International Speedway Corporation Reports Record Fourth Quarter Results; Quarter's Event Weekends Draw Strong Attendance and Record Television Viewership.Business Editors DAYTONA BEACH Daytona Beach (dātō`nə), city (1990 pop. 61,921), Volusia co., NE Fla., on the Atlantic coast and Halifax River (a lagoon); inc. 1876. Center of a rapidly urbanizing area, in a region settled by Spanish Franciscans in the 17th cent. , Fla.--(BUSINESS WIRE)--Jan. 17, 2002 Company Reiterates Outlook and Provides Additional Guidance on Financial Impact of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 141 and 142 International Speedway Corporation International Speedway Corporation (ISC) is a corporation whose primary business is the ownership and management of NASCAR race tracks. ISC was founded by NASCAR founder Bill France, Sr. ("ISC (1) (Internet Systems Consortium, Redwood City, CA www.isc.org) An organization founded by Paul Vixie, Carl Malamud and Rick Adams in 1994 and later sponsored by UUNET and other Internet companies. ") (Nasdaq/NM: ISCA ISCA International Symposium on Computer Architecture ISCA International Speech Communication Association ISCA International Speedway Corporation (stock symbol) ISCA International Society for Computers and Their Applications ; OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : ISCB ISCB International Society for Computational Biology ISCB International Society for Clinical Biostatistics ISCB International School of Classical Ballet (Kirkland, WA) ) today reported record results for the fourth quarter and year ended November 30, 2001. Total revenues for the 2001 fourth quarter increased 33% to $163.7 million from $122.9 million in 2000. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the fourth quarter increased 56% to $58.2 million compared to $37.4 million in the prior-year period. Net income increased 67% to $29.8 million, or $0.56 per diluted share, compared to $17.8 million, or $0.34 per diluted share, in the 2000 fourth quarter. For the full year ended November 30, 2001, total revenues increased 20% to $528.5 million from $440.4 million in 2000. Operating income for the year increased 39% to $169.4 million compared to $122.3 million in the prior year. Excluding a one-time litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. judgment after-tax charge of $5.2 million in the second quarter of 2000, net income for fiscal 2001 increased 58% to $87.6 million, or $1.65 per diluted share, from $55.6 million, or $1.05 per diluted share, in 2000. Net income as reported for 2000 was $50.4 million, or $0.95 per diluted share. ISC's 2001 fourth quarter results include nine major event weekends at several facilities including Darlington, Richmond, Kansas Richmond is a city in Franklin County, Kansas, United States. The population was 510 at the 2000 census. Geography Richmond is located at (38.402512, -95.252941)GR1. , Talladega, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Phoenix, California and Homestead-Miami, as well as at Chicagoland, in which ISC has a 37.5% indirect interest. The NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla. Winston Cup Series anchored seven of the race weekends, with capacity crowds on-hand for the Winston Cup events at Richmond and Kansas, as well as recording year-over-year attendance increases for other Winston Cup races. Driven by sold-out capacity on a season-ticket basis, both Kansas Speedway Kansas Speedway is a speedway in Kansas City, in the U.S. state of Kansas. The speedway is a 1.5 mile tri-oval with 15 degree banking in the turns. The track held its first race on on June 2, 2001, when the Winston West came and raced in the Kansas 100. in Kansas City, Kansas Kansas City, Kansas (KCK) is the third largest city in the U.S. state of Kansas and the county seat of Wyandotte County (WyCo); it is part of the "Unified Government"[2] which also includes the cities of Bonner Springs and Edwardsville. and Chicagoland Speedway hosted sold-out crowds for their Saturday and Sunday events, including NASCAR Busch Series and Winston Cup races at Kansas, and ARCA RE/MAX RE/MAX Real Estate Maximums (Canada) Series and Indy Racing Northern Light Series events at Chicagoland. Additionally, ISC's results for the fourth quarter reflect substantial increases in television rights fees for its NASCAR Winston Cup and Busch Series events. New long-term marketing partnerships, including Winston Cup race entitlements with Protection One in Kansas, EA Sports in Talladega and Checker Auto Parts in Phoenix, also contributed to the quarter's results. "Our highly successful fourth quarter included a full schedule of successful racing events," commented Mr. James C. France, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "Despite the softer economic environment, we posted strong attendance and record results for our major events. During the quarter, we also added new key sponsors to our extensive list of marketing partners. These partners recognize the value of ISC's portfolio of world-class facilities and events, which deliver attractive consumer demographics." During the first quarter of fiscal 2002, ISC will host several major events including Speedweeks at Daytona, sixteen days of racing culminating in the 44th running of the Daytona 500. ISC will also host a NASCAR Winton Cup/Busch weekend at North Carolina in the first quarter. "We are eagerly awaiting the start of the 2002 racing season beginning with Speedweeks," continued Mr. France. "We look forward to building on the success of