ISC Reports Quarterly, Yearly Financial Results

International Speedway Corporation reported financial results today for its fiscal fourth quarter and full-year ended November 30, 2012.

“We experienced leading signs of revenue stabilization this year,” stated ISC Chief Executive Officer Lesa France Kennedy. “For fiscal 2012, adjusting for non-comparable events as well as the expected loss of ancillary rights fees to the industry, total revenues were down less than one percent. This was due to year-over-year increases in broadcast fees, net sponsorship, advertising, and food, beverage & merchandise revenues for comparable operations. However, we continue to experience modest headwinds with admissions, not to the degree experienced in2011, but enough to know we still have further inroads to make with our consumer.

“Also encouraging was the announcement in October that NASCAR and FOX finalized an eight-year extension of broadcast rights through the 2022 season. The extension, which industry sources have valued at more than $2.4 billion over eight years, is an approximate 36.4 percent increase over the current agreement that expires after the 2014 season. This agreement keeps us optimistic for the remaining content with ESPN and Turner, for which NASCAR is expected to begin negotiations over the summer.

Lesa France Kennedy

“Based on our experience and view of the evolution of modern sports facilities, demand for our events depends, in part, on the fans' experience. Improving the event day experience will positively influence attendance-related revenues in the long run. In addition, and of equal importance, it will support both corporate sales and the long-term health of broadcast media rights fees.

“We are committed to meeting and exceeding our fans' expectations through on-going capital improvements at our facilities. We are providing our fans enhanced audio and visual experiences, more comfortable and wider seating, more concession and merchandise points-of-sale, and greater social connectivity. This strategy is absolutely aligned with NASCAR's five-year Industry Action Plan aimed to connect with existing fans, as well as engage Gen Y, youth and multicultural consumers in motorsports.

“Another area of focus within NASCAR's Industry Action Plan is building product relevance. Beginning with this season, NASCAR introduced the next generation Sprint Cup car for2013, what we are calling "Gen-6". The Gen-6 program is the most comprehensive overhaul in the sport since 2007. Its goal is to re-establish brand identity among the automotive manufacturers and provide competitive upgrades in an effort to improve competition in NASCAR's Sprint Cup Series.

“Also new this season to improve the event experience is NASCAR's new track drying system that will dramatically speed up the process of getting racing surfaces back to green-flag conditions following rain. Weather is one of our biggest impediments to stronger ticket renewals. Year-in and year-out, after a rain delayed or postponed event due to weather, the following year's ticket renewals for that event are negatively impacted. NASCAR's ultimate goal is to see a superspeedway like Daytona International Speedway race-ready in thirty minutes rather than two hours and a short track like Martinsville Speedway completed in fifteen minutes.”

Total revenues for the fourth quarter ended November 30, 2012 were approximately $189.4 million, compared to revenues of approximately $191.9 million in the prior-year period. Operating income was approximately$41.4 million during the period compared to approximately$49.2 million in the fourth quarter of fiscal2011. In addition to the macroeconomic challenges, quarter-over-quarter comparability was impacted by:

• The fall NASCAR Camping World Truck Series event at Phoenix International Raceway held in the fourth quarter of fiscal 2012 was held in the first quarter of fiscal 2011.

• Auto Club Speedway held an IZOD IndyCar Series event in fiscal2012, for which there was no comparable event in fiscal 2011.

• Chicagoland Speedway held a NASCAR Camping World Truck Series event in the third quarter of fiscal2012. The corresponding event was held in the fourth quarter of fiscal 2011.

• The Company earned an immaterial amount of ancillary revenue due to a combination of factors, primarily related to SiriusXM Radio, which has historically been the most significant contributor to the industry's ancillary rights revenue. Since the merger of Sirius Satellite Radio and XM Satellite Radio there is now only one satellite provider, SiriusXM Radio, bidding on the distribution rights for original programming. As a result, distribution rights agreements entered into by SiriusXM Radio for original programming subsequent to the merger have generally been lower.

