International Speedway looking to maintain credit metrics in downturn

By Jennifer Lanning Drey

Portland, Ore., July 8 - International Speedway Corp. will maintain key financial metrics, particularly its debt level, while its EBITDA is under pressure in an effort to preserve its triple-B credit rating, chief financial officer Daniel Houser said Thursday during the company's second-quarter earnings conference call.

"We have always prided ourselves on the core principle of maintaining a strong balance sheet, and, as a result, we have a strong liquidity position and our cost of borrowings remains relatively low," Houser said.

International Speedway had total debt of $321 million at May 31. The figure included $50 million of borrowings on the company's revolving credit facility that have since been repaid.

The company had cash and short-term investments of $167 million at May 31.

Houser said International Speedway plans to maintain strong cash reserves until it sees a sustained return to the level of operating cash flows it generated prior to the economic recession.

For the second quarter, International Speedway reported revenues of $142.2 million, compared with revenues of $152.4 million for the same period in 2009. Second-quarter operating income was $21.3 million during the period, compared with $31.7 million in the prior-year period.

"Global and domestic conditions have not progressed as positively as we anticipated, and this is reflected not only in our second-quarter results but also in our outlook for the rest of 2010," Lesa France Kennedy, International Speedway's chief executive officer, said during the call.

International Speedway now expects full-year revenue between $650 million and $660 million after revising its guidance on Thursday.

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

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