Thursday, before the bell, International Speedway Corp. (ISCA), a promoter of motorsports entertainment activities, reported a rise in third quarter earnings, which, however, missed analysts' estimates. The company also lowered its full year guidance, citing the weak economic environment.
The Daytona Beach, Florida-based company's net income for the quarter rose to $38.8 million or $0.79 per share from $9.5 million or $0.18 per share in the year-ago period.
For the quarter, the company incurred an accelerated depreciation of $0.5 million for certain office and related buildings in Daytona Beach associated with its previously announced Daytona Live! project, compared to $6.9 million in the prior-year quarter. Further 2008 third quarter had a tax benefit of $3.5 million compared to a deferred income tax expense of $1.6 million last year.
Excluding discontinued operations and the above charges, non-GAAP net income for the quarter rose to $35.7 million or $0.73 per share from $27.9 million or $0.53 per share in the prior year quarter.
On average, seven analysts polled by First Call/Thomson Financial expected earnings of $0.79 a share for the third quarter.
Quarterly revenues increased to $213.2 million from $195.5 million last year. Analysts expected the company to report revenue of $204.77 million.
Segment-wise, Admission revenues decreased slightly to $62.70 million from $62.97 million in the year-ago quarter, Motorsports related revenues rose to $129.57 million from $112.95 million in the prior-year quarter, revenues from food, beverage and merchandise decreased to $18.4 million from $17.7 million prior year.
For the nine-month period, net income increased to $101 million or $2.02 per share from $63.7 million or $1.20 per share in the comparable year-ago period. Non-GAAP net income rose to $103.5 million or $2.07 per share from $92.4 million or $1.75 per share in the prior year period.
Revenues for the year-to-date increased to $582 million from $561.4 million last year.
Looking ahead, considering the challenging macro-economic environment and its impact on consumer and corporate spending trends, the company lowered its revenue and earnings per share guidance for the full fiscal year.
International Speedway now expects full-year non-GAAP earnings in a range of $2.80 - $2.85 a share, lower than previously expected range of $3.05 - $3.10 a share. Analysts, on average, expect full year earnings of $3.03 a share.
Full-year revenues are anticipated in a range of $780 million - $785 million, lower than prior expectation of $805 million - $815 million. Analysts expect the company to report full year revenues of $808.61 million.
The company added that with the main sales cycle for Motorsports Authentics, or MA, being in the first half of the year, it projects MA to contribute between $2.0 million and $3.0 million in equity income for full year 2008.
For fiscal 2009, the company said it expects MA to face a more difficult sales climate due to economic conditions, and is not expected to benefit materially from driver or team changes. Thus, the company does not find any positive impact to post stronger fiscal 2009 results in MA compared with fiscal 2008.
ISCA closed Wednesday's regular markets at $31.51.
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