~ Reiterates Full Year Financial Outlook ~ DAYTONA BEACH, Fla.,
July 7 /PRNewswire-FirstCall/ -- International Speedway Corporation
(NASDAQ:ISCA)(OTC:ISCB) (BULLETIN BOARD: ISCB) ("ISC") today
reported results for its fiscal second quarter ended May 31, 2009.
"From a core operations standpoint, considering the economic
pressures on discretionary consumer and corporate spending, we are
pleased with the results of the first six months of fiscal 2009
which are generally in line with our revised expectations," stated
ISC Chief Executive Officer Lesa France Kennedy. "While the
economic environment is challenging for us, our fans and business
partners alike, we remain in a strong financial position to weather
this protracted downturn. Our balance sheet was further solidified
with the recently announced definitive settlement entered into with
the Internal Revenue Service that returned approximately $112
million to the Company. These funds will be used, in part, to pay
down debt and make opportunistic open-market share repurchases."
Ms. France Kennedy continued, "While advance ticket sales continue
to trail last year's trends considerably, we remain encouraged by
the strong ticket demand witnessed in the weeks and days leading up
to our events. This was most recently demonstrated in sales for the
Coke Zero 400 at Daytona, where robust sales in the last few weeks
before the event pushed attendance above our expectations. In
addition, we continue to closely analyze our business operations to
lower costs where possible and maximize efficiencies. However, it
is important to note that the fan experience remains our primary
concern and our cost reduction efforts have not been to the
detriment of the experience for our guests or business partners. We
are cautiously optimistic for a gradual economic recovery beginning
next year, and believe we have taken the necessary steps that will
allow ISC to emerge a more efficient business positioned for
long-term growth." Second Quarter Comparison Total revenues for the
second quarter decreased to $152.4 million, compared to revenues of
$174.9 million in the prior-year period. Operating income was $31.7
million during the period compared to $42.9 million in the second
quarter of fiscal 2008. In addition to the macroeconomic
challenges, quarter-over-quarter comparability was impacted by: --
An IndyCar(R) and Grand-Am Rolex Sports Car series weekend held at
Homestead-Miami Speedway in the second quarter of 2008 which will
be held in ISC's fiscal fourth quarter 2009. -- The 2009 second
quarter results include interest income, net of tax, of
approximately $8.9 million, or $0.18 per diluted share after tax,
for interest earned on the deposited funds which were ultimately
returned to the Company as a result of the definitive settlement
agreement entered into with the Internal Revenue Service in
connection with the previously disclosed federal income tax
examination for its 1999 through 2005 fiscal years. -- The second
quarter of 2008 included an impairment charge of $1.2 million, or
$0.01 per diluted share after tax, related to charges for the fill
removal process on the Company's Staten Island property and, to a
lesser extent, the net book value of certain assets retired from
service. -- The second quarter of 2009 recognized a $57.3 million,
or $1.17 per diluted share after tax, charge for equity in net loss
from equity investments related to Motorsports Authentics, LLC
("MA"), the Company's motorsports-related merchandise 50/50 joint
venture with Speedway Motorsports Inc. Included is an approximately
$55.6 million, or $1.14 per diluted share after tax, non-cash
charge to reflect an impairment recognized by ISC on its equity
investment in MA. The 2008 second quarter included equity income of
$3.0 million, or $0.04 per diluted share after tax. Net loss for
the second quarter was $31.7 million, or $0.65 per diluted share,
compared to net income of $26.0 million, or $0.52 per diluted
share, in the prior year. Excluding discontinued operations, the
aforementioned interest income from the IRS settlement; impairment
charges; operating results from the Company's equity investment
including the related impairment taken by ISC; and, accelerated
depreciation of $0.5 million, or $0.01 per diluted share after tax,
for certain office and related buildings in Daytona Beach
associated with the Company's previously announced Daytona Live!
