International Speedway repays $50 million of revolver debt

By Jennifer Lanning Drey

Portland, Ore., July 7 - International Speedway Corp. repaid $50 million of revolving credit facility debt following the close of the second quarter and expects to have fully paid off the outstanding balance on the facility by the time it matures in June 2010, Daniel Houser, chief financial officer of International Speedway, said Tuesday during the company's second-quarter earnings conference call.

The outstanding balance on the facility was $150 million at the May 31 end of the second quarter.

The company's debt was also reduced during the quarter by the repayment of $150 million in senior notes due in April that were paid using cash on hand.

Total debt at May 31 was $424 million, while cash and short-term investments were $146 million.

Subsequent to the end of the second quarter, International Speedway announced it had entered into a definitive settlement with the IRS that will return $112 million to the company.

"The $112 million recovery strengthens our financial position, provides us with additional financial flexibility and allows us to focus on executing our business strategies," John Saunders, president of International Speedway, said during the call.

In connection with the IRS settlement, International Speedway reopened its previously authorized open market share repurchase program, which has $42 million remaining under it.

The company hopes to further strengthen its financial position through a sale of its Staten Island property this year, Saunders said.

International Speedway reported total revenues of $152.4 million, down from revenues of $174.9 million in the comparable prior-year quarter.

Based in Daytona Beach, Fla., International Speedway is a promoter of motorsports activities. The company owns and/or operates 13 major motorsports entertainment facilities.

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