International Speedway Corporation quarter two report

International Speedway Corporation reports record Second Quarter; both Kansas and Chicagoland sell out entire facilities on season-ticket basis. DAYTONA BEACH, Fla., July 10 -- International Speedway Corporation ("ISC") (NASDAQ:ISCA) (BULLETIN...

International Speedway Corporation reports record Second Quarter; both Kansas and Chicagoland sell out entire facilities on season-ticket basis.

DAYTONA BEACH, Fla., July 10 -- International Speedway Corporation ("ISC") (NASDAQ:ISCA) (BULLETIN BOARD: ISCB) today reported record results for the second quarter ended May 31, 2002.

Total revenues for the 2002 second quarter increased to $116.7 million from $112.0 million in 2001. Operating income for the second quarter increased to $30.7 million compared to $27.5 million in the prior-year period. Net income was $14.4 million, or $0.27 per diluted share, compared to $13.3 million, or $0.25 per diluted share, in the 2001 second quarter.

For the six months ended May 31, 2002, total revenues increased to $242.5 million from $232.7 million in 2001. Operating income for the six-month period increased to $79.9 million compared to $71.9 million in the prior year six-month period. Income before the cumulative effect of an accounting change was $39.7 million, or $0.75 per diluted share, versus $36.1 million, or $0.68 per diluted share in 2001. Fiscal 2002 first quarter results include a previously announced one-time, non-cash after-tax charge of $517.2 million, or $9.74 per diluted share, associated with the adoption of Statement of Financial Accounting Standards ("SFAS") No. 142.

Eleven major event weekends were conducted in the 2002 second quarter. The quarter started strong with a NASCAR Winston Cup/Busch/Truck Series triple-header at Darlington, highlighted by record attendance for the Winston Cup race. Consecutive Winston Cup/Busch Series weekends were held at Talladega, California and Richmond, with all three Winston Cup events run before sold out crowds. In addition, during the quarter the Company held successful IRL weekends at Homestead-Miami, Phoenix, California and Nazareth. Rounding out the quarter, Daytona and California hosted solid AMA event weekends and Nazareth hosted a NASCAR Busch Series weekend in mid-May.

Mr. James C. France, President and Chief Operating Officer of International Speedway Corporation, commented, "We are pleased to announce another quarter of record financial results, especially given the challenging economic environment. One important factor contributing to our success is the continued diversification of our revenue mix to one that is more supported by multi-year contracts. The combination of NASCAR's long-term domestic television broadcast rights agreements and our ability to secure multi-year corporate sponsorships enables us to rely less on seat expansion and price increases for revenue growth, while improving cash flow and earnings visibility.

"Since our last conference call, we have signed multi-year entitlements for several of our Winston Cup and Busch Series events with important partners such as Aaron Rents, Cabela's and Basha's. In addition, the Company entered into a long-term marketing alliance with Sirius Satellite Radio which encompasses title sponsorship of Winston Cup events at Michigan and Watkins Glen, official status and on-site display rights at ISC's 12 wholly-owned facilities, as well as Chicagoland Speedway."

During the third quarter, ISC is scheduled to host nine major event weekends, five of which have already occurred. To date the Company has hosted Winston Cup weekends at Michigan and Daytona, IRL weekends at Richmond and Kansas, and an ARCA/NASCAR Winston West double-header at Kansas. Highlights include a capacity crowd for Michigan's Winston Cup race, an inaugural Busch Series race at Daytona, and a sold out weekend of IRL and NASCAR Craftsman Truck Series racing at Kansas.

Four major auto-racing event weekends are slated for the remainder of the third quarter, including weekends anchored by the Winston Cup Series at Chicagoland, Watkins Glen and Michigan and an inaugural IRL / Craftsman Truck Series weekend at Michigan.

"Following tremendously successful inaugural seasons, we are extremely pleased that both Kansas and Chicagoland have sold out their entire facilities on a season-ticket basis," continued Mr. France. "This significant achievement is a first in major motorsports entertainment in this country, and is indicative of the growing popularity of motorsports, particularly NASCAR and IRL racing."

Mr. France concluded, "The fundamentals of our business remain strong and we are encouraged by the continued success of domestic motorsports. And, driven by our national presence in key markets, we believe the Company is in an excellent position to capitalize on the industry's future growth opportunities.