project (the 2008 second quarter also included similar accelerated
depreciation charges), non-GAAP (defined below) net income for the
second quarter of 2009 was $17.0 million, or $0.35 per diluted
share. Non-GAAP net income for the second quarter of 2008 was $25.2
million, or $0.50 per diluted share. Year-to-Date Comparison For
the six months ended May 31, 2009, total revenues were $318.5
million, compared to $368.8 million in 2008. Operating income for
the six-month period was $81.7 million compared to $109.8 million
in the prior year. Year-over-year comparability was impacted by: --
Exceptionally strong consumer and corporate demand for the 50th
running of the DAYTONA 500 and surrounding events in the first
quarter of 2008. The historic race provided unique opportunities to
drive revenue above the otherwise strong appeal of one of sport's
most marquee events. -- 2008 impairment charges of $1.9 million, or
$0.02 per diluted share after tax, associated with the previously
discussed fill removal costs on Staten Island and net book value of
certain assets retired from service. -- A 2008 first quarter
non-cash charge of $3.8 million, or $0.07 per diluted share after
tax, to correct the carrying value of certain other assets as of
November 30, 2007. -- The previously mentioned interest earned on
the deposited funds returned to the Company as a result of the
definitive settlement agreement it entered into with the Internal
Revenue Service, and the IndyCar and Grand-Am Rolex Sports Car
series weekend moving to the Company's fiscal 2009 fourth quarter.
-- The six months ended May 31, 2009, included a $58.9 million, or
$1.21 per diluted share after tax, charge for equity in net loss
from equity investments related to MA, which includes the
previously discussed impairment on MA. The same period in 2008,
included equity income of $4.8 million, or $0.06 per diluted share
after tax. Net loss for the six months ended May 31, 2009, was $6.6
million, or $0.13 per diluted share, compared to $62.2 million, or
$1.23 per diluted share in 2008. Excluding discontinued operations,
the aforementioned interest income from the IRS settlement;
impairment charges; operating results from the Company's equity
investment including the related impairment taken by ISC; and,
accelerated depreciation of $1.0 million, or $0.01 per diluted
share after tax, for certain office and related buildings in
Daytona Beach associated with the Company's previously announced
Daytona Live! project (the six months ended May 31, 2008 also
included similar accelerated depreciation charges), non-GAAP
(defined below) net income for the six months ended May 31, 2009,
was $44.2 million, or $0.91 per diluted share. This is compared to
non-GAAP net income for the first six months of 2008 of $64.9
million, or $1.29 per diluted share. GAAP to Non-GAAP
Reconciliation The following financial information is presented
below using other than generally accepted accounting principles
("non-GAAP"), and is reconciled to comparable information presented
using GAAP. Non-GAAP net income and diluted earnings per share
below are derived by adjusting amounts determined in accordance
with GAAP for certain items presented in the accompanying selected
operating statement data, net of taxes. The 2008 adjustments relate
to: a benefit for equity in net income from equity investment;
accelerated depreciation for certain office and related buildings
in Daytona Beach; the impairment of long-lived assets associated
with the fill removal process on the Staten Island property and the
net book value of certain assets retired from service; and, a
non-cash charge to correct the carrying value of certain other
assets. The adjustments for 2009 relate to: a charge for equity in
net loss from equity investment; accelerated depreciation for
certain office and related buildings in Daytona Beach; interest
earned on the deposited funds returned to the Company as a result
of the definitive settlement agreement it entered into with the
Internal Revenue Service; and, the impairment of long-lived assets
associated with the net book value of certain assets retired from
service. The Company believes such non-GAAP information is useful
and meaningful to investors, and is used by investors and ISC to
assess core operations. This non-GAAP financial information may not
be comparable to similarly titled measures used by other entities
and should not be considered as an alternative to operating income,
net income or diluted earnings per share, which are determined in
