INTERNATIONAL SPEEDWAY CORPORATION REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR OF FISCAL 2008

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DAYTONA BEACH, Fla. - January 29, 2009 - International Speedway Corporation (NASDAQ Global Select Market: ISCA; OTC Bulletin Board: ISCB) ("ISC") today reported results for the fourth quarter and full year ended November 30, 2008.

“Given the impact the economic environment had on consumers and our corporate partners in 2008, we were pleased with our overall results,” said ISC President Lesa France Kennedy.  “NASCAR fans remain the most avid and brand loyal in all of sports, and continue to attend live events in huge numbers.  They are attracted to a sport that provides thrilling on-track competition by teams of highly-skilled athletes, which has been a
hallmark of NASCAR racing for the last 60 years and will continue into the future.  This backdrop will serve us well as we operate in a continued challenging landscape during 2009.”

Ms. France Kennedy continued, “Clearly we are sensitive to the financial pressures many of our fans are experiencing.  To address this, we recently reduced ticket prices on over 150,000 seats, or 15 percent of capacity, for Sprint Cup events across the Company.  Additionally, we are working closely with community partners to
lower the overall race weekend cost for fans, such as reducing the number of minimum night stays at local hotels. We have seen a strong and favorable response to our efforts, and will continue to look for opportunities to support our fans during these unprecedented times.”

Fourth Quarter Comparison

Total revenues for the fourth quarter were $205.3 million, compared to revenues of $252.8 million in the prior-year period.  Operating income decreased to $64.9 million during the period compared to $92.7 million in the fourth quarter of fiscal 2007.

In addition to adverse economic conditions affecting consumer and corporate spending, quarter-over-
quarter comparability was impacted by:

·    The NASCAR Sprint Cup and Nationwide series race weekend at Auto Club Speedway which was

conducted in the third quarter of 2008 as compared to the fourth quarter of 2007.

·    Accelerated depreciation of $0.5 million, or $0.01 per diluted share after tax, in the fourth quarter of
      2008 for certain office and related buildings in Daytona Beach associated with the Company’s
      previously announced Daytona Live! project.  The 2007 fourth quarter included accelerated
      depreciation charges of $0.5 million, or $0.01 per diluted share after tax.

·    The fourth quarter of 2007 includes impairment charges of $3.9 million, or $0.05 per diluted share
      after tax, for costs associated with the fill removal process on the Staten Island property and the
      impairment of certain other long-lived assets.  By comparison, the 2008 fourth quarter includes
      impairment charges of approximately $323,000 to remove the net book value of certain assets retired
      from service.

·    The 2007 fourth quarter impairment of Motorsports Authentics’ (“MA”) goodwill and intangible
      assets as of November 30, 2007.  ISC’s 50 percent portion was $34.8 million, or $0.65 per diluted
      share after tax.

·    A 2007 fourth quarter recognition of a deferred income tax credit of $1.6 million, or $0.03 per diluted
      share after tax, attributable to a revision to the income-based tax system in the State of Michigan.  In
      accordance with the enacted legislation, the credit was equal to the deferred income tax liability
      recognized in ISC’s 2007 third quarter results.

·    The 2008 fourth quarter includes a charge to provide for working capital advances of $2.3 million, or
      $0.03 per diluted share after tax, associated with our joint venture project in Kansas for the
      development of a gaming and entertainment destination.

Net income for the fourth quarter of 2008 increased to $33.6 million, or $0.69 per diluted share, compared to net income of $22.5 million, or $0.43 per diluted share, in the prior year’s fourth quarter.  Excluding
discontinued operations and the aforementioned accelerated deprecation associated with the Daytona Live!
project, impairment of long-lived assets and allowances against working capital advances associated with the
development of a gaming and entertainment destination, non-GAAP (defined below) net income for the fourth quarter of 2008 was $35.6 million, or $0.73 per diluted share.  This is compared to non-GAAP net income for the fourth quarter of 2007 of $57.6 million, or $1.11 per diluted share.

Full Year Comparison

For the year ended November 30, 2008, total revenues were $787.3 million, compared to $814.2 million
in 2007.  Operating income for the fiscal year was $235.8 million compared to $241.7 million in the prior year.

