International Speedway Corporation Reports Financial Results For The Fourth Quarter And Full-Year Of Fiscal 2015

• The NASCAR Sprint Cup and Xfinity Series events held at Darlington Raceway in the second quarter of fiscal 2014 were held in the fourth quarter of fiscal 2015.
• On January 31, 2014, SMI abandoned its interest and rights in our 50/50 partnership Motorsports Authentics, LLC ("MA"), consequently bringing our ownership of MA to 100.0 percent. MA's operations are included in our consolidated operations subsequent to the date of SMI's abandonment. Prior to January 31, 2014, MA was accounted for as an equity investment in our financial statements. As a result of SMI's abandonment of their interest in MA, during the fourth quarter of fiscal 2014, we recognized tax benefits relating to MA of approximately $0.2 million, or less than $0.01 earnings per share. In addition, we recognized an impairment of a long-lived intangible asset, related to MA, of approximately $0.6 million, or $0.01 per diluted share, in the fourth quarter of fiscal 2014. There was no comparable event in the same period of fiscal 2015.
• During the fourth quarter of fiscal 2014, we received a favorable settlement relating to a legal judgment of litigation involving certain ancillary operations of approximately $0.6 million, or $0.01 per diluted share. There was no comparable item in the same period of fiscal 2015.
• During the fourth quarter of fiscal 2015, we recognized approximately $1.9 million in commissions related to merchandise sales, primarily related to Fanatics. This compares to the fourth quarter of fiscal 2014, where we recognized revenue and expense related to merchandise operations of approximately $11.6 million and $10.0 million, respectively, which included direct sales of trackside merchandise.
• During the fourth quarter of fiscal 2015, we recognized approximately $0.3 million, or less than $0.01 per diluted share, in marketing and consulting costs, that are included in general and administrative expense, related to DAYTONA Rising. During the fourth quarter of fiscal 2014, we recognized approximately $0.2 million, or less than $0.01 per diluted share, of similar costs.
• During the fourth quarter of fiscal 2015, we recognized accelerated depreciation of $0.1 million, or less than $0.01 per diluted share, due to shortening the service lives of certain assets associated with DAYTONA Rising. During the fourth quarter of fiscal 2014, we recognized approximately $2.4 million, or $0.03 per diluted share, due to shortening the service lives of certain assets associated with DAYTONA Rising and capacity management initiatives.
• During the fourth quarter of fiscal 2015, we recognized charges of approximately $4.4 million, or $0.06 per diluted share, for losses associated with asset retirements including the removal of assets not fully depreciated in connection with DAYTONA Rising. Included in these losses were approximately $3.3 million of expenditures related to demolition and/or asset relocation costs, the remaining charges were non-cash. In the fourth quarter of fiscal 2014, we recognized approximately $2.8 million, or $0.03 per diluted share, of similar charges, of which approximately $0.8 million of expenditures related to demolition and/or asset relocation costs, the remaining charges were non-cash, which included an impairment of a long-lived intangible asset related to MA, discussed above.
• During the fourth quarter of fiscal 2014, we received a settlement of interest income related to a long term receivable of $1.8 million, or $0.02 per diluted share. There was no comparable item in the same period of fiscal 2015.
• During the fourth quarter of fiscal 2015, we capitalized approximately $1.0 million, or $0.01 per diluted share, of interest related to DAYTONA Rising. During the fourth quarter of fiscal 2014, we recognized $2.7 million or $0.03 per diluted share, of similar capitalized interest.

Net income for the fourth quarter was approximately $32.3 million, or $0.69 per diluted share, compared to net income of approximately $25.8 million, or $0.55 per diluted share, in the prior year period.  Excluding a legal settlement, marketing and consulting costs incurred associated with DAYTONA Rising, accelerated depreciation, impairment of MA long-lived intangible asset, losses associated with the retirements of certain other long-lived assets, settlement of interest income related to a long-term receivable, DAYTONA Rising project capitalized interest and a de minimis net gain on sale of certain assets, non-GAAP (defined below) net income for the fourth quarter of 2015 was $34.4 million, or $0.74 per diluted share.  Non-GAAP net income for the fourth quarter of fiscal 2014 was $26.1 million, or $0.56 per diluted share.

