FLORIDA | 59-0709342 | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
ONE DAYTONA BOULEVARD, DAYTONA BEACH, FLORIDA | 32114 | |
(Address of principal executive offices) | (Zip code) |
Title of each class | Name of each exchange on which registered | |
Class A Common Stock — $.01 par value | NASDAQ/National Market System |
Large accelerated filer | ý | Accelerated filer | ¨ | ||
Non-accelerated filer | q | Smaller reporting company | ¨ | ||
Emerging growth company | ¨ |
Page | |
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | |
ITEM 9B. OTHER INFORMATION | |
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES | |
• | Daytona International Speedway® ("Daytona") in Florida; |
• | Talladega Superspeedway® ("Talladega") in Alabama; |
• | Auto Club Speedway of Southern CaliforniaSM ("Auto Club Speedway") in California; |
• | Michigan International Speedway® ("Michigan") in Michigan; |
• | Richmond Raceway® ("Richmond") in Virginia; |
• | Kansas Speedway® ("Kansas") in Kansas; |
• | Homestead-Miami SpeedwaySM ("Homestead") in Florida; |
• | Darlington Raceway® ("Darlington") in South Carolina; |
• | Chicagoland Speedway® ("Chicagoland") in Illinois; |
• | Martinsville Speedway® ("Martinsville") in Virginia; |
• | ISM RacewaySM ("Phoenix") in Arizona; |
• | Watkins Glen International® ("Watkins Glen") in New York; and |
• | Route 66 RacewaySM ("Route 66") in Illinois. |
• | 21 National Association for Stock Car Auto Racing (“NASCAR”) Monster Energy NASCAR Cup Series events; |
• | 14 NASCAR Xfinity Series events; |
• | 9 NASCAR Gander Outdoors (formerly known as Camping World) Truck Series events; |
• | 2 International Motor Sports Association (“IMSA”) WeatherTech SportsCar Championship Series events including the premier sports car endurance event in the United States, the Rolex 24 At DAYTONA; |
• | 5 Automobile Racing Club of America ("ARCA") Racing Series events; |
• | One National Hot Rod Association (“NHRA”) Mello Yello Drag Racing Series event; |
• | One IndyCar ("IndyCar") Series events; and |
• | A number of other prestigious stock car, sports car, open wheel, motorcycle and other events. |
• | The terms of any sanctioning agreements that may be awarded to us by NASCAR; |
• | The amount of time the employees mentioned above and certain of our other employees devote to NASCAR’s affairs; and |
• | The amounts charged or paid to NASCAR for office rental, transportation costs, shared executives, administrative expenses and similar items. |
• | Employment; |
• | Business and general economic conditions; |
• | Interest rates; and |
• | Taxation rates. |
YEAR END CAPACITY | NASCAR CUP EVENTS | OTHER MAJOR EVENTS(1) | MARKETS SERVED | MEDIA MARKET RANK | |||||||||||||
TRACK NAME | LOCATION | SEATS | SUITES | ||||||||||||||
Daytona International Speedway | Daytona Beach, Florida | 101,000 | 124 | 4 | 6 | Orlando/Central Florida | 18 | ||||||||||
Talladega Superspeedway | Talladega, Alabama | 78,000 | 30 | 2 | 3 | Atlanta/ Birmingham | 10/43 | ||||||||||
Auto Club Speedway of Southern California | Fontana, California | 65,000 | 80 | 1 | 1 | Los Angeles | 2 | ||||||||||
Michigan International Speedway | Brooklyn, Michigan | 56,000 | 46 | 2 | 3 | Detroit | 14 | ||||||||||
Richmond Raceway | Richmond, Virginia | 51,000 | 42 | 2 | 2 | Washington D.C. | 6 | ||||||||||
Kansas Speedway | Kansas City, Kansas | 48,000 | 55 | 2 | 3 | Kansas City | 32 | ||||||||||
Homestead-Miami Speedway | Homestead, Florida | 48,000 | 66 | 1 | 2 | Miami | 16 | ||||||||||
Darlington Raceway | Darlington, South Carolina | 47,000 | 13 | 1 | 1 | Columbia | 74 | ||||||||||
Chicagoland Speedway | Joliet, Illinois | 47,000 | 25 | 1 | 3 | Chicago | 3 | ||||||||||
Martinsville Speedway | Martinsville, Virginia | 44,000 | 20 | 2 | 2 | Greensboro/High Point | 46 | ||||||||||
ISM Raceway | Phoenix, Arizona | 42,000 | 54 | 2 | 4 | Phoenix | 12 | ||||||||||
Watkins Glen International | Watkins Glen, New York | 32,000 | 4 | 1 | 2 | Buffalo/Rochester | 52/80 | ||||||||||
Route 66 Raceway | Joliet, Illinois | 24,000 | 24 | — | 1 | (2) | Chicago | 3 |
(1) | Other major events include NASCAR Xfinity and Gander Outdoors Truck Series; ARCA; IMSA; IndyCar; and, AMA Pro Racing. |
(2) | Route 66's other major event includes an NHRA Mello Yello Drag Racing Series event. |
ISCA | ISCB.OB(1) | ||||||||||||||||
High | Low | High | Low | ||||||||||||||
Fiscal | 2017 | ||||||||||||||||
First Quarter | $ | 39.95 | $ | 34.70 | $ | 39.11 | $ | 35.72 | |||||||||
Second Quarter | 40.31 | 34.80 | 41.50 | 34.25 | |||||||||||||
Third Quarter | 38.50 | 32.25 | 36.75 | 33.10 | |||||||||||||
Fourth Quarter | 41.60 | 34.20 | 41.10 | 35.32 | |||||||||||||
Fiscal | 2018 | ||||||||||||||||
First Quarter | $ | 47.45 | $ | 38.55 | $ | 46.61 | $ | 38.61 | |||||||||
Second Quarter | 45.95 | 37.17 | 44.50 | 38.50 | |||||||||||||
Third Quarter | 49.95 | 41.80 | 46.50 | 41.76 | |||||||||||||
Fourth Quarter | 45.59 | 35.12 | 45.00 | 35.37 |
(1) | ISCB quotations were obtained from the OTC Bulletin Board and represent prices between dealers and do not include mark-up, mark-down or commission. Such quotations do not necessarily represent actual transactions. |
Period | (a) Total number of shares purchased | (b) Average price paid per share | (c) Total number of shares purchased as part of publicly announced plans or Programs | (d) Maximum number of shares (or approximate dollar value of shares) that may yet be purchased under the plans or programs (in thousands) | ||||||||||
December 1, 2017 — August 31, 2018 | ||||||||||||||
Repurchase program(1) | 177,899 | $ | 41.26 | 177,899 | $ | 164,245 | ||||||||
Employee transactions(2) | 21,664 | 41.10 | — | |||||||||||
September 1, 2018 — September 30, 2018 | ||||||||||||||
Repurchase program(1) | — | — | — | |||||||||||
October 1, 2018 — October 31, 2018 | ||||||||||||||
Repurchase program(1) | 593,709 | 36.96 | 593,709 | 142,301 | ||||||||||
November 1, 2018 — November 30, 2018 | ||||||||||||||
Repurchase program(1) | 92,993 | 38.45 | 92,993 | 138,725 | ||||||||||
886,265 | 864,601 |
(1) | Since inception of the Stock Purchase Plan through November 30, 2018, we have purchased 10,566,002 shares of our Class A common shares, for a total of approximately $391.3 million. In fiscal 2016, 2017 and 2018, we purchased 1.7 million, 1.0 million and 0.9 million shares of our Class A common shares, respectively, at an average cost of approximately $33.25, $35.76 and $38.01 per share (including commissions), respectively, for a total of approximately $55.1 million, $35.0 million and $32.9 million, respectively. At November 30, 2018, we have approximately $138.7 million remaining of repurchase authority under the current Stock Purchase Plan. |
(2) | Represents shares of our common stock delivered to us in satisfaction of the minimum statutory tax withholding obligation of holders of restricted shares that vested during the period. |
Fiscal Year: | Annual Dividend | |||
2014 | $ | 0.22 | ||
2015 | 0.26 | |||
2016 | 0.41 | |||
2017 | 0.43 | |||
2018 | 0.47 |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | |||||||
Equity compensation plans approved by security holders | 18,792 | $ | 25.65 | 171,686 | ||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||
Total | 18,792 | 25.65 | 171,686 |
For the Year Ended November 30, | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Admissions, net | $ | 129,688 | $ | 130,154 | $ | 123,521 | $ | 121,505 | $ | 109,602 | ||||||||||
Motorsports and other event related | 433,738 | 451,838 | 477,197 | 491,664 | 508,505 | |||||||||||||||
Food, beverage and merchandise (1) | 72,880 | 47,282 | 41,968 | 41,293 | 35,669 | |||||||||||||||
Other (2) | 15,630 | 16,096 | 18,330 | 16,971 | 21,260 | |||||||||||||||
Total revenues | 651,936 | 645,370 | 661,016 | 671,433 | 675,036 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Direct: | ||||||||||||||||||||
NASCAR event management fees | 162,988 | 167,841 | 171,836 | 178,403 | 185,200 | |||||||||||||||
Motorsports and other event related | 128,229 | 131,109 | 133,322 | 134,136 | 145,093 | |||||||||||||||
Food, beverage and merchandise (1) | 58,265 | 38,484 | 30,142 | 29,593 | 27,278 | |||||||||||||||
Other operating expenses | 426 | 463 | 483 | 1,581 | 6,447 | |||||||||||||||
General and administrative | 108,137 | 111,154 | 110,345 | 111,279 | 106,566 | |||||||||||||||
Depreciation and amortization (3) | 90,352 | 94,727 | 102,156 | 109,733 | 106,819 | |||||||||||||||
Impairments / losses on retirements of long-lived assets (4) | 10,148 | 16,015 | 2,905 | 10,552 | 4,471 | |||||||||||||||
Total expenses | 558,545 | 559,793 | 551,189 | 575,277 | 581,874 | |||||||||||||||
Operating income | 93,391 | 85,577 | 109,827 | 96,156 | 93,162 | |||||||||||||||
Interest income (5) | 2,107 | 157 | 270 | 1,220 | 3,143 | |||||||||||||||
Interest expense (6) | (9,182 | ) | (9,582 | ) | (13,837 | ) | (11,633 | ) | (10,862 | ) | ||||||||||
Other (7) | 5,380 | 730 | 12,896 | 344 | 46 | |||||||||||||||
Equity in net (loss) income from equity investments (8) | 8,916 | 14,060 | 14,913 | 19,111 | 21,777 | |||||||||||||||
Income before income taxes | 100,612 | 90,942 | 124,069 | 105,198 | 107,266 | |||||||||||||||
Income taxes (9) | 33,233 | 34,308 | 47,731 | (5,625 | ) | (118,018 | ) | |||||||||||||
Net income | $ | 67,379 | $ | 56,634 | $ | 76,338 | $ | 110,823 | $ | 225,284 | ||||||||||
Basic and diluted earnings per share | $ | 1.45 | $ | 1.21 | $ | 1.66 | $ | 2.48 | $ | 5.11 | ||||||||||
Dividends per share | $ | 0.24 | $ | 0.26 | $ | 0.41 | $ | 0.43 | $ | 0.47 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 46,559,232 | 46,621,211 | 45,981,471 | 44,648,586 | 44,068,713 | |||||||||||||||
Diluted | 46,573,038 | 46,635,830 | 45,995,691 | 44,660,177 | 44,078,448 | |||||||||||||||
Balance Sheet Data (at end of period): | ||||||||||||||||||||
Cash and cash equivalents | $ | 158,847 | $ | 160,548 | $ | 263,727 | $ | 256,702 | $ | 269,011 | ||||||||||
Working capital | 110,783 | 146,915 | 217,802 | 240,027 | 231,776 | |||||||||||||||
Total assets | 2,077,651 | 2,119,663 | 2,172,660 | 2,208,192 | 2,249,360 | |||||||||||||||
Long-term debt | 268,311 | 262,762 | 259,416 | 255,612 | 251,381 | |||||||||||||||
Total debt | 271,746 | 265,836 | 262,820 | 259,466 | 255,665 | |||||||||||||||
Total shareholders’ equity | 1,346,432 | 1,393,215 | 1,400,360 | 1,459,922 | 1,635,958 |
(1) | Fiscal year 2014 includes consolidated operations of Motorsports Authentics (“MA”) following Speedway Motorsports, Inc.'s ("SMI") abandonment of its interest and rights in SMISC, LLC on January 31, 2014. As a result, ISC recognized merchandise revenue and operating expenses totaling approximately $25.7 million and $24.7 million, respectively, for the 10-month period February 1, 2014 through November 30, 2014. |
(2) | Fiscal 2016 includes a favorable settlement related to certain ancillary operations of approximately $1.1 million, as well as $1.9 million in interest and additional consideration received as a result of the sale of the Staten Island property. Fiscal 2017 includes a favorable settlement relating to certain ancillary operations of approximately $1.0 million. Fiscal 2018 includes the receipt of insurance proceeds of approximately $1.8 million, as well as lease revenue from commencement of operations related to ONE DAYTONA. |
(3) | Fiscal year 2014 includes accelerated depreciation that was recorded due to shortening the service lives of certain assets associated with DAYTONA Rising totaling approximately $11.1 million. Fiscal 2015 includes accelerated depreciation that was recorded due to shortening the service lives of certain assets associated with DAYTONA Rising totaling approximately $6.8 million. Fiscal 2017 includes accelerated depreciation that was recorded due to shortening the service lives of certain assets associated with The ISM Raceway Project and other capital improvements including the infield project at Richmond totaling approximately $6.2 million. Fiscal 2018 includes accelerated depreciation that was predominately recorded due to shortening the service lives of certain assets associated with The ISM Raceway Project, and, to a lesser extent, the infield project at Richmond, totaling approximately $1.2 million. |
(4) | Fiscal 2014 losses associated with demolition costs in connection with DAYTONA Rising, capacity optimization initiatives and other capital improvements. Fiscal 2015 losses associated with demolition costs in connection with DAYTONA Rising and other capital improvements. Fiscal 2016 losses associated with asset retirements and demolition and/or asset relocation costs in connection with capacity optimization initiatives at Richmond and other facility capital improvements. Fiscal 2017 losses associated with asset retirements and demolition and/or asset relocation costs in connection with capacity optimization initiatives, The ISM Raceway Project, the infield project at Richmond, and other facility capital improvements. Fiscal 2018 losses associated with asset retirements and demolition and/or asset relocation costs in connection with The ISM Raceway Project, the infield project at Richmond, capacity optimization initiatives, and ONE DAYTONA. |
(5) | Fiscal 2014 includes approximately $1.8 million related to settlement of interest income on a long-term receivable. Fiscal 2018 includes higher interest rates received on cash deposits, and to a lesser extent, a slightly higher average cash balance. |
(6) | Fiscal 2014 and 2015 include approximately $7.2 million and $6.0 million, respectively, related to capitalized interest for DAYTONA Rising. Fiscal 2016 includes approximately $1.5 million related to capitalized interest for ONE DAYTONA, DAYTONA Rising, and other capital projects. Fiscal 2017 includes approximately $3.9 million related to capitalized interest for ONE DAYTONA and The ISM Raceway Project. Fiscal 2018 includes approximately $4.1 million related to capitalized interest for The ISM Raceway Project and ONE DAYTONA. |