Year-over-year comparability was impacted by:

·    Accelerated depreciation charges in fiscal 2008 of $2.1 million, or $0.02 per diluted share after tax,

associated with the previously discussed Daytona Live! project.  Results for the year ended November
30, 2007, included accelerated depreciation charges of $14.7 million, or $0.17 per diluted share after
tax.

·    2008 impairment charges of $2.2 million, or $0.03 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 year ended November 30, 2007, included an impairment charge of
      $13.1 million, or $0.16 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 fourth quarter impairments combined with the 2007 third quarter write-
      down by MA of certain inventory and related assets, which was included in ISC’s equity losses
      totaled $47.2 million, or $0.88 per diluted share after tax.

·    The recognition of a tax benefit of $3.5 million, or $0.07 per diluted share after tax, associated with
      certain restructuring initiatives 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.

·    The aforementioned 2008 fourth quarter costs of $2.3 million, or $0.03 per diluted share after tax,
      associated with the pursuit of a casino management contract at Wyandotte County, Kansas.

Net income for the year ended November 30, 2008, was $134.6 million, or $2.71 per diluted share, compared to $86.2 million, or $1.64 per diluted share in 2007.  Excluding discontinued operations and the
aforementioned accelerated depreciation, impairment of long-lived assets, the recognition of a tax benefit, the correction of certain other assets’ carrying value amounts, and allowances against working capital advances associated with the development of a gaming and entertainment destination, non-GAAP net income for the year ended November 30, 2008, was $139.1 million, or $2.80 per diluted share.  This is compared to non-GAAP net income for the 2007 fiscal year end of $150.0 million, or $2.85 per diluted share.

GAAP to Non-GAAP Reconciliation

The following financial information is presented below using other than U.S. 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 adjustments relate to accelerated depreciation of certain office and related building structures in
Daytona Beach; impairment of long-lived assets primarily related to ISC’s decision to discontinue speedway
development efforts in Kitsap County, Washington, and, to a lesser extent, fill removal costs related to the
Company’s Staten Island property; increased deferred income tax expense related to the change in Michigan state
tax laws; and, the impairment of goodwill and intangible assets and write-down of certain inventory and related
assets at MA.

The adjustments for 2008 relate to accelerated depreciation of certain office and related buildings in

Daytona Beach; the impairment of long-lived assets associated with the fill removal process of the Staten Island property and the net book value of certain assets retired from service; a tax benefit associated with certain
restructuring initiatives; a non-cash charge to correct the carrying value of certain other assets; and, an allowance against working capital advances associated with our joint venture project in Kansas for the development of a gaming and entertainment destination.

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 Twelve Months Ended
November 30, 2007 November 30, 2008 November 30, 2007 November 30, 2008
Net income $22,474 $33,621 $86,201 $134,595
Net loss from discontinued operations 34 45 90 163
Income from continuing operations 22,508 33,666 86,291 134,758
Adjustments, net of tax:
Additional depreciation 320 319 9,009 1,278
Impairment of long-lived assets 2,455 198 8,390 1,374
MA impairment and inventory-related
write down of equity investment 33,913 - 46,327 -
Tax benefit associated with restructuring initiatives - - - (3,477)
Michigan income tax (1,595) - - -
Correction of certain other assets' carrying value - - - 3,758
Allowance against advances to Kansas joint venture - 1,409 - 1,409
Non-GAAP net income $57,601 $35,592 $150,017 $139,100
Per share data:
Diluted earnings per share $0.43 $0.69 $1.64 $2.71
Net loss from discontinued operations - - - -
Income from continuing operations 0.43 0.69 1.64 2.71
Adjustments, net of tax:
Additional depreciation 0.01 0.01 0.17 0.02
Impairment of long-lived assets 0.05 - 0.16 0.03
MA impairment and inventory-related
write down of equity investment 0.65 - 0.88 -
Tax benefit associated with restructuring initiatives - - - (0.07)
Michigan income tax (0.03) - - -
Correction of certain other assets' carrying value - - - 0.08
Allowance against advances to Kansas joint venture - 0.03 - 0.03
Non-GAAP diluted earnings per share $1.11 $0.73 $2.85 $2.80
 

 

Event Weekends

ISC hosted seven major motorsports event weekends in the fourth quarter, which included six NASCAR Sprint Cup events; four NASCAR Nationwide events; four NASCAR Craftsman Truck events; one IRL IndyCar event; and two ARCA RE/MAX events.

