International Speedway Reports Record Third Quarter Results
5 October 2000
International Speedway Corporation Reports Record Third Quarter Results
DAYTONA BEACH, Fla.--Oct. 5, 2000--International Speedway Corporation ("ISC") today reported record results for the third quarter ended August 31, 2000.Total revenues for the third quarter of 2000 rose to $107.2 million from $66.2 million in the third quarter of 1999. Operating income for the third quarter was $27.5 million compared to $16.8 million in the prior year period. Net income totaled $12.8 million, or $0.24 per diluted share, for the third quarter of 2000 versus $9.6 million, or $0.20 per diluted share, in the comparable quarter of 1999. ISC's results for the two periods are not comparable due to the Company's acquisition of Richmond International Raceway on December 1, 1999 and the merger with Penske Motorsports, Inc. completed in the third quarter of 1999.
For the nine month period ended August 31, 2000, total revenues increased to $317.5 million from $194.1 million in 1999. Operating income for the nine month period in 2000 was $84.9 million up from $66.6 million in the comparable 1999 period. Net income for the nine months ended August 31, 2000 was $32.6 million, or $0.61 per diluted share, versus $42.4 million, or $0.96 per diluted share, in the 1999 nine month period. The Company's nine month year-to-date results are not comparable due to the Penske merger, the Richmond acquisition and the litigation judgement after-tax charge of $5.2 million, or $0.10 per diluted share, taken in the second quarter of 2000.
During the third quarter, ISC hosted thirteen major events at four of its facilities. The quarter's events consisted of ten NASCAR sanctioned events, as well as the CART FedEx Championship Series, IROC True Value Series and ARCA Bondo/Mar Hyde Series. Included in the ten NASCAR sanctioned events were four NASCAR Winston Cup Series events, three NASCAR Busch Series, Grand National Division races and three NASCAR Craftsman Truck Series events.
Mr. James C. France, President and Chief Operating Officer of International Speedway Corporation, said, "We are pleased to report that ISC hosted very successful events during the third quarter. The June Michigan weekend featured NASCAR Winston Cup, IROC and ARCA events. Two months later, the Winston Cup returned to Michigan paired with the NASCAR Busch Series. Both weekends of racing were tremendously popular with the fans and experienced record attendance and results. The outstanding performance of these two weekends was somewhat offset by lower than expected attendance-related revenues for the NASCAR Winston Cup Series Pepsi 400 at Daytona International Speedway which we previously announced, and some softness in attendance for the CART event held at Michigan in July."
For the fourth quarter, ISC will conduct 15 major events over seven weekends, including six NASCAR Winston Cup events. Both the NASCAR Winston Cup and Busch Series were on hand at Darlington Raceway in early September for a weekend of exciting on-track competition. Unfortunately, rain throughout the week and during the events negatively affected ticket sales and the financial results of the weekend. A week later the NASCAR triple-header weekend at Richmond International Raceway achieved record financial results. Record weekend attendance culminated in a sold out crowd for Sunday's Winston Cup event, including the addition of 5,600 seats since the events in May.
Mr. France continued, "Five major event weekends are scheduled for the remainder of the fourth quarter, including Winston Cup weekends at Talladega, North Carolina, Phoenix and Miami, as well as a CART weekend at California. Our marketing efforts for the remainder of the fourth quarter are primarily focused on our major event weekends in California and Miami. At California, we are attempting to capitalize on a history of strong on-track competition in our ticket-selling initiatives. In Miami, our marketing efforts are focused on driving ticket sales in our goal to repeat the performance of last year's inaugural event. To build on existing enthusiasm and momentum, we continue with unique and aggressive marketing programs at both locations."
Mr. France further commented, "With respect to our external development projects, we continue to make impressive progress on the construction of our new Kansas City and Chicago facilities with both projects on time and on budget. In addition, our marketing programs at both locations continue to be well received by the marketplace and have exceeded initial expectations. Finally, we continue to work on our one-year feasibility study for the development of a motorsports facility at New Jersey's Meadowlands Sports Complex driven by our goal to bring first-class motorsports entertainment to one of the world's largest media markets."
Mr. France concluded, "2001 brings the debut of our new facilities in Kansas City and Chicago, the addition of new races awarded by major sanctioning organizations at these facilities and others, and the continued support of major corporations through innovative marketing partnerships. Complemented by the significant promotion and exposure generated by the new media landscape and the long-awaited return of Chrysler into Winston Cup competition, we are extremely excited about the opportunities the coming year will bring."
The management of ISC will host a conference call today with investors at 9:00 a.m. Eastern Time which may also be accessed via the Internet at: http://www.vcall.com.
Consolidated Statements of Income
(In thousands, except for per share data)
Three months ended Nine months ended
8/31/99 8/31/00 8/31/99 8/31/00
(Unaudited) (Unaudited)
REVENUES
Admissions, net $ 31,857 $ 49,615 $ 90,136 $ 141,273
Motorsports
related income 22,356 36,935 72,805 120,928
Food, beverage, and
merchandise income 11,600 19,704 29,913 52,178
Other income 413 921 1,243 3,139
66,226 107,175 194,097 317,518
EXPENSES
Direct race expenses:
NASCAR direct expenses 8,803 14,171 28,252 48,349
Motorsports related
expenses 10,958 21,380 32,458 60,132
Food, beverage, and
merchandise expenses 6,630 12,247 15,995 30,302
General and administrative
expenses 16,608 19,275 36,814 55,909
Depreciation and
amortization 6,405 12,617 13,936 37,924
Total expenses 49,404 79,690 127,455 232,616
Operating income 16,822 27,485 66,642 84,902
Interest income 2,070 1,443 6,783 4,861
Interest expense (1,586) (7,406) (2,511) (23,336)
Equity in net income
(loss) from equity
investments (1,006) 477 (1,472) (552)
Minority interest 77 238 77 537
North Carolina Speedway
litigation -- -- -- (5,523)
Income before income
taxes 16,377 22,237 69,519 60,889
Income taxes 6,742 9,454 27,101 28,287
Net income $ 9,635 $ 12,783 $ 42,418 $ 32,602
Basic earnings
per share $ 0.21 $ 0.24 $ 0.96 $ 0.62
Diluted earnings
per share $ 0.20 $ 0.24 $ 0.96 $ 0.61
Dividends per share $ 0.00 $ 0.00 $ 0.06 $ 0.06
Basic weighted average
shares outstanding 46,917,080 52,967,222 44,229,684 52,961,132
Diluted weighted average
shares outstanding 47,040,272 53,050,983 44,355,217 53,045,819
Consolidated Balance Sheet Data
(In thousands)
November 30, August 31,
1999 2000
(Unaudited)
Cash, cash equivalents and
short-term investments $ 38,501 $ 49,495
Current assets 64,975 100,934
Restricted investments 295,929 50,835
Total assets 1,599,127 1,665,517
Deferred income 77,119 130,478
Current liabilities 116,872 167,576
Long-term debt 496,067 476,179
Shareholders' equity 902,470 932,719