International Speedway Corporation is a leading promoter of motorsports activities in the United States, currently promoting more than 100 events annually. The Company owns and/or operates 12 of the nation's major motorsports facilities, including Daytona International Speedway in Florida (home of the Daytona 500); Talladega Superspeedway in Alabama; Michigan International Speedway located outside Detroit; Richmond International Raceway in Virginia; California Speedway near Los Angeles; Kansas Speedway in Kansas City, Kansas; Phoenix International Raceway in Arizona; Homestead-Miami Speedway in Florida; North Carolina Speedway in Rockingham; Darlington Raceway in South Carolina; Watkins Glen International in New York; and Nazareth Speedway in Pennsylvania. Other track interests include an indirect 37.5% interest in Raceway Associates, LLC, which owns and operates Chicagoland Speedway and Route 66 Raceway near Chicago, Illinois.

The Company also owns and operates MRN Radio, the nation's largest independent sports radio network; DAYTONA USA, the "Ultimate Motorsports Attraction" in Daytona Beach, Florida, the official attraction of NASCAR; and subsidiaries which provide catering services, food and beverage concessions, and produce and market motorsports-related merchandise under the trade name "Americrown." For more information, visit the Company's Web site at

Statements made in this release that state the Company or management's beliefs or expectations and which are not historical facts or which apply 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 the risk factors discussed elsewhere, including, but not limited to, the success of and 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-Q's. 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 made 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.

<pre> ISC REPORTS RECORD SECOND QUARTER RESULTS Consolidated Statements of Operations (In thousands, except for per share data)

Three months ended Six months ended 5/31/01 5/31/02 5/31/01 5/31/02 (Unaudited) (Unaudited) REVENUES

Admissions, net $ 44,739 $ 45,220 $94,644 $94,068 Motorsports related income 52,262 55,287 106,678 115,505 Food, beverage, and merchandise income 13,804 14,696 28,998 30,262 Other income 1,191 1,544 2,365 2,671

111,996 116,747 232,685 242,506


Direct race expenses: NASCAR direct expenses 20,165 21,589 39,474 42,878 Motorsports related expenses 24,791 26,816 41,450 44,547 Food, beverage, and merchandise expenses 7,539 7,901 15,391 16,317 General and administrative expenses 19,326 19,445 38,834 38,673 Depreciation and amortization 12,664 10,316 25,628 20,229

Total expenses 84,485 86,067 160,777 162,644

Operating income 27,511 30,680 71,908 79,862

Interest income 989 340 2,209 624 Interest expense (5,332) (6,091) (11,589) (12,496) Equity in net loss from equity investments (643) (1,524) (1,278) (3,278)

Minority interest 288 -- 585 --

Income before income tax and cumulative effect of accounting change 22,813 23,405 61,835 64,712 Income taxes 9,513 9,035 25,785 24,979 Income before cumulative effect of accounting change 13,300 14,370 36,050 39,733 Cumulative effect of accounting change - Company Operations -- -- -- (513,827) Cumulative effect of accounting change - Equity Investment -- -- -- (3,422)

Net income (loss) $13,300 $14,370 $ 36,050 $(477,516)

Basic earnings per share before cumulative effect of accounting change $0.25 $0.27 $0.68 $ 0.75 Cumulative effect of accounting change -- -- -- (9.75) Basic net income (loss) per share $0.25 $0.27 $0.68 $(9.00)

Diluted earnings per share before cumulative effect of accounting change $0.25 $0.27 $0.68 $ 0.75 Cumulative effect of accounting change -- -- -- (9.74) Diluted net income (loss) per share $0.25 $0.27 $0.68 $(8.99)

Dividends per share $0.06 $0.06 $0.06 $ 0.06

Basic weighted average shares outstanding 52,998,389 53,039,100 52,991,508 53,031,869

Diluted weighted average shares outstanding 53,070,816 53,098,524 53,067,250 53,096,923

Consolidated Balance Sheet Data (In thousands)

November 30, May 31, 2001 2002


Cash, cash equivalents and short-term investments $71,204 $84,777 Current assets 107,395 137,744 Total assets 1,702,146 1,143,168 Deferred income 100,932 156,745 Current liabilities 135,866 194,548 Total debt 411,702 333,665 Shareholders' equity 1,035,422 555,078

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