International Speedway 2Q profit rises 16 percent

International Speedway 2nd-quarter profit grows as company hosts additional NASCAR races

Associated Press

DAYTONA BEACH, Fla. (AP) -- International Speedway posted a 16 percent jump in second-quarter profit Thursday thanks to two additional Sprint Cup NASCAR races, but executives of the motorsports company say the recession is proving to be a drag on attendance.

"Our core fan demographic, which is Middle America, still lacks confidence due to slow job and income growth," said CEO Lesa France Kennedy. "Until these trends change, we expect our consumer revenues will remain under pressure.

There was more evidence that people are reining in spending. Retailers reported disappointing sales figures for June Thursday and consumer confidence has fallen for four straight months.

Still, the company maintained its full-year forecasts, saying it expects to report an adjusted profit of $1.50 to $1.60 per share on $610 million to $630 million in revenue. On average, analysts expect International Speedway to post a profit of $1.58 per share and revenue of $619.3 million.

Net income was $13.7 million, or 30 cents per share, compared with $11.9 million, or 25 cents per share, in the second quarter of 2011. Excluding one-time charges the company said it earned 52 cents per share during the three months ended May 31. Revenue grew 29 percent, to $179.6 million from $138.8 million.

The company owns 13 racing facilities, including Daytona International Speedway, where the Daytona 500 is held. International Speedway said it promotes more than 100 races a year. Its results in the latest quarter got a boost because it hosted two more NASCAR Sprint Cup races.

In total, its motor sports revenue climbed 32 percent to $125.8 million and revenue from admissions rose 25 percent to $37.3 million. The company reported a smaller increase in food, beverage and merchandise sales and a small decrease in other revenue.

Shares of International Speedway Corp. rose 96 cents, or 3.7 percent, to $27.21 in afternoon trading.

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