International Speedway Q2 Profit Declines, But Results Beat View; Backs Outlook

(RTTNews) - Motorsports themed entertainment promoter International Speedway Corp. (ISCA, ISCB.PK) on Thursday reported a 4 percent decline in profit for the second quarter from last year, as higher expenses more than offset an increase in revenues.

However, both revenue and adjusted earnings per share for the quarter beat analysts' estimates and the company affirmed its financial outlook for fiscal 2014.

For the second quarter ended May 31, 2014, International Speedway's net income was $21.47 million or $0.46 per share, down from $22.44 million or $0.48 per share in the year-ago period.

Excluding certain items, adjusted net income for the quarter was $23.39 million or $0.50 per share, compared to $23.75 million or $0.51 per share in the prior-year quarter. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues for the quarter increased 7 percent to $190.31 million from $178.37 million in the prior-year quarter. Analysts had a consensus revenue estimate of $186.34 million.

Lesa France Kennedy, Chief Executive Officer of ISC said, "We are pleased to report higher revenues for our second quarter driven by contractual increases in television broadcast rights and stabilizing admissions. Auto Club Speedway achieved its first sellout since 2005, and moving Kansas Speedway's Cup event to Mothers' Day eve resulted in an admissions lift of over 15%."

The consolidation of Motorsports Authentics as of January 31, 2014, also contributed to increased revenue in the quarter.

Revenues from admissions decreased less than 1 percent from the year-ago period to $35.70 million, while motorsports related revenue rose 2 percent to $128.39 million and food, beverage and merchandise revenue grew 79 percent to $22.73 million.

Expenses for the quarter increased 10 percent to $155.57 million from $141.29 million in the same period last year.

For fiscal year 2014, International Speedway affirmed its outlook for adjusted earnings of $1.30 to $1.50 per share and revenue in a range of $635 million to $650 million. Street expects the company to earn $1.40 per share for the year on revenues of $637.30 million.

International Speedway said that automaker Ford Motor Co. (F) has renewed its sponsorship position for its Homestead-Miami Speedway's Ford Championship Weekend.

Ford has been the official entitlement sponsor at Homestead-Miami Speedway since 2002. This new agreement, which begins in 2015, is a five-year deal with an option to renew for an additional five years.

The company also noted that Daytona Rising, the reimagining of the American icon Daytona International Speedway, continues to progress on schedule and on budget. Daytona Rising is the redevelopment of the frontstretch of Daytona International Speedway, ISC's 54-year-old flagship motorsports facility.

ISCA closed Wednesday's trading at $33.56, up $0.34 or 1.02 percent on a volume of 118,190 shares.