National Press Release
Auto Parts Search |  |
| : | : | : |  |
BUYING USED AUTO PARTS: THE DO'S AND DON'TS
This complete guide is filled with valuable tips on how to buy used parts, where to look for quality salvage parts, how best to determine a fair price, ways to validate salvage yards,
and how not to get ripped off by fraudulent wrecking yards. A must have for anybody buying parts. Get your copy now!
National Press Release
 | International Speedway Corporation Reports Results for the Fourth Quarter and Full Year of Fiscal 2008Published 2009-01-29 07:00By International Speedway Corporation |
"Given the impact the economic environment had on consumers and our corporate partners in 2008, we were pleased with our overall results," said ISC President
Ms.
Fourth Quarter Comparison
Total revenues for the fourth quarter were
In addition to adverse economic conditions affecting consumer and corporate spending, quarter-over-quarter comparability was impacted by:
-- The NASCAR Sprint Cup and Nationwide series race weekend at Auto Club
Speedway which was conducted in the third quarter of 2008 as compared to
the fourth quarter of 2007.
-- Accelerated depreciation of $0.5 million, or $0.01 per diluted share
after tax, in the fourth quarter of 2008 for certain office and related
buildings in Daytona Beach associated with the Company's previously
announced Daytona Live! project. The 2007 fourth quarter included
accelerated depreciation charges of $0.5 million, or $0.01 per diluted
share after tax.
-- The fourth quarter of 2007 includes impairment charges of $3.9 million,
or $0.05 per diluted share after tax, for costs associated with the fill
removal process on the Staten Island property and the impairment of
certain other long-lived assets. By comparison, the 2008 fourth quarter
includes impairment charges of approximately $323,000 to remove the net
book value of certain assets retired from service.
-- The 2007 fourth quarter impairment of Motorsports Authentics'
("MA") goodwill and intangible assets as of November 30, 2007.
ISC's 50 percent portion was $34.8 million, or $0.65 per diluted
share after tax.
-- A 2007 fourth quarter recognition of a deferred income tax credit of
$1.6 million, or $0.03 per diluted share after tax, attributable to a
revision to the income-based tax system in the State of Michigan. In
accordance with the enacted legislation, the credit was equal to the
deferred income tax liability recognized in ISC's 2007 third
quarter results.
-- The 2008 fourth quarter includes a charge to provide for working capital
advances of $2.3 million, or $0.03 per diluted share after tax,
associated with our joint venture project in Kansas for the development
of a gaming and entertainment destination.
Net income for the fourth quarter of 2008 increased to
Full Year Comparison
For the year ended
Year-over-year comparability was impacted by:
-- Accelerated depreciation charges in fiscal 2008 of $2.1 million, or
$0.02 per diluted share after tax, associated with the previously
discussed Daytona Live! project. Results for the year ended November
30, 2007, included accelerated depreciation charges of $14.7 million, or
$0.17 per diluted share after tax.
-- 2008 impairment charges of $2.2 million, or $0.03 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. Results for the year ended November 30, 2007, included an
impairment charge of $13.1 million, or $0.16 per diluted share after tax
related to the Company's decision to discontinue speedway
development efforts in Kitsap County, Washington, and to a lesser
extent, estimated costs for fill removal on the Company's Staten
Island property.
-- The aforementioned 2007 fourth quarter impairments combined with the
2007 third quarter write-down by MA of certain inventory and related
assets, which was included in ISC's equity losses totaled $47.2
million, or $0.88 per diluted share after tax.
-- The recognition of a tax benefit of $3.5 million, or $0.07 per diluted
share after tax, associated with certain restructuring initiatives in
the third quarter of 2008.
-- 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 aforementioned 2008 fourth quarter costs of $2.3 million, or $0.03
per diluted share after tax, associated with the pursuit of a casino
management contract at Wyandotte County, Kansas.
