International Speedway Corporation Reports Results for the First Quarter of Fiscal...

International Speedway Corporation Reports Results for the First Quarter of
Fiscal 2009

~Company Updates Full-Year Financial Guidance~

DAYTONA BEACH, Fla., April 7 /PRNewswire-FirstCall/ -- International Speedway
Corporation (NASDAQ Global Select Market: ISCA; OTC Bulletin Board: ISCB)
("ISC") today reported results for the fiscal first quarter ended February 28,
2009.

"While pleased with the level of excitement and competition on the track as
well as the fans' avid support of NASCAR, we are not immune to the broader
macroeconomic challenges facing all businesses," said ISC President Lesa
France Kennedy. "We are addressing these challenges on a number of fronts.
Most notably, we are making it more affordable for our fans to attend our
events by reducing ticket prices, providing value-added opportunities to
enhance the guest experience, and working with community partners to further
reduce the overall cost of attending a race. Also, given the close scrutiny
that is being placed on marketing budgets, we have escalated our efforts to
provide our corporate partners with innovative marketing solutions that
deliver a clearly measurable return on investment."

Ms. France Kennedy continued, "On the expense side, we are aggressively
managing our controllable expenses to scale the events appropriately without
detrimentally impacting the experience for our fans. We have also undertaken
a company-wide initiative to reduce pricing and, when appropriate, scope of
services with vendors and suppliers. All of these cost control measures are
designed to ensure that our business remains strong and continues to generate
substantial cash flow. Lastly, we are maintaining a solid capital structure
that allows us to weather any short-term volatility while providing us the
flexibility to capitalize on potential opportunities that will increase
shareholder value."

First Quarter Comparison
Total revenues for the first quarter decreased to $166.1 million, compared to
revenues of $193.9 million in the prior-year period. Operating income was
$50.0 million during the period compared to $66.9 million in the first quarter
of fiscal 2008. In addition to the macroeconomic challenges,
quarter-over-quarter 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.
-- The 2008 first quarter also included a non-cash charge of $3.8
million,
or $0.07 per diluted share after tax, to correct the carrying value of
certain other assets as of November 30, 2007. In addition, the first
quarter of 2008 included an impairment charge of $0.7 million, or
$0.01
per diluted share after tax, 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 first quarter of 2009 included a $1.6 million, or $0.03 per
diluted
share after tax, charge for equity in net loss from equity investments
related to Motorsports Authentics, LLC ("MA"), the
Company's motorsports-related merchandise 50/50 joint venture with
Speedway Motorsports Inc. The 2008 first quarter included equity
income
of $1.1 million, or $0.02 per diluted share after tax, due to the
strong
product sales primarily associated with a new team, car number and
sponsor for Dale Earnhardt, Jr., NASCAR's most significant
licensee. In addition, merchandise sales from the 50th running of the
Daytona 500 drove strong results for the prior year period.

Net income was $25.1 million, or $0.52 per diluted share, compared to net
income of $36.2 million, or $0.71 per diluted share, in the prior year.
Excluding the aforementioned correction of certain other assets' carrying
value amounts; impairment charges; operating results from the Company's equity
investment; and, accelerated depreciation of $0.5 million, or $0.01 per
diluted share after tax, for certain office and related buildings in Daytona
Beach associated with the Company's previously announced Daytona Live! project
(the 2008 first quarter also included similar accelerated depreciation
charges), non-GAAP (defined below) net income for the first quarter of 2009
was $27.2 million, or $0.56 per diluted share. Non-GAAP net income for the
first quarter of 2008 was $39.7 million, or $0.78 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: a benefit for equity in 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; and, a non-cash charge to correct the
carrying value of certain other assets.

The adjustments for 2009 relate to: a charge for equity in net loss from
equity investment; accelerated depreciation for certain office and related
buildings in Daytona Beach; and, the impairment of long-lived assets
associated with the 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
February 29, February 28,
2008 2009
------------- -------------

Net income $36,211 $25,146
Loss from discontinued operations, net of tax 31 42
-- --
Income from continuing operations 36,242 25,188
Equity in net (income) loss from equity
investment, net of tax (1,102) 1,639
------ -----
Consolidated income from continuing operations
excluding equity in net (income) loss from
equity investment 35,140 26,827

Adjustments, net of tax:
Additional depreciation 320 309
Impairment of long-lived assets 448 33
Correction of certain other assets'
carrying value 3,758 -
----- --
Non-GAAP net income $39,666 $27,169
======= =======

