| 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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“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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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 .
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 | ||||||
