This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

International Speedway Management Discusses Q2 2012 Results - Earnings Call Transcript

So with these formalities out of the way, I'll turn the call over to John Saunders. John?

John R. Saunders

Thank you, Charles, and good morning, everyone. Our fiscal second quarter financial results were positively impacted by scheduling changes, primarily due to hosting 2 additional NASCAR Sprint Cup Series events than in the comparable quarter. Other quarter-over-quarter comparisons are outlined in the earnings news release. Despite the favorable financial results quarter-over-quarter, attendance-related revenues at our events generated mixed results. Corporate sales for the quarter were slightly behind target, but we remain encouraged by the level of market activity supported by strong media sales.

For the year, we expect to be within a couple of percentage points of our corporate revenue target with the exception of 2 Sprint Cup events, which remain open or not yet announced. We have sold all remaining NASCAR Sprint Cup and nationwide entitlements, and we're confident that we will secure entitlement partners for both Watkins Glen and Phoenix's Sprint Cup events.

Turning to the consumer, we are seeing certain positive signs such as some growth in -- for caps for food, beverage and merchandise concessions. In addition, retention rates have experienced a slight uptick for comparable events. Positive signs indeed but attendance-related revenues continued to be challenged by the slower-than-expected economic recovery.

Deferred revenue, after adjusting for event schedule changes, is down year-over-year by approximately $11 million. Advanced ticket sales for our Sprint Cup events remain approximately 8% and 9% off from last year in units and revenue, respectively. Parts of these declines are associated with the timing of renewals and related programs. However, fans' purchasing decisions are still coming later in the sales cycle, closer to the race weekend. NASCAR core fan demographic, which is the working class, still has a lack of consumer confidence, seeing a lack of job growth and less income growth. Until these indicators improve, we expect our current consumer trends to remain under pressure.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs