DAYTONA BEACH, Fla., Oct. 9 /PRNewswire-FirstCall/ -- International Speedway Corporation (NASDAQ:ISCA)(OTC:ISCB) (BULLETIN BOARD: ISCB) ("ISC") today reported results for the three and nine months ended August 31, 2008. "We are pleased with our overall results for the third quarter when considering the impact of the continued economic slowdown on attendance- related revenues for our events," said ISC President Lesa France Kennedy. "On a comparable event basis, which excludes the results of Auto Club Speedway's fall NASCAR race weekend that is typically hosted in our fiscal fourth quarter, we posted year-over-year total revenues that were down slightly. In addition, our bottom line results benefited from our ongoing cost containment initiatives, with a particular focus on reducing general and administrative expenses." Ms. France Kennedy continued, "Supporting our near and long-term prospects is a core base of millions of NASCAR fans that are fiercely brand-loyal, which also continue to attract corporate marketing partners. While the economy is clearly having an impact on fans' discretionary spending, they remain very avid and continue to attend live events. These factors, combined with ISC's collection of assets including premier events in key markets, place our company in a unique position for long-term growth while mitigating the issues of the current market environment." Third Quarter Comparison Total revenues for the third quarter were $213.2 million, compared to revenues of $195.6 million in the prior-year period. Operating income increased to $61.0 million during the period compared to $48.2 million in the third quarter of fiscal 2007. Quarter-over-quarter comparability was impacted by: -- The NASCAR Sprint Cup and Nationwide series race weekend at Auto Club Speedway conducted in the third quarter of 2008 as compared to the fourth quarter of 2007. -- An IndyCar(R) Series weekend held at Michigan International Speedway in the third quarter of 2007 that was discontinued after the 2007 race season. -- Accelerated depreciation of $0.5 million, or $0.01 per diluted share after tax, in the third quarter of 2008 for certain office and related buildings in Daytona Beach associated with the Company's previously announced Daytona Live! project. The 2007 third quarter included accelerated depreciation charges of $6.9 million, or $0.08 per diluted share after tax. -- The 2007 third quarter write-down by Motorsports Authentics ("MA") of certain inventory and related assets, which was included in ISC's equity losses. ISC's 50 percent portion of the loss was $12.4 million, or $0.24 per diluted share after tax. -- The 2007 third quarter recognition of $1.6 million, or $0.03 per diluted share after tax, in deferred income tax expense attributable to enactment of an income-based tax system in the state of Michigan. -- 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. Net income for the third quarter of 2008 increased to $38.8 million, or $0.79 per diluted share, compared to net income of $9.5 million, or $0.18 per diluted share, in the prior year's third quarter. Excluding discontinued operations and the aforementioned accelerated depreciation and the recognition of a tax benefit, non-GAAP (defined below) net income for the third quarter of 2008 was $35.7 million, or $0.73 per diluted share. This is compared to non- GAAP net income for the third quarter of 2007 of $27.9 million, or $0.53 per diluted share. Year-to-Date Comparison For the nine months ended August 31, 2008, total revenues were $582.0 million, compared to $561.4 million in 2007. Operating income for the nine month period was $170.9 million compared to $149.0 million in the prior year. Year-over-year comparability was impacted by: -- The aforementioned timing of Auto Club's fall NASCAR weekend and Michigan's IndyCar Series weekend, which was discontinued after 2007. -- Accelerated depreciation charges in 2008 of $1.6 million, or $0.02 per diluted share after tax, associated with the previously discussed Daytona Live! project. Results for the nine months ended August 31, 2007, included accelerated depreciation charges of $14.2 million, or $0.17 per diluted share after tax. -- The previously discussed tax benefit of $3.5 million, or $0.07 per diluted share after tax, recognized 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. -- 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. Results for the nine months ended August 31, 2007, included an impairment charge of $9.2 million, or $0.11 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 