NASCAR's media rights agreements which greatly expanded network broadcast coverage last season and generated phenomenal growth in television ratings. In 2001, NASCAR was the only major professional sport in the U.S. to enjoy increased television viewership, with Winston Cup events up 36% and Busch events up 33% on an average household basis. We were especially pleased with the record television ratings for Talladega's EA Sports 500 Winston Cup event, which drew the highest national rating ever for an auto race in head-to-head competition with professional football. "While challenging economic conditions have continued, our success in the fourth quarter gives us confidence in our ability to attract additional corporate sponsors in 2002. Contributing to earnings will be recent agreements for the entitlement of North Carolina's NASCAR Busch event in February and the Indy Racing League The Indy Racing League, better known as IRL, is the sanctioning body of a predominantly American based open-wheel racing series. The League consists of two series, the premiere IndyCar Series event at Richmond. In addition, we are in the final stages of negotiation for large multi-track agreements with several companies which should provide additional earnings visibility." ISC currently expects to generate earnings for the first quarter of fiscal 2002 in line with its previously announced earnings guidance of $0.46 to $0.48 per share on revenues of approximately $120 to $125 million. For the full fiscal year, the Company expects earnings to range between $2.04 and $2.08 per diluted share on revenues of approximately $540 to $560 million. This includes the positive effect of discontinuing goodwill amortization of approximately $0.30 per diluted share for the full year due to the Company's early adoption of the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). ("FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ") recent Statement of Financial Accounting Standard ("SFAS") No. 142. The anticipated results for the quarter and the year do not reflect an expected one-time, non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. associated with the adoption of SFAS 141 and 142. In the year of adoption, SFAS 142 requires a write-off of any impaired goodwill, including certain acquired intangible assets that were not previously accounted for apart from goodwill. At the time of the Company's previous acquisitions, ISC did not record the long-term intangible value of the various relationships with multiple motorsports sanctioning bodies separate from goodwill. These assets were combined and amortized over a useful life of 40 years. Based on changes in assumptions since the date of the acquisitions, an independent appraisal firm's valuation of the Company's enterprise value using discounted cash flows and the identification of qualifying intangibles as required under SFAS 141 and 142, ISC expects to record a one-time, non-cash charge of $584 million, or $514 million after-tax, in the first quarter of 2002. The non-cash charge will be reflected as an after-tax, cumulative effect of change in accounting principle, and will not affect the Company's operations. The amount of goodwill remaining on the Company's balance sheet after the write-off is expected to be approximately $93 million. Goodwill was not considered impaired under prior FASB guidelines of measuring goodwill impairment on an undiscounted cash flow basis. According to SFAS 142, the goodwill impairment loss is measured as the excess of the carrying amount of goodwill (including acquired intangible assets) over its implied fair value (excluding the acquired intangible assets). The required write-off of the intangible assets makes up the substantial portion of the goodwill impairment charge. As a result, the one-time, non-cash charge resulting from the adoption of the standard is much greater than it would have been had the acquired intangible assets initially been recognized separately from goodwill. Mr. France concluded, "Our positive outlook for the future remains unchanged as we believe the popularity of motorsports entertainment continues to grow. We continue to attract new fans to our events as well as build relationships with marketing partners to increase investment in the sport. Combined with television ratings that have exceeded everyone's expectations, tremendous on-track competition and some of the most loyal fans in major sports, we believe we are uniquely positioned to capitalize on the industry's future growth opportunities." The management of ISC will host a conference call today at 9:00 a.m. Eastern Time, which may also be accessed via the Internet at: http://www.vcall.com. During the call, management will discuss results for the fourth quarter, implementation of SFAS 141 and 142 and its future outlook. 