SBD/Issue 20/Finance

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  • ISC Reducing Costs By Cutting Jobs, Halting Development Projects

     

    ISC has "cut more than 40 corporate positions" at its HQs in Daytona Beach since "announcing in August a company-wide initiative to reduce operational costs," according to Clayton Park of the Daytona Beach NEWS-JOURNAL. ISC Senior VP, CFO & Treasurer Dan Houser Thursday said that the company's "goal of reducing by 20 percent the size of its headquarters staff, which numbered 250 at the start of the year, has been met." Houser added that "whether there will be additional job cuts will depend on the state of the economy." ISC Vice Chair & CEO Lesa France Kennedy said that the initiative is "expected to result in reducing ISC's operating expenses beginning next year" by $20M-$30M. ISC also has "responded by lowering ticket prices at its racetracks and putting some of its big development projects on hold, including its proposed entertainment/retail/dining complex" near DIS. ISC "quietly severed ties late last year" with Baltimore-based Cordish Co., which "was to be a 50/50 partner in the planned Daytona Live! complex." Houser said that the ISC "remains committed to the idea" of an attraction near DIS, and that project "will likely be given a new yet-to-be-determined name once a new development partner has been found." ISC Thursday "reported a decline in both revenue and net earnings" for its FY Q3. But Houser said that "one hopeful sign the economy may slowly be starting to turn around is the increase ISC has seen as of late in corporations expressing interest in becoming race sponsors." ISC also is "in talks with its lenders about extending its current $300 million revolving line of credit, which is set to mature in June 2011," and company officials have "expressed optimism the company may be close to finally completing the proposed $88 million sale of its Staten Island, N.Y. property" to KB Marine Holdings (Daytona Beach NEWS-JOURNAL, 10/8).

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