(7) | Fiscal 2014 includes the valuation adjustment related to consolidation of MA, representing the fair value over the carrying value as of January 31, 2014. Fiscal 2016 includes the receipt of interest and other consideration, of approximately $11.7 million, related to the sale of the Staten Island property. Fiscal 2018 includes increased operational expenses related to commencement of operations for ONE DAYTONA as new tenants began to start operations. |
(8) | Equity in net (loss) income from equity investments includes the Company’s 50.0 percent portion of Kansas Entertainment’s net income, more fully discussed in Management's Discussion and Analysis, Equity and Other Investments. Included in the Company's equity income in fiscal 2017 and 2018 is a reduction in depreciation expense as a result of certain assets that have been fully depreciated. |
(9) | Fiscal 2017 includes a $48.2 million tax adjustment as a result of the worthlessness of MA stock. Fiscal 2018 includes a $145.1 million tax adjustment as a result of the Tax Cuts and Jobs Act of 2017 ("Tax Act"). During the first quarter of fiscal 2018, as a result of the Tax Act, we incurred a material, non-cash reduction of our deferred income tax liabilities and a corresponding material income tax benefit of approximately $143.9 million primarily due to the Federal income tax rate reduction from 35.0 percent to 21.0 percent. In the third quarter of fiscal 2018, we recorded an additional $1.2 million reduction of our deferred income tax liabilities and income tax benefit as a result of the aforementioned Federal income tax rate reduction. |
For The Year Ended November 30, 2014 | ||||||||||||||||
Income Before Taxes | Income Tax Effect | Net Income | Earnings Per Share | |||||||||||||
GAAP | $ | 100,612 | $ | 33,233 | $ | 67,379 | $ | 1.45 | ||||||||
Adjustments: | ||||||||||||||||
Legal settlement/judgment | (635 | ) | (249 | ) | (386 | ) | (0.01 | ) | ||||||||
DAYTONA Rising project | 1,106 | 434 | 672 | 0.02 | ||||||||||||
Accelerated depreciation | 11,117 | 4,359 | 6,758 | 0.14 | ||||||||||||
Losses on retirements of long-lived assets | 9,543 | 3,741 | 5,802 | 0.12 | ||||||||||||
Impairment of MA's long-term receivable | 605 | — | 605 | 0.01 | ||||||||||||
Interest settlement on long-term receivable | (1,835 | ) | (719 | ) | (1,116 | ) | (0.02 | ) | ||||||||
Capitalized interest | (7,215 | ) | (2,828 | ) | (4,387 | ) | (0.09 | ) | ||||||||
MA fair value adjustment and income tax benefits | (5,447 | ) | 4,008 | (9,455 | ) | (0.20 | ) | |||||||||
Net (gain) loss on sale of certain assets | 67 | 26 | 41 | — | ||||||||||||
Non-GAAP | $ | 107,918 | $ | 42,005 | $ | 65,913 | $ | 1.42 | ||||||||
For the Year Ended November 30, 2015 | ||||||||||||||||
Income Before Taxes | Income Tax Effect | Net Income | Earnings Per Share | |||||||||||||
GAAP | $ | 90,942 | $ | 34,308 | $ | 56,634 | $ | 1.21 | ||||||||
Adjustments: | ||||||||||||||||
DAYTONA Rising project | 1,393 | 546 | 847 | 0.02 | ||||||||||||
Accelerated depreciation | 6,830 | 2,677 | 4,153 | 0.09 | ||||||||||||
Losses on retirements of long-lived assets | 16,015 | 6,280 | 9,735 | 0.21 | ||||||||||||
Capitalized interest | (6,006 | ) | (2,354 | ) | (3,652 | ) | (0.08 | ) | ||||||||
Net (gain) loss on sale of certain assets | (730 | ) | (286 | ) | (444 | ) | (0.01 | ) | ||||||||
Non-GAAP | $ | 108,444 | $ | 41,171 | $ | 67,273 | $ | 1.44 | ||||||||
For the Year Ended November 30, 2016 | ||||||||||||||||
Income Before Taxes | Income Tax Effect | Net Income | Earnings Per Share | |||||||||||||
GAAP | $ | 124,069 | $ | 47,731 | $ | 76,338 | $ | 1.66 | ||||||||
Adjustments: | ||||||||||||||||
Legal settlement | (1,084 | ) | (418 | ) | (666 | ) | (0.02 | ) | ||||||||
Track redevelopment projects | 240 | 93 | 147 | 0.01 | ||||||||||||
DAYTONA Rising project | 787 | 304 | 483 | 0.01 | ||||||||||||
Losses on retirements of long-lived assets | 2,905 | 1,122 | 1,783 | 0.04 | ||||||||||||
Capitalized interest | (1,489 | ) | (575 | ) | (914 | ) | (0.02 | ) | ||||||||
Gain on sale of Staten Island | (13,631 | ) | (5,262 | ) | (8,369 | ) | (0.18 | ) | ||||||||
Gain on transition of merchandise operations | (797 | ) | (308 | ) | (489 | ) | (0.01 | ) | ||||||||
Net (gain) loss on sale of certain assets | (376 | ) | (145 | ) | (231 | ) | (0.01 | ) | ||||||||
Non-GAAP | $ | 110,624 | $ | 42,542 | $ | 68,082 | $ | 1.48 | ||||||||
For the Year Ended November 30, 2017 | ||||||||||||||||
Income Before Taxes | Income Tax Effect | Net Income | Earnings Per Share | |||||||||||||
GAAP | $ | 105,198 | $ | (5,625 | ) | $ | 110,823 | $ | 2.48 | |||||||
Adjustments: | ||||||||||||||||
The ISM Raceway Project | 551 | 211 | 340 | 0.01 | ||||||||||||
Accelerated depreciation | 6,154 | 2,352 | 3,802 | 0.08 | ||||||||||||
Legal settlement | (980 | ) | (375 | ) | (605 | ) | (0.01 | ) | ||||||||
Losses on retirements of long-lived assets | 10,278 | 3,928 | 6,350 | 0.14 | ||||||||||||
Capitalized interest | (3,864 | ) | (1,477 | ) | (2,387 | ) | (0.05 | ) | ||||||||
Net tax benefit | — | 46,038 | (46,038 | ) | (1.03 | ) | ||||||||||
Net (gain) loss on sale of certain assets | (330 | ) | (126 | ) | (204 | ) | (0.01 | ) | ||||||||
Non-GAAP | $ | 117,007 | $ | 44,926 | $ | 72,081 | $ | 1.61 | ||||||||
For the Year Ended November 30, 2018 | ||||||||||||||||
Income Before Taxes | Income Tax Effect | Net Income | Earnings Per Share | |||||||||||||
GAAP | $ | 107,266 | $ | (118,018 | ) | $ | 225,284 | $ | 5.11 | |||||||
Adjustments: | ||||||||||||||||
The ISM Raceway Project | 372 | 98 | 274 | 0.01 | ||||||||||||
Accelerated depreciation | 1,154 | 305 | 849 | 0.02 | ||||||||||||
Losses on retirements of long-lived assets | 4,347 | 1,151 | 3,196 | 0.07 | ||||||||||||
Capitalized interest | (4,112 | ) | (1,094 | ) | (3,018 | ) | (0.07 | ) | ||||||||
Net tax benefit | — | 145,068 | (145,068 | ) | (3.29 | ) | ||||||||||
Non-GAAP | $ | 109,027 | $ | 27,510 | $ | 81,517 | $ | 1.85 |
For the Year Ended November 30, | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
Net Income (GAAP) | $ | 67,379 | $ | 56,634 | $ | 76,338 | $ | 110,823 | $ | 225,284 | ||||||||||
Adjustments: | ||||||||||||||||||||
Income taxes | 33,233 | 34,308 | 47,731 | (5,625 | ) | (118,018 | ) | |||||||||||||
Interest income | (2,107 | ) | (157 | ) | (270 | ) | (1,220 | ) | (3,143 | ) | ||||||||||
Interest expense | 9,182 | 9,582 | 13,837 | 11,633 | 10,862 | |||||||||||||||
Other | (5,380 | ) | (730 | ) | (12,896 | ) | (344 | ) | (46 | ) | ||||||||||
Equity in net income from equity investments | (8,916 | ) | (14,060 | ) | (14,913 | ) | (19,111 | ) | (21,777 | ) | ||||||||||
Operating Income (GAAP) | $ | 93,391 | $ | 85,577 | $ | 109,827 | $ | 96,156 | $ | 93,162 | ||||||||||
Adjustments: | ||||||||||||||||||||
Depreciation and amortization | 90,352 | 94,727 | 102,156 | 109,733 | 106,819 | |||||||||||||||
Impairments/losses on retirements of long-lived assets | 10,148 | 16,015 | 2,905 | 10,552 | 4,471 | |||||||||||||||
Other Non-GAAP adjustments (1) | 471 | 1,393 | (1,965 | ) | (429 | ) | 372 | |||||||||||||
Cash distributions from equity investments | 22,000 | 32,050 | 25,900 | 25,450 | 26,550 | |||||||||||||||
EBITDA (non-GAAP) | $ | 216,362 | $ | 229,762 | $ | 238,823 | $ | 241,462 | $ | 231,374 |
i. | fiscal year 2014 adjustments related to a legal settlement of approximately ($0.6) million and marketing and consulting costs related to the DAYTONA Rising project, of approximately $1.1 million; |
ii. | fiscal year 2015 adjustments related to marketing and other pre-opening costs for the DAYTONA Rising project, of approximately $1.4 million; |
iii. | fiscal year 2016 adjustments related to a legal settlement of approximately ($1.1) million, gain on the sale of the Staten Island property of approximately ($1.9) million, and consulting costs incurred associated with the DAYTONA Rising project and other track redevelopment projects of approximately $1.0 million; and |
iv. | fiscal year 2017 adjustments related to a legal settlement of approximately ($1.0) million and costs associated with The ISM Raceway Project of approximately $0.6 million. |
v. | fiscal year 2018 adjustments related to costs associated with The ISM Raceway Project of approximately $0.4 million. |
• | Attract new fans including young adults, youth, and growth demographics; |
• | Grow fan engagement with richer content, consumption channels, and memorable live-event experiences; |
• | Elevate/cultivate driver star power; and |
• | Maximize utilization of industry marketing assets and participation. |
• | Enhancements to the NASCAR playoffs, including elimination rounds leading up to the championship event for the three national touring series; |
• | Three stage racing format, similar to quarters or halves in other sports; |
• | Knockout group qualifying formats; |
• | Overtime rules to address races that previously ended while under caution; and |
• | Refined aerodynamic and downforce specifications that provide the driver greater control of the car. |
• | improved pricing power for our events; |
• | enticing more customers to renew or purchase tickets earlier in the sales cycle; |
• | increasing customer retention; |
• | driving greater attendance to our lead-in events, such as NASCAR's Xfinity and Gander Outdoors Truck Series events; |
• | ability to re-purpose and monetize certain areas of the facility to their highest and best use; |
• | generating stronger interest from corporate sponsors; and |
• | creating a more visually compelling event for the television audience. |
• | new content delivery platforms such as 'OTT' (over the top), digital media and applications; |
• | growth in use of mobile described as "ubiquitous access to sports content"; and |
• | rights holders establishing direct fan relationships via proprietary TV channels, social media, etc. |
• | Digital sites generated approximately 3.1 million race day visits, up approximately 24.0 percent compared to 2017; |
• | Video views on NASCAR Digital platforms were up 76.0 percent versus 2017; |
• | NASCAR's revamped Fantasy game saw a near three times growth in traffic versus 2017; and |
• | On social channels, 1.7 million people engaged with content on race-day, a 48.0 percent improvement over 2017, which included a doubling of engagements on both Twitter and Instagram. |
• | Improve the fan experience to drive increased ticket sales; |
• | Match supply and demand and optimize our ticket pricing model; |
• | Strengthen our marketing partners' value proposition to grow sponsorship and hospitality sales, achieve longer contracted terms, and increase renewal rates; and |
• | Solidify prospects for long-term growth in broadcast media rights fees agreements. |
For the Year Ended | |||||||||
2016 | 2017 | 2018 | |||||||
Revenues: | |||||||||
Admissions, net | 18.7 | % | 18.1 | % | 16.2 | % | |||
Motorsports and other event related | 72.2 | 73.2 | 75.3 | ||||||
Food, beverage and merchandise | 6.3 | 6.2 | 5.3 | ||||||
Other | 2.8 | 2.5 | 3.2 | ||||||
Total revenues | 100.0 | 100.0 | 100.0 | ||||||
Expenses: | |||||||||
Direct: | |||||||||
NASCAR event management fees | 26.0 | 26.6 | 27.4 | ||||||
Motorsports and other event related | 20.2 | 20.0 | 21.5 | ||||||
Food, beverage and merchandise | 4.6 | 4.4 | 4.0 | ||||||
Other operating expenses | 0.1 | 0.2 | 1.0 | ||||||
General and administrative | 16.6 | 16.6 | 15.8 | ||||||
Depreciation and amortization | 15.5 | 16.3 | 15.8 | ||||||
Losses on retirements of long-lived assets | 0.4 | 1.6 | 0.7 | ||||||
Total expenses | 83.4 | 85.7 | 86.2 | ||||||
Operating income | 16.6 | 14.3 | 13.8 | ||||||
Interest expense, net | (2.1 | ) | (1.5 | ) | (1.1 | ) | |||
Other | 2.0 | 0.1 | — | ||||||
Equity in net income from equity investments | 2.3 | 2.8 | 3.2 | ||||||
Income before income taxes | 18.8 | 15.7 | 15.9 | ||||||
Income taxes | 7.2 | (0.8 | ) | (17.5 | ) | ||||
Net income | 11.6 | % | 16.5 | % | 33.4 | % |
• | In fiscal 2017, we hosted the Ferrari World Finals at Daytona International Speedway ("Daytona"), for which there was no comparable event in fiscal 2018; |
• | In fiscal 2018, we hosted the Country 500 music festival at Daytona, whereby due to certain changes in contractual agreements, a higher amount of event revenues and expenses was recorded in fiscal 2018 as compared to fiscal 2017. Concessions revenue and expense were recorded similarly for both periods. Overall attendance and concession sales in fiscal 2018 were significantly impacted by tropical storm Alberto, prior to, and during the event; |
• | In fiscal 2018, we hosted a music festival at Auto Club Speedway, where this event was not held at one of our facilities in fiscal 2017; |
• | During fiscal 2018, we received certain lease rents, and incurred operating expenses, related to ONE DAYTONA as a result of certain tenants commencing operations in the period, for which there was no comparable activity in the same periods of fiscal 2017 (see "ONE DAYTONA"); |
• | During fiscal 2018, we recognized $1.8 million, or $0.03 per diluted share, of revenue related to insurance proceeds. There was no comparable activity in fiscal 2017; |
• | During fiscal 2017, we received a favorable legal settlement relating to certain facility operations of approximately $1.0 million, or $0.01 per diluted share. There was no comparable activity in fiscal 2018; |
