8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

__________________________________ 

FORM 8-K

__________________________________ 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 3, 2014

 __________________________________ 

INTERNATIONAL SPEEDWAY

CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

__________________________________ 

Florida	000-02384	59-0709342
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
One Daytona Boulevard, Daytona Beach, Florida		32114
(Address of Principal Executive Offices)		(Zip Code)

(386) 254-2700

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition

Section 7 – Regulation FD

Item 7.01 Regulation FD Disclosure

Section 8 – Other Items

Item 8.01 Other Items

On July 3, 2014, the Company issued a press release which reported results for the fiscal quarter ended May 31, 2014 and reiterated full-year financial guidance.

A copy of the release is attached as an exhibit to this report.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

	Exhibit Number	Description of Exhibit	Filing Status
1	(99.1)	Press Release	Attached herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		INTERNATIONAL SPEEDWAY CORPORATION (Registrant)
Date:	July 3, 2014	By:	/s/ Brett M. Scharback
			Brett M. Scharback
			Vice President - Deputy General Counsel

EX-99.1

FOR:	International Speedway Corporation
CONTACT:	Investor Relations (386) 681-6516

INTERNATIONAL SPEEDWAY CORPORATION REPORTS FINANCIAL

RESULTS FOR THE SECOND QUARTER OF FISCAL 2014

DAYTONA BEACH, Fla. - July 3, 2014 - International Speedway Corporation (NASDAQ Global Select Market: ISCA; OTC Bulletin Board: ISCB) (“ISC”) today reported financial results for its fiscal second quarter ended May 31, 2014.

"We are pleased to report higher revenues for our second quarter driven by contractual increases in television broadcast rights and stabilizing admissions," stated ISC Chief Executive Officer Lesa France Kennedy. "Auto Club Speedway achieved its first sellout since 2005, and moving Kansas Speedway's Cup event to Mothers' Day eve resulted in an admissions lift of over 15%. These results are encouraging signs that NASCAR's Industry Action Plan, and our consumer marketing and capacity management initiatives are working." The consolidation of Motorsports Authentics as of January 31, 2014, also contributed to increased revenue in the three and six month periods.

"On the corporate partner front, momentum is strong. Recently, our Homestead-Miami Speedway announced Ford Motor Company has renewed its sponsorship position for the Ford Championship Weekend. Ford has been the official entitlement sponsor at Homestead-Miami Speedway since 2002." This new agreement, which begins in 2015, is a five-year deal with an option to renew for an additional five years.     

DAYTONA Rising, the reimagining of the American icon Daytona International Speedway, continues to progress on schedule and on budget. Concourse and injector construction is well under way and installation of escalators and seats have begun in earnest.

"Last week, Florida Governor Rick Scott signed House Bill 7095 into law. The bill establishes a process by which sports franchises apply to receive sales tax refunds from the state based on the amount of sales tax generated by the facility. Our DAYTONA Rising project is eligible to apply for these refunds. This bill can provide additional capital for the project, allowing us to build upon the already massive economic benefits being generated in the region - from thousands of new jobs to millions of dollars in new tax revenues - and makes evident that the state recognizes the tremendous value that DAYTONA Rising has and will continue to deliver."

"Our proposed mixed-use development across from Daytona International Speedway, ONE DAYTONA, is steadily gaining momentum. During the quarter, we continued to advance project leasing, financing and contractor

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selection. Most recently we announced ONE DAYTONA selected Shaner Hotels and Prime Hospitality Group ("PHG") as its hotel partners. Shaner Hotels and PHG are planning a 145-room, full-service boutique property and are working with global hospitality leader Marriott International to bring an exclusive Marriott Autograph Collection hotel to ONE DAYTONA. This type of upscale property reiterates our commitment to offering an unparalleled hospitality experience for our fans, visitors and residents in 2016."

France Kennedy concluded, "Our solid financial condition and operating cash flow, supported by strong revenue visibility from lucrative broadcasting rights and contracted partnerships, lay the foundation upon which we can launch these and other strategic initiatives. We are confident these efforts will build value over the long term for our shareholders."

