ISC Acquires Richmond International Raceway; 94,000-Seat Facility Hosts Two NASCAR Winston Cup Series Events Annually
2 December 1999
ISC Acquires Richmond International Raceway; 94,000-Seat Facility Hosts Two NASCAR Winston Cup Series Events Annually
DAYTONA BEACH, Fla.--Dec. 1, 1999--Anticipated 2000 Results
International Speedway Corporation ("ISC") announced today that it has acquired Richmond International Raceway from entities controlled by the Sawyer family. Located 10 miles from downtown Richmond, Virginia, the 3/4-mile intermediate speedway seats over 94,000 grandstand spectators and offers luxury accommodations in the facility's 34 suites. Richmond hosts several major NASCAR events annually including two Winston Cup Series points events, two Busch Series, Grand National Division events, and one NASCAR Craftsman Truck Series event.
"With Richmond, we have acquired a world-class racing facility and have increased our roster of premium events," said James C. France, President and Chief Operating Officer of ISC. "The facility enjoys a successful history of hosting NASCAR Winston Cup events dating back to 1953. The Richmond market's passion for motorsports entertainment has resulted in extensive waiting lists for both Winston Cup events held annually at the facility and strong showings at the track's other motorsports events.
"The track also affords us tremendous expansion opportunities in terms of seat and suite additions, as well as increased fan amenities. In fact, we have already approved the addition of approximately 7,500 grandstand seats prior to the facility's first race weekend of the 2000 season in May."
ISC financed the $215 million transaction through approximately $160 million in borrowings under its revolving credit facility at a variable LIBOR-based rate currently at approximately 7%. Immediately prior to the transaction, the Company had no borrowings under the facility. ISC utilized its cash resources for the remaining $55 million.
Mr. France continued, "We expect the acquisition to be immediately accretive on a cash earnings basis. On a net basis, we anticipate that Richmond will be dilutive in 2000 and will contribute to profitability beginning in 2001.
"We would also note that we remain comfortable with our previously announced guidance on the anticipated impact of the Penske Motorsports, Inc. ("PMI") merger on ISC's expected results for 2000. Since completion of the merger, we have made substantial progress in the integration of PMI's operations and management and are on schedule with the integration process. In addition, we have nearly completed the detailed budgeting process for the coming year. We now anticipate that the combined effect of the PMI and Richmond transactions will result in earnings per share for 2000 that will be approximately 15% lower than expected 1999 results."
Mr. France concluded, "The Richmond and PMI acquisitions offer us exciting new opportunities to leverage our industry and operational expertise as well as our superior financial and managerial resources. With 11 major facilities across the country, we look forward to strong performances from our operations in 2000 as we integrate and enhance our newly acquired facilities and position ISC for the dramatic growth expected in 2001 and beyond."
The management of ISC will host a conference call today with investors at 2:00 p.m. Eastern Time which may also be accessed via the Internet at: http://www.vcall.com.
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 11 major motorsports facilities, including Daytona International Speedway in Florida (home of the Daytona 500); Talladega Superspeedway in Alabama; Michigan Speedway located outside Detroit, Michigan; California Speedway near Los Angeles, California; 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. In addition, the Company is developing a superspeedway in Kansas City, Kansas. Other track interests include the operation of Tucson (Arizona) Raceway Park and an indirect 37.5% interest in Raceway Associates, LLC, which owns the Route 66 Raceway and is developing a superspeedway in the Chicago area. 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 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'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 subsequent10-Q's. Copies of those filings are available from the Company and the SEC.