Per share data:
Diluted earnings per share $0.71 $0.52

Loss from discontinued operations, net of tax - -
-- --
Income from continuing operations 0.71 0.52
Equity in net (income) loss from equity
investment (0.02) 0.03
----- ----
Consolidated earnings per share from continuing
Operations excluding equity in net (income)
loss from equity investment 0.69 0.55
Adjustments, net of tax:
Additional depreciation 0.01 0.01
Impairment of long-lived assets 0.01 -
Correction of certain other assets'
carrying value 0.07 -
---- --
Non-GAAP diluted earnings per share $0.78 $0.56
===== =====

Recent Events
For the start of the motorsports season, Daytona hosted its annual lineup of
events branded DIRECTV Speedweeks(R), which combines the best sports car,
truck and stock car racing in the world, and culminates with the Daytona
500(R). The multi-week lineup began with the prestigious Grand-Am Rolex 24,
which was highlighted by the closest finish in the 47-year history of the
event.

DIRECTV Speedweeks(R) continued with several exciting stock car and truck
racing events, culminating with the 51st running of the Daytona 500(R). While
this year's "The Great American Race(R)" featured some of the most thrilling
competition in recent memory, unfortunately the event was rained shortened to
only 152 of the scheduled 200 laps. The weekend following, NASCAR's Sprint
Cup, Nationwide and Camping World Truck series returned to Auto Club Speedway,
which is located near Los Angeles, the nation's second largest media market.

Subsequent to the fiscal first quarter, Daytona hosted a successful week of
motorcycle racing that included the Daytona Supercross and the 68th running of
the Daytona 200(R). Auto Club Speedway also held a weekend of exciting
motorcycle racing. Finally, the NASCAR Sprint Cup and Camping World Truck
series raced at the historic half-mile short track of Martinsville Speedway.

For the remainder of the second quarter, the Company will host four Sprint Cup
and Nationwide series weekends at Phoenix International Raceway, Talladega
Superspeedway, Richmond International Raceway and Darlington Raceway. The
Talladega weekend will also include an ARCA/RE-MAX event. In addition, Kansas
Speedway will host an IRL IndyCar and NASCAR Camping World Truck weekend.

From a marketing partnership perspective, ISC recently signed event
entitlement positions for its NASCAR Sprint Cup races at Watkins Glen
International, Darlington and Kansas. As a result, ISC has only one Sprint
Cup and three Nationwide title sponsorships that are either open or not
announced. Even more significantly, the Company continues to have success in
securing multi-year agreements for official status positions. This
combination has resulted in ISC's ability to have agreements in place for 90
percent of its current gross marketing partnership revenue target for fiscal
2009.

External Growth, Financing-Related and Other Initiatives
The Company in a joint venture partnership with The Cordish Company
("Cordish") resubmitted a revised joint proposal for the development of a Hard
Rock Casino and certain dining and entertainment options on property adjacent
to the Kansas Speedway on March 30, 2009. The revised proposal contemplates
the development, depending upon market conditions and demand, of a hotel,
convention facility, and a retail and entertainment district.

The initial phase of the project, which is planned to comprise approximately
190,000 square feet, would include a 100,000 square foot casino gaming floor
with approximately 2,300 slot machines and 86 table games, a high-energy
center bar, and dining and entertainment options, and is projected to cost
approximately $390 million. The full budget of all potential phases is
projected at approximately $700 million, and would be financed by the joint
venture between ISC and Cordish. Depending upon market conditions, the 50/50
joint venture anticipates funding the development with between 20 and 40
percent equity. The remaining portion is expected to be funded by secured
project debt financing obtained by the joint venture.

The Lottery Commission will evaluate the proposals and will then seek to
negotiate management agreements with those managers it intends to recommend to
the Gaming Commission. The timeline for the Lottery Commission negotiations
and review process is defined as 90 days followed by a review by the Kansas
Lottery Gaming Facility Review Board and background checks by the Kansas
Racing and Gaming Commission. The entire process is expected to be completed
by October 2009.

Daytona Live!, a mixed-use entertainment destination development that the
Company is also pursuing in a 50/50 joint venture with Cordish, is expected to
have the ISC and NASCAR headquarters building completed and open in the fourth
quarter of 2009. The retail, dining, and entertainment component of Daytona
Live! is being actively marketed by Cordish. Final design plans that will
include local market studies and further project analysis for the development
of the retail, dining and entertainment, and hotel components are being
completed. These phases of the development will be market driven, and no
construction will begin until the timing is appropriate.

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 is also continuing through the audit appeals process with
the Internal Revenue Service ("IRS") and is having very productive
conversations concerning a settlement.