• | In fiscal 2018, we recognized approximately $0.4 million, or $0.01 per diluted share, in non-recurring, pre-opening costs that are included in general and administrative expense related to The ISM Raceway Project that could not be capitalized. During fiscal 2017, we recognized approximately $0.6 million, or $0.01 per diluted share, of similar costs; |
• | During fiscal 2018, we recognized approximately $1.2 million, or $0.02 per diluted share, of accelerated depreciation that was recorded due to shortening the service lives of certain assets associated with The ISM Raceway Project and certain other capital improvements, including the infield project at Richmond Raceway. During fiscal 2017, we recognized approximately $6.2 million, or $0.08 per diluted share, of similar costs; |
• | In fiscal 2018, we recognized approximately $4.3 million, or $0.07 per diluted share, of losses associated with asset retirements and demolition and/or asset relocation costs in connection with The ISM Raceway Project, capacity optimization initiatives, other facility capital improvements, including the infield project at Richmond Raceway, and to a lesser extent, ONE DAYTONA. During fiscal 2017, we recognized approximately $10.3 million, or $0.14 per diluted share, of similar charges, in connection with capacity optimization initiatives, The ISM Raceway Project and the infield project at Richmond. Included in these losses were approximately $0.9 million of expenditures related to demolition and/or asset relocation costs, the remaining charges were non-cash charges; |
• | During fiscal 2018, we capitalized approximately $4.1 million, or $0.07 per diluted share, of interest primarily relating to The ISM Raceway Project, and to a lesser extent, ONE DAYTONA. During fiscal 2017, we recognized approximately $3.9 million, or $0.05 per diluted share, of similar interest capitalization related to ONE DAYTONA and The ISM Raceway Project; |
• | In fiscal 2018, our effective tax rate decreased primarily a result of tax legislation associated with the Tax Act, and, to a lesser extent one-time cumulative reductions to certain state tax liabilities. Additionally, in fiscal 2018, we recorded approximately $145.1 million, or $3.29 per diluted share, of a non-recurring, non-cash income tax benefit related to the Tax Act (see "Note 8 - Income Taxes"). There was no comparable transaction in fiscal 2017; and |
• | In fiscal 2017, we recorded a non-recurring net tax benefit of approximately $46.0 million, or $1.03 per diluted share, including approximately $48.2 million, or $1.09 per diluted share, associated with the worthlessness of our investment in Motorsports Authentics, Inc., partially offset by an impairment of a deferred tax asset of approximately $2.1 million, or $0.05 per diluted share (see "Note 8 - Income Taxes"). There was no comparable transaction in fiscal 2018. |
• | In the first quarter of fiscal 2017, we hosted the Ferrari World Finals at Daytona International Speedway ("Daytona"), for which there was no comparable event in fiscal 2016; |
• | In the second quarter of fiscal 2017, the Hollywood Casino at Kansas Speedway began recognizing a reduction in depreciation expense as a result of certain assets that have been fully depreciated as compared to the same period in the prior year. For the fiscal year ended November 30, 2017, our 50.0 percent share of the reduction in depreciation expense was approximately $4.0 million; |
• | In fiscal 2017, we recognized approximately $0.6 million, or $0.01 per diluted share, in non-recurring, pre-opening costs that are included in general and administrative expense related to The ISM Raceway Project that could not be capitalized. During fiscal 2017, we recognized approximately $0.8 million, or $0.01 per diluted share, of similar costs, predominately related to DAYTONA Rising; |
• | During fiscal 2017, we recognized approximately $6.2 million, or $0.08 per diluted share, of accelerated depreciation that was recorded due to shortening the service lives of certain assets associated with The ISM Raceway Project and certain other capital improvements. There were no comparable costs during fiscal 2016; |
• | In fiscal 2017, we recognized approximately $10.3 million, or $0.14 per diluted share, of mostly non-cash losses associated with asset retirements and demolition and/or asset relocation costs in connection with capacity optimization initiatives, The ISM Raceway Project and other facility capital improvements, including the infield project at Richmond. Included in these losses were approximately $0.9 million of expenditures related to demolition and/or asset relocation costs. The remaining charges were non-cash charges. During fiscal 2016, we recognized approximately $2.9 million, or $0.04 per diluted share, of similar charges, in connection with DAYTONA Rising and capacity optimization initiatives. Included in these losses were approximately $0.5 million of expenditures related to demolition and/or asset relocation costs, the remaining charges were non-cash charges; |
• | During fiscal 2017, we capitalized approximately $3.9 million, or $0.05 per diluted share, of interest related to ONE DAYTONA and The ISM Raceway Project. During fiscal 2016, we recognized approximately $1.5 million, or $0.02 per diluted share, of similar interest capitalization related to ONE DAYTONA and DAYTONA Rising; |
• | During fiscal 2016, we completed an assignment of all rights, title and interest in the mortgage and underlying promissory note of our Staten Island property. As a result, we recorded a gain of approximately $13.6 million, or 0.18 per diluted share, comprised of deferred gain, interest, and other consideration paid. The deferred gain of $1.9 million is included in Other operating revenue in our consolidated statement of operations, and the interest, and additional consideration, received is included in Other in our consolidated statement of operations (see "Equity and Other Investments”). There was no comparable transaction in fiscal 2017; |
• | During fiscal 2016, we recognized a non-cash gain related to the transition of merchandise operations of approximately $0.8 million, or $0.01 per diluted share. There was no comparable transaction in fiscal 2017; and, |
• | In fiscal 2017, we recorded a non-recurring net tax benefit of approximately $46.0 million, or $1.03 per diluted share, including approximately $48.2 million, or $1.09 per diluted share, associated with the worthlessness of our investment in Motorsports Authentics, Inc., partially offset by an impairment of a deferred tax asset of approximately $2.1 million, or $0.05 per diluted share (see "Income Tax"). There was no comparable transaction in fiscal 2016. |
2016 | 2017 | 2018 | |||||||||
Cash and cash equivalents | $ | 263,727 | $ | 256,702 | $ | 269,011 | |||||
Working capital | 217,802 | 240,027 | 231,776 | ||||||||
Total debt | 262,820 | 259,466 | 255,665 |
2016 | 2017 | 2018 | |||||||||
Net cash provided by operating activities (1) | $ | 245,888 | $ | 191,387 | $ | 205,339 | |||||
Capital expenditures (2) | (140,793 | ) | (145,133 | ) | (159,792 | ) | |||||
Distribution from equity investee and affiliate (3) | 25,900 | 25,450 | 26,752 | ||||||||
Proceeds from sale of Staten Island property (4) | 67,890 | — | — | ||||||||
Proceeds from sale of ONE DAYTONA assets (5) | — | — | 20,000 | ||||||||
Equity investments and advances to affiliate (6) | (130 | ) | (147 | ) | — | ||||||
Net proceeds (payments) related to long-term debt | (3,408 | ) | (3,738 | ) | (4,091 | ) | |||||
Dividends paid and reacquisitions of previously issued common stock (6) | (74,571 | ) | (55,590 | ) | (54,488 | ) |
• | Capital expenditures for existing facilities up to $500.0 million from fiscal 2017 through fiscal 2021. This allocation will fund reinvestments for impact capital projects, (see “The ISM Raceway Project Powered by DC Solar”, "Richmond Raceway" and "Talladega Infield Project"), as well as all other maintenance and guest experience capital expenditures for the remaining existing facilities. While many components of these expected projects will exceed weighted average cost of capital, considerable maintenance capital expenditures, approximately $40.0 million to $60.0 million annually, will likely result in a blended return of this invested capital in the low-to-mid single digits; |
• | In addition to the aforementioned $500.0 million in capital expenditures for existing facilities, we expect we will have an additional approximate $111.0 million of capital expenditures, exclusive of capitalized interest and net of public incentives, related to ONE DAYTONA and the Shoppes at ONE DAYTONA (see "ONE DAYTONA"). We expect the returns of this investment to exceed our weighted average cost of capital; and |
• | Approximately $280.0 million return of capital to shareholders through dividends and share repurchases. In fiscal 2018 we increased our dividend approximately 9.3 percent to $0.47 per share compared to $0.43 per share in fiscal 2017. For the year ended November 30, 2018, we repurchased 864,601 shares of Class A common stock on the open market at a weighted average share price of $38.01 for a total of approximately $32.9 million. At November 30, 2018, we had approximately $138.7 million remaining repurchase authority under the current $530.0 million Stock Purchase Plan. Transactions occur in open market purchases and pursuant to a trading plan under Rule 10b5-1. Immediately upon receipt of the aforementioned NASCAR Offer (see Note 1), we terminated active Rule 10b5-1 plans. |
• | operations of our major motorsports facilities for the foreseeable future; |
• | ONE DAYTONA (see "ONE DAYTONA"); |
• | the previously discussed capital allocation plans for our existing facilities; |
• | payments required in connection with the funding of the Unified Government's debt service requirements related to the TIF bonds (see "Long-Term Obligations and Commitments" below); |
• | payments related to our other existing debt service commitments; |
• | contributions in connection with any future expansion of the Hollywood Casino at Kansas Speedway; and |
• | our annual dividend and share repurchases under our Stock Purchase Plan. |
• | In fiscal 2017, we recorded a non-recurring tax benefit of approximately $48.2 million related to the worthlessness of ISC's investment in MA (see "Income Taxes"). As a result, our cash position improved approximately $24.6 million as of November 30, 2017. In the first quarter 2018, we received a refund of estimated payments made during 2017 of approximately $19.8 million. The balance of approximately $3.9 million will be received in subsequent periods; and |
• | In December 2017, Congress passed the Tax Act. We expect the Tax Act to favorably impact our future liquidity, primarily a result of the lower single corporate tax rate from 35.0 percent to 21.0 percent, which will lower our effective tax rate and annual tax liability. Additionally, the Tax Act provides for 100.0 percent expensing of certain capital investments through 2022 (see "Income Taxes"). We will continue to evaluate the details of the Tax Act and the impact on ISC. |
Obligations Due by Period | ||||||||||||||||||||
Total | Less Than One Year | 2-3 Years | 4-5 Years | After 5 Years | ||||||||||||||||
Long-term debt | $ | 257,589 | $ | 4,522 | $ | 76,134 | $ | 13,207 | $ | 163,726 | ||||||||||
Interest | 77,573 | 13,371 | 23,149 | 18,189 | 22,864 | |||||||||||||||
Motorsports entertainment facility operating agreement | 14,000 | 1,000 | 2,000 | 2,000 | 9,000 | |||||||||||||||
Other operating leases | 105,047 | 11,926 | 20,888 | 17,865 | 54,368 | |||||||||||||||
Total Contractual Cash Obligations | $ | 454,209 | $ | 30,819 | $ | 122,171 | $ | 51,261 | $ | 249,958 |
Commitment Expiration by Period | ||||||||||||||||||||
Total | Less Than One Year | 2-3 Years | 4-5 Years | After 5 Years | ||||||||||||||||
Guarantees | $ | 585 | $ | 125 | $ | 255 | $ | 205 | $ | — | ||||||||||
Unused credit facilities | 300,000 | — | — | 300,000 | — | |||||||||||||||
Total Commercial Commitments | $ | 300,585 | $ | 125 | $ | 255 | $ | 300,205 | $ | — |
November 30, | ||||||||
2017 | 2018 | |||||||
(in thousands, except share and per share amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 256,702 | $ | 269,011 | ||||
Receivables, less allowance of $1,000 in 2017 and 2018, respectively | 37,269 | 42,833 | ||||||
Income taxes receivable | 21,867 | — | ||||||
Prepaid expenses and other current assets | 9,749 | 10,611 | ||||||
Total Current Assets | 325,587 | 322,455 | ||||||
Property and Equipment, net | 1,479,743 | 1,515,041 | ||||||
Other Assets: | ||||||||
Equity investments | 86,200 | 81,225 | ||||||
Intangible assets, net | 178,637 | 178,563 | ||||||
Goodwill | 118,400 | 118,331 | ||||||
Other | 19,625 | 33,745 | ||||||
402,862 | 411,864 | |||||||
Total Assets | $ | 2,208,192 | $ | 2,249,360 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Current portion of long-term debt | $ | 3,854 | $ | 4,284 | ||||
Accounts payable | 23,936 | 31,508 | ||||||
Deferred income | 38,521 | 36,801 | ||||||
Income taxes payable | — | 2,535 | ||||||
Other current liabilities | 19,249 | 15,551 | ||||||
Total Current Liabilities | 85,560 | 90,679 | ||||||
Long-Term Debt | 255,612 | 251,381 | ||||||
Deferred Income Taxes | 396,046 | 260,666 | ||||||
Long-Term Deferred Income | 8,251 | 7,575 | ||||||
Other Long-Term Liabilities | 2,801 | 3,101 | ||||||
Commitments and Contingencies | — | — | ||||||
Shareholders’ Equity: | ||||||||
Class A Common Stock, $.01 par value, 80,000,000 shares authorized; 24,113,778 and 23,408,516 issued and outstanding in 2017 and 2018, respectively | 241 | 234 | ||||||
Class B Common Stock, $.01 par value, 40,000,000 shares authorized; 19,707,104 and 19,644,581 issued and outstanding in 2017 and 2018, respectively | 197 | 196 | ||||||