Net income for the year ended
GAAP to Non-GAAP Reconciliation
The following financial information is presented below using other than U.S. 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 2007 adjustments relate to accelerated depreciation of certain office and related building structures in
The adjustments for 2008 relate to accelerated depreciation of certain office and related buildings in
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 Twelve Months Ended
Nov. 30, Nov. 30, Nov. 30, Nov. 30,
2007 2008 2007 2008
------------------- -------------------
Net income $22,474 $33,621 $86,201 $134,595
Net loss from
discontinued operations 34 45 90 163
--- --- --- ---
Income from
continuing operations 22,508 33,666 86,291 134,758
Adjustments, net of tax:
Additional depreciation 320 319 9,009 1,278
Impairment of long-
lived assets 2,455 198 8,390 1,374
MA impairment and
inventory-related
write down of equity
investment 33,913 - 46,327 -
Tax benefit
associated with
restructuring
initiatives - - - (3,477)
Michigan income tax (1,595) - - -
Correction of certain
other assets' carrying
value - - - 3,758
Allowance against
advances to Kansas
joint venture - 1,409 - 1,409
---- ---- ---- ----
Non-GAAP net income $57,601 $35,592 $150,017 $139,100
======= ======= ======== ========
Per share data:
Diluted earnings
per share $0.43 $0.69 $1.64 $2.71
Net loss from
discontinued operations - - - -
--- --- --- ---Income from
continuing operations 0.43 0.69 1.64 2.71
Adjustments, net
of tax:
Additional depreciation 0.01 0.01 0.17 0.02
Impairment of long-
lived assets 0.05 - 0.16 0.03
MA impairment and
inventory-related
write down of equity
investment 0.65 - 0.88 -
Tax benefit
associated with
restructuring
initiatives - - - (0.07)
Michigan income tax (0.03) - - -
Correction of certain
other assets' carrying
value - - - 0.08
Allowance against
advances to Kansas
joint venture - 0.03 - 0.03
---- ---- ---- ----
Non-GAAP diluted
earnings per share $1.11 $0.73 $2.85 $2.80
===== ===== ===== =====
Event Weekends
ISC hosted seven major motorsports event weekends in the fourth quarter, which included six NASCAR Sprint Cup events; four NASCAR Nationwide events; four NASCAR Craftsman Truck events; one IRL IndyCar event; and two ARCA RE/MAX events.
The 2008 NASCAR season ended on a historic note, with
In the first quarter, ISC will host four major motorsports event weekends, which includes four NASCAR Sprint Cup events; two NASCAR Nationwide events; two NASCAR Camping World Truck events (previously entitled the NASCAR Craftsman Truck series); one Grand-Am series event; and one ARCA RE/MAX series event.
Daytona International Speedway opened the 2009 race season with its annual lineup of events known as DIRECTV Speedweeks, which combines the best sports car, stock car and truck racing in the world. DIRECTV Speedweeks' first event was the 47th running of the Grand-Am Rolex 24 at Daytona. The event ended with the closest margin of victory in the history of the Rolex 24 with the No. 58 Brumos Racing Porsche Riley winning by 0.167 seconds. DIRECTV Speedweeks concludes on
ISC was successful in securing significant corporate partnerships during 2008. Most notably, the Company secured a multi-year, multi-million dollar naming rights agreement with the Auto Club of
External Growth and Related Initiatives
MA, the Company's motorsports-related merchandise 50/50 joint venture with Speedway Motorsports, contributed
As previously announced in September, Kansas Entertainment, LLC ("KE"), ISC's 50/50 joint venture with The Cordish Company ("Cordish"), was awarded the casino management contract for
The
Daytona Live!, a mixed-use entertainment destination development that ISC is also pursuing in a 50/50 joint venture with Cordish, is moving forward. The eight-story office building that will serve as ISC, NASCAR and Grand-Am's corporate headquarters is currently under construction with completion expected late in the fourth quarter of 2009. The retail, dining, and entertainment component of Daytona Live is being actively marketed by Cordish. Cobb Theaters has already announced its intention to anchor the complex with a state of the art, 65,000 square foot theater. Cordish is having productive conversations with other potential tenants.
