International Speedway Corp. (ISCA, Financial) filed Quarterly Report for the period ended 2010-08-31.
International Speedway Corp. has a market cap of $1.22 billion; its shares were traded at around $25.36 with a P/E ratio of 15.5 and P/S ratio of 1.8. The dividend yield of International Speedway Corp. stocks is 0.6%. International Speedway Corp. had an annual average earning growth of 5.9% over the past 10 years.ISCA is in the portfolios of David Dreman of Dreman Value Management, Chuck Royce of Royce& Associates, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
the nine months ended August 31, 2010, at an average cost of approximately $28.53 per share (including commissions), for a total of approximately $5.3 million. There were no purchases of its Class A common shares during the three months ended August 31, 2010. At August 31, 2010, we have approximately $32.0 million remaining repurchase authority under the current Plan.
Effective May 28, 2009, we entered into a definitive settlement agreement (the Settlement) with the Internal Revenue Service (the Service). The Settlement concludes an examination process the Service opened in fiscal 2002 that challenged the tax depreciation treatment of a significant portion of our motorsports entertainment facility assets. We believe the Settlement reached an appropriate compromise on this issue. As a result of the Settlement, we are currently pursuing settlements on similar terms with the appropriate state tax authorities. Based on settlements and ongoing discussions with certain states during the nine months ended August 31, 2010, we de-recognized potential interest and penalties totaling approximately $6.3 million or $0.13 per diluted share. This de-recognition of interest and penalties was recognized in the income tax expense in our consolidated statement of operations. Under these terms, we expect to pay between $0.5 million and $1.5 million in total to finalize the remaining settlements with various states. We believe that we have provided adequate reserves related to these various state matters including interest charges through August 31, 2010, and, as a result, do not expect that such an outcome would have a material adverse effect on results of operations.
Economic conditions, including those affecting disposable consumer income and corporate budgets such as employment, business conditions, interest rates and taxation rates, may impact our ability to sell tickets to our events and to secure revenues from corporate marketing partnerships. We believe that adverse economic trends, particularly credit availability, the rise in unemployment and the decline in consumer confidence, significantly contributed to the decrease in attendance for certain of our motorsports entertainment events during fiscal 2009. We have seen many of these trends persist in 2010 and expect they will continue to adversely impact our business, which negatively impacts our attendance-related as well as corporate partner revenues. We recently announced an initiative to lower our direct operating expenses, beginning in 2011, by $20 million to $30 million in sustainable reductions through the streamlining of corporate services, optimization of event and ancillary business models, and process improvements that will result in a reduction of workforce and operational costs. These changes will have a positive impact on our financial position.
Domestic broadcast and ancillary media rights fees revenues are an important component of our revenue and earnings stream. Starting in 2007, NASCAR entered into new combined eight-year agreements with FOX, ABC/ESPN, TNT and SPEED for the domestic broadcast and related rights for its three national touring series Sprint Cup, Nationwide and Camping World Truck. The agreements total approximately $4.5 billion over the eight-year period from 2007 through 2014. This results in an approximate $560.0 million gross average annual rights fee for the industry, a more than 40.0 percent increase over the previous contract average of $400.0 million annually. The industry rights fees will be approximately $545.0 million for 2010, and will increase, on average, by approximately three percent per year through the 2014 season. The annual increase is expected to vary between two and four percent per year over the period.
These long-term contracts provide significant cash flow visibility to us, race teams and NASCAR over the contract term. Television broadcast and ancillary rights fees from continuing operations received from NASCAR for the NASCAR Sprint Cup, Nationwide and Camping World Truck series events conducted at our wholly owned facilities under these agreements, and recorded as part of motorsports related revenue, were approximately $60.0 million and $61.5 million for three months ended August 31, 2009 and 2010, respectively, and $182.6 million and $187.7 million for the nine months ended August 31, 2009 and 2010, respectively. Operating income generated by these media rights were approximately $43.9 million and $45.2 million for the three months ended August 31, 2009 and 2010, respectively, and $133.9 million and $137.9 million for the nine months ended August 31, 2009 and 2010, respectively.