third quarter write-down by MA of certain inventory and related assets, which was included in ISC's equity losses and equated to $12.4 million, or $0.24 per diluted share after tax. -- The previously discussed 2007 third quarter recognition of $1.6 million, or $0.03 per diluted share after tax, in deferred income tax expense attributable to enactment of an income-based tax system in the state of Michigan. Net income for the nine months ended August 31, 2008, was $101.0 million, or $2.02 per diluted share, compared to $63.7 million, or $1.20 per diluted share in 2007. Excluding discontinued operations and the aforementioned accelerated depreciation, the recognition of a tax benefit, the correction of certain other assets' carrying value amounts, and certain impairment and related charges, non-GAAP net income for the nine months ended August 31, 2008, was $103.5 million, or $2.07 per diluted share. This is compared to non-GAAP net income for the first nine months of 2007 of $92.4 million, or $1.75 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 2007 adjustment relates to: additional depreciation associated with building structures in the Company's office complex in Daytona Beach; impairment charges associated with ISC's decision to discontinue speedway development efforts in Kitsap County, Washington, and, to a lesser extent, fill removal costs on the Company's Staten Island property; increased deferred income tax expense related to the change in Michigan state tax laws; and, the write-down of certain inventory and related assets at MA. The adjustments for 2008 relate to: 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 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 August 31, August 31, August 31, August 31, 2007 2008 2007 2008 Net income $9,517 $38,791 $63,726 $100,974 Net loss from discontinued operations, net of tax 30 51 56 118 Income from continuing operations 9,547 38,842 63,782 101,092 Adjustments, net of tax: Additional depreciation 4,262 320 8,689 960 Impairment of long-lived assets 69 20 5,937 1,175 Inventory-related write down of equity investment 12,414 - 12,414 - Tax benefit associated with restructuring initiatives - (3,477) - (3,477) Michigan income tax 1,595 - 1,595 - Correction of certain other assets' carrying value - - - 3,758 Non-GAAP net income $27,887 $35,705 $92,417 $103,508 Per share data: Diluted earnings per share $0.18 $0.79 $1.20 $2.02 Net loss from discontinued operations, net of tax - - - - Income from continuing operations 0.18 0.79 1.20 2.02 Adjustments, net of tax: Additional depreciation 0.08 0.01 0.17 0.02 Impairment of long-lived assets - - 0.11 0.02 Inventory-related write down of equity investment 0.24 - 0.24 - Tax benefit associated with restructuring initiatives - (0.07) - (0.07) Michigan income tax 0.03 - 0.03 - Correction of certain other assets' carrying value - - - 0.08 Non-GAAP diluted earnings per share $0.53 $0.73 $1.75 $2.07 2008 Third Quarter Highlights An overview of the significant major event weekends held in the third quarter of 2008 includes: -- Watkins Glen International hosted a successful weekend of sports car racing in June, highlighted by the fourth Grand-Am Rolex Series Daytona Prototype victory of the season for Scott Pruett and Memo Rojas in the 27th running of the Sahlen's Six Hours of The Glen. -- Michigan International Speedway hosted the NASCAR Sprint Cup, NASCAR Craftsman Truck and ARCA RE/MAX series in mid-June. Fans were treated to a full weekend of racing that culminated with fan-favorite Dale Earnhardt Jr. winning the Sprint Cup LifeLock 400. -- Richmond International Raceway held a successful weekend of IndyCar Series racing highlighted by a record crowd for the SunTrust Indy Challenge. -- Daytona International Speedway hosted a Sprint Cup, Nationwide and Grand-Am racing weekend, highlighted by a thrilling green-white-checkered finish in the Coke Zero 400 Powered by Coca-Cola that resulted in Kyle Busch's first Sprint Cup victory at the historic facility. -- Watkins Glen hosted an exciting weekend of open wheel racing, which featured increased attendance for the Camping World Grand Prix at The Glen and Ryan Hunter-Reay's first IndyCar Series victory. -- Chicagoland Speedway sold out its season tickets for the 2008 racing season as it prepared for the first-ever night races at the facility. Kyle Busch won both the NASCAR Nationwide Dollar General 300 Powered by Coca-Cola and the NASCAR Sprint Cup LifeLock.com 400. -- ISC, with its partner Group Motorise International, hosted