The 2008 NASCAR season ended on a historic note, with Jimmie Johnson capturing his third consecutive NASCAR Sprint Cup Championship, a feat that hasn’t been accomplished in 30 years.

In the first quarter, ISC will host four major motorsports event weekends, which includes four NASCAR
Sprint Cup events; two NASCAR Nationwide events; two NASCAR Camping World Truck events (previously
entitled the NASCAR Craftsman Truck series); one Grand-Am series event; and one ARCA RE/MAX series
event.

Daytona International Speedway opened the 2009 race season with its annual lineup of events known as
DIRECTV Speedweeks, which combines the best sports car, stock car and truck racing in the world.  DIRECTV
Speedweeks’ first event was the 47th running of the Grand-Am Rolex 24 at Daytona.  The event ended with the
closest margin of victory in the history of the Rolex 24 with the No. 58 Brumos Racing Porsche Riley winning by

0.167 seconds.  DIRECTV Speedweeks concludes on February 15, with the 51st running of the Daytona 500, the most prestigious motorsports race in North America.

ISC was successful in securing significant corporate partnerships during 2008.  Most notably, the

Company secured a multi-year, multi-million dollar naming rights agreement with the Auto Club of Southern

California.  In addition, ISC has been successful, in light of the current economy, in brining new sponsors into the sport, such as ServiceMaster Clean and NextEra Energy Resources.  Also, ISC secured title sponsors for all of its major events in 2008 and has agreements in place for almost 80 percent of its 2009 events.

External Growth and Related Initiatives

MA, the Company’s motorsports-related merchandise 50/50 joint venture with Speedway Motorsports,
contributed $1.6 million to equity income for the year.  This is a significant turnaround from 2007, when MA
posted a non-GAAP operating loss of $19.6 million, and ISC recorded a $9.8 million equity loss to reflect its 50
percent portion.

As previously announced in September, Kansas Entertainment, LLC (“KE”), ISC’s 50/50 joint venture with The Cordish Company (“Cordish”), was awarded the casino management contract for Wyandotte County, Kansas, by the Kansas Lottery Gaming Facility Review Board.  However, on December 5, 2008, KE withdrew its proposed Hard Rock Hotel & Casino at Kansas Speedway application for Lottery Gaming Facility Manager for the Northeast Kansas gaming zone due to the uncertainty in the global financial markets and the expected
inability to finance the project at reasonable rates.

 The State of Kansas has re-opened the bidding process for the casino management contract and KE expects to resubmit a proposal to include a phased approach for the non-gaming amenities.  In addition, KE’s proposal will include a commitment to petition NASCAR to realign a second date to Kansas from one of ISC’s existing facilities as well as build a state-of-the-art road course in the infield at Kansas Speedway.

Daytona Live!, a mixed-use entertainment destination development that ISC is also pursuing in a 50/50
joint venture with Cordish, is moving forward.  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 retail, dining, and entertainment component of Daytona Live is being actively
marketed by Cordish.  Cobb Theaters has already announced its intention to anchor the complex with a state of
the art, 65,000 square foot theater.  Cordish is having productive conversations with other potential tenants.

The Company is also having productive conversations concerning a settlement with the Internal Revenue
Service and the sale of its 676 acre parcel on Staten Island and remains hopeful that a transaction will occur in
2009.

Share Repurchase Program

In the 2008 fourth quarter, ISC purchased approximately 182,000 shares of its Class A Common Stock for $7.5 million.  From initiation of the program in December 2006 through November 30, 2008, the Company purchased a total of 4.7 million shares for $208.0 million, leaving $42.0 million in remaining capacity on its $250 million authorization as of November 30, 2008.