Second Quarter Comparison

Total revenue for the second quarter ended May 31, 2014 was approximately $190.3 million, compared to revenue of approximately $178.4 million in the prior-year period. Operating income was approximately $34.7 million during the period compared to operating income of approximately $37.1 million in the second quarter of fiscal 2013. Year-over-year comparability was impacted by:

• During the three months ended May 31, 2013, we expensed approximately $1.1 million, or $0.01 per diluted share, of certain ongoing carrying costs related to our Staten Island property. There were no comparable costs in the same period of fiscal 2014;

• During the three months ended May 31, 2014, we recognized approximately $0.3 million, or less than $0.01 per diluted share, in marketing and consulting costs that are included in general and administrative expense related to DAYTONA Rising. During the three months ended May 31, 2013, we recognized approximately $0.3 million, or $0.01 per diluted share, of similar costs;

• During the three months ended May 31, 2014, we recognized approximately $3.0 million or $0.04 per diluted share of accelerated depreciation that was recorded due to the shortening the service lives of certain assets associated with DAYTONA Rising. There were no comparable amounts in the same period of fiscal 2013;

• During the three months ended May 31, 2014, we recognized approximately $1.2 million, or $0.02 per diluted share, of losses primarily attributable to demolition and/or asset relocation costs in connection with DAYTONA Rising and capacity management initiatives. During the three months ended May 31, 2013, we recognized approximately $0.7 million, or $0.01 per diluted share, of losses associated with asset retirements primarily attributable to the removal of assets not fully depreciated in connection with certain capital improvements; and

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• During the three months ended May 31, 2014, we capitalized approximately $1.4 million, or $0.02 per diluted share, of interest related to DAYTONA Rising. There was no interest capitalized related to DAYTONA Rising in the same period of fiscal 2013.

Net income for the second quarter ended May 31, 2014 was approximately $21.5 million, or $0.46 per diluted share, compared to net income of approximately $22.4 million, or $0.48 per diluted share, in the prior year period. Excluding certain marketing and consulting costs incurred associated with DAYTONA Rising, accelerated depreciation, losses associated with the retirements of certain other long-lived assets, DAYTONA Rising project capitalized interest, and net loss on sale of certain assets, non-GAAP (defined below) net income for the second quarter of 2014 was $23.4 million, or $0.50 per diluted share. Non-GAAP net income for the fiscal second quarter of 2013 was $23.7 million, or $0.51 per diluted share.

Year-to-Date Comparison

For the six months ended May 31, 2014, total revenues were $322.1 million, compared to $306.9 million in 2013. Operating income for the six-month period was $57.1 million compared to $62.2 million in the prior year. Year-over-year comparability was impacted by:

• On January 31, 2014, Speedway Motorsports, Inc. ("SMI") abandoned its interest and rights in SMISC, LLC, the Company's 50/50 joint venture which owns and operates Motorsports Authentics, LLC ("MA"), consequently bringing our ownership of MA to 100.0 percent. MA's operations were consolidated subsequent to the date of SMI's abandonment. Prior to January 31, 2014, MA was accounted for as an equity investment in our financial statements. As a result of SMI's abandonment of their interest in MA, we recorded other income of approximately $5.4 million representing the fair value of MA, over the carrying value, as of January 31, 2014. In addition we recognized a tax benefit of approximately $1.8 million;

• During the six months ended May 31, 2013, the Company expensed approximately $1.9 million, or $0.03 per diluted share, of certain ongoing carrying costs related to its Staten Island property. There were no comparable costs in the same period of fiscal 2014;

• During the six months ended May 31, 2013, the Company recognized approximately $0.6 million, or $0.01 per diluted share, related to a judgment following litigation involving certain ancillary facility operations. There were no comparable costs in the same period of fiscal 2014;

• During the six months ended May 31, 2014, we recognized approximately $0.6 million, or $0.01 per diluted share, in marketing and consulting costs that are included in general and administrative expense related to DAYTONA Rising. During the six months ended May 31, 2013, we recognized approximately $0.7 million, or $0.01 per diluted share, of similar costs;

• During the six months ended May 31, 2014, we recognized approximately $6.0 million or $0.08 per diluted share of accelerated depreciation that was recorded due to the shortening the service lives of certain assets associated with DAYTONA Rising. There were no comparable amounts in the same period of fiscal 2013;

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• During the six months ended May 31, 2014, the Company recognized approximately $3.4 million, or $0.05 per diluted share, of losses primarily attributable to demolition and/or asset relocation costs in connection with DAYTONA Rising and capacity management initiatives. During the six months ended May 31, 2013, the Company recognized approximately $2.3 million, or $0.03 per diluted share, of losses associated with asset retirements primarily attributable to the removal of assets not fully depreciated in connection with certain capital improvements; and

• During the six months ended May 31, 2014, we capitalized approximately $2.4 million, or $0.03 per diluted share, of interest related to DAYTONA Rising. There was no interest capitalized related to DAYTONA Rising in the same period of fiscal 2013.