a successful weekend of exciting NASCAR stock and Grand-Am sports car racing at the historic Circuit Gilles Villeneuve in Montreal, Canada. Ron Fellows captured the victory in a rain-shortened Nationwide NAPA Auto Parts 200 presented by Dodge over fellow Canadian Patrick Carpentier. -- Watkins Glen hosted a weekend of Sprint Cup, Nationwide and Grand-Am racing, anchored by the Centurion Boats at The Glen. Kyle Busch scored his eighth win of the Sprint Cup season and became the first driver in NASCAR history to win three road course events in a season. -- At Michigan, Carl Edwards captured a rare weekend sweep with victories in NASCAR's Sprint Cup 3M Performance 400 presented by Bondo and Nationwide CARFAX 250. -- Auto Club Speedway hosted a weekend of NASCAR Sprint Cup and Nationwide Series racing highlighted by Jimmie Johnson winning the Pepsi 500 and becoming only the second driver to win three Sprint Cup races at the speedway. Fourth Quarter Events To date in the fiscal fourth quarter: -- In spite of Tropical Storm Hanna, the field for the Chase for the Sprint Cup Championship was set at Richmond with another highly-competitive Chevy Rock and Roll 400. Jimmie Johnson won the Cup race and Carl Edwards secured victory in the NASCAR Nationwide Series Emerson Radio 250. -- Chicagoland played host to premier open-wheel season-finales with Scott Dixon winning his second IndyCar Series Championship. The weekend also featured the season-ending Firestone Indy Lights event as well as an exciting ARCA RE/MAX Series stock car race. -- Kansas Speedway hosted a NASCAR Sprint Cup and Nationwide series weekend highlighted by Jimmie Johnson winning his fifth Sprint Cup race of the year in the Camping World RV 400. -- Talladega Superspeedway hosted a successful weekend of Sprint Cup, Craftsman Truck and ARCA RE/MAX events highlighted by Tony Stewart picking up his first career Sprint Cup victory at NASCAR's most competitive track. The anchor event featured 28 different leaders, a record for the Sprint Cup series race, and no driver held the lead for more than 20 consecutive laps. For the remainder of the fourth quarter, ISC will host a Sprint Cup and Craftsman Truck series weekend at Martinsville Speedway, and a NASCAR triple- header weekend at Phoenix International Raceway. Finally, Homestead-Miami Speedway will host the Ford Championship Weekend, where season champions will be crowned for all three of NASCAR's national touring series. While the Company has begun to experience a slowdown in corporate spending for hospitality, ISC has sold all of its 2008 event entitlements and continues to anticipate year-over-year growth in sponsorship revenue for the full year. And, while the Company enjoys significant visibility in corporate marketing partner revenue as the majority of agreements are for multiple years, ISC continues to evaluate the potential impact of the economy on corporate marketing programs for 2009. It is important to note, however, that entitlements have been secured for more than 75 percent of its 2009 schedule of major events. "We are off to a good start for 2009, with agreements in place for a substantial portion of our marketing partnership inventory," added Ms. France Kennedy. "And, while the process of securing deals has become more time consuming, we continue to have discussions with partners attracted by our unique array of marketing assets that allow us to tailor marketing programs to their specific business needs." Another bright spot for the Company is the continued successful turnaround at MA, the Company's motorsports-related merchandise 50/50 joint venture with Speedway Motorsports. The Company remains optimistic about MA's multi-faceted turnaround plan designed to grow top line revenue while controlling expenses. The results for the first three quarters of 2008 are encouraging, but with the main sales cycle for MA being in the first half of the year, ISC projects MA to contribute between $2.0 and $3.0 million in equity income to ISC for the 2008 full year. For 2009, the Company expects MA will face a more difficult sales climate due to economic conditions. And, unlike in 2008 with Dale Earnhardt Jr's move to Hendrick Motorsports, it is not expected to benefit materially from driver or team changes. MA also benefited in 2008 from significant merchandise sales surrounding the historic 50th running of the Daytona 500. There is not a significant milestone event for 2009 that is expected to have a similar impact on sales. With all of these factors combined, ISC does