Once ISC sells the Staten Island property and/or secures a favorable
settlement with the IRS, the Company will evaluate opportunities to reduce
debt and further invest in the business, including additional share
repurchases. ISC ceased repurchasing shares in September 2008 as a result of
the turbulent credit markets and its desire to conserve cash.

As it relates to the Company's $150 million Senior Note mid-April 2009
maturity (the "Maturity"), ISC remains in a favorable financial position and
does not need to access the current turbulent credit markets. As such, the
Maturity will be funded by available cash from its revolving credit facility
borrowings that it drew down in October 2008. The Company plans to pay down
the balance on the credit facility by mid-2010, which is one year prior to its
maturity.

Capital Spending
Given its desire to continue to build on its significant cash position, the
Company anticipates spending between $50 million and $55 million on capital
expenditures at its existing facilities. This is viewed as the minimum amount
of investment necessary for maintenance cap-ex, safety and regulatory
requirements, and preserving the guest experience. Excluded from this
estimate is approximately $45 million in spending for ISC's headquarters
building as part of Daytona Live!, of which approximately $41 million is
funded by the construction loan secured in July 2008. Also excluded is $2
million to $3 million of capitalized costs, including property taxes, for
Staten Island.

Financial Guidance
The Company is revising its full year guidance as a result of further
weakening of the macroeconomic environment. ISC now expects 2009 full year
total revenue will range between $700 million to $720 million and full year
non-GAAP earnings of $1.80 to $2.00 per diluted share. As it is still early
in the year, the Company is more comfortable at the low end of these ranges.
The non-GAAP earnings per share estimates exclude additional depreciation
associated with the Daytona Live! project, impairment of long-lived assets
associated with the net book value of assets retired from service, and the
operating results from ISC's equity investment in MA.

MA's management team is currently doing a thorough re-evaluation of the
business given the unique challenges facing the sales of licensed goods in
sports as a result of the current economic landscape. As MA currently has
less visibility than ISC's core business of promoting motorsports events, the
Company is not including MA's results in its 2009 non-GAAP earnings guidance.
ISC currently expects MA will post an operating loss for 2009.

As it relates to margins, ISC currently anticipates the following:

Year Ending
11/30/09
EBITDA (1) 33% - 35%
Operating 23% - 25%

(1) EBITDA is a non-GAAP financial measure used by the Company as an
important indicator of its operating margin. It is defined as
earnings before interest, taxes, depreciation and amortization.

Outlook
"Although we expect our business will continue to be impacted by a challenging
macroeconomic environment throughout 2009, we enjoy a business model that
benefits from strong consumer support and a solid foundation of contracted
revenues," stated Ms. France Kennedy. "These significant top-line visibilities
combined with undertaken cost containment measures help ensure that our
business will continue to generate substantial cash flow."

Ms. France Kennedy concluded, "Our success is also predicated on NASCAR racing
which continues to be healthy and popular not only with the tens of millions
of passionate fans but also with corporate America. It remains the largest
spectator sport, second highest rated sport on television, and leads all major
sports properties in sponsor satisfaction. For the past 60 years, NASCAR
racing has offered its participants one of the most stable and growth-oriented
business models in all of sports, and we expect that trend to continue well
into the future."

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 92154372. A live Webcast will also be available
at that time on the Company's Web site, www.iscmotorsports.com, under the
"Investor Relations" section.

A replay will be available two hours after the end of the call through
midnight Tuesday, April 14, 2009. To access, dial toll free (800) 642-1687
and enter the code 92154372, 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 promotes major motorsports
activities in Montreal, Quebec, through its wholly owned subsidiary, Stock-Car
Montreal.

The Company also owns and operates MRN(R) Radio, the nation's largest
independent sports 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
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.

(Tables Follow)

Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)

Three Months Ended
February 29, February 28,
2008 2009
------------- -------------
(Unaudited)
REVENUES:
Admissions, net $56,113 $47,836
Motorsports related 112,845 102,534
Food, beverage and merchandise 22,690 13,409
Other 2,211 2,340
----- -----
193,859 166,119

EXPENSES:
Direct expenses:
Prize and point fund monies
and NASCAR sanction fees 33,053 34,142
Motorsports related 35,336 29,109
Food, beverage and
merchandise 12,784 9,477
General and administrative 27,711 24,935
Depreciation and amortization 17,317 18,391
Impairment of long-lived assets 731 70
--- --
126,932 116,124
------- -------

Operating income 66,927 49,995
Interest income and other (3,060) 464
Interest expense (3,593) (6,270)
Minority interest - 171
Equity in net income (loss) from
equity investments 1,794 (1,639)
----- ------

Income from continuing operations
before income taxes 62,068 42,721
Income taxes 25,826 17,533
------ ------