Net income for the six months ended May 31, 2014 was $41.4 million, or $0.89 per diluted share, compared to a net income of $36.0 million, or $0.77 per diluted share in 2013. Excluding certain marketing and consulting costs incurred associated with DAYTONA Rising, accelerated depreciation, losses associated with the retirements of certain other long-lived assets, DAYTONA Rising project capitalized interest, MA fair value adjustment and income tax benefit, and net loss on sale of certain assets, non-GAAP (defined below) net income for the six months ended May 31, 2014, was $38.9 million, or $0.84 per diluted share. This is compared to non-GAAP net income for the first six months of 2013 of $39.3 million, or $0.85 per diluted share.

GAAP to Non-GAAP Reconciliation

The following financial information is presented below using other than U.S. generally accepted accounting principles ("non-GAAP") and is reconciled to comparable information presented using GAAP. Non-GAAP net income and diluted earnings per share below are derived by adjusting amounts determined in accordance with GAAP for certain items presented in the accompanying selected operating statement data, net of taxes.

The adjustments for 2013 relate to carrying costs of our Staten Island property, legal judgment, marketing and consulting costs incurred associated with DAYTONA Rising, losses associated with the retirements of certain other long-lived assets and net gain on sale of certain assets.

The adjustments for 2014 relate to marketing and consulting costs incurred associated with DAYTONA Rising, accelerated depreciation, losses associated with the retirements of certain other long-lived assets, DAYTONA Rising project capitalized interest, MA fair value adjustment and income tax benefit, and net gain on sale of certain assets.

The Company believes such non-GAAP information is useful and meaningful and is used by investors to assess its core operations, which consist of the ongoing promotion of racing events at its major motorsports entertainment facilities. Such non-GAAP information adjusts for items that are not considered to be reflective of the Company's continuing core operations at its motorsports entertainment facilities. The Company believes that such non-GAAP information improves the comparability of its operating results and provides a better understanding of the performance of its core operations for the periods presented. The Company uses this non-GAAP information to

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analyze the current performance and trends and make decisions regarding future ongoing operations. This non-GAAP financial information may not be comparable to similarly titled measures used by other entities and should not be considered as an alternative to operating income, net income or diluted earnings per share, which are determined in accordance with GAAP. The presentation of this non-GAAP financial information is not intended to be considered independent of or as a substitute for results prepared in accordance with GAAP. The Company uses both GAAP and non-GAAP information in evaluating and operating its business and as such deemed it important to provide such information to investors.

	Three Months Ended						Six Months Ended
	May 31, 2013			May 31, 2014			May 31, 2013			May 31, 2014
	(Unaudited)
	(In Thousands, Except Per Share Amounts)
Net income	$	22,440		$	21,469		$	35,953		$	41,364
Adjustments, net of tax:
Carrying costs related to Staten Island	643			—			1,176			—
Legal judgment	5			—			351			—
DAYTONA Rising project	204			155			398			390
Accelerated depreciation	—			1,828			—			3,649
Losses on asset retirements	456			742			1,395			2,092
DAYTONA Rising project capitalized interest	—			(862		)	—			(1,438		)
MA fair value adjustment and income tax benefit	—			—			—			(7,212		)
Net (gain) loss on sale of certain assets	(1		)	53			(1		)	46
Non-GAAP net income	$	23,747		$	23,385		$	39,272		$	38,891
Per share data:
Diluted earnings per share	$	0.48		$	0.46		$	0.77		$	0.89
Adjustments, net of tax:
Carrying costs related to Staten Island	0.01			—			0.03			—
Legal judgment	—			—			0.01			—
DAYTONA Rising project	0.01			—			0.01			0.01
Accelerated depreciation	—			0.04			—			0.08
Losses on asset retirements	0.01			0.02			0.03			0.05
DAYTONA Rising project capitalized interest	—			(0.02		)	—			(0.03		)
MA fair value adjustment and income tax benefit	—			—			—			(0.16		)
Net (gain) loss on sale of certain assets	—			—			—			—
Non-GAAP diluted earnings per share	$	0.51		$	0.50		$	0.85		$	0.84

