International Speedway Conference Call Highlights

International Speedway

reported Q3 earnings on Tuesday. Shares of the company are down five percent. Below are some key highlights and takeaways from the company's conference call: Growth and Operations: • Revenues increased approximately 11% driven. • During the quarter, we hosted four Sprint Cup weekend and the IndyCar finale at Auto Club Speedway, which was conducted in the fourth quarter of 2013. • We continue to see encouraging signs as stabilizing attendance and positive impact from our capacity management initiatives. • So far in the fourth quarter, results have been mixed. • Looking to the rest of the year, advanced ticket sales and trends are encouraging. • Great success indicators to the new championship format, coupled with our capacity management initiatives and our relentless commitment to exceed our fans' expectations. • This quarter, we again experienced the negative impact to ratings. • Coupled with an average of 5.4 million viewers per event, the overall consumption of the sport, particularly on race day, is promising. • And we continue to see increases in key demographics, including Hispanic viewership and the 18-year-old to 24-year-old male demo. • At this point for fiscal 2014, we have agreements in place for approximately 97% of our gross marketing partnership revenue target. • In addition, we currently have 16 of our 20 NASCAR Sprint Cup event entitlements under contract for 2015. • Looking beyond 2015, our sales team is engaged on many fronts pursuing additional founding sponsors for DAYTONA Rising. • Regarding DAYTONA Rising, this project continues to proceed on schedule and on budget. • These incentives can - in total, up to $3 million per year for the next 30 years to be utilized for speedway improvements. • As previously discussed, the CDD completed negotiations with the City and County for a $40 million incentive package to finance a portion of the estimated $53 million. • In fiscal 2014, the property has met or exceeded operating profit every month, and we have received cash distributions of $22 million to date, $15.5 million of which was received prior to August 31, 2014. • Looking at the income statement, third quarter admissions revenue of $26.3 million exceeded prior year by approximately $900,000. • We continue to see favorable results from our capacity management initiatives, including and an almost 1% increase in the average ticket price to approximately $42.93 for the third quarter. • Net income for the three months ended August 31, 2014, was $191,000 or less than $0.01 per diluted share. • At the end of the quarter, total debt was approximately $274 million. Guidance: • We remain well-positioned for ongoing success, with our largest revenue source secured through 2024, a strong balance sheet and stabilizing consumer and corporate revenues. • Although macroeconomic improvement remains tepid, and inclement weather can impact event weekend performance. • We're encouraged by the results of our consumer marketing and capacity management initiatives, working in concert with NASCAR's Industry Action Plan. • As well, we continue to focus across our business on keeping costs down.