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October 9, 2009
Share ThisInternational Speedway Corp. (ISCA) reported fiscal third-quarter results yesterday. The company said GAAP net income plunged to $4.4 million, or 9 cents per share, compared to a GAAP net income of $38.8 million, or 79 cents in the prior year quarter. Excluding certain non-recurring items, earnings per share came in at 33 cents per share, missing the Zacks Consensus Estimate by 5 cents.
International Speedway is a leading promoter of motorsports activities and currently promotes more than 100 racing events annually as well as numerous other motorsports-related activities. The company operates 13 of the nation’s major motorsports entertainment facilities, including Daytona International Speedway in Florida, Talladega Superspeedway in Alabama and Michigan International Speedway in Michigan among others.
The company stated that revenues slipped 18.9% year over year to $172.9 million primarily due the adverse impact of economic conditions on sponsorship, suite and hospitality revenues, timing of fall events at Auto Club Speedway and lower average ticket prices. In terms of segments, Motorsports related revenue reduced 18.2% to $106 million, Admissions dipped 16.5% to $52.4 million and Food, beverage and merchandise revenue declined 31.4% to $12.6 million.
Operating income plunged 74.5% year over year to $15.6 million, while operating margin declined by 19.6% to 9.0%. The reduction in margin was mainly caused by higher direct expenses, as a percentage of sales, which jumped to 57.4% from 50.0% last year due to higher television rights fees, consolidation of Montreal Nationwide weekend and timing of Chicago IRL weekend. Moreover, the company also recorded an impairment charge of $13.7 million during the quarter related to the adjustment in the value of its Staten Island property in New York.
The company ended the quarter with cash and equivalents of $217.4 million and total debt of $373 million, which included a $150 million in senior notes due in 2014 and $100 million in borrowings on the revolving credit facility. International Speedway said that it repurchased about 112,000 shares during the quarter for $2.8 million and now has $39 million left in its $250 million share repurchase authorization. The company also stated that capital expenditure during the first nine months of the fiscal was $65.5 million, which included construction of new headquarters in Daytona Beach, Florida.
Moving forward, the company now expects full-fiscal 2009 revenues to range between $700 million and $710 million, compared to the prior prediction of $700 million to $720 million. Moreover, earnings per share is now expected between $1.80 and $1.90 per share, compared to between $1.80 and $2.00 per share earlier. The updated guidance remains in line with the Zacks Consensus Estimate of $1.83 per share, which has edged up a penny over the past week.
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