On the corporate partnership front, at this point for fiscal 2014 we haveagreements in place for approximately 94.0 percent of our gross marketing partnership revenue target, and expect to achieve 97.0 percent to 98.0 percent by the end of the year.  We have all 20 NASCAR Sprint Cup Series event entitlements sold and only one of our 15 NASCAR Nationwide Series event entitlements open.  This is compared to last year at this time when

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we had approximately 94.0 percent of gross marketing partnership revenue target sold and entitlements for all 20 NASCAR Sprint Cup and 15 NASCAR Nationwide events announced.

External Growth and Other Initiatives

Capital Spending

The Company competes for the consumers' discretionary dollar with many entertainment options such as concerts and other major sporting events, not just other motorsport events. To better meet its customers' expectations, ISC is committed to improving the guest experience at its facilities through on-going capital improvements that position it for long-term growth.

In June 2013, ISC's board of directors endorsed a capital allocation plan for fiscal 2013 through fiscal 2017 to not exceed $600.0 million in capital expenditures over that period. The five-year capital expenditure plan encompasses all the capital expenditures for ISC's 13 major motorsports facilities, including DAYTONA Rising, as well as any equity commitments to undertake ONE DAYTONA. Of the endorsed five-year capital expenditure plan, DAYTONA Rising will account for between $375.0 million to $400.0 million of the $600.0 million.

With the majority of the capital expenditures for DAYTONA Rising occurring in fiscal 2014 and 2015, we estimate capital expenditures across all of ISC's existing facilities, exclusive of capitalized interest, will be approximately $200.0 million for fiscal 2014 and approximately $180.0 million for fiscal 2015. With a target completion date of DAYTONA Rising in January 2016, capital expenditures will then decrease significantly with an expectation of capital expenditures for projects at all of ISC's existing facilities, exclusive of capitalized interest, to be between $60.0 million to $70.0 million in fiscal 2016 and fiscal 2017.

For the six months ended May 31, 2014, the Company spent approximately $74.7 million on capital expenditures for projects at its existing facilities. In comparison, the Company spent approximately $21.6 million for the six months ended May 31, 2013, on capital expenditures for projects at its existing facilities.

The Company reviews its capital expenditure program periodically and modifies it as required to meet current business needs.

DAYTONA Rising: Reimagining an American Icon

DAYTONA Rising is the redevelopment of the frontstretch of Daytona International Speedway, ISC's 54-year-old flagship motorsports facility, to enhance the event experience for fans, marketing partners, broadcasters and the motorsports industry.

We currently anticipate DAYTONA Rising to cost between $375.0 million to $400.0 million, excluding capitalized interest, which we expect to fund from cash on hand, cash from our operations, and we may use borrowings on our credit facility for a limited period of time. In June 2014, Florida Governor Rick Scott signed a bill establishing a process by which sports franchises are able to apply to receive sales tax refunds based on the amount of sales tax generated by their facility. Daytona International Speedway’s DAYTONA Rising project is among the eligible applicants. By setting up an equitable process for facilities to partner with the state, this law sets

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the framework to potentially provide additional capital for the DAYTONA Rising project, allowing us to build upon the already massive economic benefits to the State of Florida.

Total spending incurred for DAYTONA Rising was $65.2 million during the six months ended May 31, 2014. Based on the Company's current expectations of DAYTONA Rising, it has identified existing assets that are expected to be impacted by the redevelopment and that those assets will require accelerated depreciation or losses on asset retirements, totaling approximately $50.0 million over the approximate 26-month project time span. During the six months ended May 31, 2014, the Company recognized accelerated depreciation and losses on disposal of assets totaling approximately $7.6 million.