Additional paid-in capital | 430,114 | 425,233 | ||||||
Retained earnings | 1,031,361 | 1,211,499 | ||||||
Accumulated other comprehensive loss | (1,991 | ) | (1,204 | ) | ||||
Total Shareholders’ Equity | 1,459,922 | 1,635,958 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 2,208,192 | $ | 2,249,360 |
Year Ended November 30, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
(in thousands, except share and per share amounts) | ||||||||||||
REVENUES: | ||||||||||||
Admissions, net | $ | 123,521 | $ | 121,505 | $ | 109,602 | ||||||
Motorsports and other event related | 477,197 | 491,664 | 508,505 | |||||||||
Food, beverage and merchandise | 41,968 | 41,293 | 35,669 | |||||||||
Other | 18,330 | 16,971 | 21,260 | |||||||||
661,016 | 671,433 | 675,036 | ||||||||||
EXPENSES: | ||||||||||||
Direct: | ||||||||||||
NASCAR event management fees | 171,836 | 178,403 | 185,200 | |||||||||
Motorsports and other event related | 133,322 | 134,136 | 145,093 | |||||||||
Food, beverage and merchandise | 30,142 | 29,593 | 27,278 | |||||||||
Other operating expenses | 483 | 1,581 | 6,447 | |||||||||
General and administrative | 110,345 | 111,279 | 106,566 | |||||||||
Depreciation and amortization | 102,156 | 109,733 | 106,819 | |||||||||
Losses on retirements of long-lived assets | 2,905 | 10,552 | 4,471 | |||||||||
551,189 | 575,277 | 581,874 | ||||||||||
Operating income | 109,827 | 96,156 | 93,162 | |||||||||
Interest income | 270 | 1,220 | 3,143 | |||||||||
Interest expense | (13,837 | ) | (11,633 | ) | (10,862 | ) | ||||||
Other | 12,896 | 344 | 46 | |||||||||
Equity in net income from equity investments | 14,913 | 19,111 | 21,777 | |||||||||
Income before income taxes | 124,069 | 105,198 | 107,266 | |||||||||
Income taxes | 47,731 | (5,625 | ) | (118,018 | ) | |||||||
Net income | $ | 76,338 | $ | 110,823 | $ | 225,284 | ||||||
Earnings per share: | ||||||||||||
Basic and Diluted | $ | 1.66 | $ | 2.48 | $ | 5.11 | ||||||
Dividends per share | $ | 0.41 | $ | 0.43 | $ | 0.47 | ||||||
Basic weighted average shares outstanding | 45,981,471 | 44,648,586 | 44,068,713 | |||||||||
Diluted weighted average shares outstanding | 45,995,691 | 44,660,177 | 44,078,448 |
Year Ended November 30, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
(in thousands) | ||||||||||||
Net income | $ | 76,338 | $ | 110,823 | $ | 225,284 | ||||||
Other comprehensive income: | ||||||||||||
Amortization of interest rate swap, net of tax benefit of $418, $413 and $295, respectively | 664 | 668 | 787 | |||||||||
Comprehensive income | $ | 77,002 | $ | 111,491 | $ | 226,071 |
Class A Common Stock $.01 Par Value | Class B Common Stock $.01 Par Value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Shareholders’ Equity | |||||||||||||||||||
Balance at November 30, 2015 | $ | 263 | $ | 199 | $ | 449,136 | $ | 946,940 | $ | (3,323 | ) | $ | 1,393,215 | |||||||||||
Net income | — | — | — | 76,338 | — | 76,338 | ||||||||||||||||||
Other comprehensive income | — | — | — | — | 664 | 664 | ||||||||||||||||||
Exercise of stock options | — | — | 136 | — | — | 136 | ||||||||||||||||||
Cash dividends ($.41 per share) | — | — | — | (18,859 | ) | — | (18,859 | ) | ||||||||||||||||
Reacquisition of previously issued common stock | (16 | ) | — | (16,558 | ) | (39,138 | ) | — | (55,712 | ) | ||||||||||||||
Conversion of Class B Common Stock to Class A Common Stock | 2 | (2 | ) | — | — | — | — | |||||||||||||||||
Other | — | — | 872 | — | — | 872 | ||||||||||||||||||
Stock-based compensation | — | — | 3,706 | — | — | 3,706 | ||||||||||||||||||
Balance at November 30, 2016 | 249 | 197 | 437,292 | 965,281 | (2,659 | ) | 1,400,360 | |||||||||||||||||
Net income | — | — | — | 110,823 | — | 110,823 | ||||||||||||||||||
Other comprehensive income | — | — | — | — | 668 | 668 | ||||||||||||||||||
Exercise of stock options | — | — | 528 | — | — | 528 | ||||||||||||||||||
Cash dividends ($.43 per share) | — | — | — | (19,241 | ) | — | (19,241 | ) | ||||||||||||||||
Reacquisition of previously issued common stock | (8 | ) | — | (10,839 | ) | (25,502 | ) | — | (36,349 | ) | ||||||||||||||
Other | — | — | 402 | — | — | 402 | ||||||||||||||||||
Stock-based compensation | — | — | 2,731 | — | — | 2,731 | ||||||||||||||||||
Balance at November 30, 2017 | 241 | 197 | 430,114 | 1,031,361 | (1,991 | ) | 1,459,922 | |||||||||||||||||
Net income | — | — | — | 225,284 | — | 225,284 | ||||||||||||||||||
Other comprehensive income | — | — | — | — | 787 | 787 | ||||||||||||||||||
Exercise of stock options | — | 991 | — | — | 991 | |||||||||||||||||||
Cash dividends ($.47 per share) | — | — | — | (20,738 | ) | — | (20,738 | ) | ||||||||||||||||
Reacquisition of previously issued common stock | (8 | ) | — | (9,334 | ) | (24,408 | ) | — | (33,750 | ) | ||||||||||||||
Conversion of Class B Common Stock to Class A Common Stock | 1 | (1 | ) | — | — | — | — | |||||||||||||||||
Stock-based compensation | — | — | 3,462 | — | — | 3,462 | ||||||||||||||||||
Balance at November 30, 2018 | $ | 234 | $ | 196 | $ | 425,233 | $ | 1,211,499 | $ | (1,204 | ) | $ | 1,635,958 |
Year Ended November 30, | ||||||||||||
2016 | 2017 | 2018 | ||||||||||
(in thousands) | ||||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net income | $ | 76,338 | $ | 110,823 | $ | 225,284 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Gain on sale of Staten Island property | (13,631 | ) | — | — | ||||||||
Depreciation and amortization | 102,156 | 109,733 | 106,819 | |||||||||
Stock-based compensation | 3,706 | 2,731 | 3,462 | |||||||||
Amortization of financing costs | 1,745 | 1,682 | 1,410 | |||||||||
Interest and other consideration received on Staten Island note receivable | 1,162 | — | — | |||||||||
Deferred income taxes | 72,936 | (13,953 | ) | (135,674 | ) | |||||||
Income from equity investments | (14,913 | ) | (19,111 | ) | (21,777 | ) | ||||||
Distribution from equity investee | 16,067 | 20,274 | 22,932 | |||||||||
Losses on retirements of long-lived assets, non-cash | 2,399 | 9,648 | 4,471 | |||||||||
Other, net | (277 | ) | (177 | ) | (608 | ) | ||||||
Changes in operating assets and liabilities | ||||||||||||
Receivables, net | 6,667 | (1,824 | ) | (5,564 | ) | |||||||
Prepaid expenses and other assets | (14,751 | ) | (1,536 | ) | (14,594 | ) | ||||||
Accounts payable and other liabilities | 4,837 | (6,996 | ) | (2,828 | ) | |||||||
Deferred income | 192 | 1,368 | (2,396 | ) | ||||||||
Income taxes | 1,255 | (21,275 | ) | 24,402 | ||||||||
Net cash provided by operating activities | 245,888 | 191,387 | 205,339 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Capital expenditures | (140,793 | ) | (145,133 | ) | (159,792 | ) | ||||||
Distribution from equity investee and affiliate | 9,833 | 5,176 | 3,820 | |||||||||
Equity investments and advances to affiliate | (130 | ) | (147 | ) | — | |||||||
Proceeds from sale of Staten Island Property | 66,728 | — | — | |||||||||
Proceeds from sale of ONE DAYTONA assets | — | — | 20,000 | |||||||||
Proceeds from sale of assets | 560 | 750 | 530 | |||||||||
Other, net | (6 | ) | (9 | ) | — | |||||||
Net cash used in investing activities | (63,808 | ) | (139,363 | ) | (135,442 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Payment of long-term debt | (3,408 | ) | (3,738 | ) | (4,091 | ) | ||||||
Deferred financing fees | (1,058 | ) | (249 | ) | — | |||||||
Exercise of Class A common stock options | 136 | 528 | 991 | |||||||||
Cash dividends paid | (18,859 | ) | (19,241 | ) | (20,738 | ) | ||||||
Reacquisition of previously issued common stock | (55,712 | ) | (36,349 | ) | (33,750 | ) | ||||||
Net cash used in financing activities | (78,901 | ) | (59,049 | ) | (57,588 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 103,179 | (7,025 | ) | 12,309 | ||||||||
Cash and cash equivalents at beginning of year | 160,548 | 263,727 | 256,702 | |||||||||
Cash and cash equivalents at end of year | $ | 263,727 | $ | 256,702 | $ | 269,011 |
Track Name | Location | Track Length | ||
Daytona International Speedway | Daytona Beach, Florida | 2.5 miles | ||
Talladega Superspeedway | Talladega, Alabama | 2.7 miles | ||
Auto Club Speedway of Southern California | Fontana, California | 2.0 miles | ||
Michigan International Speedway | Brooklyn, Michigan | 2.0 miles | ||
Richmond Raceway | Richmond, Virginia | 0.8 miles | ||
Kansas Speedway | Kansas City, Kansas | 1.5 miles | ||
Homestead-Miami Speedway | Homestead, Florida | 1.5 miles | ||
Darlington Raceway | Darlington, South Carolina | 1.3 miles | ||
Chicagoland Speedway | Joliet, Illinois | 1.5 miles | ||
Martinsville Speedway | Martinsville, Virginia | 0.5 miles | ||
ISM Raceway | Phoenix, Arizona | 1.0 miles | ||
Watkins Glen International | Watkins Glen, New York | 3.4 miles | ||
Route 66 Raceway | Joliet, Illinois | 0.25 miles |
• | 21 National Association for Stock Car Auto Racing (“NASCAR”) NASCAR Cup Series events; |
• | 14 NASCAR Xfinity Series events; |
• | 9 NASCAR Gander Outdoors Truck Series events; |
• | 2 International Motor Sports Association (“IMSA”) WeatherTech SportsCar Championship Series events including the premier sports car endurance event in the United States, the Rolex 24 At DAYTONA; |
• | 5 Automobile Racing Club of America ("ARCA") Racing Series events; |
• | One National Hot Rod Association (“NHRA”) Mello Yello Drag Racing Series event; |
• | One IndyCar ("IndyCar") Series event; and |
• | A number of other prestigious stock car, sports car, open wheel, motorcycle and other events. |
Buildings, grandstands and motorsports entertainment facilities | 10-30 years | |
Furniture and equipment | 3-8 years |
• | Level 1 — observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets |
• | Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.) |
• | Level 3 — significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) |
2016 | 2017 | 2018 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 76,338 | $ | 110,823 | $ | 225,284 | ||||||
Basic earnings per share denominator: | ||||||||||||
Weighted average shares outstanding | 45,981,471 | 44,648,586 | 44,068,713 | |||||||||
Basic earnings per share: | ||||||||||||
Net income | $ | 1.66 | $ | 2.48 | $ | 5.11 | ||||||
Denominator: | ||||||||||||
Weighted average shares outstanding | 45,981,471 | 44,648,586 | 44,068,713 | |||||||||
Common stock options | 14,220 | 11,591 | 9,735 | |||||||||
Diluted weighted average shares outstanding | 45,995,691 | 44,660,177 | 44,078,448 | |||||||||
Basic and diluted earnings per share | $ | 1.66 | $ | 2.48 | $ | 5.11 | ||||||
Anti-dilutive shares excluded in the computation of diluted earnings per share | 81,292 | 51,403 | 35,250 |
2017 | 2018 | |||||||
Land and leasehold improvements | $ | 244,539 | $ | 244,979 | ||||
Buildings, grandstands and motorsports entertainment facilities | 1,845,958 | 2,083,126 | ||||||
Furniture and equipment | 266,622 | 288,946 | ||||||
Construction in progress | 153,034 | 27,368 | ||||||
2,510,153 | 2,644,419 | |||||||
Less accumulated depreciation | 1,030,410 | 1,129,378 | ||||||
$ | 1,479,743 | $ | 1,515,041 |
2016 | 2017 | 2018 | ||||||||||
Losses on retirements of long-lived assets | $ | 2,905 | $ | 10,552 | $ | 4,471 | ||||||
Less: cash portion of losses on asset retirements | 506 | 904 | 4,314 | |||||||||
Non-cash losses on retirements of long-lived assets | $ | 2,399 | $ | 9,648 | $ | 157 |
2016 | 2017 | 2018 | ||||||||||
Distribution from profits | $ | 16,067 | $ | 20,274 | $ | 22,853 | ||||||
Distribution in excess of profits | 9,833 | 5,176 | 3,697 | |||||||||
Total Distributions | $ | 25,900 | $ | 25,450 | $ | 26,550 |
2016 | 2017 | 2018 | ||||||||||
Current assets | $ | 15,856 | $ | 18,110 | $ | 19,148 | ||||||
Noncurrent assets | 177,479 | 166,457 | 157,858 | |||||||||
Current liabilities | 17,380 | 18,963 | 18,797 | |||||||||
Noncurrent liabilities | — | — | — | |||||||||
Net sales | 153,276 | 154,524 | 158,322 | |||||||||
Gross profit | 82,087 | 83,794 | 86,447 | |||||||||
Operating income | 32,136 | 40,548 | 47,314 | |||||||||
Net income | 32,136 | 40,548 | 47,314 |
2017 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Amortized intangible assets: | ||||||||||||
Other | 120 | 98 | 22 | |||||||||
Total amortized intangible assets | 120 | 98 | 22 | |||||||||
Non-amortized intangible assets: | ||||||||||||
NASCAR — sanction agreements | 177,813 | — | 177,813 | |||||||||
Other | 802 | — | 802 | |||||||||
Total non-amortized intangible assets | 178,615 | — | 178,615 | |||||||||
Total intangible assets | $ | 178,735 | $ | 98 | $ | 178,637 |
2018 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Amortized intangible assets: | ||||||||||||
Other | 120 | 100 | 20 | |||||||||
Total amortized intangible assets | 120 | 100 | 20 | |||||||||
Non-amortized intangible assets: | ||||||||||||
NASCAR — sanction agreements | 177,813 | — | 177,813 | |||||||||
Other | 730 | — | 730 | |||||||||
Total non-amortized intangible assets | 178,543 | — | 178,543 | |||||||||
Total intangible assets | $ | 178,663 | $ | 100 | $ | 178,563 |
Amortization expense for the year ended November 30, 2018 | $ | 2 | |
Estimated amortization expense for the year ending November 30: | |||
2019 | 2 | ||
2020 | 2 | ||
2021 | 2 | ||
2022 | 2 | ||
2023 | 12 |
2017 | 2018 | |||||||||||||||
Principal | Unamortized Discount and Debt Issuance Costs | Principal | Unamortized Discount and Debt Issuance Costs | |||||||||||||
4.63 percent Senior Notes | $ | 65,000 | $ | (159 | ) | $ | 65,000 | $ | (108 | ) | ||||||
3.95 percent Senior Notes | 100,000 | (286 | ) | 100,000 | (244 | ) | ||||||||||
6.25 percent Term Loan | 46,975 | — | 46,014 | — | ||||||||||||
TIF bond debt service funding commitment | 49,368 | (1,432 | ) | 46,291 | (1,288 | ) | ||||||||||
Revolving Credit Facility | — | — | — | — | ||||||||||||
