International Speedway Corp Reports Record First Quarter Results
8 April 1999
International Speedway Corporation Reports Record First Quarter Results
DAYTONA BEACH, Fla.--April 8, 1999--International Speedway Corporation ("ISC") today reported record results for the first quarter ended February 28, 1999.Total revenues for the 1999 first quarter increased 22% to $83.2 million compared to $68.3 million in the 1998 first quarter. Net income increased 29% to $25.9 million, or $0.60 per diluted share, versus $20.1 million, or $0.53 per diluted share, in the prior-year period. Operating income for the first quarter increased 22% to $40.2 million from $33.0 million.
The strong first quarter results reflect the Company's record revenues generated by the Speedweeks events at Daytona International Speedway. The 18 days of motorsports events from January 28 to February 14, 1999 culminated with the Daytona 500, NASCAR's most prestigious event. The 1999 sold-out Daytona 500 brought record attendance to the track as an additional 13,400 permanent seats were built for this year's race. This boosted grandstand attendance to approximately 156,000 which was supported by the crowd that enjoyed the race from the infield. In addition to the sold-out crowd at the track, 24.6 million people watched the race on CBS. This represents a television viewership record for the event and an approximate 13% increase over last year.
William C. France, Chairman and Chief Executive Officer of International Speedway Corporation, said, "The Company's record performance during the first quarter reflects significant growth in all major revenue categories. The record-breaking success of this year's Speedweeks events demonstrates our effectiveness in capitalizing on the continued increase in the popularity of motorsports entertainment. To further this growth, Daytona International Speedway recently became the first motorsports facility to directly offer major event tickets online, part of our innovative marketing and sales initiatives. We plan to have all of our other major facilities offering on-line ticket sales by the end of 1999."
Mr. France continued, "During the first quarter, we also made considerable progress in our development projects in Kansas City and Chicago. The initial construction phase of the speedway in Kansas is well underway now that all key funding mechanisms are in place, and we have secured a guaranteed maximum price contract on the construction of the facility. With continued progress, we expect to begin racing no later than 2001. Also in the first quarter, the Joliet City Council approved plans of the Motorsports Alliance and Route 66 Raceway, LLC to build a major motorsports facility in the Chicago market with initial capacity for 75,000 spectators. The Motorsports Alliance, which is equally owned by ISC and the Indianapolis Motor Speedway, continues to conduct due diligence on the proposed site with plans to break ground later this year.
"In addition, last month our wholly owned subsidiary, New York International Speedway Corporation, entered into a development agreement with the Trump Organization to identify a site for the development of a major motorsports facility in the metro New York City area. New York is one of the world's largest media markets and represents an exciting opportunity for expansion. We are excited about our expansion efforts at existing, developing, and proposed facilities, as we continue to parallel our growth with the increasing popularity of motorsports."
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 Homestead Speedway, 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, the 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
February 28,
(Unaudited)
2/28/99 2/28/98
REVENUES:
Admissions, net $ 37,614 $ 31,889
Motorsports related income 34,444 27,165
Food, beverage, and souvenir income 10,834 8,966
Other income 344 264
83,236 68,284
EXPENSES:
Direct race expenses:
NASCAR direct expenses 12,804 11,092
Motorsports related expenses 11,080 8,154
Food, beverage, and souvenir
expenses 5,239 4,469
General & administrative expenses 10,254 8,528
Depreciation & amortization 3,626 3,041
Total Expenses: 43,003 35,284
Operating income 40,233 33,000
Interest income 2,086 441
Interest expense (297) (313)
Equity in net income (loss)
from equity investments 25 (421)
Income before income taxes 42,047 32,707
Provision for income taxes 16,108 12,558
Net income $ 25,939 $ 20,149
Basic earnings per share $ 0.61 $ 0.53
Diluted earnings per share $ 0.60 $ 0.53
Basic weighted average shares
outstanding 42,858,839 38,204,357
Diluted weighted average shares
outstanding 42,994,673 38,361,625
Consolidated Balance Sheet Data
(In Thousands)
February 28, November 30,
1999 1998
(Unaudited)
Cash, cash equivalents and
short-term investments $112,058 $92,803
Current assets 129,632 108,444
Restricted investments 112,713 53,500
Total assets 578,531 476,818
Deferred income 55,536 62,253
Current liabilities 83,515 80,954
Long-term debt 71,725 2,775
Shareholders' equity 393,004 366,855