Full-Year Comparison

For the year ended November 30, 2015, total revenues were $645.4 million, compared to $651.9 million in 2014.  Operating income for the full-year period was $85.6 million compared to $93.4 million in the prior year. 

Year-over-year comparability was impacted by:

• In the third quarter of fiscal 2015, we hosted the Phish Magnaball music festival at Watkins Glen International, for which there was no comparable event in the prior year. Also in the third quarter of fiscal 2015, we hosted the third annual Faster Horses music festival at Michigan International Speedway.
• During fiscal 2014, we received a favorable settlement relating to a legal judgment of litigation involving certain ancillary operations of approximately $0.6 million, or $0.01 per diluted share. There was no comparable activity during fiscal 2015.
• On January 31, 2014, SMI abandoned its interest and rights in our 50/50 partnership Motorsports Authentics, LLC ("MA"), consequently bringing our ownership of MA to 100.0 percent. MA's operations are included in our consolidated operations subsequent to the date of SMI's abandonment. Prior to January 31, 2014, MA was accounted for as an equity investment in our financial statements. As a result of SMI's abandonment of their interest in MA, we recorded other income of approximately $5.4 million representing the fair value of MA, over the carrying value, as of January 31, 2014. In addition we recognized tax benefits relating to MA of approximately $4.0 million for fiscal 2014. There was no comparable event in the same period of fiscal 2015.
• For fiscal 2015, we recognized revenue and expense related to merchandise operations of approximately $16.5 million and $12.3 million, respectively, including the following:
  • $5.1 million of commission from third party merchandise sales, predominately from Fanatics,
  • non-recurring transactions of approximately $10.4 million, which includes approximately $6.4 million for inventory sold to Fanatics and $4.0 million of wholesale transactions by MA, and
  • approximately $12.3 million in expense including product costs associated with the non-recurring transactions, non-recurring costs related to the transition of trackside merchandise operations to Fanatics, as well as partial period operating expenses incurred prior to the transition of Americrown and MA merchandise operations, for which there was no related revenue

This compares to fiscal 2014, where we recognized revenue and expense related to merchandise operations of approximately $44.1 million and $35.5 million, respectively, which included direct sales of trackside merchandise and excluded the partial period pre-consolidation operation of Motorsports Authentics prior to SMI's abandonment of its MA interest.

• In fiscal 2015, we recognized approximately $1.4 million, or $0.02 per diluted share, in marketing and consulting costs that are included in general and administrative expense related to DAYTONA Rising. During fiscal 2014, we recognized approximately $1.1 million, or $0.02 per diluted share, of similar costs.
• During fiscal 2015, we recognized approximately $6.8 million, or $0.09 per diluted share, of accelerated depreciation that was recorded due to the shortening the service lives of certain assets associated with DAYTONA Rising and other projects. During fiscal 2014, we recognized approximately $11.1 million, or $0.14 per diluted share, of accelerated depreciation that was recorded due to the shortening the service lives of certain assets associated with DAYTONA Rising and capacity management initiatives.
• In fiscal 2015, we recognized charges of approximately $16.0 million, or $0.21 per diluted share, of losses associated with asset retirements primarily attributable to demolition and/or asset relocation costs in connection with DAYTONA Rising, capacity management initiatives and other capital projects. Included in these losses were approximately $12.5 million of expenditures related to demolition and/or asset relocation costs, the remaining charges were non-cash charges. During fiscal 2014, we recognized approximately $10.1 million, or $0.12 per diluted share, of similar charges, of which approximately $7.5 million of expenditures related to demolition and/or asset relocation costs, the remaining charges were non-cash, which included an impairment of a long-lived intangible asset related to MA, discussed above.
• In fiscal 2014, we received a settlement of interest income related to a long term receivable of $1.8 million, or $0.02 per diluted share. There was no comparable item in the same period of fiscal 2015.
• In fiscal 2015, we recognized approximately $6.0 million, or $0.08 per diluted share, in capitalized interest related to DAYTONA Rising. During fiscal 2014, we recognized approximately $7.2 million, or $0.09 per diluted share, of similar capitalized interest.
• During fiscal 2015, we recognized approximately $14.1 million of income from equity investments associated with our Hollywood Casino at Kansas Speedway. During fiscal 2014, we recognized income of approximately $8.9 million from this equity investment.