261,343 | (1,877 | ) | 257,305 | (1,640 | ) | |||||||||||
Less: current portion | 4,091 | (237 | ) | 4,521 | (237 | ) | ||||||||||
$ | 257,252 | $ | (1,640 | ) | $ | 252,784 | $ | (1,403 | ) |
For the year ending November 30: | |||
2019 | $ | 4,522 | |
2020 | 5,326 | ||
2021 | 70,808 | ||
2022 | 6,326 | ||
2023 | 6,881 | ||
Thereafter | 163,726 | ||
257,589 | |||
Net premium | (284 | ) | |
Total | $ | 257,305 |
2016 | 2017 | 2018 | ||||||||||
Interest expense | $ | 16,038 | $ | 15,713 | $ | 15,394 | ||||||
Less: capitalized interest | 2,201 | 4,080 | 4,532 | |||||||||
Net interest expense | $ | 13,837 | $ | 11,633 | $ | 10,862 |
2016 | 2017 | 2018 | ||||||||||
Current tax expense (benefit): | ||||||||||||
Federal | $ | (27,061 | ) | $ | 6,888 | $ | 14,578 | |||||
State | 1,856 | 1,440 | 3,078 | |||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | 70,186 | (10,912 | ) | (141,944 | ) | |||||||
State | 2,750 | (3,041 | ) | 6,270 | ||||||||
Provision (benefit) for income taxes | $ | 47,731 | $ | (5,625 | ) | $ | (118,018 | ) |
2016 | 2017 | 2018 | |||||||
Income tax computed at federal statutory rates | 35.0 | % | 35.0 | % | 22.2 | % | |||
State income taxes, net of federal tax benefit | 3.2 | 3.2 | 2.8 | ||||||
Investment in MA | — | (43.8 | ) | — | |||||
Tax Cuts and Jobs Act | — | — | (135.2 | ) | |||||
Other, net | 0.3 | 0.3 | 0.2 | ||||||
Effective income tax rate | 38.5 | % | (5.3 | )% | (110.0 | )% |
2017 | 2018 | |||||||
Loss carryforwards | $ | 13,739 | $ | 14,250 | ||||
Deferred revenues | 1,249 | 644 | ||||||
Accruals | 2,251 | 1,248 | ||||||
Compensation related | 3,294 | 2,271 | ||||||
Interest | 2,084 | 1,386 | ||||||
Equity investment | 860 | 1,145 | ||||||
Deferred tax assets | 23,477 | 20,944 | ||||||
Valuation allowance | (2,116 | ) | (35 | ) | ||||
Deferred tax assets, net of valuation allowance | 21,361 | 20,909 | ||||||
Amortization and depreciation | (417,127 | ) | (281,410 | ) | ||||
Other | (280 | ) | (165 | ) | ||||
Deferred tax liabilities | (417,407 | ) | (281,575 | ) | ||||
Net deferred tax liabilities | $ | (396,046 | ) | $ | (260,666 | ) |
Balance at December 1, 2017 | $ | 271 | |
Reductions for tax positions of prior years | (77 | ) | |
Balance at November 30, 2018 | $ | 194 |
For the year ending November 30: | Operating Agreement | Operating Leases | |||||||
2019 | $ | 1,000 | $ | 11,926 | |||||
2020 | 1,000 | 10,898 | |||||||
2021 | 1,000 | 9,990 | |||||||
2022 | 1,000 | 9,429 | |||||||
2023 | 1,000 | 8,436 | |||||||
Thereafter | 9,000 | 54,368 | |||||||
Total | $ | 14,000 | $ | 105,047 |
2016 | 2017 | 2018 | ||||||||||
Income taxes paid | $ | 24,392 | $ | 31,424 | $ | 13,548 | ||||||
Interest paid | $ | 14,199 | $ | 13,928 | $ | 13,667 |
Restricted Shares | Weighted- Average Grant- Date Fair Value (Per Share) | Weighted- Average Remaining Contractual Term (Years) | |||||||
Unvested at November 30, 2017 | 369,034 | $ | 34.91 | ||||||
Granted | 95,273 | 41.33 | |||||||
Vested | (88,917 | ) | 34.98 | ||||||
Forfeited | (7,495 | ) | 35.12 | ||||||
Unvested at November 30, 2018 | 367,895 | 36.55 | 3.5 |
Options | Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding at November 30, 2017 | 62,244 | $ | 32.37 | ||||||||||
Expired | (13,889 | ) | 39.03 | ||||||||||
Exercised | (29,563 | ) | 33.52 | ||||||||||
Forfeited | — | — | |||||||||||
Outstanding at November 30, 2018 | 18,792 | 25.65 | 1.0 | $ | 317,653 | ||||||||
Vested and Exercisable at November 30, 2018 | 18,792 | $ | 25.65 | 1.0 | $ | 317,653 |
• | Level 1 — observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets |
• | Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.) |
• | Level 3 — significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) |
• | Recurring (R) - measured at fair value on recurring basis, subsequent to initial recognition. |
• | Non-recurring (NR) - measured at fair value on nonrecurring basis, subsequent to initial recognition. |
2017 | 2018 | |||||||||||||||
Assets | Level | Class | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||
Cash and cash equivalents | 1 | R | $ | 210,717 | $ | 210,717 | $ | 219,229 | $ | 219,229 | ||||||
Note Receivable | 2 | R | — | — | 10,500 | 10,500 | ||||||||||
Liabilities (principal) | ||||||||||||||||
2016 Credit Facility | 2 | NR | — | — | — | — | ||||||||||
Senior Notes | 2 | NR | 272,709 | 261,342 | 257,305 | 260,778 |
Fiscal Quarter Ended | ||||||||||||||||
February 28, 2017 | May 31, 2017 (2) | August 31, 2017 | November 30, 2017 (3) | |||||||||||||
Total revenue | $ | 147,954 | $ | 165,275 | $ | 131,940 | $ | 226,264 | ||||||||
Operating income (1) | 33,818 | 18,425 | 2,151 | 41,762 | ||||||||||||
Net income | 21,273 | 13,227 | 265 | 76,058 | ||||||||||||
Basic and diluted earnings per share | 0.47 | 0.29 | 0.01 | 1.72 |
Fiscal Quarter Ended | ||||||||||||||||
February 28, 2018 (3) | May 31, 2018 | August 31, 2018 (2) | November 30, 2018 | |||||||||||||
Total revenue | $ | 148,875 | $ | 171,679 | $ | 159,278 | $ | 195,204 | ||||||||
Operating income | 32,494 | 17,257 | 10,271 | 33,140 | ||||||||||||
Net income | 169,347 | 16,670 | 12,031 | 27,237 | ||||||||||||
Basic and diluted earnings per share | 3.83 | 0.38 | 0.27 | 0.62 |
For the Year Ended November 30, 2016 | ||||||||||||
Motorsports Event | All Other | Total | ||||||||||
Revenues | $ | 630,213 | $ | 32,953 | $ | 663,166 | ||||||
Depreciation and amortization | 97,816 | 4,340 | 102,156 | |||||||||
Operating income (loss) | 107,690 | 2,137 | 109,827 | |||||||||
Equity investments income | — | 14,913 | 14,913 | |||||||||
Capital expenditures | 100,644 | 40,149 | 140,793 | |||||||||
Total assets | 1,651,845 | 520,815 | 2,172,660 | |||||||||
Equity investments | — | 92,392 | 92,392 |
For the Year Ended November 30, 2017 | ||||||||||||
Motorsports Event | All Other | Total | ||||||||||
Revenues | $ | 639,615 | $ | 33,802 | $ | 673,417 | ||||||
Depreciation and amortization | 104,885 | 4,848 | 109,733 | |||||||||
Operating income (loss) | 97,262 | (1,106 | ) | 96,156 | ||||||||
Equity investments income | — | 19,111 | 19,111 | |||||||||
Capital expenditures | 84,238 | 60,895 | 145,133 | |||||||||
Total assets | 1,644,116 | 564,076 | 2,208,192 | |||||||||
Equity investments | — | 86,200 | 86,200 |
For the Year Ended November 30, 2018 | ||||||||||||
Motorsports Event | All Other | Total | ||||||||||
Revenues | $ | 635,271 | $ | 41,811 | $ | 677,082 | ||||||
Depreciation and amortization | 99,844 | 6,975 | 106,819 | |||||||||
Operating income (loss) | 97,402 | (4,240 | ) | 93,162 | ||||||||
Equity investments income | — | 21,777 | 21,777 | |||||||||
Capital expenditures | 131,069 | 28,723 | 159,792 | |||||||||
Total assets | 1,675,016 | 574,344 | 2,249,360 | |||||||||
Equity investments | — | 81,225 | 81,225 |
Description | Balance beginning of period | Additions charged to costs and expenses | Deductions (A) | Balance at end of period | ||||||||||||
For the year ended November 30, 2016 Allowance for doubtful accounts | $ | 1,000 | $ | 94 | $ | 94 | $ | 1,000 | ||||||||
For the year ended November 30, 2017 Allowance for doubtful accounts | 1,000 | 53 | 53 | 1,000 | ||||||||||||
For the year ended November 30, 2018 Allowance for doubtful accounts | 1,000 | 2,277 | 2,277 | 1,000 |
(A) | Uncollectible accounts written off, net of recoveries. |
Exhibit Number | Description of Exhibit | |||
— | Articles of Amendment of the Restated and Amended Articles of Incorporation of the Company, as filed with the Florida Department of State on July 26, 1999. (3.1)* | |||
— | Conformed Copy of Amended and Restated Articles of Incorporation of the Company, as amended as of July 26, 1999. (3.2)* | |||
— | Conformed Copy of Amended and Restated By-Laws of the Company. (3)(ii)** | |||
— | Note Purchase Agreement, dated as of September 13, 2012, among the Company and purchasers party thereto. (4.2)*** | |||
— | Form of Series 2012A Note due 2024 (included in Exhibit 4.1). (4.2)*** | |||
— | Amended and Restated Revolving Credit Agreement, dated as of November 15, 2012, among the Company, certain subsidiaries and the lenders party thereto. (10.1)**** | |||
— | Note Purchase Agreement, dated as of January 18, 2011, among the Company and purchasers party thereto. (10.1)***** | |||
— | Form of Series 2011A Note due 2021 (included in Exhibit 10.1). (10.1)***** | |||
Second Amended and Restated Revolving Credit Agreement, dated September 27, 2016, among the Company, certain subsidiaries and the lenders party thereto. (10.1) | ||||
— | Daytona Property Lease. (10.4)****** | |||
— | 1996 Long-Term Incentive Plan. (10.6)****** | |||
— | 2006 Long-Term Incentive Plan. (4)******* | |||
— | Design-Build Agreement. (10.1) ******** | |||
— | Design-Build Agreement, by and between Phoenix Speedway, LLC and Okland Construction Company, Inc. (Part 1), dated as of November 30, 2016 . (10.5.1) *********** | |||
— | Design-Build Agreement, by and between Phoenix Speedway, LLC and Okland Construction Company, Inc. (Part 2), dated as of November 30, 2016. (10.5.2) *********** | |||
2017 Long-Term Incentive Plan. (4)******** | ||||
— | Subsidiaries of the Registrant — filed herewith. | |||
— | Consent of Ernst &Young LLP — filed herewith. | |||
— | Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer — filed herewith | |||
— | Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer — filed herewith. | |||
— | Section 1350 Certification — filed herewith. | |||
101.INS | — | XBRL Instance Document | ||
101.SCH | — | XBRL Taxonomy Extension Schema | ||
101.CAL | — | XBRL Taxonomy Extension Calculation Linkbase | ||
101.DEF | — | XBRL Taxonomy Extension Definition Linkbase | ||
101.LAB | — | XBRL Taxonomy Extension Label Linkbase | ||
101.PRE | — | XBRL Taxonomy Extension Presentation Linkbase |
* | Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s Report on Form 8-K dated July 26, 1999. | |
** | Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s report on Form 10-Q for the quarter ended February 28, 2003. | |
*** | Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s report on Form 8-K filed on September 18, 2012. | |
**** | Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s report on Form 8-K filed on November 19, 2012. | |
***** | Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s report on Form 8-K filed on January 20, 2011. | |
****** | Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s Report on Form 10-K for the year ended November 30, 1998. | |
******* | Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s Registration Statement on Form S-8 as filed on February 11, 2010. | |
******** | Incorporated by reference to the exhibit shown in parentheses and filed with the Company's Amended Form 10-Q for the quarter ended May 31, 2013. | |
********* | Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s Registration Statement on Form S-8 as filed on October 10, 2017 | |
********** | Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s report on Form 8-K filed on September 29, 2016 | |
*********** | Incorporated by reference to the exhibit shown in parentheses and filed with the Company’s Report on Form 10-K for the year ended November 30, 2016. |
International Speedway Corporation | ||
By: | /s/ Gregory S. Motto | |
Gregory S. Motto | ||
Chief Financial Officer |
Signature | Title | Date | ||
/s/ Lesa France Kennedy | Chief Executive Officer and Vice Chairman of the Board (Principal Executive Officer) | January 25, 2019 | ||
Lesa France Kennedy | ||||
/s/ Gregory S. Motto | Executive Vice President, Chief Financial Officer and Treasurer | January 25, 2019 | ||
Gregory S. Motto | ||||
/s/ James C. France | ||||
James C. France | Chairman of the Board | January 25, 2019 | ||
/s/ Brian Z. France | ||||
Brian Z. France | Director | January 25, 2019 | ||
/s/ Larry Aiello, Jr. | ||||
Larry Aiello, Jr. | Director | January 25, 2019 | ||
/s/ J. Hyatt Brown | ||||
J. Hyatt Brown | Director | January 25, 2019 | ||
/s/ William P. Graves | ||||
William P. Graves | Director | January 25, 2019 | ||
/s/ Christy F. Harris | ||||
Christy F. Harris | Director | January 25, 2019 | ||
/s/ Morteza Hosseini – Kargar | ||||
Morteza Hosseini – Kargar | Director | January 25, 2019 | ||
/s/ Sonia M. Green | ||||
Sonia M. Green | Director | January 25, 2019 | ||
/s/ Larree M. Renda | ||||
Larree M. Renda | Director | January 25, 2019 | ||
/s/ Larry Woodard | ||||
Larry Woodard | Director | January 25, 2019 |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | 1/21/2019 |
/s/ Lesa France Kennedy | |
Lesa France Kennedy | |
Chief Executive Officer |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | 1/21/2019 |
/s/ Gregory S. Motto | |
Gregory S. Motto | |
Executive Vice President, Chief Financial Officer and Treasurer |
/s/ Lesa France Kennedy | |
Lesa France Kennedy | |
Chief Executive Officer | |
/s/ Gregory S. Motto | |
Gregory S. Motto | |
Chief Financial Officer |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2018 |
Dec. 31, 2018 |
May 31, 2018 |
|
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Nov. 30, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ISCA | ||
Entity Registrant Name | INTERNATIONAL SPEEDWAY CORP | ||
Entity Central Index Key | 0000051548 | ||
Current Fiscal Year End Date | --11-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Smaller Reporting Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 1,058,218,255.60 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 23,776,923 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 19,644,069 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Nov. 30, 2018 |
Nov. 30, 2017 |
---|---|---|
Allowance for receivables | $ 1,000 | $ 1,000 |
Class A Common Stock | ||