accordance with GAAP. (In Thousands, Except Per Share Amounts)
(Unaudited) Three Months Ended Six Months Ended May 31, May 31, May
31, May 31, 2008 2009 2008 2009 -------- -------- -------- --------
Net (loss) income $25,972 $(31,740) $62,183 $(6,594) Loss from
discontinued operations, net of tax 36 45 67 87 -- -- -- -- Income
from continuing operations 26,008 (31,695) 62,250 (6,507) Equity in
net (income) loss from equity investments, net of tax (1,817)
57,274 (2,919) 58,913 ------ ------ ------ ------ Consolidated
income from continuing operations excluding equity in net (income)
loss from equity investments 24,191 25,579 59,331 52,406
Adjustments, net of tax: Interest income from IRS Settlement -
(8,923) - (8,923) Additional depreciation 320 319 640 638
Impairment of long-lived assets 706 9 1,154 52 Correction of
certain other assets' carrying value - - 3,758 - --- --- ----- ---
Non-GAAP net income $25,217 $16,984 $64,883 $44,173 ======= =======
======= ======= Per share data: Diluted earnings (loss) per share
$0.52 $(0.65) $1.23 $(0.13) Loss from discontinued operations, net
of tax - - - - --- --- --- --- Income from continuing operations
0.52 (0.65) 1.23 (0.13) Equity in net (income) loss from equity
investments (0.04) 1.17 (0.05) 1.21 ----- ---- ----- ----
Consolidated income from continuing operations excluding equity in
net (income) loss from equity investments 0.48 0.52 1.18 1.08
Adjustments, net of tax: Interest income from IRS Settlement -
(0.18) - (0.18) Additional depreciation 0.01 0.01 0.02 0.01
Impairment of long-lived assets 0.01 0.00 0.02 0.00 Correction of
certain other assets' carrying value - - 0.07 - --- --- ---- ---
Non-GAAP diluted earnings per share $0.50 $0.35 $1.29 $0.91 =====
===== ===== ===== Recent Events During the Company's fiscal second
quarter, it hosted a weekend of NASCAR Sprint Cup and Camping World
Truck series events at Martinsville Speedway. ISC also hosted
Sprint Cup and Nationwide series weekends at Phoenix International
Raceway, Talladega Superspeedway, Richmond International Raceway
and Darlington Raceway. Kansas Speedway hosted a weekend of NASCAR
Camping World Truck and IndyCar series events. Subsequent to the
fiscal second quarter, the Company hosted a Grand-Am Rolex Sports
Car Series race at Watkins Glen International; a weekend of NASCAR
Sprint Cup and Camping World Truck series events at Michigan
International Speedway; an IndyCar weekend at Richmond; and, a
NASCAR Sprint Cup, Nationwide and Grand-Am Rolex Sports Car series
weekend at Daytona International Speedway. For the remainder of the
third quarter, ISC will host Sprint Cup and Nationwide series
weekends at Chicagoland Speedway, Watkins Glen, and Michigan. The
Watkins Glen weekend will also include a Grand-Am Rolex Sports Car
Series event. Chicagoland will host a weekend of NASCAR Camping
World Truck and IndyCar series events in late August. Lastly,
through our wholly owned subsidiary, Stock-Car Montreal, the
Company will host the third annual NASCAR Nationwide, Grand-Am
Rolex Sports Car and NASCAR Canadian Tire series weekend at Circuit
Gilles Villeneuve in Montreal, Quebec. From a marketing partnership
perspective, the Company has agreements in place for 94 percent of
its revised gross marketing partnership revenue target for fiscal
2009. ISC recently announced event entitlement partners for its
NASCAR Nationwide races at Phoenix and Michigan. As a result, ISC
has only one Sprint Cup and one Nationwide title sponsorship open
at Michigan and Richmond, respectively. The Company expects to
announce these agreements in the coming weeks. "Motorsports and
NASCAR racing in particular, remains a viable and proven marketing
channel for corporate sponsors looking to build their brands and
sell products," stated Ms. France Kennedy. "However, we have
recently seen the bankruptcies of both Chrysler and GM, two very
high-profile partners in our sport. While this is unfortunate, we
are hopeful they will emerge as healthier businesses. From a
financial perspective, since less than 10 percent of our gross
marketing partner revenue comes from all auto manufacturers, the
financial impact of these bankruptcies to ISC is minimal. "Looking
ahead, while future partnerships with the manufacturers will likely
be below historical monetary levels, we do not envision either GM
or Chrysler will abandon the sport entirely. In addition, we have
seen several new partners enter the sport and other existing
partners expand their positions, which further demonstrate that our
product continues to deliver a tangible return on investment." Ms.
