DAYTONA BEACH, Fla. — International Speedway Corp. (ISC) has reported results for the fiscal second quarter and six months ended May 31.
Total revenues for the second quarter were $174.9 million, compared to revenues of $181 million in the prior-year period. Operating income increased to $42.9 million during the period compared to $35 million in the second quarter of fiscal 2007.
A 2008 second quarter impairment charge of $1.2 million, or 1 cent per diluted share after tax, was primarily 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 2007 included impairment charges of $9.1 million, or 11 cents per diluted share after-tax, primarily attributable to ISC’s decision to discontinue speedway development efforts in Kitsap County, Wash. To a lesser extent, the impairment charges included estimated costs for fill removal on the Staten Island property.
Accelerated depreciation of $0.5 million, or 1 cent per diluted share after tax, in the second quarter of 2008 for certain office and related buildings in Daytona Beach associated with the company’s previously announced Daytona Live! project. The 2007 second quarter included Daytona Live!-related accelerated depreciation charges of $4.6 million, or 5 cents per diluted share after tax.
Net income for the second quarter of 2008 increased to $26 million, or 52 cents per diluted share, compared to net income of $18.4 million, or 35 cents per diluted share, in the prior year’s second quarter. Excluding discontinued operations and the aforementioned accelerated depreciation and impairment charges, non-GAAP (defined below) net income for the second quarter of 2008 was $27 million, or 54 cents per diluted share. Non-GAAP net income for the second quarter of 2007 was $27.1 million, or 51 cents per diluted share.
For the six months ended May 31, total revenues were $368.8 million, compared to $365.8 million in 2007. Operating income for the six-month period was $109.8 million compared to $100.8 million in the prior year.
Net income for the six months was $62.2 million, or $1.23 per diluted share, compared to $54.2 million, or $1.02 per diluted share in 2007. Excluding discontinued operations, the aforementioned impairment and related charges, accelerated depreciation and the correction of certain other assets’ carrying value amounts, non-GAAP net income for the six months was $67.8 million, or $1.34 per diluted share. This is compared to non-GAAP net income for the first six months of 2007 of $64.6 million, or $1.22 per diluted share.
In the 2008 second quarter, ISC purchased approximately 967,000 shares of its Class A Common Stock for $40 million. From initiation of the program in December 2006 through May 2008, the company purchased a total of 3.8 million shares for $171 million, leaving $79 million in remaining capacity on its $250 million authorization at May 31. ISC said it continues to believe its capital allocation strategy reflects a balanced approach that enhances shareholder value and further positions the company for long-term success.
ISC has narrowed its financial guidance for fiscal 2008. The company now expects full year total revenues to range between $805 million and $815 million. ISC also anticipates its fiscal 2008 non-GAAP earnings guidance to range from $3.05 to $3.10 per diluted share. Given the current economic environment, ISC said it is more comfortable at the low end of the earnings range.
ISC President Lesa France Kennedy commented, "Motorsports remains a stable and growing industry with a compelling long-term outlook. No other professional sport attracts the huge crowds that NASCAR does on a weekly basis. Furthermore, television ratings year-to-date for the three national NASCAR touring series are up compared to last year. Fueled by a core fan profile that displays the strongest brand loyalty in all of major sports, corporate partners continue to view NASCAR as the preferred vehicle to reach consumers. This is hugely important given the current economic environment we are facing, and ISC remains in an optimal financial position with significant cash flow and earnings visibility to weather the downturn. With this backdrop, it is essential that we execute on our proven business plan. These strategies include efforts to remain focused on providing guests and partners with unparalleled service and valued entertainment, while enhancing shareholder value through a meaningful return of capital program."