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 of the nation's major motorsports facilities, including Daytona International Speedway Daytona International Speedway is a superspeedway in Daytona Beach, Florida. It is a 2.5 mile (4 km) tri-oval race track facility with a seating capacity of 168,000 spectators. in Florida (home of the Daytona 500); Talladega Superspeedway in Alabama; Michigan International Speedway Michigan International Speedway is a two-mile (3.22 km), moderate-banked, D shaped superspeedway located off U.S. Highway 12 on more than 1,400 acres [1] near Brooklyn, in the scenic Irish Hills area of southeastern Michigan. located outside Detroit; Richmond International Raceway Richmond International Raceway (RIR) is a 3/4-mile (1.2 km), D-shaped, asphalt race track located just outside Richmond, Virginia in Henrico County. It hosts the NASCAR Nextel Cup and Busch Series. in Virginia; California Speedway near Los Angeles; Kansas Speedway in Kansas City, Kansas; Phoenix International Raceway Phoenix International Raceway, or just PIR, is a one mile tri-oval race track located in Avondale, Arizona. It opened in 1964, as the new home of major open-wheel racing in the Phoenix area, replacing the track at the Arizona State Fairgrounds as an automobile racing venue. in Arizona; Homestead-Miami Speedway in Florida; North Carolina Speedway North Carolina Speedway is a racetrack located in Rockingham, North Carolina. It is affectionately known as "The Rock" and hosted NASCAR events from 1965 to 2004, and has proposed hosting Automobile Racing Club of America series races starting in 2008. in Rockingham; Darlington Raceway in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. ; Watkins Glen International Watkins Glen International (nicknamed "The Glen") is an auto race track located near Watkins Glen, New York at the southern tip at Seneca Lake owned by International Speedway Corporation. in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ; and Nazareth Speedway in Pennsylvania. Other track interests include an indirect 37.5% interest in Raceway Associates, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , which owns and operates Chicagoland Speedway and Route 66 Raceway Route 66 Raceway is a drag racing strip in Joliet, Illinois. It opened in 1998 and features a ½ mile (0.8 km) dirt oval and a ¼ mile (0.4 km) drag strip. The drag strip hosts several events including the NHRA Car Quest Nationals in mid-June. near Chicago, Illinois. The Company also owns and operates MRN MRN Motor Racing Network MRN Medical Record Number MRN Magnetic Resonance Neurography MRN Medicare Remittance Notice MRN Matières Radioactives Naturelles MRN Meteorological Rocket Network MRN Manufacturers Resource Network Radio, the nation's largest independent sports radio network; DAYTONA USA, the "Ultimate Motorsports Attraction" in Daytona Beach, Florida “Daytona” redirects here. For other uses, see Daytona (disambiguation). Daytona Beach is a city in Volusia County, Florida, USA. According to 2006 U.S. Census Bureau estimates, the city has a population of 64,421. , the official attraction of NASCAR; and subsidiaries which provide catering services, food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. concessions, and produce and market motorsports-related merchandise under the trade name "Americrown." For more information, visit the Company's Web site at www.iscmotorsports.com. 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, but not limited to, the success of and weather surrounding racing events, government regulations, economic conditions, consumer and corporate spending, military actions, air travel and national or local catastrophic 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.
Consolidated Statements of Income
(In thousands, except for per share data)
Three months ended Twelve months ended
11/30/00 11/30/01 11/30/00 11/30/01
-------- -------- -------- --------
(Unaudited)
REVENUES
Admissions, net $51,516 $ 62,886 $ 192,789 $ 214,494
Motorsports related income 54,881 78,315 175,809 238,208
Food, beverage, and
merchandise income 14,702 20,946 66,880 70,575
Other income 1,813 1,556 4,952 5,233
-------- -------- -------- ---------
122,912 163,703 440,430 528,510
EXPENSES
Direct race expenses:
NASCAR direct expenses 22,911 31,582 71,260 87,859
Motorsports related expenses 22,098 27,937 82,230 98,458
Food, beverage,
and merchandise expenses 8,146 11,491 38,448 38,251
General and
administrative expenses 19,121 19,949 75,030 79,953
Depreciation
and amortization 13,226 14,590 51,150 54,544
-------- -------- -------- --------
Total expenses 85,502 105,549 318,118 359,065
-------- -------- -------- --------
Operating income 37,410 58,154 122,312 169,445
Interest income 1,295 483 6,156 3,446
Interest expense (7,044) (7,341) (30,380) (26,505)
Equity in net income (loss)
from equity investments (79) (245) (631) 2,935
Minority interest (637) 91 (100) 992
North Carolina
Speedway litigation - - (5,523) -
-------- -------- -------- --------
Income before income taxes 30,945 51,142 91,834 150,313
Income taxes 13,121 21,326 41,408 62,680
--------- -------- -------- --------
Net income $ 17,824 $ 29,816 $ 50,426 $ 87,633
========= ======== ======== ========
Basic earnings per share $ 0.34 $ 0.56 $ 0.95 $ 1.65
========= ======== ======== ========
Diluted earnings per share $ 0.34 $ 0.56 $ 0.95 $ 1.65
========= ======== ======== ========
Dividends per share $ - $ - $ 0.06 $ 0.06
========= ======== ======== ========
Basic weighted average
shares outstanding 52,967,222 53,002,724 52,962,646 52,996,660
========== ========== ========== ==========
Diluted weighted average
shares outstanding 53,059,749 53,091,142 53,049,293 53,076,828
========== ========== ========== ==========
Consolidated Balance Sheet Data
(In thousands)
November 30, November 30,
2000 2001
----------- -----------
Cash, cash equivalents
and short-term investments $ 50,792 $ 71,204
Current assets 86,510 107,395
Restricted investments 35,193 1,263
Goodwill, net 692,481 676,150
Total assets 1,665,438 1,702,146
Deferred income 111,492 100,932
Current liabilities 140,551 135,866
Long-term debt 470,551 402,477
Shareholders' equity 950,871 1,035,422
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