ISC has released another relatively stable earnings report, as its Q1 figures show a slight downtick in admissions revenue, but one that was mitigated in other ways and by certain differences from Q1 last year. The track promoter saw total revenue in Q1 of $148.9M, up 1% last year, including admission revenue of $30.6M, down about 2.5%. However, Daytona Int'l Speedway last year held a Ferrari World Finals event in Q1, and did not have such a race this year, which ISC President John Saunders said was the major impetus for the downtick. ISC execs said that lower attendance this year at ISM Raceway’s (Phoenix) and Martinsville Speedway’s spring races contributed to the downtick, but to a lesser extent. February's Daytona 500 sold out for a third straight year. TV money was up 2% from to $105.8M, while food/beverage and merchandise were down about 12% to $8M. ISC’s “other” category in its revenue chart was up 15% to $4.6M, which ISC attributed to rent revenue from tenants at One Daytona, the new mixed-use development across the street from DIS. Total expenses were up 2% in Q1 to $116.4M this year due to costs associated with renovations at ISM Raceway and Richmond Raceway, plus the construction of One Daytona. ISC during Q1 also recorded a $143.9M non-reccuring, non-cash income tax benefit due to the recently passed U.S. tax code overhaul, which lowered ISC’s top corporate tax rate from 35% to 21%. That led to net income for the quarter being $169.3M, up 694%. At presstime, shares of ISC were trading at $37.42 per share, down 12.25% from the close of business yesterday.
FEELING OPTIMISTIC: During an earnings call today, Saunders and ISC Senior VP, CFO & Treasurer Greg Motto touched on topics including the declining Monster Energy NASCAR Cup Series ratings this season, as well as how the sport is trying to show value from other platforms and Monster Energy’s negotiations to extend its entitlement deal. Saunders: “It’s our understanding that NASCAR is still engaged in negotiations for an extension. We don’t have a line of sight to how long that extension will be, but initial indications leave us feeling optimistic.”