Read the The complete Report
International Speedway Corp. has a market cap of $1.22 billion; its shares were traded at around $25.36 with a P/E ratio of 15.5 and P/S ratio of 1.8. The dividend yield of International Speedway Corp. stocks is 0.6%. International Speedway Corp. had an annual average earning growth of 5.9% over the past 10 years.ISCA is in the portfolios of David Dreman of Dreman Value Management, Chuck Royce of Royce& Associates, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our 50.0 percent portion of MAs net loss from operations, including the previously discussed impairment recognized in the second quarter of fiscal 2009, are approximately $3.2 million and approximately $62.1 million, for the three month and nine month periods ended August 31, 2009, and are included in equity in net loss from equity investments in our consolidated statements of operations. We did not recognize any net income or loss from operations of MA during the three and nine months ended August 31, 2010.the nine months ended August 31, 2010, at an average cost of approximately $28.53 per share (including commissions), for a total of approximately $5.3 million. There were no purchases of its Class A common shares during the three months ended August 31, 2010. At August 31, 2010, we have approximately $32.0 million remaining repurchase authority under the current Plan.
Effective May 28, 2009, we entered into a definitive settlement agreement (the Settlement) with the Internal Revenue Service (the Service). The Settlement concludes an examination process the Service opened in fiscal 2002 that challenged the tax depreciation treatment of a significant portion of our motorsports entertainment facility assets. We believe the Settlement reached an appropriate compromise on this issue. As a result of the Settlement, we are currently pursuing settlements on similar terms with the appropriate state tax authorities. Based on settlements and ongoing discussions with certain states during the nine months ended August 31, 2010, we de-recognized potential interest and penalties totaling approximately $6.3 million or $0.13 per diluted share. This de-recognition of interest and penalties was recognized in the income tax expense in our consolidated statement of operations. Under these terms, we expect to pay between $0.5 million and $1.5 million in total to finalize the remaining settlements with various states. We believe that we have provided adequate reserves related to these various state matters including interest charges through August 31, 2010, and, as a result, do not expect that such an outcome would have a material adverse effect on results of operations.
Economic conditions, including those affecting disposable consumer income and corporate budgets such as employment, business conditions, interest rates and taxation rates, may impact our ability to sell tickets to our events and to secure revenues from corporate marketing partnerships. We believe that adverse economic trends, particularly credit availability, the rise in unemployment and the decline in consumer confidence, significantly contributed to the decrease in attendance for certain of our motorsports entertainment events during fiscal 2009. We have seen many of these trends persist in 2010 and expect they will continue to adversely impact our business, which negatively impacts our attendance-related as well as corporate partner revenues. We recently announced an initiative to lower our direct operating expenses, beginning in 2011, by $20 million to $30 million in sustainable reductions through the streamlining of corporate services, optimization of event and ancillary business models, and process improvements that will result in a reduction of workforce and operational costs. These changes will have a positive impact on our financial position.
Domestic broadcast and ancillary media rights fees revenues are an important component of our revenue and earnings stream. Starting in 2007, NASCAR entered into new combined eight-year agreements with FOX, ABC/ESPN, TNT and SPEED for the domestic broadcast and related rights for its three national touring series Sprint Cup, Nationwide and Camping World Truck. The agreements total approximately $4.5 billion over the eight-year period from 2007 through 2014. This results in an approximate $560.0 million gross average annual rights fee for the industry, a more than 40.0 percent increase over the previous contract average of $400.0 million annually. The industry rights fees will be approximately $545.0 million for 2010, and will increase, on average, by approximately three percent per year through the 2014 season. The annual increase is expected to vary between two and four percent per year over the period.
These long-term contracts provide significant cash flow visibility to us, race teams and NASCAR over the contract term. Television broadcast and ancillary rights fees from continuing operations received from NASCAR for the NASCAR Sprint Cup, Nationwide and Camping World Truck series events conducted at our wholly owned facilities under these agreements, and recorded as part of motorsports related revenue, were approximately $60.0 million and $61.5 million for three months ended August 31, 2009 and 2010, respectively, and $182.6 million and $187.7 million for the nine months ended August 31, 2009 and 2010, respectively. Operating income generated by these media rights were approximately $43.9 million and $45.2 million for the three months ended August 31, 2009 and 2010, respectively, and $133.9 million and $137.9 million for the nine months ended August 31, 2009 and 2010, respectively.
Read the The complete Report
