EXHIBIT 99.1
NEWS RELEASE
FOR: International Speedway Corporation
APPROVED BY: Wes Harris
Director of Investor Relations
(904) 947-6465
CONTACT: Betsy Brod/Jonathan Schaffer
Media: Stan Froelich/Eileen King
Morgen-Walke Associates, Inc.
(212) 850-5600
FOR IMMEDIATE RELEASE
INTERNATIONAL SPEEDWAY CORPORATION REPORTS
RECORD SECOND QUARTER RESULTS
DAYTONA BEACH, FLORIDA - JULY 2, 1998 - INTERNATIONAL SPEEDWAY
CORPORATION (NASDAQ/NM: ISCA; OTC BULLETIN BOARD: ISCB) today reported record
results for the second quarter and six months ended May 31, 1998.
Total revenues for the fiscal 1998 second quarter increased 29% to
$38.2 million from $29.6 million in the prior-year period. Operating income rose
10% to $7.8 million. Net income for the period rose 35% to $6.0 million, or
$0.16 per diluted share, compared to $4.5 million, or $0.12 per diluted share.
Net income for the 1998 second quarter includes an after-tax gain of
approximately $850,000 related to the previously announced sale of the Company's
equity interest in Grand Prix Association of Long Beach, Inc. (Nasdaq: GPLB).
International Speedway noted that the 22% increase in admissions
revenue primarily resulted from increased seating capacity and attendance, as
well as a modest increase in the weighted average price of tickets sold.
Motorsports related income rose 59% mainly on the strength of increased
television broadcast rights fees for the NASCAR Winston Cup Series and Busch
Series, Grand National Division events held at the Company's Talladega and
Darlington facilities. Food, beverage and souvenir income increased primarily as
a result of strong sales at the gift shop adjacent to DAYTONA USA, as well as
the contribution from events held at the newly acquired Phoenix facility.
-MORE-
Operating income for the second quarter of 1998 was impacted by the
inclusion of a full quarter of operating expenses for Phoenix International
Raceway (acquired on July 14, 1997) and Watkins Glen International (remaining
50% equity interest acquired on April 1, 1997). Neither Phoenix nor Watkins Glen
conducted NASCAR Winston Cup Series events during the second quarter of 1998.
These events are scheduled to be conducted in the third and fourth fiscal
quarters. Despite the impact of the Phoenix and Watkins Glen expenses, general
and administrative expenses as a percentage of total revenues were relatively
unchanged from the prior-year period.
For the six-month period ended May 31, 1998, revenues grew 31% to
$106.5 million from $81.5 million. Operating income increased 19% to $40.8
million, and net income rose 19% to $26.2 million, or $0.68 per diluted share,
versus $22 million, or $0.57 per diluted share.
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 Metro-Dade Homestead Motorsports Complex, and an approximate 11%
holding in Penske Motorsports, Inc. (Nasdaq: SPWY). The Company also owns and
operates MRN Radio, the nation's largest independent sports radio network, and
DAYTONA USA, the award-winning "Ultimate Motorsports Attraction" in Daytona
Beach, FL.
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 SUBSEQUENT 10-Q'S. COPIES OF
THOSE FILINGS ARE AVAILABLE FROM THE COMPANY AND THE SEC.
(Table Follows)
INTERNATIONAL SPEEDWAY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except for share and per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
MAY 31, MAY 31,
5/31/98 5/31/97 5/31/98 5/31/97
---------- ---------- ---------- ----------
REVENUES:
Admissions, net $17,359 $14,249 $49,248 $40,609
Motorsports related income 13,752 8,665 40,917 25,874
Food, beverage, and souvenir income 6,646 6,220 15,612 14,298
Other income 434 496 698 715
---------- ---------- ---------- ----------
38,191 29,630 106,475 81,496
EXPENSES:
Direct race expenses:
Nascar direct expenses 6,192 4,129 17,284 11,113
Motorsports related expenses 8,516 5,557 16,670 10,707
Food, beverage, and souvenir
expenses 3,639 3,813 8,108 8,323
General & administrative expenses 8,817 6,762 17,345 12,936
Depreciation & amortization 3,243 2,294 6,284 4,239
---------- ---------- ---------- ----------
30,407 22,555 65,691 47,318
---------- ---------- ---------- ----------
Operating income 7,784 7,075 40,784 34,178
Interest income, net 500 1,172 628 2,164
Equity in net income (loss) from
equity investments 179 (351) (242) (792)
Gain on sale of equity investment 1,245 0 1,245 0
---------- ---------- ---------- ----------
Income before income taxes 9,708 7,896 42,415 35,550
Provision for income taxes 3,662 3,410 16,220 13,589
---------- ---------- ---------- ----------
Net income $ 6,046 $ 4,486 $26,195 $21,961
========== ========== ========== ==========
Basic earnings per share $ 0.16 $ 0.12 $ 0.69 $ 0.58
========== ========== ========== ==========
Diluted earnings per share $ 0.16 $ 0.12 $ 0.68 $ 0.57
========== ========== ========== ==========
Dividends per share $ 0.06 $ 0.06 $ 0.06 $ 0.06
========== ========== ========== ==========
Basic weighted average shares
outstanding 38,212,217 38,189,652 38,208,374 38,181,271
========== ========== ========== ==========
Diluted weighted average shares
outstanding 38,369,699 38,314,007 38,366,990 38,312,363
========== ========== ========== ==========
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