ISC released an upbeat Q3 earnings report this morning, revealing that admissions revenue was basically flat year over year in what President John Saunders called a “welcome sign of stability” at the NASCAR turnstiles. ISC’s total revenue for the quarter ended Aug. 31 was up 2% from $129M last year to $131.9M this year, though that is to be expected with contractually obligated media-rights increases from NBC Sports and Fox Sports boosting the track operator’s bottom line. Events in the quarter included three Monster Energy NASCAR Cup Series races, three Xfinity Series races and one Camping World Truck Series race, plus an ARCA race and music festival at Michigan and an IMSA race at Watkins Glen. In the all important admissions category, which has become the sport’s best gauge on attendance, revenue was only down less than half of 1% year over year, from $22.84M in Q3 last year to $22.77M this year. That figure is helped in part by the average ticket price for Monster Energy NASCAR Cup Series races going up 3% from this time last year to $85.60. Attendance was up at Daytona’s Coke Zero 400 and flat but sold out for Watkins Glen’s annual Monster Energy Series race. Those gains were offset by downticks for Michigan’s Cup races. The “Motorsports and other event related” category, where TV money is counted, was up 4% from $90.2M to $94M. Food, beverage and merchandise was up 3% in a gain that ISC attributed to improving non-core business for its concessionaire subsidiary Americrown. Expenses were up 4%, meanwhile, from $125.2M last year to $129.8M. Net income was $300,000, down 86% from $2.2M last year. ISC reiterated its year end guidance of $660-670M and noted it expects EBITDA of $208-218M, which equates out to an EBITDA margin of 31.5-32.5%. In the corporate sales category, ISC said that it has secured 99% of its revenue goal for ’17 and has just one open entitlement for remaining Monster Energy Series races this year – that being Talladega’s upcoming event on Oct 15.
POSITIVE OUTLOOK ON THINGS: Saunders and ISC Senior VP, CFO & Treasurer Greg Motto were positive about the quarter during the Q&A portion of the call with analysts, even taking words of congratulations from analysts after several tougher quarters over recent years. Asked why ISC saw stable ticket sales in the quarter, Saunders cited the introduction of stage racing this year, the development of rising drivers’ brands and new standardized youth ticket pricing policies across NASCAR. Saunders, who was also asked by analysts about continued linear TV ratings declines, added, “We’re starting to see a little bit of stabilization in the (quarter). We don’t have a lot of visibility to Q1 in ‘18 just yet, but we’re pleased with what we’re seeing at the moment.”