Common Stock, par value (in per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common Stock, shares issued (in shares) | 23,408,516 | 24,113,778 |
Common Stock, shares outstanding (in shares) | 23,408,516 | 24,113,778 |
Class B Common Stock | ||
Common Stock, par value (in per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common Stock, shares issued (in shares) | 19,644,581 | 19,707,104 |
Common Stock, shares outstanding (in shares) | 19,644,581 | 19,707,104 |
Consolidated Statements of Operations - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Revenues | $ 675,036 | $ 671,433 | $ 661,016 |
Other operating expenses | 6,447 | 1,581 | 483 |
General and administrative | 106,566 | 111,279 | 110,345 |
Depreciation and amortization | 106,819 | 109,733 | 102,156 |
Losses on retirements of long-lived assets | 4,471 | 10,552 | 2,905 |
Total expenses | 581,874 | 575,277 | 551,189 |
Operating income | 93,162 | 96,156 | 109,827 |
Interest income | 3,143 | 1,220 | 270 |
Interest expense | (10,862) | (11,633) | (13,837) |
Other | 46 | 344 | 12,896 |
Equity in net income from equity investments | 21,777 | 19,111 | 14,913 |
Income before income taxes | 107,266 | 105,198 | 124,069 |
Income taxes | (118,018) | (5,625) | 47,731 |
Net income | $ 225,284 | $ 110,823 | $ 76,338 |
Earnings per share: | |||
Basic and diluted earnings per share (in dollars per share) | $ 5.11 | $ 2.48 | $ 1.66 |
Dividends per share (in dollars per share) | $ 0.47 | $ 0.43 | $ 0.41 |
Basic weighted average shares outstanding (in shares) | 44,068,713 | 44,648,586 | 45,981,471 |
Diluted weighted average shares outstanding (in shares) | 44,078,448 | 44,660,177 | 45,995,691 |
Admissions, net | |||
Revenues | $ 109,602 | $ 121,505 | $ 123,521 |
NASCAR event management fees | |||
Direct expenses | 185,200 | 178,403 | 171,836 |
Motorsports and other event related | |||
Revenues | 508,505 | 491,664 | 477,197 |
Direct expenses | 145,093 | 134,136 | 133,322 |
Food, beverage and merchandise | |||
Revenues | 35,669 | 41,293 | 41,968 |
Direct expenses | 27,278 | 29,593 | 30,142 |
Other | |||
Revenues | $ 21,260 | $ 16,971 | $ 18,330 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
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Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | |||
Net income | $ 225,284 | $ 110,823 | $ 76,338 |
Other comprehensive income: | |||
Amortization of interest rate swap, net of tax benefit of $418, $413 and $295, respectively | 787 | 668 | 664 |
Comprehensive income | $ 226,071 | $ 111,491 | $ 77,002 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
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Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
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Statement of Other Comprehensive Income [Abstract] | |||
Amortization of interest rate swap, tax benefit | $ 295 | $ 413 | $ 418 |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
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Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
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Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share (in dollars per share) | $ 0.47 | $ 0.43 | $ 0.41 |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES RECENT DEVELOPMENT: On November 9, 2018, NASCAR Holdings, Inc. (“NASCAR Holdings”) submitted a non-binding proposal to acquire all of the outstanding shares of Class A common stock and Class B common stock of International Speedway Corporation (“ISC”) that are not owned by the controlling shareholders of NASCAR Holdings (the “Family Stockholders”), for a purchase price of $42.00 per share, in cash, for each such share of ISC Class A common stock and ISC Class B common stock (the “NASCAR Offer”). The NASCAR Offer stated that any transaction would be subject to (i) approval of the NASCAR Offer by a special committee of ISC’s independent directors (the “Special Committee”) formed to review the NASCAR Offer and negotiate with NASCAR Holdings in connection therewith; and (ii) a vote in favor of a merger by a majority of the voting power represented by the shares of the ISC Class A Common Stock and ISC Class B Common Stock held by non-Family Stockholders. ISC’s Board of Directors has formed a Special Committee of independent directors to consider the NASCAR Offer. The Board of Directors has selected J. Hyatt Brown, Larry Aiello, Jr., Larree Renda and William Graves, to serve as the Special Committee. Mr. Brown, ISC’s lead independent director, chairs the Special Committee. The Special Committee has retained Dean Bradley Osborne Partners LLC to act as its financial advisor and Wachtell, Lipton, Rosen & Katz to act as its legal counsel to assist and advise it in connection with its evaluation of the NASCAR Offer. The NASCAR Offer provides that NASCAR Holdings reserves the right to withdraw or modify the NASCAR Offer at any time and no legally binding obligation with respect to any transaction will exist unless and until mutually acceptable definitive documentation is executed and delivered by ISC and NASCAR. There can be no assurance that the transaction proposed by NASCAR Holdings or any related transaction will be completed or as to the terms of any such potential transaction, including with respect to pricing or timing. DESCRIPTION OF BUSINESS: ISC, including its wholly owned subsidiaries (collectively the “Company”), is a leading promoter of motorsports themed entertainment activities in the United States. As of November 30, 2018, the Company owned and/or operated 13 of the nation’s major motorsports entertainment facilities as follows:
In 2018, these motorsports entertainment facilities promoted well over 100 stock car, open wheel, sports car, truck, motorcycle and other events, including:
The general nature of the Company’s business is a motorsports themed amusement enterprise, furnishing amusement to the public in the form of motorsports themed entertainment. The Company’s motorsports themed event operations consist principally of racing events at these major motorsports entertainment facilities, which, in total, currently have approximately 683,000 grandstand seats and 583 suites. The Company also conducts, either through operations of the particular facility or through certain wholly owned subsidiaries operating under the name “Americrown,” food and beverage concession operations and catering services, both in suites and chalets, for customers at its motorsports entertainment facilities. Motor Racing Network, Inc. (“MRN”), the Company’s proprietary radio network, produces and syndicates to radio stations live coverage of the Monster Energy NASCAR Cup, Xfinity and Gander Outdoors Truck series races and certain other races conducted at the Company’s motorsports entertainment facilities, as well as some races from motorsports entertainment facilities the Company does not own. In addition, MRN provides production services for the trackside large screen video display units, at NASCAR Cup Series event weekends that take place at the Company's motorsports facilities. MRN also produces and syndicates daily and weekly NASCAR racing-themed programs. The Company has also developed a premier mixed use and entertainment destination under the name ONE DAYTONA, which is across from the Daytona International Speedway. SIGNIFICANT ACCOUNTING POLICIES: PRINCIPLES OF CONSOLIDATION: The accompanying consolidated financial statements include the accounts of International Speedway Corporation, and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. CASH AND CASH EQUIVALENTS: For purposes of reporting cash flows, cash and cash equivalents include cash on hand, bank demand deposit accounts and overnight sweep accounts used in the Company’s cash management program. All highly liquid investments with stated maturities of three months or less from the date of purchase are classified as cash equivalents. The Company maintained its cash and cash equivalents with a limited number of financial institutions at November 30, 2018. RECEIVABLES: Receivables are stated at their estimated collectible amounts. The allowance for doubtful accounts is estimated based on historical experience of write offs and current expectations of conditions that might impact the collectability of accounts. PROPERTY AND EQUIPMENT: Property and equipment, including improvements to existing facilities, are stated at cost. Depreciation is provided for financial reporting purposes using the straight-line method over the estimated useful lives as follows:
Leasehold improvements are depreciated over the shorter of the related lease term or their estimated useful lives. The Company evaluates the carrying value of property and equipment and if there are indicators of potential impairment. If events or circumstances indicate that the carrying value of an asset may not be recoverable, an impairment loss would be recognized equal to the difference between the carrying value of the asset and its fair value. EQUITY INVESTMENTS: The Company’s investments in joint ventures and other investees where it can exert significant influence on the investee, but does not have effective control over the investee, are accounted for using the equity method of accounting. The Company’s equity in the net income (loss) from equity method investments is recorded as income (loss) with a corresponding increase (decrease) in the investment. Distributions received from the equity investees reduce the investment. Distributions from equity investees representing the Company's share of the equity investee's earnings are treated as cash proceeds from operations while distributions in excess of the equity investee's earnings are considered a return of capital and treated as cash proceeds from investing activities in the Company's consolidated statement of cash flows. GOODWILL AND INTANGIBLE ASSETS: All business combinations are accounted for under the purchase method. The excess of the cost of the acquisition over fair value of the net assets acquired (including recognized intangibles) is recorded as goodwill. Business combinations involving existing motorsports entertainment facilities commonly result in a significant portion of the purchase price being allocated to the fair value of the contract-based intangible asset associated with long-term relationships manifest in the sanction agreements with sanctioning bodies, such as NASCAR and IMSA. The continuity of sanction agreements with these bodies has historically enabled the Company to host these motorsports events year after year. While individual sanction agreements may be of terms as short as one year, a significant portion of the purchase price in excess of the fair value of acquired tangible assets is commonly paid to acquire anticipated future cash flows from events promoted pursuant to these agreements which are expected to continue for the foreseeable future and therefore, in accordance with Accounting Standards Codification (“ASC”) 805, are recorded as indefinite-lived intangible assets recognized apart from goodwill. The Company’s goodwill and other intangible assets are all associated with our Motorsports Event segment. The Company follows applicable authoritative guidance on accounting for goodwill and other intangible assets which specifies, among other things, non-amortization of goodwill and other intangible assets with indefinite useful lives and requires testing for possible impairment, either upon the occurrence of an impairment indicator or at least annually. The Company completes its annual testing in its fiscal fourth quarter, based on assumptions regarding the Company’s future business outlook and expected future discounted cash flows attributable to such assets (using the fair value assessment provision of applicable authoritative guidance), supported by quoted market prices or comparable transactions where available or applicable. In connection with the Company’s fiscal 2018 assessment of goodwill and intangible assets for possible impairment, the Company used the future discounted cash flows / income approach based on Level 3 Fair Value hierarchy. The Company believes its methods used to determine fair value and evaluate possible impairment were appropriate, relevant, and represent methods customarily available and used for such purposes. The Company’s latest annual assessment of goodwill and other intangible assets in the fourth quarter of fiscal 2018 indicated there had been no impairment and the fair value exceeded the carrying value for the respective reporting units. During fiscal 2018, the Company believes there has been no significant change in the long-term fundamentals of its ongoing motorsports event business. The Company believes its present operational and cash flow outlook further support its conclusion. While the Company continues to review and analyze many factors that can impact its business prospects in the future, its analysis is subjective and is based on conditions existing at, and trends leading up to, the time the estimates and assumptions are made. Different conditions or assumptions, or changes in cash flows or profitability, if significant, could have a material adverse effect on the outcome of the impairment evaluation and the Company’s future condition or results of operations. FAIR VALUE OF FINANCIAL INSTRUMENTS In accordance with the “Financial Instruments” Topic, ASC 825-10 and in accordance with the “Fair Value Measurements and Disclosures” Topic, ASC 820-10, these topics discuss key considerations in determining fair value in such markets, and expanding disclosures on recurring fair value measurements using unobservable inputs (Level 3), clarification and additional disclosure is required about the use of fair value measurements. Various inputs are considered when determining the carrying values of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities. These items approximate fair value due to the short-term maturities of these assets and liabilities. These inputs are summarized in the three broad levels listed below:
DEFERRED FINANCING FEES: Deferred financing fees are amortized over the term of the related debt and are included in other non-current assets. COMPREHENSIVE INCOME: Comprehensive income is the change in equity of an enterprise except those resulting from shareholder transactions. INCOME TAXES: Income taxes have been presented using the asset and liability method. Under this method, the Company’s estimates of deferred income taxes and the significant items giving rise to deferred tax assets and liabilities reflect its assessment of actual future taxes to be paid on items reflected in its financial statements, giving consideration to both timing and probability of realization. The Company establishes tax reserves related to certain matters, including penalties and interest, in the period when it is determined that it is probable that additional taxes, penalties and interest will be paid, and the amount is reasonably estimable. Such tax reserves are adjusted, as needed, in light of changing circumstances, such as statute of limitations expirations and other developments relating to uncertain tax positions and current tax items under examination, appeal or litigation. REVENUE RECOGNITION: Advance ticket sales and event-related revenues for future events are deferred until earned, which is generally once the events are conducted. The recognition of event-related expenses is matched with the recognition of event-related revenues. The Company has completed its preliminary evaluation of the potential impact that adoption of Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers"("ASC 606")”, may have on its financial statements, including analysis of its revenue streams and associated contracts using the five-step model provided in the new standard. The Company has in place, or plans to establish, associated accounting policies, processes and system requirements to enable timely and accurate reporting, and continue to gather information for required presentation and disclosures. The Company has adopted ASC 606 and the related modifications as of December 1, 2018 using the modified retrospective transition. The Company believes the adoption will not result in a significant cumulative adjustment or materially impact future timing or classification of revenue recognition. NASCAR contracts directly with certain network providers for television rights to the entire Monster Energy NASCAR Cup, Xfinity and Gander Outdoors Truck Series schedules. Event promoters share in the television rights fees in accordance with the provision of the sanction agreement for each Monster Energy NASCAR Cup, Xfinity and Gander Outdoors Truck Series event. Under the terms of this arrangement, NASCAR retains 10.0 percent of the gross broadcast rights fees allocated to each Monster Energy NASCAR Cup, Xfinity and Gander Outdoors Truck Series event as a component of its sanction fees. The Company, as the promoter, records 90.0 percent of the gross broadcast rights fees as revenue and then records 25.0 percent of the gross broadcast rights fees as part of its awards to the competitors. Ultimately, the promoter retains 65.0 percent of the net cash proceeds from the gross broadcast rights fees allocated to the event. The Company's revenues from marketing partnerships are paid in accordance with negotiated contracts, with the identities of partners and the terms of sponsorship changing from time to time. Some of our marketing partnership agreements are for multiple facilities and/or events and include multiple specified elements, such as tickets, hospitality chalets, suites, display space and signage for each included event. The allocation of such marketing partnership revenues among the multiple elements, events and facilities is based on relative selling price. The sponsorship revenue allocated to an event is recognized when the event is conducted. Revenues and related costs from the sale of food, beverage and merchandise to retail customers are recognized at the time of sale. Kansas Speedway ("Kansas") and Chicagoland Speedway ("Chicagoland") offer Preferred Access Speedway Seating (“PASS”) agreements, which give purchasers the exclusive right and obligation to purchase season-ticket packages for certain sanctioned racing events annually, under specified terms and conditions. Among the conditions, licensees are required to purchase all season-ticket packages when and as offered each year. PASS agreements automatically terminate without refund should owners not purchase any offered season tickets. Net fees received under PASS agreements are deferred and are amortized into income over the term of the agreements. Long-term deferred income under the PASS agreements totals approximately $3.1 million and $2.5 million at November 30, 2017 and 2018, respectively. BUSINESS SEGMENTS The general nature of the Company’s business is a motorsports themed amusement enterprise, furnishing amusement to the public in the form of motorsports themed entertainment. The Company’s motorsports event operations consist principally of racing events at its major motorsports entertainment facilities. The reporting units within the Motorsports Event segment portfolio are reviewed together as the nature of the products and services, the production processes used, the type or class of customer using our products and services, and the methods used to distribute our products or provide their services are consistent in objectives and principles, and predominately uniform and centralized throughout the Company. The consolidated domestic media rights contract, which continues through the 2024 NASCAR season, continues to be the single-largest contributor to the Company's earnings. These media rights are allocated to specific events, are not facility based, and are derived through a corporate contract, which affects all of the motorsports event facilities within the motorsports event segment. Similarly, corporate sponsorship partnership revenue is primarily derived from corporate contracts, negotiated from the Company's corporate sales team, and allocated to multiple, or all, motorsports entertainment facilities depending on the specific arrangement. Thus, the disclosure of these revenue streams, as they relate to each reporting unit, is not practical. The Company’s remaining business units, which are comprised of the radio network production and syndication of numerous racing events and programs, certain souvenir merchandising operations not associated with the promotion of motorsports events at the Company’s facilities, construction management services, financing and licensing operations, equity investments, and retail leasing operations, including ONE DAYTONA, are included in the “All Other” segment. The Company evaluates financial performance of the business units on operating profit after allocation of corporate general and administrative (“G&A”) expenses. Corporate G&A expenses are allocated to business units based on each business unit’s net revenues to total net revenues. ADVERTISING EXPENSE: Advertising costs are expensed as incurred. Advertising expense was approximately $17.7 million, $17.2 million and $18.0 million for the years ended November 30, 2016, 2017 and 2018, respectively. LOSS CONTINGENCIES: Legal and other costs incurred in conjunction with loss contingencies are expensed as incurred. USE OF ESTIMATES: The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. RECLASSIFICATIONS: Certain prior year amounts in the Consolidated Statement of Operations have been reclassified to conform with the current year presentation. NEW ACCOUNTING PRONOUNCEMENTS: In May 2014, the Financial Accounting Standards Board ("FASB"), in conjunction with the International Accounting Standards Board ("IASB"), issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers"("ASC 606")” which supersedes the existing revenue recognition requirements under U.S. generally accepted accounting principles ("GAAP") and eliminate industry-specific guidance. The new revenue recognition standard provides a five step analysis of transactions to determine when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The new guidance includes updated disclosure requirements regarding the qualitative and quantitative information of the Company’s nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. During 2016, the FASB issued additional interpretive guidance relating to the standard which covered the topics of principal versus agent considerations and identifying performance obligations and licensing. The standard, along with the subsequent clarifications issued, are effective for reporting periods beginning after December 15, 2017 including interim reporting periods, making it effective for our fiscal year beginning December 1, 2018. The guidance permits two methods of adoption: the full retrospective method which applies to each prior reporting period presented, and the modified retrospective method in which the cumulative effect of initially applying the new guidance is recognized as of the date of initial application as an adjustment to the opening balance of retained earnings. The Company has completed its preliminary evaluation of the potential impact that adoption may have on its financial statements, including analysis of its revenue streams and associated contracts using the five-step model provided in the new standard. The Company has in place or plans to establish associated accounting policies, processes and system requirements to enable timely and accurate reporting, and continues to gather information for required presentation and disclosures. The Company has adopted ASC 606 and the related modifications as of December 1, 2018 using the modified retrospective transition. The Company believes the adoption will not result in a significant cumulative adjustment or materially impact future timing or classification of revenue recognition. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842): Leases". The objective of this Update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification and creating Topic 842, Leases. This Update, along with International Financial Reporting Standards 16, Leases, are the results of the FASB’s and the IASB’s efforts to meet that objective and improve financial reporting. For a public entity, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted for all entities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2020. In August 2016, the FASB issued ASU No. 2016-16, "Statement of Cash Flows (Topic 23): Classification of Certain Cash Receipts and Cash Payments". The objective of this Update is to provide specific guidance on eight cash flow classification issues and reduce the existing diversity in practice. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company believes that the impact of adopting this new guidance will not result in a material difference in its financial position and will adopt the provisions of this statement in the first quarter of fiscal 2019. In January 2017, the FASB issued ASU No, 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The objective of this Update is to simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test - measuring goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill to the carrying amount of that goodwill. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity should apply the amendments in this Update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this Update. A public business entity that is a U.S. Securities and Exchange Commission ("SEC") filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2021. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") No. 118 (as further clarified by FASB ASU 2018-05, Income Taxes (Topic 740): "Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118") to provide guidance for companies that may not have completed their accounting for the income tax effects of the Tax Cut and Jobs Act ("Tax Act") in the period of enactment, which is the period that includes December 22, 2017. SAB No. 118 provides for a provisional one year measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Act. SAB No. 118 provides guidance where: (i) the accounting for the income tax effect of the Tax Act is complete and reported in the Tax Act's enactment period, (ii) the accounting for the income tax effect of the Tax Act is incomplete and reported as provisional amounts based on reasonable estimates (to the extent determinable) subject to adjustments during a limited measurement period until complete, and (iii) accounting for the income tax effect of the Tax Act is not reasonably estimable (no related provisional amounts are reported in the enactment period) and entities would continue to apply accounting based on tax law provisions in effect prior to the Tax Act enactment until provisional amounts are reasonably estimable. SAB No. 118 requires disclosure of the reasons for incomplete accounting additional information or analysis needed, among other relevant information. The Company finalized its provisional amounts in the fourth quarter of fiscal 2018 (see Note 8 - Federal and State Income Taxes). In February 2018, the FASB issued ASU No, 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, statement of comprehensive income, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2020. |
EARNINGS PER SHARE (Notes) |