Despite the Company not anticipating the need for additional long-term debt to fund this project, accounting rules dictate that the Company capitalizes a portion of the interest on existing outstanding debt during the construction period.  The Company estimates it will record approximately $11.0 million to $13.0 million of capitalized interest from fiscal 2014 through fiscal 2016, with roughly half of the capitalized interest recorded in fiscal 2014.  The lowering of the capitalized interest estimate from previously released amounts is due to plans for a portion of the new grandstand construction to go into service for Speedweeks 2015, thus suspending capitalization of interest on those assets on their in-service date. In addition, ISC’s depreciation expense will increase between $17.0 million to $20.0 million, rising to approximately $90.0 million to $105.0 million annually in fiscal 2016, and then decreasing due to lower capital spending, to approximately $85.0 million to $90.0 million beginning in fiscal 2019.

The vision for DAYTONA Rising places an emphasis on enhancing the complete fan experience, beginning with five expanded and redesigned fan entrances, or injectors. Each injector will lead directly to a series of escalators and elevators that will transport fans to any of three different concourse levels, each featuring spacious and strategically-placed social "neighborhoods" along the nearly mile-long frontstretch.

A total of 11 neighborhoods, each measuring the size of a football field, will enable fans to meet and socialize during events without ever missing any on-track action, thanks to dozens of strategically-placed video screens in every neighborhood. The central neighborhood, dubbed the "World Center of Racing," features open sight-lines enabling fans to catch all the on-track action while celebrating the history of Daytona International Speedway and its many unforgettable moments throughout more than 50 years of racing.

Every seat in the Speedway frontstretch will be replaced with wider, more comfortable seating that will provide pristine sight-lines. There will also be more restrooms and concession stands per customer throughout the facility.

In February 2014, Daytona International Speedway announced Toyota as its first Founding Partner for DAYTONA Rising. Through this partnership, Toyota will sponsor Injector 4 and one of the neighborhoods, as well as receive 20,000 square feet of innovative fan engagement space that will enhance the overall guest experience, and nearly 50,000 square feet of interior and exterior branding space. The partnership runs through 2025.

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The Company expects that by providing its fans with a better experience as well as an expansive platform for its marketing partners, including an elevated hospitality experience, DAYTONA Rising, upon completion in 2016, is expected to provide an immediate incremental lift in Daytona International Speedway's revenues of approximately $20.0 million, and earnings before interest, taxes, depreciation and amortization ("EBITDA”) lift of approximately $15.0 million with a mid-single-digit growth rate. The Company also currently anticipates the project to be accretive to its net income per share within three years of completion. While these forward looking amounts are management’s projections and the Company believes they are reasonable, its actual results may vary from these estimates due to unanticipated changes in projected attendance, lower than expected ticket prices, or lower than forecasted corporate sponsorships. The Company does not know whether these expectations will ultimately prove correct and actual revenues and operating results may differ materially from these estimates.

For Budweiser Speedweeks 2015, the Company expects to preview some of the new amenities for DAYTONA Rising such as vertical transportation, concessions and restrooms, as well as approximately 40,000 new grandstand seats on the frontstretch near Turn 1.

ONE DAYTONA

The Company entered into a 50/50 joint venture with Atlanta-based Jacoby Development, Inc. to develop a mixed-use entertainment destination, named ONE DAYTONA, located adjacent to our 188,000 square foot office building, the International Motorsports Center, on 189 acres it owns located directly across from its Daytona motorsports entertainment facility. 

The conceptual design for the first phase of ONE DAYTONA includes 1.1 million square feet of world-class shopping, dining, hotel, theater and other entertainment. Bass Pro Shops®, America's most popular outdoor store, and Cobb Theatres, the highly respected Southeastern-based exhibitor, have executed leases to anchor ONE DAYTONA. The joint venture is in active discussions with other potential tenants for ONE DAYTONA.

The Company has approved land use entitlements for ONE DAYTONA to allow for up to 1.4 million square feet of retail/dining/entertainment, 2,500 seats in a movie theater, 660 hotel rooms, 1,350 units of residential, 567,000 square feet of additional office space and 500,000 square feet of commercial/industrial space. Final designs are being completed for ONE DAYTONA, and the joint venture will incorporate the results of market studies, project costs and financing structures.  The Company expects to announce a general contractor for the project in the near future.

The joint venture has formed a Community Development District ("CDD") for the purpose of installing and maintaining public infrastructure at ONE DAYTONA.  The CDD is a local, special purpose government framework authorized by Chapter 190 of the Florida Statutes for managing and financing infrastructure to support community development. 