The Company is also having productive conversations concerning a settlement with the Internal Revenue Service and the sale of its 676 acre parcel on Staten Island and remains hopeful that a transaction will occur in 2009.
Share Repurchase Program
In the 2008 fourth quarter, ISC purchased approximately 182,000 shares of its Class A Common Stock for
ISC ceased repurchasing shares in
Ms.
"More importantly, ISC remains a dynamic company uniquely positioned to prosper well into the future as our business model is supported by a solid foundation of contracted revenues. Combined with prudent cost containment measures and a well-planned capital allocation strategy, we expect to continue to generate substantial cash flow that can be reinvested in value-added opportunities, including returning cash to our shareholders."
Conference Call Details
The management of ISC will host a conference call today with investors at
A replay will be available two hours after the end of the call through midnight
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
The Company also owns and operates MRN(R) Radio, the nation's largest independent sport radio network; the Daytona 500 Experience(SM), the "Ultimate Motorsports Attraction" in
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 Per Share Amounts)
Three Months Ended Twelve Months Ended
Nov. 30, Nov. 30, Nov. 30, Nov. 30,
2007 2008 2007 2008
--------- --------- --------- ---------
(Unaudited)
REVENUES:
Admissions, net $78,167 $63,863 $253,685 $236,105
Motorsports related 143,016 119,178 465,469 462,835
Food, beverage
and merchandise 27,135 19,298 84,163 78,119
Other 4,531 2,911 10,911 10,195
----- ----- ------ ------
252,849 205,250 814,228 787,254
EXPENSES:
Direct:
Prize and point
fund monies and
NASCAR sanction
fees 49,970 42,798 151,311 154,655
Motorsports
related 45,144 41,135 160,387 166,047
Food, beverage
and merchandise 14,984 11,958 48,490 48,159
General and
administrative 28,855 25,808 118,982 109,439
Depreciation and
amortization 17,232 18,293 80,205 70,911
Impairment of
long-lived assets 3,926 323 13,110 2,237
----- --- ------ -----
160,111 140,315 572,485 551,448
------- ------- ------- -------
Operating income 92,738 64,935 241,743 235,806
Interest income and other 1,291 648 4,990 (1,630)
Interest expense (3,847) (4,962) (15,628) (15,861)
Minority interest - 194 - 324
Equity in net loss
from equity investments (36,391) (5,817) (58,147) (1,203)
------- ------ ------- ------
Income from continuing
operations before
income taxes 53,791 54,998 172,958 217,436
Income taxes 31,283 21,332 86,667 82,678
------ ------ ------ ------
Income from continuing
operations 22,508 33,666 86,291 134,758
Loss from discontinued
operations (34) (45) (90) (163)
--- --- --- ----
Net income $22,474 $33,621 $86,201 $134,595
------- ------- ------- --------
Basic earnings per share:
Income from
continuing operations $0.43 $0.69 $1.64 $2.71
Loss from discontinued
operations - - - -
--- --- --- ---
Net income $0.43 $0.69 $1.64 $2.71
----- ----- ----- -----
Diluted earnings per share:
Income from
continuing operations $0.43 $0.69 $1.64 $2.71
Loss from discontinued
operations - - - -
--- --- --- ---
Net income $0.43 $0.69 $1.64 $2.71
----- ----- ----- -----
Dividends per share $- $- $0.10 $0.12
--- --- ----- -----
Basic weighted average
shares outstanding 51,853,828 48,560,549 52,557,550 49,589,465
---------- ---------- ---------- ----------
Diluted weighted
average shares
outstanding 51,959,612 48,670,245 52,669,934 49,688,909
---------- ---------- ---------- ----------
Consolidated Balance Sheets
(In Thousands)
November 30, November 30,
2007 2008
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $57,316 $218,920
Short-term investments 39,250 200
Restricted cash - 2,405
Receivables, less allowance of $1,200 in
2007 and 2008 46,860 47,558