Income from continuing operations 36,242 25,188

Discontinued operations (31) (42)
--- ---
Net income $36,211 $25,146
------- -------

Basic earnings per share:
Income from continuing operations $0.71 $0.52
Loss from discontinued operations - -
-- --
Net income $0.71 $0.52
----- -----

Diluted earnings per share:
Income from continuing operations $0.71 $0.52
Loss from discontinued operations - -
-- --
Net income $0.71 $0.52
----- -----

Basic weighted average shares
outstanding 50,928,554 48,548,395
---------- ----------

Diluted weighted average shares
outstanding 51,038,079 48,677,666
---------- ----------

Consolidated Balance Sheets
(In Thousands)
November 30, February 28,
2008 2009
------------- -------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $218,920 $241,011
Short-term investments 200 200
Restricted cash 2,405 1,603
Receivables, less allowance of $1,200 in
2008 and 2009 47,558 119,128
Inventories 3,763 4,317
Deferred income taxes 1,838 2,059
Prepaid expenses and other current assets 7,194 14,596
----- ------
Total Current Assets 281,878 382,914

Property and Equipment, net 1,331,231 1,336,357
Other Assets:
Long-term restricted cash and
investments 40,187 36,394
Equity investments 77,613 76,104
Intangible assets, net 178,841 178,815
Goodwill 118,791 118,791
Deposits with Internal Revenue Service 117,936 117,936
Other 34,342 21,487
------ ------
567,710 549,527
------- -------
Total Assets $2,180,819 $2,268,798
---------- ----------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $153,002 $152,994
Accounts payable 26,393 32,146
Deferred income 103,549 148,472
Income taxes payable 8,659 13,523
Other current liabilities 18,035 21,606
------ ------
Total Current Liabilities 309,638 368,741

Long-Term Debt 422,045 421,809
Deferred Income Taxes 104,172 106,977
Long-Term Tax Liabilities 161,834 162,669
Long-Term Deferred Income 13,646 13,878
Other Long-Term Liabilities 28,125 29,113
Commitments and Contingencies - -
Shareholders' Equity:
Class A Common Stock, $.01 par value,
80,000,000 shares authorized; 27,397,924
and 27,741,939 issued and outstanding in
2008 and 2009, respectively 274 277
Class B Common Stock, $.01 par value,
40,000,000 shares authorized; 21,150,471
and 20,806,456 issued and outstanding in
2008 and 2009, respectively 211 208
Additional paid-in capital 497,277 497,881
Retained earnings 665,405 690,380
Accumulated other comprehensive loss (21,808) (23,135)
------- -------
Total Shareholders' Equity 1,141,359 1,165,611
--------- ---------
Total Liabilities and Shareholders' Equity $2,180,819 $2,268,798
---------- ----------

Consolidated Statements of Cash Flows
(In Thousands)

Three Months Ended
February 29, February 28,
2008 2009
------------- -------------
(Unaudited)
OPERATING ACTIVITIES
Net income $36,211 $25,146
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 17,317 18,391
Minority interest - (171)
Stock-based compensation 937 604
Amortization of financing costs 129 129
Deferred income taxes 4,418 2,898
(Income) loss from equity investments (1,794) 1,639
Impairment of long-lived assets, non-
cash 328 70
Other, net 3,707 (3)
Changes in operating assets and
liabilities:
Receivables, net (71,395) (71,570)
Inventories, prepaid expenses
and other assets (5,774) (8,296)
Accounts payable and other
liabilities 5,744 6,021
Deferred income 42,631 45,155
Income taxes 15,188 5,385
------ -----
Net cash provided by operating activities 47,647 25,398

INVESTING ACTIVITIES
Capital expenditures (37,981) (20,042)
Proceeds from affiliate - 12,500
Advance from affiliate - (200)
Decrease in restricted cash - 4,595
Proceeds from short-term investments 41,300 -
Purchases of short-term investments (2,250) -
Other, net (781) 10
---- --
Net cash provided by (used in) investing
activities 288 (3,137)

FINANCING ACTIVITIES
Proceeds under credit facility 20,000 -
Payments under credit facility (1,126) --
Payments of long-term debt - (170)
Reacquisition of previously issued common
stock (50,000) -
------- --
Net cash used in financing activities (31,126) (170)
------- ----
Net increase in cash and cash equivalents 16,809 22,091
Cash and cash equivalents at beginning of
period 57,316 218,920
------ -------
Cash and cash equivalents at end of period $74,125 $241,011
------- --------

SOURCE International Speedway Corporation

Wes Harris, Senior Director, Corporate and Investor Communications,
+1-386-947-6465