The CDD has negotiated agreements with the City of Daytona Beach and Volusia County for a total of $40.0 million in incentives to finance a portion of the estimated $53.0 million in infrastructure required to move forward with the ONE DAYTONA project. The Company is currently proceeding with the leasing phase of the

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project while simultaneously completing the various necessary requirements for the CDD to access the incentives to start infrastructure work.

The Company has recently announced that the ONE DAYTONA joint venture has selected Shaner Hotels and Prime Hospitality Group (PHG) as its hotel partners. Shaner Hotels and PHG are planning a 145-room full-service boutique property and are working with global hospitality leader Marriott International to bring an exclusive Marriott Autograph Collection hotel to Daytona Beach and ONE DAYTONA.

Hollywood Casino at Kansas Speedway

Kansas Entertainment, LLC, (“Kansas Entertainment”) a 50/50 joint venture of Penn Hollywood Kansas, Inc. (“Penn”), a subsidiary of Penn National Gaming, Inc. and Kansas Speedway Development Corporation (“KSDC”), a wholly owned indirect subsidiary of ISC, operates the Hollywood-themed casino and branded destination entertainment facility, overlooking turn two at Kansas Speedway. Penn National Gaming, Inc. is responsible for the operations of the casino.

For the first six months of the Company's 2014 fiscal year, it has received cash distributions from the casino totaling approximately $10.0 million. Subsequent to the quarter, the Company received an additional cash distribution of approximately $5.5 million. The Company expects, for its 2014 fiscal year, that its share of the cash flow from the casino's operations will be approximately $20.0 million.

Increased visibility on property taxes for the existing facility has led our casino joint venture to consider the next phase of development, a Hollywood Casino Hotel.  Per the Development Agreement with the Unified Government of Wyandotte County/Kansas City, Kansas (“Unified Government”), the casino is subject to a 1.0 percent of gross gaming revenue penalty if it had not commenced construction on the adjacent hotel by the second anniversary of its opening, which was February 2014. In May 2014, the deadline for the commencement of construction was extended until October 2014. Subsequently, in June 2014, the Unified Government approved a further extension of the construction commencement date. The purpose of this extension is to give the Unified Government time to complete a feasibility analysis for a new convention center that could be integrated with the hotel. If the Unified Government formally resolves to develop a convention center to be integrated with the proposed hotel, then Kansas Entertainment and the Unified Government will mutually agree on a new groundbreaking date. If the Unified Government decides not to proceed with the integrated development, then Kansas Entertainment will have 100 days after the Unified Government’s notification of its decision, subject to any additional time taking into account that groundbreaking cannot realistically occur during winter conditions, to commence construction prior to the enforcement of the aforementioned penalty.

The final decision to move forward with the proposed hotel will be market-based and approved by Kansas Entertainment’s board. Should Kansas Entertainment ultimately decide not to build the hotel, it will be subject to the penalty from the second anniversary of its opening forward. Accordingly, beginning February 2014, Kansas Entertainment began recording expense equal to 1.0 percent of gross gaming revenue since it did not proceed with

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construction of a hotel by the original deadline. Included in the Company's income from equity investment amounts for three and six months ended May 31, 2014 is approximately $0.2 million expense related to this penalty.

Outlook

ISC reiterates its previously announced 2014 full year non-GAAP guidance, as updated on the 2014 first quarter earnings call for consolidation of Motorsports Authentics..

•Revenue: $635 million to $650 million

•EBITDA margin: 29.5% to 30.5%

•Operating margin: 17.0% to 18.5%

•Diluted earnings per share: $1.30 to $1.50

ISC's fiscal 2014 non-GAAP earnings per share guidance excludes any accelerated depreciation associated with shortening certain asset service lives and future losses on disposals of certain long-lived assets, which could be recorded as part of capital improvements resulting from removal of assets prior to the end of their actual useful life; any income statement impact attributable to the DAYTONA Rising project; Motorsports Authentics fair value adjustment and income tax benefit; gain or loss on the sale of assets; and legal judgments/settlements.

Conference Call Details

The management of ISC will host a conference call today with investors at 9:00 a.m. Eastern Time. To participate, dial toll free (888) 694-4641 five to ten minutes prior to the scheduled start time and request to be connected to the ISC earnings call, ID number 69156862.

