DAYTONA BEACH, Florida: International Speedway Corp. (NASDAQ: ISCA) on Thursday (Friday in Manila) reported increases in revenues and net profits for both the fourth quarter and full year for fiscal 2016, which ended November 30.
Helping to fuel that increase was its completion in January of last year of the $400-million Daytona Rising makeover of Daytona International Speedway.
ISC had expected the completed project would provide an “immediate incremental lift” in revenues in the first year of $20 million. On Thursday, it said it slightly exceeded that goal thanks to the added amenities, including more food and NASCAR merchandise venues as well as more corporate sponsorship opportunities. In May, Axalta joined Toyota, Florida Hospital, Chevrolet and Sunoco as “founding partners” of the renovated motor sports stadium, That partnership deal included Axalta’s receiving the naming rights to the Speedway’s center fan injector.
The increase in full year earnings was also boosted by ISC’s sale of its property in Staten Island, New York, which resulted in a gain of $13.6 million.
But even without that and other one-time boosts to its bottom line, ISC still posted higher net profits for the year, $68.1 million, or $1.48 per share, compared to $67.3 million, or $1.44 per share, in fiscal 2015.
Projects on the line
ISC reiterated that it expects to complete the 70-acre first phase of its One Daytona mixed-use development across the street from the Speedway by late fall, with the exception of the 145-room Marriott Autograph Collection hotel called The Daytona, which is set to open in early 2018, and the 275 apartment units also planned for the complex.
That first phase includes 300,000 square feet of retail, dining and entertainment space, which will be owned solely by ISC.
To date, ISC has invested $22 million in the project, with expectations that it will spend a total $95 million in capital expenditures, including $50 million to $60 million in fiscal 2017. The balance will be in fiscal 2018. That total investment does not include the cost of building the project’s two hotels and apartments that are being developed separately by other developers. Also contributing to the project is the City of Daytona Beach and Volusia County, who agreed to finance $40 million of the estimated $53 million needed for infrastructure improvements to the site.
What they’re saying:
Lesa France Kennedy, chief executive officer, International Speedway Corporation: “We are pleased to report solid financial results for 2016. We recognized increases in both revenue and operating income, driven by the success of Daytona Rising and strength of our corporate and broadcast partnerships. … As we enter the 2017 season, we are optimistic we will see a resurgence in consumer demand and increasing admissions revenue as we continue executing our consumer marketing strategies.”
Greg Motto, ISC chief financial officer: “We’re excited with the results of Daytona Rising. … We expect the lift we received in 2015 and 2016 will be sustained in the coming years and we expect it to grow.”