|
International Speedway Net Drops on Souvenir Venture
05/10/2007 |
 |
 |
International Speedway Corp., the biggest U.S. auto-racetrack operator, said fiscal third-quarter net income tumbled 72 percent on lower profit from its souvenir- sales venture.
Net income fell to $9.52 million, or 18 cents a share, from $34.3 million, or 64 cents, a year earlier, the Daytona Beach, Florida-based company said in a statement. Revenue in the period ended Aug. 31 rose 9.7 percent to $196.3 million.
Profit at International Speedway, controlled by the France family, which also owns Nascar, was hurt by its 50 percent stake in Motorsports Authentics, which sells racing and driver-branded gear. Motorsports Authentics said in the second quarter it would have a loss of as much as $25 million after Dale Earnhardt Jr. switched teams, reducing demand for his souvenirs.
``While we are clearly disappointed, we believe this addresses the significant operating issues related to 2007,'' Chief Operating Officer John Saunders said today on a conference call. ``This year has been very unusual in the total number of driver and team changes. These changes, which are earlier than usual, exacerbate current-year sales and inventory issues.''
Motorsports Authentics, which the company owns with No. 2 racetrack operator Speedway Motorsports Inc., reduced net income by $12.4 million, or 24 cents a share.
Depreciation, Tax Costs
Accelerated depreciation of International Speedway's Daytona Beach headquarters, which it plans to raze for a shopping and entertainment complex, lowered profit by $6.9 million, or 8 cents a share, and a new Michigan sales tax cost it $1.6 million, or 3 cents.
Without those items, the company would have earned $27.9 million, or 53 cents a share. On that basis, International Speedway had been expected to earn 56 cents a share, the average estimate of six analysts polled by Bloomberg.
International Speedway fell $2.04, or 4.1 percent, to $47.54 as of 4:30 p.m. in Nasdaq Stock Market composite trading. The shares, which fell as low as $45.40, have five ``buy'' and four ``hold'' ratings from analysts.
Admission at the company's 13 racetracks increased 11 percent to $63 million after the completion of its acquisition of Chicagoland Speedway and Route 66 Raceway near Chicago in February. Motor-sports revenue, which includes the company's share of television income, rose to $113.7 million from $100.5 million.
William France Jr., chairman of International Speedway and the son of the Nascar founder, died in June at age 74. His daughter Lesa France Kennedy is president of the company. Her husband, Bruce Kennedy, was killed in a Florida plane crash in July. James France, William France Jr.'s brother, was named chairman of the company after William France's death.
(Source: Bloomberg.com)
|
| Back |
|
|
|
|
 |
|
