Oct. 8, 2009 (PR Newswire) -- DAYTONA BEACH, Fla., Oct. 8 /PRNewswire-FirstCall/ -- International Speedway Corporation (Nasdaq Global Select Market: ISCA; OTC Bulletin Board: ISCB) ("ISC") today reported results for its fiscal third quarter ended August 31, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20091005/FL87045LOGO )
"We remain encouraged by the strength of our Company and the results of our events held to date," stated ISC Chief Executive Officer Lesa France Kennedy. "The year-over-year comparison for the quarter was impacted by Auto Club Speedway's fall NASCAR race weekend being moved from the 2008 fiscal third quarter into the Company's 2009 fiscal fourth quarter. The protracted macroeconomic downturn continues to impact our business. However, as a result of the success of many innovative strategies such as our lowered pricing for entry level tickets, coupled with focused cost containment initiatives, we anticipate achieving full-year earnings per share within our previously issued guidance."
Ms. France Kennedy continued, "Based on the challenging economic outlook for next year and its potential impact on our fan base, we have expanded our reduced pricing initiatives for the 2010 season to include over a half million NASCAR Sprint Cup tickets. Also for next year, our ticket pricing initiatives will focus on and reward our best customers, those that renew early. We will continue our long standing philosophy to maintain price integrity and not reduce pricing once in the sales cycle. We believe, based on experience, research and analysis, that we have priced our events appropriately to meet demand."
Third Quarter Comparison
Total revenues for the third quarter decreased to $172.9 million, compared to revenues of $213.2 million in the prior-year period. Operating income was $15.6 million during the period compared to $61.0 million in the third quarter of fiscal 2008. In addition to the macroeconomic challenges, quarter-over-quarter comparability was impacted by:
-- An IndyCar® series event held at Chicagoland in the fourth quarter of
fiscal 2008 was conducted in the third quarter of fiscal 2009.
-- The fall NASCAR Sprint Cup and Nationwide events at Auto Club Speedway
held in the third quarter of fiscal 2008 which will be conducted in the
fourth quarter of fiscal 2009.
-- As a result of executing certain purchase and lease agreements, the
operations of Stock-Car Montreal are now reflected in the Company's
consolidated financial statements, compared to the prior year's results
recognized in net income from equity investments when the Company
promoted the events with its partner Group Motorise International. In
the fiscal third quarter 2009, Stock-Car Montreal successfully hosted
NASCAR Nationwide, Grand-Am Sports Car, and NASCAR Canadian Tire series
events at Circuit Gilles-Villeneuve.
-- During the third quarter of fiscal 2009, the Company recorded a $13.7
million, or $0.17 per diluted share after-tax, impairment charge of
long-lived assets. Approximately $13.0 million, or $0.16 per diluted
share after tax, was associated with the Company adjusting its current
carrying value of its Staten Island property to a fair market value
based on its understanding of the metro New York real estate market and
ongoing discussions with interested parties.
Net income for the third quarter was $4.4 million, or $0.09 per diluted share, compared to net income of $38.8 million, or $0.79 per diluted share, in the prior year. Excluding discontinued operations; the operating results from the Company's equity investment; and, impairment of long-lived assets, non-GAAP (defined below) net income for the third quarter of 2009 was $15.9 million, or $0.33 per diluted share. Non-GAAP net income for the third quarter of 2008 was $35.6 million, or $0.73 per diluted share.
Year-to-Date Comparison
For the nine months ended August 31, 2009, total revenues were $491.4 million, compared to $582.0 million in 2008. Operating income for the nine-month period was $97.3 million compared to $170.9 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.
-- An IndyCar® 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.
-- An IndyCar® series event held at Chicagoland in the fourth quarter of
fiscal 2008 was conducted in the third quarter of fiscal 2009.
-- The fall NASCAR Sprint Cup and Nationwide events at Auto Club Speedway
held in the third quarter of fiscal 2008 which will be conducted in the
fourth quarter of fiscal 2009.
-- The aforementioned operations of Stock-Car Montreal being reflected in
the Company's consolidated financial statements, compared to prior
year's results recognized in net income from equity investments when the
Company promoted the events with its partner Group Motorise
International.
-- 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.
-- Accelerated depreciation of approximately $1.0 million, or $0.01 per
diluted share after tax, in 2009 as compared to approximately $1.6
million, or $0.02 per diluted share after tax in 2008 for certain office
and related buildings in Daytona Beach associated with the Company's
previously announced Daytona Live! project.
-- The $13.8 million, or $0.17 per diluted share after-tax, impairment
charge of long-lived assets in its results of operations substantially
related to the aforementioned 2009 fiscal third quarter Staten Island
property carrying value adjustment. 2008 impairment charges of $1.9
million, or $0.02 per diluted share after tax, associated with the fill
removal costs on Staten Island and net book value of certain assets
retired from service.
-- The 2008 third quarter recognition of a tax benefit of $3.5 million, or
$0.07 per diluted share after tax, associated with certain restructuring
initiatives.
-- A 2008 first quarter non-cash charge of $3.8 million, or $0.08 per
diluted share after tax, to correct the carrying value of certain other
assets as of November 30, 2007.
-- The nine months ended August 31, 2009, included a $62.2 million, or
$1.28 per diluted share after tax, charge for equity in net loss from
equity investments related to Motorsports Authentics ("MA"), which
includes a previously announced impairment on MA. The same period in
2008, included equity income of approximately $3.0 million, or $0.06 per
diluted share after tax.
Net loss for the nine months ended August 31, 2009, was $2.2 million, or $0.04 per diluted share, compared to net income of $101.0 million, or $2.02 per diluted share in 2008. Excluding discontinued operations, the operating results from the Company's equity investment including the related impairment taken by ISC in its 2009 fiscal second quarter; the interest income from the IRS settlement; accelerated depreciation for certain office and related buildings in Daytona Beach; and impairment of long-lived assets, non-GAAP (defined below) net income for the nine months ended August 31, 2009, was $60.1 million, or $1.24 per diluted share. This is compared to non-GAAP net income for the first nine months of 2008 of $100.5 million, or $2.01 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: 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; a tax benefit associated with certain restructuring initiatives; and, a non-cash charge to correct the carrying value of certain other assets.
The adjustments for 2009 relate to: a loss from equity investment; 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; accelerated depreciation for certain office and related buildings in Daytona Beach; and, the impairment of long-lived assets associated with the Staten Island property and other 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 Nine Months Ended
Aug. 31, Aug. 31, Aug. 31, Aug.
