854 24,811 128,054 96,473
Operating income 24,817 1,961 60,914 44,901
Interest income, net 1,819 63 3,832 2,687
Equity in net income
(loss)from equity
investments (794) 461 (905) 366
Gain on sale of equity
investment 0 0 1,245 0
Income before
income taxes 25,842 2,485 65,086 47,954
Provision for
income taxes 9,901 635 24,894 18,158
Net income $ 15,941 $ 1,850 $ 40,192 $ 29,796
Basic earnings per
share $ 0.37 $ 0.05 $ 1.00 $ 0.78
Diluted earnings
per share $ 0.37 $ 0.05 $ 1.00 $ 0.78
Dividends per
share $ 0.00 $ 0.00 $ 0.06 $ 0.06
Basic weighted average shares
outstanding 42,812,217 38,189,652 40,025,643 38,185,473
Diluted weighted average shares
outstanding 42,987,878 38,343,484 40,188,800 38,339,978
Consolidated Balance Sheet Data
(In Thousands)
At November 30,
1998 1997
Cash, cash equivalents and
short-term investments $92,803 $33,575
Current assets 108,444 45,943
Designated investments 53,500 --
Total assets 476,818 302,823
Deferred income 62,253 49,338
Current liabilities 80,954 70,919
Long-term debt 2,775 1,007
Shareholders' equity 366,855 209,907