A live Webcast will also be available at that time on the Company's Web site, www.internationalspeedwaycorporation.com, under the “Investor Relations” section. A replay will be available two hours after the end of the call through midnight Thursday, July 17, 2014. To access, dial (855) 859-2056 and enter the code 69156862, or visit the “Investor Relations” section of the Company's Web site.

International Speedway Corporation is a leading promoter of motorsports activities, currently promoting more than 100 racing events annually as well as numerous other motorsports-related activities. The Company owns and/or operates 13 of the nation's major motorsports entertainment facilities, including Daytona International Speedway® in Florida (home of the DAYTONA 500®); Talladega Superspeedway® in Alabama; Michigan

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International Speedway® located outside Detroit; Richmond International Raceway® in Virginia; Auto Club Speedway of Southern California^SM near Los Angeles; Kansas Speedway® in Kansas City, Kansas; Phoenix International Raceway® in Arizona; Chicagoland Speedway® and Route 66 Raceway^SM near Chicago, Illinois; Homestead-Miami Speedway^SM in Florida; Martinsville Speedway® in Virginia; Darlington Raceway® in South Carolina; and Watkins Glen International® in New York.

The Company also owns and operates Motor Racing Network, the nation's largest independent sports radio network, and Americrown Service Corporation^SM, a subsidiary that provides catering services, food and beverage concessions, and produces and markets motorsports-related merchandise. In addition, the Company has a 50 percent interest in the Hollywood Casino at Kansas Speedway. For more information, visit the Company's Web site at www.internationalspeedwaycorporation.com.

Statements made in this release that express the Company's or management's beliefs or expectations and which are not historical facts or which are applied prospectively are forward-looking statements. It is important to note that the Company's actual results could differ materially from those contained in or implied by such forward-looking statements. The Company's results could be impacted by risk factors, including, but not limited to, weather surrounding racing events, government regulations, economic conditions, consumer and corporate spending, military actions, air travel and national or local catastrophic events. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings including, but not limited to, the 10-K and subsequent 10-Qs. Copies of those filings are available from the Company and the SEC. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be needed to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by International Speedway or any other person that the events or circumstances described in such statement are material.

(Tables Follow)

# # #

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Consolidated Statements of Operations

(In Thousands, Except Share and Per Share Amounts)

		Three Months Ended
		May 31, 2013			May 31, 2014
	(Unaudited)
REVENUES:
Admissions, net		$	35,778		$	35,695
Motorsports related		126,046			128,389
Food, beverage and merchandise		12,734			22,734
Other		3,816			3,493
		178,374			190,311
EXPENSES:
Direct:
Prize and point fund monies and NASCAR sanction fees		50,144			51,202
Motorsports related		34,889			35,291
Food, beverage and merchandise		9,492			17,436
General and administrative		26,363			27,635
Depreciation and amortization		19,658			22,788
Losses on asset retirements		748			1,220
		141,294			155,572
Operating income		37,080			34,739
Interest income		19			59
Interest expense		(3,879		)	(2,703		)
Equity in net income from equity investments		3,231			2,795
Other		2			(86		)
Income before income taxes		36,453			34,804
Income taxes		14,013			13,335
Net income		$	22,440		$	21,469
Dividends per share		$	0.22		$	0.24
Earnings per share:
Basic and diluted		$	0.48		$	0.46
Basic weighted average shares outstanding		46,446,993			46,535,179
Diluted weighted average shares outstanding		46,464,051			46,548,843
Comprehensive income		$	22,605		$	21,634

12

		Six Months Ended
		May 31, 2013			May 31, 2014
	(Unaudited)
REVENUES:
Admissions, net		$	66,515		$	65,750
Motorsports related		210,651			213,617
Food, beverage and merchandise		22,908			35,942
Other		6,852			6,791
		306,926			322,100
EXPENSES:
Direct:
Prize and point fund monies and NASCAR sanction fees		76,489			78,353
Motorsports related		57,191			58,115
Food, beverage and merchandise		16,775			27,538
General and administrative		52,451			52,015
Depreciation and amortization		39,500			45,561
Losses on asset retirements		2,293			3,440
		244,699			265,022
Operating income		62,227			57,078
Interest income		39			82
Interest expense		(7,841		)	(5,836		)
Equity in net income from equity investments		4,251			4,414
Other		2			5,372
Income before income taxes		58,678			61,110
Income taxes		22,725			19,746
Net income		$	35,953		$	41,364
Dividends per share		$	0.22		$	0.24
Earnings per share:
Basic and diluted		$	0.77		$	0.89
Basic weighted average shares outstanding		46,435,289			46,525,303
Diluted weighted average shares outstanding		46,450,567			46,539,546
Comprehensive income		$	36,282		$	41,692