Inventories 4,508 3,763
Deferred income taxes 1,345 1,838
Prepaid expenses and other current
assets 10,547 7,194
------ -----
Total Current Assets 159,826 281,878
Property and Equipment, net 1,303,178 1,331,231
Other Assets:
Long-term restricted cash and
investments - 40,187
Equity investments 76,839 77,613
Intangible assets, net 178,984 178,841
Goodwill 118,791 118,791
Deposits with Internal Revenue
Service 117,936 117,936
Other 26,563 34,342
------ ------
519,113 567,710
------- -------
Total Assets $1,982,117 $2,180,819
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $2,538 $153,002
Accounts payable 37,508 26,393
Deferred income 128,631 103,549
Income taxes payable 22,179 8,659
Other current liabilities 21,447 18,035
------ ------
Total Current Liabilities 212,303 309,638
Long-Term Debt 375,009 422,045
Deferred Income Taxes 214,109 104,172
Long-Term Tax Liabilities - 161,834
Long-Term Deferred Income 15,531 13,646
Other Long-Term Liabilities 6,077 28,125
Commitments and Contingencies - -
Shareholders' Equity:
Class A Common Stock, $.01 par value,
80,000,000 shares authorized;
30,010,422 and 27,397,924 issued and
outstanding in 2007 and 2008,
respectively 300 274
Class B Common Stock, $.01 par value,
40,000,000 shares authorized;
21,593,025 and 21,150,471 issued and
outstanding in 2007 and 2008,
respectively 216 211
Additional paid-in capital 621,528 497,277
Retained earnings 537,044 665,405
Accumulated other comprehensive loss - (21,808)
--- -------
Total Shareholders' Equity 1,159,088 1,141,359
--------- ---------
Total Liabilities and Shareholders' Equity $1,982,117 $2,180,819
---------- ----------
Consolidated Statements of Cash Flows
(In Thousands)
Twelve Months Ended
November 30, November 30,
2007 2008
------------- -------------
OPERATING ACTIVITIES
Net income $86,201 $134,595
Adjustments to reconcile net income to
net cash provided by
Operating activities:
Depreciation and amortization 80,205 70,911
Minority interest - (324)
Stock-based compensation 4,046 3,282
Amortization of financing costs 517 517
Deferred income taxes 23,374 30,753
Loss from equity investments 58,147 1,203
Impairment of long-lived assets 8,170 784
Excess tax benefits relating to
stock-based compensation (170) -
Other, net 154 3,921
Changes in operating assets and
liabilities:
Receivables, net 7,525 (698)
Inventories, prepaid
expenses and other assets (2,142) 4,117
Deposits with Internal
Revenue Service (7,123) -
Accounts payable and other
liabilities 5,045 (8,233)
Deferred income (5,712) (26,967)
Income taxes (121) 7,030
---- -----
Net cash provided by operating activities 258,116 220,891
INVESTING ACTIVITIES
Capital expenditures (96,060) (107,036)
Acquisition of business, net of cash
acquired (87,111) -
Proceeds from affiliate 67 4,700
Advance to affiliate (200) (18,450)
Increase in restricted cash - (42,592)
Proceeds from short-term investments 105,320 41,700
Purchases of short-term investments (66,570) (2,650)
Purchases of equity investments - (81)
Other, net 264 700
--- ---
Net cash used in investing activities (144,290) (123,709)
FINANCING ACTIVITIES
Proceeds under credit facility 65,000 170,000
Payments under credit facility (65,000) (20,000)
Proceeds of long-term debt - 51,300
Payment of long-term debt (29,910) (3,505)
Exercise of Class A common stock options 357 -
Cash dividends paid (5,292) (5,960)
Excess tax benefits relating to
stock-based compensation 170 -
Reacquisition of previously issued
common stock (81,516) (127,413)
------- --------
Net cash (used in) provided by financing
activities (116,191) 64,422
-------- ------
Net (decrease) increase in cash and cash
equivalents (2,365) 161,604
Cash and cash equivalents at beginning
of period 59,681 57,316
------ ------
Cash and cash equivalents at end of period $57,316 $218,920
------- --------
SOURCE International Speedway Corporation