France Kennedy continued, "One area that has the potential to open
up our sport to new non-traditional corporate partners is through
NASCAR's Green Clean Air initiative. In addition to being a good
corporate citizen by taking active steps to improve the
environment, we believe ISC's 'Green' efforts will provide a good
marketing platform for companies that want to promote their
environmentally friendly products and services. The official
renewable energy provider at Daytona and Homestead-Miami, NextEra
Energy Resources, the nation's largest provider of wind and solar
energy, is a good example of a company that is in this niche. We
also see this as a logical way for the auto manufacturers to
showcase their next generation of fuel-efficient and hybrid
vehicles to the most brand loyal fans in all of sports."
Motorsports Authentics ISC remains committed to the long-term
success of MA, but as with any business in this adverse economic
environment, management must find the optimal business model for
long-term viability. MA's leadership, with support of the joint
venture's ownership, is undertaking certain initiatives to make MA
a more efficiently operated and profitable company. MA excels in
the distribution of merchandise trackside at racing events and in
the design and distribution of die-cast vehicles. Both are areas of
business in which MA is expected to maintain and grow its
leadership position for the foreseeable future. MA's other current
channels of distribution include licensed apparel and memorabilia
to mass retailers. In recent months, various approaches have been
considered to optimize MA's performance in these distribution
channels for its future growth, as well as the benefit of its
licensees and the industry as a whole. However, after further
analysis, it has become apparent that there is significant risk in
future business initiatives in mass apparel, memorabilia and other
yet-to-be-developed products that had been previously deemed
achievable and included in projections that supported the carrying
value of inventory, goodwill and other intangible assets on MA's
balance sheet. This analysis, combined with a less-robust long-term
macroeconomic outlook than previously expected, triggered MA's
review of certain assets under SFAS 142 and SFAS 144. MA is
currently performing an evaluation of impairment on its goodwill,
intangible and other long-lived assets, which it expects to be
completed by September. ISC has evaluated the carrying value of its
equity investment in MA at May 31, 2009, in accordance with APB 18,
"The Equity Method of Accounting for Investments in Common Stock."
As a result of this evaluation, the Company recognized an
impairment charge of $55.6 million or $1.14 per diluted share after
tax, which is included in ISC's equity investment losses for the
fiscal quarter ended May 31, 2009. Ms. France Kennedy added, "The
protracted economic downturn has unfortunately exacerbated the
financial condition of Motorsports Authentics. While we are
disappointed in the joint-venture's performance to date in 2009, we
believe that streamlining the operations of MA by focusing on its
core competencies will enable it to reduce operating costs and
inventory risk, thereby resulting in a leaner and more profitable
operation in the future. These are its core competencies that we
believe can grow over time." External Growth and Other Initiatives
Last month, the proposal of ISC's joint venture with The Cordish
Company ("Cordish") for the development of a Hard Rock Casino and
that of the other casino project proposed for Wyandotte County were
endorsed by the Unified Government and sent to the Kansas Lottery
Commission for further consideration. The Kansas Lottery Commission
is in the process of negotiating management agreements with the
respective parties. The Kansas Lottery Commission is also reviewing
our proposal and that of the other casino project proposed for
Wyandotte County and it will recommend one or both to the Kansas
Lottery Gaming Facility Review Board by August 28, for review and
background checks by the Kansas Racing and Gaming Commission. The
Kansas Lottery Gaming Facility Review Board is expected to take 60
days after receipt of the Kansas Lottery Commission recommendation
to award the management agreement and development rights for
Wyandotte County. The entire process is expected to be completed by
late 2009. The initial phase of the project, the casino and certain
dining and entertainment options on property adjacent to the Kansas
Speedway, will comprise approximately 190,000 square feet, and
include a 100,000 square foot casino gaming floor with
approximately 2,300 slot machines and 86 table games, a high-energy
center bar, and dining and entertainment options. This phase is
projected to cost approximately $390 million, of which $100 million
pertains to land and approximately $42 million is leased gaming
equipment. The full budget of all potential phases is projected to
be over $700 million, and would be financed by the joint venture.