Net income for the year-ended November 30, 2015, was $56.6 million, or $1.21 per diluted share, compared to a net income of $67.4 million, or $1.45 per diluted share in 2014.  Excluding adjustments for a legal settlement marketing and consulting costs incurred associated with DAYTONA Rising, accelerated depreciation, impairment of MA long-lived intangible asset, losses associated with the retirements of certain other long-lived assets, settlement of interest income related to a long-term receivable, DAYTONA Rising project capitalized interest and a net gain on sale of certain assets, non-GAAP (defined below) net income for fiscal 2015, was $67.3 million, or $1.44 per diluted share.  This is compared to non-GAAP net income for fiscal 2014 of $65.9 million, or $1.42 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.

We believe such non-GAAP information is useful and meaningful, and is used by investors to assess our core operations, which consist of the ongoing promotion of racing events at our major motorsports entertainment facilities. Such non-GAAP information identifies and separately displays and adjusts for items that are not considered to be reflective of our continuing core operations at our motorsports entertainment facilities. We believe that such non-GAAP information improves the comparability of the operating results and provides a better understanding of the performance of our core operations for the periods presented. We use this non-GAAP information to analyze the current performance and trends and make decisions regarding future ongoing 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. The presentation of this non-GAAP financial information is not intended to be considered independent of or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating the business and, as such, deemed it important to provide such information to investors.

The adjustments for 2014 relate to a legal settlement, marketing and consulting costs incurred associated with DAYTONA Rising, accelerated depreciation, losses associated with the retirements of certain other long-lived assets, impairment of MA long-lived intangible asset, settlement of interest income related to long-term receivable, DAYTONA Rising project capitalized interest, MA fair value adjustment and income tax benefits, and net loss on sale of certain assets.

The adjustments for 2015 relate to marketing and consulting costs incurred associated with DAYTONA Rising, accelerated depreciation, losses associated with the retirements of certain other long-lived assets, DAYTONA Rising project capitalized interest, and net gain on sale of certain assets.

		Three Months Ended								Year Ended
		November 30, 2014				November 30, 2015				November 30, 2014				November 30, 2015
						(Unaudited)
		( In Thousands, Except Per Share Amounts )
Net income		$	25,824			$	32,282			$	67,379			$	56,634
Adjustments, net of tax:
Legal settlement		(386)				—				(386)				—
DAYTONA Rising project		144				180				672				847
Accelerated depreciation		1,480				(70)				6,758				4,153
Losses on retirements of long-lived assets		1,362				2,668				5,802				9,735
Impairment of MA's long lived intangible asset		605				—				605				—
Interest settlement on long-term receivable		(1,116)				—				(1,116)				—
DAYTONA Rising project capitalized interest		(1,650)				(601)				(4,387)				(3,652)
MA fair value adjustment and income tax benefits		(183)				—				(9,455)				—
Net (gain) loss on sale of certain assets		(2)				(66)				41				(444)
Non-GAAP net income		$	26,078			$	34,393			$	65,913			$	67,273
Per share data:
Diluted earnings per share		$	0.55			$	0.69			$	1.45 Werbung Mehr Nachrichten zur International Speedway A Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 12:00 - Julius Weiß, ... Wochenausblick – Warum es überall spannend sein wird 11:11 - dpa-AFX Geldreserven von Berkshire Hathaway wachsen weiter 09:00 - wallstreet:online ... Superinvestoren: 3 Aktien, die Milliardär Seth Klarman gekauft hat Neuer Gesetzesentwurf    Cannabisaktien sollten nun den S&P um 60% outperformen! weiterlesen» Anzeige wo-site-teaser-box-16854_site-teaser-box_2024-05-05_09%253A00%253A00_2024-05-06_09%253A00%253A59