• During the quarter ended November 30, 2012, the Company expensed approximately $1.5 million, or $0.02 per diluted share, of certain ongoing carrying costs related to its Staten Island property. In the 2011 fourth quarter, the Company expensed approximately $1.3 million, or $0.02 per diluted share, of certain ongoing carrying costs related to its Staten Island property.

• In the fourth quarter of fiscal 2012, the Company recognized approximately $4.1 million, or $0.06 per diluted share, of impairments / losses on disposals of long-lived assets primarily attributable to the removal of assets not fully depreciated in connection with certain capital improvements.

• During the quarter ended November 30, 2012, the Company recognized $0.8 million of income from equity investments associated with its Hollywood Casino at Kansas Speedway joint venture. During the fourth quarter of fiscal 2011, the Company recognized a loss of approximately $1.4 million, or $0.02 per diluted share, from this equity investment consisting of start up costs prior to opening in fiscal 2012.

Net income for the fourth quarter was approximately $24.7 million, or $0.53 per diluted share, compared to net income of approximately $26.5 million, or $0.56 per diluted share, in the prior year period. Excluding certain carrying costs related to the Staten Island property and impairments / losses on disposals of certain other long-lived assets, non-GAAP (defined below) net income for the fourth quarter of 2012 was $28.3 million, or $0.61 per diluted share. Non-GAAP net income for the fiscal fourth quarter of 2011 was $29.0 million, or $0.62 per diluted share.

Full-Year Comparison

For the year ended November 30, 2012, total revenues were $612.4 million, compared to $629.7 million in 2011. Operating income for the full-year period was$105.0 million compared to $133.2 million in the prior year.

Year-over-year comparability was impacted by:

• The NASCAR Camping World Truck Series event held at Darlington Raceway in the second quarter of fiscal 2011 was not held in fiscal 2012.

• The NASCAR Nationwide Series event held at Stock Car Montreal in the third quarter of fiscal 2011 for which we are no longer the event promoter starting in fiscal 2012.

• Auto Club Speedway held an IZOD IndyCar Series event in fiscal 2012, for which there was no comparable event in fiscal 2011.

• The aforementioned decrease in ancillary revenue.

• In fiscal 2012, the Company expensed approximately $4.6 million, or $0.06 per diluted share, of certain ongoing carrying costs related to its Staten Island property. During fiscal 2011, the Company expensed approximately $2.7 million, or $0.04 per diluted share, of similar costs.

• During fiscal 2012, the Company recognized a charge relating to a settlement of a litigation involving certain ancillary facility operations of approximately $1.2 million, or $0.01 per diluted share.

• The impairments / losses on disposals of long-lived assets in fiscal 2012, of approximately $11.1 million, or $0.15 per diluted share, were primarily attributable to the removal of assets not fully depreciated in connection with certain capital improvements. During fiscal 2011, the Company recorded an approximately $4.7 million, or $0.06 per diluted, impairments / losses on disposals of long-lived assets.

• In fiscal 2012, the Company recognized approximately $9.1 million in expenses, or $0.12 per diluted share, related to the redemption of the remaining $87.0 million principal 5.40 percent Senior Notes maturing in 2014.

• In fiscal 2012, the Company recognized approximately $2.8 million of income from equity investments associated with its Hollywood Casino at Kansas Speedway joint venture, which included results of operations beginning in February 2012, net of charges related to certain start up costs through the opening. In fiscal 2011, the Company recognized a loss of approximately $4.2 million, or $0.05 per diluted share, from this equity investment consisting of start up costs prior to opening in fiscal 2012.

• During fiscal 2012, the Company recorded approximately $0.9 million, or $0.01 per diluted share, net gain on the sale of certain assets.

Net income for the year-ended November 30, 2012, was $54.6 million, or $1.18 per diluted share, compared to a net income of $69.4 million, or $1.46 per diluted share in 2011. Excluding certain carrying costs related to the Staten Island property; legal settlement; impairments / losses on disposals of certain other long-lived assets; loss on early redemption of debt; and the net gain on sale of certain assets, non-GAAP (defined below) net income for the fiscal 2012, was $70.1 million, or $1.51 per diluted share. This is compared to non-GAAP net income for the fiscal 2011 of $76.5 million, or $1.61 per diluted share.