ISC ceased repurchasing shares in September 2008 as a result of the turbulent credit markets and its

desire to conserve cash given its $150 million in Senior Notes due this April.  Once the Company is able to

refinance at an acceptable rate, it expects to resume the repurchase program as it is viewed as a critical component in the Company’s long-term capital allocation strategy designed to build shareholder value.

Ms. France Kennedy concluded, “Although these are challenging times, we are fortunate to be aligned

with a leading sports property that is healthy and supported by tens of millions of passionate fans.  The NASCAR Sprint Cup series remains the largest spectator sport in the country and the second most watched on television. This provides an excellent backdrop as we move through the coming year.

“More importantly, ISC remains a dynamic company uniquely positioned to prosper well into the future
as our business model is supported by a solid foundation of contracted revenues.  Combined with prudent cost
containment measures and a well-planned capital allocation strategy, we expect to continue to generate substantial
cash flow that can be reinvested in value-added opportunities, including returning cash to our shareholders.”

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 (888) 694-4641 five to ten minutes prior to the scheduled start time and request to be connected to the ISC earnings call, identification number 81320872.  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 Thursday, February 5, 2009.  To access, dial (800) 642-1687 and enter the code 81320872, 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® in Florida (home of the Daytona 500®); Talladega Superspeedway® in Alabama;
Michigan International Speedway® located outside Detroit; Richmond International Raceway® in Virginia; Auto Club Speedway of Southern CaliforniaSM near Los Angeles; Kansas Speedway® in Kansas City, Kansas; Phoenix International Raceway® in Arizona; Chicagoland Speedway® and Route 66 RacewaySM near Chicago, Illinois; Homestead-Miami SpeedwaySM in Florida; Martinsville Speedway® in Virginia; Darlington Raceway® in South Carolina; and Watkins Glen International® in New York.

The Company also owns and operates MRN® Radio, the nation's largest independent sport radio

network; the Daytona 500 ExperienceSM, the “Ultimate Motorsports Attraction” in Daytona Beach, Florida, and official attraction of NASCAR®; and Americrown Service CorporationSM, 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®, which markets and distributes motorsportsrelated 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 Twelve Months Ended
November 30, 2007 November 30, 2008 November 30, 2007 November 30, 2008
(Unaudited)
REVENUES:
Admissions, net $78,167 $63,863 $253,685 $236,105
Motorsports related 143,016 119,178 465,469 462,835
Food, beverage and merchandise 27,135 19,298 84,163 78,119
Other 4,531 2,911 10,911 10,195
252,849 205,250 814,228 787,254
EXPENSES:
Direct:
Prize and point fund monies and NASCAR sanction fees 49,970 42,798 151,311 154,655
Motorsports related 45,144 41,135 160,387 166,047
Food, beverage and merchandise 14,984 11,958 48,490 48,159
General and administrative 28,855 25,808 118,982 109,439
Depreciation and amortization 17,232 18,293 80,205 70,911
Impairment of long-lived assets 3,926 323 13,110 2,237
160,111 140,315 572,485 551,448
Operating income 92,738 64,935 241,743 235,806
Interest income and other 1,291 648 4,990 (1,630)
Interest expense (3,847) (4,962) (15,628) (15,861)
Minority interest - 194 - 324
Equity in net loss from equity investments (36,391) (5,817) (58,147) (1,203)
Income from continuing operations before income taxes 53,791 54,998 172,958 217,436
Income taxes 31,283 21,332 86,667 82,678
Income from continuing operations 22,508 33,666 86,291 134,758
Loss from discontinued operations (34) (45) (90) (163)
Net income $22,474 $33,621 $86,201 $134,595
Basic earnings per share:
Income from continuing operations $0.43 $0.69 $1.64 $2.71
Loss from discontinued operations - - - -
Net income $0.43 $0.69 $1.64 $2.71
Diluted earnings per share:
Income from continuing operations $0.43 $0.69 $1.64 $2.71
Loss from discontinued operations - - - -
Net income $0.43 $0.69 $1.64 $2.71
Dividends per share $- $- $0.10 $0.12
Basic weighted average shares outstanding 51,853,828 48,560,549 52,557,550 49,589,465
Diluted weighted average shares outstanding 51,959,612 48,670,245 52,669,934 49,688,909

