International Speedway Corp. (
Q4 2010 Earnings Call
January 27, 2011; 09:00am ET
Lesa France Kennedy - Chief Executive Officer
John Saunders - President
Dan Houser - Senior Vice President & Chief Financial Officer
Charles Talbert - Director of Investor & Corporate Communications
Amit Chandra - Wells Fargo Securities
Thomas Andrews - BMO Capital Markets
Barry Lucas - Gabelli & Company
Previous Statements by ISCA
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Good morning and welcome to the International Speedway Corporation 2010 fourth quarter and full year results conference call. During the presentation all participants will be in a listen-only mode. Afterwards you will be invited to participate in the question-and-answer session. (Operator Instructions)
I would now like to turn the conference over to Charles Talbert, Director of Investor and Corporate Communications for International Speedway. Mr. Talbert, please go ahead.
Thank you operator. Good morning everyone and welcome to the International Speedway’s conference call. We are here to discuss the company’s results for the fourth quarter ended November 30, 2010. With us on this mornings call are Lesa France Kennedy, Chief Executive Officer; John Saunders, President; and Dan Houser, Senior Vice-President and Chief Financial Officer.
After our formal remarks, a question-and-answer period will follow. The operator will instruct you on procedures at that time.
Before we start, I would like to address forward-looking statements that may be addressed on this call. Forward-looking statements involve risks, uncertainties and assumptions. Actual future performance, outcomes and results may differ materially from those expressed in these forward-looking statements. Please refer to the documents filed by International Speedway with the SEC, specifically the most recent reports on Form 10-K and 10-Q, which identify important risk factors which could cause actual results to differ from those contained in these forward-looking statements.
So with these formalities out of the way, I will turn the call over to Lesa Kennedy. Lesa.
Lesa France Kennedy
Good morning and thank you for participating on todays call everyone. Another terrific motor sport season ended our Homestead-Miami Speedway for the closest finish and a history to cage for the Sprint Cup Championship. We now have websites that are on 2011, with a premier endurance motor sports race, the Rolex 24 Daytona this week, followed by three weeks and the culminating in this 53
running of the Daytona 500.
This is a historic moment for us. We are excited about the events at Daytona, with the $18,000 tax-repaving project complete. For more indications, the racing surfaces terrific and everyone is excited about the upcoming event and we expect another capacity crowd for the Daytona 500. The fans should be in for some amazing races.
While we hope for a stronger economic environment at this point, we do believe conditions are getting better, but most importantly the fundamentals of our business remain sound. As I discussed on the last call, we have moved forward on various strategic initiatives to ensure that ISC remains the leader in motor sports entertainment.
We have taken the necessary steps on the cost side of the business to provision the company for the long-term success.
Our sound financial policies maintain a strong balance sheet that provides a significant competitive advantage within our industry. Speaking of our industry, NASCAR just yesterday announced new changes to the sport. There were a number of compelling changes. I’m most excited about and I also believe our fans will be too with the new point system.
There will be one point per division. The winner gets 43 points and last place gets one point. While the point system has been simplified to the fans, NASCAR has kept the integrity of the systems. Another change of note relates to the change for the NASCAR Sprint Cup.
The top ten positions will get into the chase based on points. The 11
position will be based on wins, which is an added incentive to winning races. These changes as well as the previous modifications that NASCAR has implemented are based on fan feedback. This is always in reporting time of the year policy (ph) NASCAR mostly important, our fans and our sponsors.
So with that, I would like to thank all of you now and turn it over to John Saunders.
Thank you Lesa and good morning everyone. During the quarter we hosted seven NASCAR Sprint Cup series events, five nationwide series events and four Camping World Truck series events. The quarter-over-quarter comparison was impacted by certain factors, which are outlined in the earnings news release.
We are pleased that in light of the continued macro economic headwinds we still ended this year with solid results. Dan will provide a detailed review of our financial performance later in the call.
Going into the 2011 season, we are still seeing challenges in consumer spending, but remain encouraged by initial corporate spending trends in many areas. From a consumer standpoint, we believe that ticket pricing initiatives implemented last season are on target with demand, providing attractive price points for all income levels.
The only material change to our ticketing policy will be the availability of single day ticket options at Kansas and Chicago end. These facilities were only a seasoned ticketing model and this year based on customer feedback, we have uncoupled a substantial number of tickets, while still offering I might add selling a significant number of season ticket packages and these packages remain an important component of our admission.
The uncoupling of tickets at these facilities will allow for a broader universe of potential ticket buyers. However, it will have a near term financial ramification. But over the longer term we expect to see greater demand for these marked key events.