EX-99 2 er2q01.htm EARNINGS RELEASE

 

 
FOR:
 International Speedway Corporation
     
 
APPROVED BY: 
 Wes Harris
    Director of Investor Relations
    (386) 947-6465
     
 
CONTACT:
 Julie Truax/Jonathan Schaffer
    Media: Michael McMullan/Kate Talbot
    Morgen-Walke Associates, Inc.
    (212) 850-5600


FOR IMMEDIATE RELEASE  

 

INTERNATIONAL SPEEDWAY CORPORATION REPORTS
RECORD SECOND QUARTER RESULTS
- Kansas and Chicagoland Speedways Completed -

            DAYTONA BEACH, FLORIDA – July 10, 2001 – International Speedway Corporation (“ISC”) (Nasdaq/NM: ISCA; OTC Bulletin Board: ISCB) today reported record results for the second quarter and six months ended May 31, 2001.

Total revenues for the 2001 second quarter increased to $112.0 million from $98.7 million in 2000.  Operating income for the second quarter increased to $27.5 million compared to $22.2 million in the prior-year period.  Net income was $13.3 million, or $0.25 per diluted share, compared to $3.7 million, or $0.07 per diluted share, in the 2000 second quarter.  Last year’s second quarter results included a litigation judgment after-tax charge of $5.2 million.  Excluding this charge, net income for the second quarter of 2000 would have been $8.9 million, or $0.17 per diluted share.

For the six months ended May 31, 2001, total revenues increased to $232.7 million from $210.3 million in 2000.  Operating income for the six-month period increased to $71.9 million compared to $57.4 million in the prior year.  Net income was $36.1 million, or $0.68 per diluted share, versus $19.8 million, or $0.37 per diluted share, for the comparable period in 2000.  Excluding the one-time after-tax charge of $5.2 million in the second quarter of 2000, net income for the six-month period of 2000 would have been $25.0 million, or $0.47 per diluted share.

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ISC REPORTS RECORD SECOND QUARTER RESULTS                                                            PAGE -2-

During the second quarter, ISC hosted a number of successful major event weekends.  The Company posted record results for its NASCAR Winston Cup and Busch Series weekends at Darlington, Talladega, California and Richmond, with sold-out crowds on-hand for the Winston Cup events in California and Richmond.  The second quarter also included exciting weekends of profitable open wheel racing anchored by the Indy Racing Northern Light Series at Phoenix and Miami, with the Phoenix event recording a 25% increase in attendance over the prior year.

 

Mr. James C. France, President and Chief Operating Officer of International Speedway Corporation, commented, “We are pleased to post record results for our second quarter.  In addition to impressive increases in rights fees associated with NASCAR’s new media contracts, during the quarter we increased overall event attendance and established long-term marketing partnerships with new corporate sponsors including Tropicana, Delphi Automotive, Hills Bros Coffee, Ameristar Casino and O’Reilly Auto Parts.  In addition, FOX continued to deliver record ratings for its broadcasts of the Winston Cup and Busch Series before turning the reigns over to NBC and Turner Broadcasting this past weekend.  Beyond the record financial results of the highly competitive Winston Cup Pepsi 400 at Daytona, which met our expectations, we were extremely pleased as NBC’s broadcast of Dale Earnhardt, Jr.’s emotion-filled victory generated a 5.8 overnight rating, representing a 41% increase over the prior year.  We believe NBC’s aggressive promotional campaign and its successful broadcast debut at the Pepsi 400 at Daytona are strong indicators that we will continue to see impressive year-over-year ratings increases during the second half of the racing season.”

Including Daytona’s Pepsi 400 weekend, during the third quarter ending August 31, 2001, ISC will host eleven major event weekends, with five weekends anchored by the Winston Cup Series.  The third quarter also includes inaugural race weekends at both Kansas Speedway and Chicagoland Speedway.

“We are in the midst of a very exciting quarter for the Company, highlighted by the long-anticipated openings of two new world-class speedways,” continued Mr. France.  “On June 2, Kansas Speedway officially opened its gates to eager crowds and exciting ARCA RE/MAX and NASCAR Winston West racing.  The facility’s successful inaugural season continued with last weekend’s Indy Racing Northern Light Series and NASCAR Craftsman Trucks Series events which recorded sold-out crowds.  The positive feedback we have received from the fans, drivers, and media point to an exceptional Winston Cup and Busch Series weekend in September, where capacity crowds will watch as the sport’s biggest stars compete head-to-head at the state-of-the-art speedway.

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ISC REPORTS RECORD SECOND QUARTER RESULTS                                                            PAGE -3-

 “We are also looking forward to the opening of Chicagoland Speedway, which will debut this weekend.  Based on reviews from the drivers who have tested at the track, we are expecting an exciting weekend of NASCAR competition.  In addition, sales of season tickets have exceeded our expectations, and we are extremely pleased that Chicagoland will be introducing two new title sponsors to the sport: Tropicana, who will be sponsoring Sunday’s Winston Cup race; and Hill Bros Coffee, the title sponsor of Saturday’s Busch Series event.”

Mr. France concluded, “While there has been concern over the impact of the economy on our business, to date we have not seen a significant pullback from consumers or corporate partners.  However, as the economic outlook remains uncertain and is expected to remain sluggish at least in the near future, we are maintaining a conservative position and continue to keep a close eye on the situation particularly as it relates to capacity and pricing.  During these difficult periods, we believe the strength of our business model and our long-standing practice of focusing closely on supply and demand prove advantageous and position us favorably in the marketplace.”

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: .  During the call, management will discuss results for the second quarter, recent developments and outlook for the remainder of the year.

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 12 major motorsports facilities, including Daytona International Speedway in Florida (home of the Daytona 500); Talladega Superspeedway in Alabama; Michigan International Speedway located outside Detroit, Michigan; California Speedway near Los Angeles, California; Kansas Speedway in Kansas City, Kansas; 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.

Other track interests include the operation of Tucson (Arizona) Raceway Park and an indirect 37.5% interest in Raceway Associates, LLC, which owns Chicagoland Speedway and Route 66 Raceway in Illinois.

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

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ISC REPORTS RECORD SECOND QUARTER RESULTS                                                            PAGE -4-

attraction of NASCAR; Americrown Service Corporation, a provider of catering services, food and beverage

concessions, and merchandise sales, and Motorsports International, a provider of catering services, food and beverage concessions, and a producer and marketer of motorsports-related merchandise. For more information, visit the Company's Web site at .

Statements made in this release that state the Company 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. The Company’s results could be impacted by the risk factors discussed elsewhere, including adverse weather conditions leading up to and during its events.  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. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by International Speedway or any other person that the events or circumstances described in such statement are material.

 

 

 

(Tables Follow)

Consolidated Statements of Income

(In thousands, except for per share data)
 
 

Three months ended

  

Six months ended
 

5/31/00

  

5/31/01

  

5/31/00

  

5/31/01
 

(Unaudited)

  

(Unaudited)

REVENUES

              
               

Admissions, net

$ 43,064

  

$ 44,739

  

$ 91,658

  

$ 94,644

Motorsports related income

38,219

  

52,262

  

83,993

  

106,678

Food, beverage, and merchandise income

16,237

  

13,804

  

32,474

  

28,998

Other income

1,228

  

1,191

  

2,218

  

2,365
               
 

98,748

  

111,996

  

210,343

  

232,685
               

EXPENSES

              
               

Direct race expenses:

              
 

NASCAR direct expenses

15,386

  

20,165

  

34,178

  

39,474
 

Motorsports related expenses

21,610

  

24,791

  

38,752

  

41,450
 

Food, beverage, and merchandise expenses

9,502

  

7,539

  

18,055

  

15,391

General and administrative expenses

17,553

  

19,326

  

36,634

  

38,834

Depreciation and amortization

12,467

  

12,664

  

25,307

  

25,628
 

Total expenses

76,518

  

84,485

  

152,926

  

160,777
 

Operating income

22,230

  

27,511

  

57,417

  

71,908
 

Interest income

1,869

  

989

  

3,418

  

2,209

Interest expense

(7,868)

  

(5,332)

  

(15,930)

  

(11,589)

Equity in net loss from equity investments

(477)

  

(643)

  

(1,029)

  

(1,278)

Minority interest

36

  

288

  

299

  

585

North Carolina Speedway litigation

(5,523)

  

-

  

(5,523)

  

-
 

Income before income taxes

10,267

  

22,813

  

38,652

  

61,835

Income taxes

6,545

  

9,513

  

18,833

  

25,785
 

Net income

$ 3,722

  

$ 13,300

  

$ 19,819

  

$ 36,050
 

Basic and diluted earnings per share

$ 0.07

  

$ 0.25

  

$ 0.37

  

$ 0.68
 

Dividends per share

$ 0.06

  

$ 0.06

  

$ 0.06

  

$ 0.06
 

Basic weighted average shares

              
 

outstanding

52,967,222

  

52,998,389

  

52,958,070

  

52,991,508
 

Diluted weighted average shares

              
 

outstanding

53,045,655

  

53,070,816

  

53,043,220

  

53,067,250
               

Consolidated Balance Sheet Data

        

(In thousands)

        
 
 

November 30,

May 31,

        
 

2000

2001

        
   

(Unaudited)

        
 

Cash, cash equivalents and short-term 

              
 

investments

$ 50,792

  

$ 51,246

        

Current assets

86,510

  

102,764

        

Restricted investments

35,193

  

14,162

        

Total assets

1,665,438

  

1,695,039

        

Deferred income

111,492

  

149,853

        

Current liabilities

140,551

  

180,267

        

Long-term debt

470,551

  

415,577

        

Shareholders' equity

950,871

  

983,635