The full proposal contemplates the development, depending upon
market conditions and demand, of a hotel, convention facility, and
a retail and entertainment district. Daytona Live!, a mixed-use
entertainment destination development that the Company is also
pursuing in a 50/50 joint venture with Cordish, is expected to have
the ISC and NASCAR headquarters building completed and open in the
fourth quarter of 2009. The retail, dining and entertainment
portions of this development are experiencing strong interest from
a variety of notable national and regional tenants, despite
challenges in the economy and the related pullback in retail
expansion nationwide. That portion of the project is planned to
proceed once sufficient leasing levels have been achieved. It is
important to note that the Company is not under a mandatory
timetable to get this project completed. On Staten Island, ISC
continues to have discussions with interested buyers for its 676
acre parcel, and remains hopeful that a transaction will occur
during this fiscal year. Capital Spending The Company continues to
estimate between $50 million and $55 million in capital
expenditures at its existing facilities for fiscal 2009. Excluded
from this estimate is approximately $45 million in spending for
ISC's headquarters building as part of Daytona Live!, of which
approximately $41 million is funded by the construction loan
secured in July 2008. Also excluded is $2 million to $3 million of
capitalized costs, including property taxes, for Staten Island. ISC
also anticipates other capital spending outside of its existing
facilities. Share Repurchase Program ISC suspended purchases under
the collective $250 million Stock Purchase Plans in September 2008
as a result of its desire to build cash balances due to the
challenges facing the credit markets. As a result of its definitive
settlement with the Internal Revenue Service in May 2009, the
Company reactivated its open market share repurchase programs which
allows purchases under certain parameters, including price,
corporate and regulatory requirements, capital availability and
other market conditions. Currently, there is approximately $42
million in remaining repurchase authority under the Stock Purchase
Plans. Outlook While the Company expects consumer and corporate
spending trends to continue to be impacted by challenging economic
conditions throughout the year, ISC reiterates its 2009 total
revenue guidance range of $700 million to $720 million. In
addition, the Company is maintaining its fiscal 2009 non-GAAP
earnings guidance range of $1.80 to $2.00 per diluted share. Given
the uncertain economic environment, ISC remains more comfortable at
the lower end of the earnings range. The non-GAAP earnings per
share estimates exclude additional depreciation associated with the
Daytona Live! project; impairment of long-lived assets associated
with the net book value of assets retired from service; interest
earned on the deposited funds returned to the Company as a result
of the definitive settlement agreement it entered into with the
Internal Revenue Service; and, the operating results from ISC's
equity investment in MA. In closing, Ms. France Kennedy added, "We
continue to manage our business with a long-term view and with
prudent financial discipline, which has served us well during this
economic downturn. In addition, the sport of NASCAR remains healthy
and continues to provide fans with an outstanding on-track product,
while solidly remaining the number two sport on television. We
remain bullish on the motorsports industry in the long term, and
our management team remains focused driving future revenue by
providing superior, innovative and thrilling experiences for our
guests and partners." Conference Call Details The management of ISC
will host a conference call today with investors at 9:00 a.m.
Eastern Time. To participate, dial toll free (888) 694-4641 five to
ten minutes prior to the scheduled start time and request to be
connected to the ISC earnings call, ID number 16479135. A live
Webcast will also be available at that time on the Company's Web
site, http://www.iscmotorsports.com/, under the "Investor
Relations" section. A replay will be available two hours after the
end of the call through midnight Tuesday, July 14, 2009. To access,
dial toll free (800) 642-1687 and enter the code 16479135, or visit
the "Investor Relations" section of the Company's Web site.