Consolidated Balance Sheets
(In Thousands)
November 30, 2007 November 30, 2008
ASSETS
Current Assets:
Cash and cash equivalents $57,316 $218,920
Short-term investments 39,250 200
Restricted cash - 2,405
Receivables, less allowance of $1,200 in 2007 and 2008 46,860 47,558
Inventories 4,508 3,763
Deferred income taxes 1,345 1,838
Prepaid expenses and other current assets 10,547 7,194
Total Current Assets 159,826 281,878
Property and Equipment, net 1,303,178 1,331,231
Other Assets:
Long-term restricted cash and investments - 40,187
Equity investments 76,839 77,613
Intangible assets, net 178,984 178,841
Goodwill 118,791 118,791
Deposits with Internal Revenue Service 117,936 117,936
Other 26,563 34,342
519,113 567,710
Total Assets $1,982,117 $2,180,819
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt $2,538 $153,002
Accounts payable 37,508 26,393
Deferred income 128,631 103,549
Income taxes payable 22,179 8,659
Other current liabilities 21,447 18,035
Total Current Liabilities 212,303 309,638
Long-Term Debt 375,009 422,045
Deferred Income Taxes 214,109 104,172
Long-Term Tax Liabilities - 161,834
Long-Term Deferred Income 15,531 13,646
Other Long-Term Liabilities 6,077 28,125
Commitments and Contingencies - -
Shareholders’ Equity:
Class A Common Stock, $.01 par value, 80,000,000 shares authorized;
30,010,422 and 27,397,924 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 21,150,471 issued and outstanding in 2007 and 2008, respectively 216 211
Additional paid-in capital 621,528 497,277
Retained earnings 537,044 665,405
Accumulated other comprehensive loss - (21,808)
Total Shareholders’ Equity 1,159,088 1,141,359
Total Liabilities and Shareholders’ Equity $1,982,117 $2,180,819

Consolidated Statements of Cash Flows
(In Thousands)
Twelve Months Ended
November 30, 2007 November 30, 2008
OPERATING ACTIVITIES
Net income $86,201 $134,595
Adjustments to reconcile net income to net cash provided by
Operating activities:
Depreciation and amortization 80,205 70,911
Minority interest - (324)
Stock-based compensation 4,046 3,282
Amortization of financing costs 517 517
Deferred income taxes 23,374 30,753
Loss from equity investments 58,147 1,203
Impairment of long-lived assets 8,170 784
Excess tax benefits relating to stock-based compensation (170) -
Other, net 154 3,921
Changes in operating assets and liabilities:
Receivables, net 7,525 (698)
Inventories, prepaid expenses and other assets (2,142) 4,117
Deposits with Internal Revenue Service (7,123) -
Accounts payable and other liabilities 5,045 (8,233)
Deferred income (5,712) (26,967)
Income taxes (121) 7,030
Net cash provided by operating activities 258,116 220,891
INVESTING ACTIVITIES
Capital expenditures (96,060) (107,036)
Acquisition of business, net of cash acquired (87,111) -
Proceeds from affiliate 67 4,700
Advance to affiliate (200) (18,450)
Increase in restricted cash - (42,592)
Proceeds from short-term investments 105,320 41,700
Purchases of short-term investments (66,570) (2,650)
Purchases of equity investments - (81)
Other, net 264 700
Net cash used in investing activities (144,290) (123,709)
FINANCING ACTIVITIES
Proceeds under credit facility 65,000 170,000
Payments under credit facility (65,000) (20,000)
Proceeds of long-term debt - 51,300
Payment of long-term debt (29,910) (3,505)
Exercise of Class A common stock options 357 -
Cash dividends paid (5,292) (5,960)
Excess tax benefits relating to stock-based compensation 170 -
Reacquisition of previously issued common stock (81,516) (127,413)
Net cash (used in) provided by financing activities (116,191) 64,422
Net (decrease) increase in cash and cash equivalents (2,365) 161,604
Cash and cash equivalents at beginning of period 59,681 57,316
Cash and cash equivalents at end of period $57,316 $218,920

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