not currently expect that MA will post financial results in 2009 that are as strong as 2008. External Growth and Related Initiatives On September 19, 2008, the Kansas Lottery Gaming Facility Review Board ("Review Board") awarded ISC and The Cordish Company's ("Cordish") Hard Rock Hotel & Casino proposal the casino management contract for Wyandotte County, Kansas. The 50/50 joint venture will build a 1.5 million-square-foot, gaming and entertainment destination on property adjacent to Kansas Speedway. The development will include a 300-room luxury hotel; a state-of-the-art casino with 3,000 slot machines and 140 gaming tables; 275,000 square-feet of destination retail, dining and entertainment including a live music venue; first class resort amenities; and extensive meeting and convention facilities. The joint venture is finalizing its casino management contract with the Kansas Racing and Gaming Commission, which includes completing the technical licensure process. The project is expected to cost approximately $705 million to construct and is scheduled for completion in 2011. Depending upon market conditions, the joint venture anticipates contributing between 20 and 40 percent in equity. The remaining portion is expected to be funded by non-recourse, secured debt financing, and will not be required until the second half of 2009 under any scenario. During construction of the hotel and casino entertainment development, the joint venture will operate an initial phase casino with approximately 2,000 slot machines and 75 gaming tables. The estimated construction cost for the initial phase casino is between $80 million and $90 million, with construction beginning in January or February and opening in late 2009. ISC's 50 percent cash contribution to construct the initial phase casino will be between $40 million and $45 million, and will be part of its total equity outlay for the project. Included in the joint venture's proposal was ISC's commitment to petition NASCAR to realign a second Sprint Cup Series race to Kansas Speedway by no later than 2011. The source of the race, which will come from one of ISC's other facilities, has not been determined. The Daytona Live! project, the mixed-use entertainment destination development that ISC is pursuing in a 50/50 joint venture with Cordish, is moving forward as expected. 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 joint venture has financed the construction of its new headquarters with a $51.3 million loan that matures 25 years after the completion of the headquarters building with an interest rate of 6.25 percent. The loan is non- recourse and secured by ISC's lease payments to the joint venture. In accordance with FASB Interpretation No. 46(R), "Consolidation of Variable Interest Entities," the Company determined that the Daytona Live! headquarters building is a variable interest entity for which it is considered to be the primary beneficiary. As the primary beneficiary, ISC has consolidated this entity in its financial statements as of August 31, 2008. The retail, dining and entertainment portion of Daytona Live! is being actively marketed by Cordish. It is early in the process, but the Company remains encouraged by the discussions Cordish is having with potential tenants. As previously announced, Cobb Theaters has committed to 65,000 square feet for its state-of-the-art theater that is currently under design. On Staten Island, ISC continues to have discussions with interested buyers for the 676 acre parcel, and remains hopeful that a transaction will occur in 2009. The Company expects to cease all site-work by the end of the 2008 fiscal year. As a result, ISC does not expect to capitalize any interest expense in 2009 relating to the Staten Island property. For the full year of 2008, the Company anticipates capitalizing approximately $4 million of interest expense related to its Staten Island efforts. Share Repurchase Program In the 2008 third quarter, ISC purchased approximately 743,000 shares of its Class A Common Stock for $29.5 million. From initiation of the program in December 2006 through August 2008, the Company purchased a total of 4.5 million shares for $200.5 million, leaving $49.5 million in remaining capacity on its $250 million authorization as of August 31, 2008. ISC continues to believe its capital allocation strategy reflects a balanced approach that enhances shareholder value and further positions the Company for long-term success. Outlook Given the challenging macro-economic environment and its impact on consumer