International Speedway Corporation is a leading promoter of
motorsports activities, currently promoting more than 100 racing
events annually as well as numerous other motorsports-related
activities. The Company owns and/or operates 13 of the nation's
major motorsports entertainment facilities, including Daytona
International Speedway(R) in Florida (home of the DAYTONA 500(R));
Talladega Superspeedway(R) in Alabama; Michigan International
Speedway(R) located outside Detroit; Richmond International
Raceway(R) in Virginia; Auto Club Speedway of Southern
California(SM) near Los Angeles; Kansas Speedway(R) in Kansas City,
Kansas; Phoenix International Raceway(R) in Arizona; Chicagoland
Speedway(R) and Route 66 Raceway(SM) near Chicago, Illinois;
Homestead-Miami Speedway(SM) in Florida; Martinsville Speedway(R)
in Virginia; Darlington Raceway(R) in South Carolina; and Watkins
Glen International(R) in New York. In addition, ISC promotes major
motorsports activities in Montreal, Quebec, through its wholly
owned subsidiary, Stock-Car Montreal. The Company also owns and
operates MRN(R) Radio, the nation's largest independent sports
radio network; the DAYTONA 500 Experience(SM), the "Ultimate
Motorsports Attraction" in Daytona Beach, Florida, and official
attraction of NASCAR(R); and Americrown Service Corporation(SM), a
subsidiary that provides catering services, food and beverage
concessions, and produces and markets motorsports-related
merchandise. In addition, ISC has an indirect 50 percent interest
in Motorsports Authentics(R), which markets and distributes
motorsports-related merchandise licensed by certain competitors in
NASCAR racing. For more information, visit the Company's Web site
at http://www.iscmotorsports.com/. Statements made in this release
that express the Company's or management's beliefs or expectations
and which are not historical facts or which are applied
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 risk factors, including,
but not limited to, 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-Qs. 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 needed 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 Operations (In
Thousands, Except Share and Per Share Amounts) Three Months Ended
Six Months Ended May 31, May 31, May 31, May 31, 2008 2009 2008
2009 -------- -------- -------- -------- (Unaudited) REVENUES:
Admissions, net $53,432 $43,680 $109,545 $91,516 Motorsports
related 101,240 92,908 214,085 195,442 Food, beverage and
merchandise 17,738 13,392 40,428 26,801 Other 2,527 2,398 4,738
4,738 ----- ----- ----- ----- 174,937 152,378 368,796 318,497
EXPENSES: Direct: Prize and point fund monies and NASCAR sanction
fees 34,728 35,390 67,781 69,532 Motorsports related 38,688 31,953
74,024 61,062 Food, beverage and merchandise 11,747 9,249 24,531
18,726 General and administrative 28,269 25,569 55,980 50,504
Depreciation and amortization 17,436 18,489 34,753 36,880
Impairment of long- lived assets 1,150 15 1,881 85 ----- -- -----
-- 132,018 120,665 258,950 236,789 ------- ------- ------- -------
Operating income 42,919 31,713 109,846 81,708 Interest income and
other 384 230 (2,676) 694 Interest expense (3,294) (5,509) (6,887)
(11,779) Equity in net income (loss) from equity investments 2,960
(57,274) 4,754 (58,913) Minority interest - 163 - 334 --- --- ---
--- Income (loss) from continuing operations before income taxes
42,969 (30,677) 105,037 12,044 Income taxes 16,961 1,018 42,787
18,551 ------ ----- ------ ------ Income (loss) from continuing
operations 26,008 (31,695) 62,250 (6,507) Loss from discontinued
operations (36) (45) (67) (87) --- --- --- --- Net income (loss)
$25,972 $(31,740) $62,183 $(6,594) ------- -------- ------- -------
Basic earnings per share: Income (loss) from continuing operations
$0.52 $(0.65) $1.23 $(0.13) Loss from discontinued operations - - -
- --- --- --- --- Net income (loss) $0.52 $(0.65) $1.23 $(0.13)
----- ------ ----- ------ Diluted earnings per share: Income (loss)
from continuing operations $0.52 $(0.65) $1.23 $(0.13) Loss from
discontinued operations - - - - --- --- --- --- Net income (loss)
$0.52 $(0.65) $1.23 $(0.13) ----- ------ ----- ------ Dividends per
share $0.12 $0.14 $0.12 $0.14 ----- ----- ----- ----- Basic
weighted average shares outstanding 49,836,724 48,565,438
50,379,656 48,557,010 ---------- ---------- ---------- ----------