13

Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Amounts)

	November 30, 2013			May 31, 2013			May 31, 2014
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	172,827		$	162,577		$	218,183
Receivables, less allowance	25,910			48,774			48,304
Inventories	2,619			3,940			6,671
Income taxes receivable	17,399			3,857			3,126
Deferred income taxes	3,122			2,047			3,122
Prepaid expenses and other current assets	13,965			14,967			14,805
Total Current Assets	235,842			236,162			294,211
Property and Equipment, net	1,276,976			1,344,299			1,322,540
Other Assets:
Equity investments	134,327			141,129			129,687
Intangible assets, net	178,628			178,635			179,284
Goodwill	118,791			118,791			118,791
Other	72,942			7,596			73,057
	504,688			446,151			500,819
Total Assets	$	2,017,506		$	2,026,612		$	2,117,570
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt	$	2,807		$	2,532		$	3,012
Accounts payable	27,669			10,390			43,383
Deferred income	35,679			85,198			82,682
Income taxes payable	—			5,155			—
Other current liabilities	15,907			30,486			29,636
Total Current Liabilities	82,062			133,761			158,713
Long-Term Debt	271,680			274,100			271,154
Deferred Income Taxes	366,531			332,227			359,356
Long-Term Deferred Income	8,604			9,160			7,488
Other Long-Term Liabilities	1,474			1,681			2,471
Commitments and Contingencies	—			—			—
Shareholders’ Equity:
Class A Common Stock, $.01 par value, 80,000,000 shares authorized	261			261			261
Class B Common Stock, $.01 par value, 40,000,000 shares authorized	200			200			200
Additional paid-in capital	445,097			443,293			445,819
Retained earnings	846,235			836,896			876,418
Accumulated other comprehensive loss	(4,638		)	(4,967		)	(4,310		)
Total Shareholders’ Equity	1,287,155			1,275,683			1,318,388
Total Liabilities and Shareholders’ Equity	$	2,017,506		$	2,026,612		$	2,117,570

14

Consolidated Statements of Cash Flows

(In Thousands)

	Six Months Ended
	May 31, 2013			May 31, 2014
	(Unaudited)
OPERATING ACTIVITIES
Net income	$	35,953		$	41,364
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on assumption of controlling interest in equity investee	—			(5,447		)
Depreciation and amortization	39,500			45,561
Stock-based compensation	1,088			1,119
Amortization of financing costs	718			888
Deferred income taxes	1,876			(7,387		)
Income from equity investments	(4,251		)	(4,414		)
Distribution from equity investee	4,825			4,988
Loss on asset retirements, non-cash	1,184			267
Other, net	(33		)	118
Changes in operating assets and liabilities:
Receivables, net	(17,944		)	(21,111		)
Inventories, prepaid expenses and other assets	(8,530		)	(8,129		)
Accounts payable and other liabilities	296			(2,402		)
Deferred income	41,085			45,887
Income taxes	5,819			14,124
Net cash provided by operating activities	101,586			105,426
INVESTING ACTIVITIES
Capital expenditures	(21,632		)	(74,708		)
Distribution from equity investee and affiliate	4,675			5,012
Equity investments and advances to affiliate	—			(946		)
Proceeds from sale of Staten Island property	—			6,314
Cash included in assumption of ownership interest in equity investee	—			4,686
Other, net	111			248
Net cash used in investing activities	(16,846		)	(59,394		)
FINANCING ACTIVITIES
Payment of long-term debt	(334		)	(353		)
Exercise of Class A common stock options	51			—
Reacquisition of previously issued common stock	(259		)	(323		)
Net cash used in financing activities	(542		)	(676		)
Net increase in cash and cash equivalents	84,198			45,356
Cash and cash equivalents at beginning of period	78,379			172,827
Cash and cash equivalents at end of period	$	162,577		$	218,183

15