and corporate spending trends, the Company has re-evaluated its revenue and earnings per share expectations for 2008 and 2009. The Company now expects full year total revenues to range between $780 million and $785 million for fiscal 2008. In addition, ISC anticipates full year non-GAAP earnings for 2008 of between $2.80 and $2.85 per diluted share. ISC expects non-GAAP earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) margins, operating margins, and effective income tax rates for the 2008 full year to range as follows: Year Ending 11/30/2008 EBITDA margin 38% - 39% Operating margin 30% - 31% Effective tax rate 38% - 39% 1. EBITDA is a non-GAAP financial measure used by the Company as an important indicator of its operating margin. For 2009, given the current economic backdrop and with indications that a broad-based recovery may not occur until well into the year, the Company, in its initial stages of budgeting, expects total revenue could be down as much as three to four percent compared to its revised 2008 full year guidance. And while ISC expects to keep its 2009 controllable event and administrative expenses flat with 2008, there are a number of factors that will contribute to earnings per share results that could be five to 10 percent lower than the Company's revised 2008 full year guidance. These factors are primarily associated with: lower capitalized interest for Staten Island; a materially higher interest rate associated with refinancing $150 million of 4.2 percent Senior Notes due in April 2009; and, lower equity income from MA as compared to 2008. Ms. France Kennedy concluded, "I would like to reiterate that despite the current economic challenges, our core business remains sound. NASCAR is a leading sports property, boasting a base of 75 million fans. It remains the second highest rated sport on television and leads all major sports properties in sponsor satisfaction. Supported by a strong balance sheet and significant cash flow and earnings visibility, ISC is in a great position to capitalize on NASCAR's continued success. We remain focused on our strategic initiatives designed to leverage our assets and expertise to drive consumer and corporate interest for our events. Supporting these efforts will be continued reinvestments at our existing facilities in amenities and enhancements to improve the fan experience, as well as the exploration of additional opportunities to grow our business through complementary developments designed to unlock the tremendous value of our assets." 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 65106031. 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 Thursday, October 16, 2008. To access, dial toll free (800) 642-1687 and enter the code 65106031, 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 is a limited partner with Group Motorise International in the organization and promotion of certain events at Circuit Gilles Villeneuve in Montreal, Canada. 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 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. Consolidated Statements of Operations (In Thousands, Except Per Share Amounts) Three Months Ended Nine Months Ended August 31, August 31, August 31, August 31, 2007 2008 2007 2008 (Unaudited) REVENUES: Admissions, net $62,970 $62,697 $175,518 $172,242 Motorsports related 112,954 129,572 322,453 343,657 Food, beverage and merchandise 17,663 18,393 57,028 58,821 Other 1,978 2,546 6,380 7,284 195,565 213,208 561,379 582,004 EXPENSES: Direct: Prize and point fund monies and NASCAR sanction fees 35,067 44,076 101,341 111,857 Motorsports related 46,364 50,888 115,244 124,912 Food, beverage and merchandise 10,605 11,670 33,506 36,201 General and administrative 31,383 27,651 90,127 83,631 Depreciation and amortization 23,825 17,865 62,973 52,618 Impairment of long-lived assets 108 33 9,184 1,914 147,352 152,183 412,375 411,133 Operating income 48,213 61,025 149,004 170,871 Interest income and other 1,402 398 3,699 (2,278) Interest expense (4,041) (4,012) (11,781) (10,899) Equity in net (loss) income from equity investments (17,145) (140) (21,756) 4,614 Minority interest - 130 - 130 Income from continuing operations before income taxes 28,429 57,401 119,166 162,438 Income taxes 18,882 18,559 55,384 61,346 Income from continuing operations 9,547 38,842 63,782 101,092 Loss from discontinued operations, net of income tax benefits (30) (51) (56) (118) Net income $9,517 $38,791 $63,726 $100,974 Basic earnings per share: Income from continuing operations $0.18 $0.79 $1.21 $2.02 Loss from discontinued operations - - - - Net income $0.18 $0.79 $1.21 $2.02 Diluted earnings per share: Income from continuing operations $0.18 $0.79 $1.20 $2.02 Loss from discontinued operations - - - - Net income $0.18 $0.79 $1.20 $2.02 Dividends per share $- $- $0.10 $0.12 Basic weighted average shares outstanding 52,473,146 49,035,405 52,791,267 49,929,943 Diluted weighted average shares outstanding 52,583,820 49,123,363 52,905,851 50,025,969 Consolidated Balance Sheets (In Thousands) November 30, 2007 August 31, 2008 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $57,316 $51,610 Short-term investments 39,250 200 Restricted cash - 3,206 Receivables, less allowance of $1,200 in 2007 and 2008, respectively 46,860 60,685 Inventories 4,508 5,454 Deferred income taxes 1,345 5,155 Prepaid expenses and other current assets 10,547 23,342 Total Current Assets 159,826 149,652 Property and Equipment, net of accumulated depreciation of $410,192 and $456,479, respectively 1,303,178 1,323,773 Other Assets: Long-term restricted cash and investments - 43,379 Equity investments 76,839 80,983 Intangible assets, net 178,984 178,876 Goodwill 118,791 118,791 Deposits with Internal Revenue Service 117,936 117,936 Other 26,563 34,675 519,113 574,640 Total Assets $1,982,117 $2,048,065 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current portion of long-term debt $2,538 $152,875 Accounts payable 37,508 27,270 Deferred income 128,631 151,700 Income taxes payable 22,179 7,884 Other current liabilities 21,447 23,904 Total Current Liabilities 212,303 363,633 Long-Term Debt 375,009 273,381 Deferred Income Taxes 214,109 92,914 Long-Term Tax Liabilities - 160,884 Long-Term Deferred Income 15,531 14,890 Other Long-Term Liabilities 6,077 9,338 Commitments and Contingencies - - Shareholders' Equity: Class A Common Stock, $.01 par value, 80,000,000 shares authorized; 30,010,422 and 27,385,472 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 21,344,727 issued and outstanding in 2007 and 2008, respectively 216 213 Additional paid-in capital 621,528 503,784 Retained earnings 537,044 631,978 Accumulated other comprehensive loss - (3,224) Total Shareholders' Equity 1,159,088 1,133,025 Total Liabilities and Shareholders' Equity $1,982,117 $2,048,065 Consolidated Statements of Cash Flows (In Thousands) Nine Months Ended August 31, 2007 August 31, 2008 (Unaudited) OPERATING ACTIVITIES Net income $63,726 $100,974 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 62,973 52,618 Minority interest - (130) Stock-based compensation 3,233 2,291 Amortization of financing costs 388 387 Deferred income taxes 16,004 15,845 Loss (income) from equity investments 21,756 (4,614) Excess tax benefits relating to stock-based compensation (169) (7) Impairment of long-lived assets, non-cash 6,143 308 Other, net 1,314 3,826 Changes in operating assets and liabilities: Receivables, net (3,315) (13,825) Inventories, prepaid expenses and other assets (28,737) (13,540) Deposits with Internal Revenue Service (7,123) - Accounts payable and other liabilities 9,465 5,090 Deferred income 58,515 22,428 Income taxes (2,576) 5,638 Net cash provided by operating activities 201,597 177,289 INVESTING ACTIVITIES Capital expenditures (70,439) (87,422) Acquisition of business, net of cash acquired (87,111) - Proceeds from affiliate 67 4,700 Advance to affiliate - (16,572) Increase in restricted cash - (46,585) Proceeds from short-term investments 105,120 41,500 Purchases of short-term investments (66,370) (2,450) Purchases of equity investments - (81) Other, net 58 850 Net cash used in investing activities (118,675) (106,060) FINANCING ACTIVITIES Proceeds under credit facility 65,000 20,000 Payments under credit facility (65,000) (20,000) Proceeds of long-term debt - 51,300 Payment of long-term debt (29,311) (2,369) Exercise of Class A common stock options 357 - Cash dividends paid (5,292) (5,960) Excess tax benefits relating to stock-based compensation 169 7 Reacquisition of previously issued common stock (51,517) (119,913) Net cash used in financing activities (85,594) (76,935) Net decrease in cash and cash equivalents (2,672) (5,706) Cash and cash equivalents at beginning of period 59,681 57,316 Cash and cash equivalents at end of period $57,009 $51,610 DATASOURCE: International Speedway Corporation CONTACT: Wes Harris, Senior Director, Corporate and Investor Communications, +1-386-947-6465, for International Speedway Corporation Web site: http://www.iscmotorsports.com/

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