Diluted weighted average shares outstanding 49,927,320 48,565,438
50,479,717 48,557,010 ---------- ---------- ---------- ----------
Consolidated Balance Sheets (In Thousands, Except Share and Per
Share Amounts) November 30, 2008 May 31, 2009 -----------------
------------ (unaudited) ASSETS Current Assets: Cash and cash
equivalents $218,920 $146,336 Short-term investments 200 200
Restricted cash 2,405 802 Receivables, less allowance of $1,200 in
2008 and 2009 47,558 66,897 Receivable from Internal Revenue
Service - 111,984 Inventories 3,763 4,080 Deferred income taxes
1,838 2,191 Prepaid expenses and other current assets 7,194 20,138
----- ------ Total Current Assets 281,878 352,628 Property and
Equipment, net 1,331,231 1,334,777 Other Assets: Long-term
restricted cash and investments 40,187 26,859 Equity investments
77,613 18,825 Intangible assets, net 178,841 178,790 Goodwill
118,791 118,791 Deposits with Internal Revenue Service 117,936 -
Other 34,342 21,202 ------ ------ 567,710 364,467 ------- -------
Total Assets $2,180,819 $2,051,872 ---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current
portion of long-term debt $153,002 $3,060 Accounts payable 26,393
21,026 Deferred income 103,549 151,925 Income taxes payable 8,659
3,735 Other current liabilities 18,035 22,113 ------ ------ Total
Current Liabilities 309,638 201,859 Long-Term Debt 422,045 421,019
Deferred Income Taxes 104,172 237,089 Long-Term Tax Liabilities
161,834 22,543 Long-Term Deferred Income 13,646 13,327 Other
Long-Term Liabilities 28,125 23,517 Commitments and Contingencies -
- Shareholders' Equity: Class A Common Stock, $.01 par value,
80,000,000 shares authorized; 27,397,924 and 27,848,593 issued and
outstanding in 2008 and 2009, respectively 274 278 Class B Common
Stock, $.01 par value, 40,000,000 shares authorized; 21,150,471 and
20,725,506 issued and outstanding in 2008 and 2009, respectively
211 207 Additional paid-in capital 497,277 497,496 Retained
earnings 665,405 651,957 Accumulated other comprehensive loss
(21,808) (17,420) ------- ------- Total Shareholders' Equity
1,141,359 1,132,518 --------- --------- Total Liabilities and
Shareholders' Equity $2,180,819 $2,051,872 ---------- ----------
Consolidated Statements of Cash Flows (In Thousands) Six Months
Ended May 31, 2008 May 31, 2009 ------------ ------------
(unaudited) OPERATING ACTIVITIES Net income $62,183 $(6,594)
Adjustments to reconcile net income to net cash provided by
Operating activities: Depreciation and amortization 34,753 36,880
Minority interest - (334) Stock-based compensation 1,616 1,187
Amortization of financing costs 259 270 Translation loss - (74)
Deferred income taxes 7,304 4,650 (Income) Loss from equity
investments (4,754) 58,913 Excess tax benefits relating to
stock-based compensation (7) - Impairment of long-lived assets,
non- cash 460 85 Other, net 3,778 74 Changes in operating assets
and liabilities: Receivables, net (25,504) (19,380) Inventories,
prepaid expenses and other assets (8,798) (13,445) Accounts payable
and other liabilities (7,598) (5,836) Deferred income 70,775 48,057
Income taxes 13,034 (10,533) ------ ------- Net cash provided by
operating activities 147,501 93,920 INVESTING ACTIVITIES Capital
expenditures (69,844) (41,382) Proceeds from affiliate - 12,500
Advance to affiliate (1,296) (432) Decrease in restricted cash -
14,931 Proceeds from short-term investments 41,500 - Purchases of
short-term investments (2,450) - Purchases of equity investments
(81) - Other, net 75 (1,016) -- ------ Net cash used in investing
activities (32,096) (15,399) FINANCING ACTIVITIES Proceeds under
credit facility 20,000 - Payments under credit facility (20,000) -
Payment of long-term debt (1,235) (150,859) Excess tax benefits
relating to stock-based compensation 7 - Reacquisition of
previously issued common stock (90,397) (246) ------- ---- Net cash
used in financing activities (91,625) (151,105) ------- --------
Net increase (decrease) in cash and cash equivalents 23,780
(72,584) Cash and cash equivalents at beginning of period 57,316
218,920 ------ ------- Cash and cash equivalents at end of period
$81,096 $146,336 ------- -------- DATASOURCE: International
Speedway Corporation CONTACT: Charles N. Talbert, Director,
Investor and Corporate Communications, +1-386-947-6465 Web Site:
http://www.iscmotorsports.com/
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