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EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the years ended November 30, (in thousands, except share and per share amounts):
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PROPERTY AND EQUIPMENT (Notes) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consists of the following as of November 30, (in thousands):
Depreciation expense was approximately $102.2 million, $109.7 million and $106.7 million for the years ended November 30, 2016, 2017 and 2018, respectively. The depreciation expense for the year ended November 30, 2017 and 2018, includes approximately $6.2 million and $1.2 million, respectively, of accelerated depreciation that was recorded due to shortening the service lives of certain assets associated with certain capital projects, capacity optimization initiatives and other facility capital improvements. There were no similar costs in fiscal 2016. A Community Development District ("CDD") has been established for the purpose of installing and maintaining public infrastructure at ONE DAYTONA (see "Future Liquidity - 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 up to $40.0 million in incentives to finance a portion of the infrastructure required for the ONE DAYTONA project. In October 2018, the CDD purchased certain infrastructure assets, and specific easement rights, from ONE DAYTONA. ONE DAYTONA received approximately $20.0 million of the total incentive amount in cash, with $10.5 million to be received in annual payments derived from a long-term note receivable issued by the CDD. The first payment of the note receivable is expected in fiscal 2019 with maturity no later than fiscal 2046. The remainder of the incentives can be received based on certain criteria met by the project through fiscal 2046. The ISC Board of Directors approved the purchase of certain assets, including trademarks and certain other intellectual property, from Racing Electronics and certain other assets required to provide the business services of Racing Electronics. The asset acquisitions were completed in January 2019 for a total cost of approximately $8.5 million in cash. The Company has not yet completed the purchase price allocation as the acquisition was recently consummated, but will do so within the required one year period. |
RETIREMENTS OF LONG-LIVED ASSETS (Notes) |
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Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENTS OF LONG-LIVED ASSETS | RETIREMENTS OF LONG-LIVED ASSETS The Company recorded before-tax charges relating to retirements of long-lived assets during the fiscal years ending November 30, as follows (in thousands):
The fiscal 2016 retirements are primarily attributable to the removal of assets not fully depreciated in connection with DAYTONA Rising, capacity optimization initiatives and other capital improvements. The fiscal 2017 retirements are primarily attributable to the removal of assets not fully depreciated in connection with capacity optimization initiatives, The ISM Raceway Project Powered by DC Solar ("The ISM Raceway Project"), and other capital improvements. The fiscal 2018 retirements are primarily attributable to the removal of certain assets not fully depreciated in connection with The ISM Raceway Project, Richmond Raceway (“Richmond”), capacity optimization initiatives, and other capital improvements. |
EQUITY AND OTHER INVESTMENTS (Notes) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY AND OTHER INVESTMENTS | EQUITY AND OTHER INVESTMENTS 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 is the managing member of Kansas Entertainment and is responsible for the operations of the casino. The Company has accounted for Kansas Entertainment as an equity investment in its consolidated financial statements as of November 30, 2016, 2017 and 2018, respectively. The Company’s 50.0 percent portion of Kansas Entertainment’s net income was approximately $14.9 million, $19.1 million and $21.7 million for fiscal years 2016, 2017 and 2018, respectively, and is included in equity in net income from equity investments in the Company's consolidated statements of operations. Pre-tax distributions from Kansas Entertainment, for the years ended November 30, are recognized on the Company's consolidated statement of cash flows as follows (in thousands):
Fairfield Inn at ONE DAYTONA Daytona Hotel Two, LLC ("Fairfield"), a joint venture of Daytona Hospitality Group II, LLC ("DHGII"), a subsidiary of Prime-Shaner Groups, and Daytona Beach Property Holdings Retail, LLC ("DBR"), a wholly owned indirect subsidiary of ISC, was formed to own, construct and operate a Fairfield Inn hotel. In June 2016, DBR contributed land to the joint venture as per the agreement. DHGII is the managing member of the Fairfield and will be responsible for the development and operations of the hotel. The hotel is situated within the ONE DAYTONA development and operations began in December 2017. As per the partnership agreement, the Company's 33.25 percent share of equity will be limited to its non-cash land contribution and it will share in the profits from the joint venture proportionately to its equity ownership. The Company has accounted for the joint venture in the Fairfield as an equity investment in its consolidated financial statements as of November 30, 2018. The Company's 33.25 percent portion of Fairfield’s net income was approximately $78.0 thousand for fiscal year 2018, and is included in equity in net income from equity investments in our consolidated statements of operations. Autograph Hotel at ONE DAYTONA Daytona Hotel One, LLC ("Autograph"), a joint venture of Daytona Hospitality Group, LLC ("DHG"), a subsidiary of Prime-Shaner Groups, and DBR, was formed to own, construct and operate an Autograph hotel. The hotel will be situated within the ONE DAYTONA development. In June 2017, DBR contributed land to the joint venture as per the agreement and vertical construction of the hotel has commenced and is expected to open in fiscal 2019. DHG is the managing member of the Autograph and will be responsible for the development and operations of the hotel. As per the partnership agreement, our 34.0 percent share of equity will be limited to the Company's non-cash land contribution and it will share in the profits from the joint venture proportionately to its equity ownership. The Company has accounted for the joint venture in Autograph as an equity investment in its consolidated financial statements as of November 30, 2018. The Company's 34.0 percent portion of Autograph’s net loss, from inception, through November 30, 2018 primarily consists of de minimis administrative costs that are included in net income from equity investments in the Company's consolidated statements of operations. Staten Island Property On August 5, 2013, the Company announced that it sold its 676 acre parcel of property located in Staten Island, New York, to Staten Island Marine Development, LLC (“Marine Development”). Marine Development purchased 100 percent of the outstanding equity membership interests of 380 Development LLC (“380 Development”), a wholly owned indirect subsidiary of ISC and owner of the Staten Island property, for a total sales price of $80.0 million. In addition, the Company previously received approximately $4.2 million for an option provided to the purchaser that is nonrefundable and does not apply to the $80.0 million sales price. The Company received $7.5 million, less closing and other administrative costs, of the sales price at closing. The remaining sales price was financed with the Company holding a secured mortgage interest in 380 Development as well as the underlying property. The mortgage balance bore interest at an annual rate of 7.0 percent. In accordance with the terms of the agreement, the Company received a principal payment of approximately $6.1 million plus interest on this mortgage balance through February 29, 2016. The remaining purchase price of $66.4 million, was due in March 2016. In March 2016, the Company completed an assignment of all rights, title and interest in the mortgage and underlying promissory note to an affiliate of Matrix Development Group, a New York/New Jersey area developer, and received the remaining principal balance of $66.4 million, plus additional consideration of approximately $0.3 million. The Company has no further commitments or contingencies related to the property or its sale. As a result, in the second quarter of fiscal 2016, the Company recorded a gain of approximately $13.6 million, comprised of recognition of profit of approximately $1.9 million, interest totaling approximately $11.4 million, and other consideration paid. The deferred gain of $1.9 million is included in Other operating revenue in the Company's consolidated statement of operations, and the interest, and additional consideration received, is included in Other Revenue in the Company's consolidated statement of operations. The net proceeds from the sale, combined with the mortgage interest and related total cash tax benefit, has provided the Company with approximately $129.8 million in incremental cash flow through the aforementioned assignment of all rights. Summarized financial information of the Company’s equity investments as of and for the years ended November 30, are as follows (in thousands):
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GOODWILL AND INTANGIBLE ASSETS (Notes) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The gross carrying value, accumulated amortization and net carrying value of the major classes of intangible assets relating to the Motorsports Event segment as of November 30, are as follows (in thousands):
The following table presents current and expected amortization expense of the existing intangible assets as of November 30, for each of the following periods (in thousands):
Goodwill was partially impaired by approximately $0.4 million and $0.1 million, as of November 30, 2017 and 2018, respectively, as a result of a sale of certain assets, some of which had goodwill associated with them. |
LONG-TERM DEBT (Notes) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of the following as of November 30, (in thousands):
Schedule of Payments (in thousands)
The Company's $65.0 million principal amount of senior unsecured notes (“4.63 percent Senior Notes”) bear interest at 4.63 percent and are due January 2021, and require semi-annual interest payments on January 18 and July 18 through their maturity. The 4.63 percent Senior Notes may be redeemed in whole or in part, at the Company’s option, at any time or from time to time at redemption prices as defined in the indenture. Certain of the Company’s wholly owned domestic subsidiaries are guarantors of the 4.63 percent Senior Notes. Certain restrictive covenants of the 4.63 percent Senior Notes require that the Company's ratio of its Consolidated Funded Indebtedness to its Consolidated EBITDA ("leverage ratio") does not exceed 3.50 to 1.0, and its Consolidated EBITDA to Consolidated Interest Expense ("interest coverage ratio") is not less than 2.0 to 1.0. In addition the Company may not permit the aggregate of certain Priority Debt to exceed 15.0 percent of its Consolidated Net Worth. The 4.63 percent Senior Notes contain various other affirmative and negative restrictive covenants including, among others, limitations on liens, sales of assets, mergers and consolidations and certain transactions with affiliates. As of November 30, 2018, the Company was in compliance with its various restrictive covenants. At November 30, 2018, outstanding principal on the 4.63 percent Senior Notes was approximately $65.0 million. The Company's $100.0 million principal amount of senior unsecured notes (“3.95 percent Senior Notes”) bear interest at 3.95 percent and are due September 2024. The 3.95 percent Senior Notes require semi-annual interest payments on March 13 and September 13 through their maturity. The 3.95 percent Senior Notes may be redeemed in whole or in part, at our option, at any time or from time to time at redemption prices as defined in the indenture. Certain of the Company's wholly owned domestic subsidiaries are guarantors of the 3.95 percent Senior Notes. Certain restrictive covenants of the 3.95 percent Senior Notes require that the Company's leverage ratio does not exceed 3.50 to 1.0, and its interest coverage ratio is not less than 2.0 to 1.0. In addition the Company may not permit the aggregate of certain Priority Debt to exceed 15.0 percent of its Consolidated Net Worth. The 3.95 percent Senior Notes contain various other affirmative and negative restrictive covenants including, among others, limitations on liens, sales of assets, mergers and consolidations and certain transactions with affiliates. As of November 30, 2018, the Company was in compliance with its various restrictive covenants. At November 30, 2018, outstanding principal on the 3.95 percent Senior Notes was approximately $100.0 million. The term loan (“6.25 percent Term Loan”), related to the Company’s International Motorsports Center, has a 25 year term due October 2034, an interest rate of 6.25 percent, and a current monthly payment of approximately $323,000 principal and interest. At November 30, 2018, the outstanding principal on the 6.25 percent Term Loan was approximately $46.0 million. At November 30, 2018, in connection with the financing of Kansas Speedway, the TIF bond totaled approximately $46.3 million, net of the unamortized discount, which is comprised of a $46.6 million principal amount, 6.75 percent term bond due December 1, 2027. The TIF bond is repaid by the Unified Government of Wyandotte County/Kansas City, Kansas (“Unified Government”) with payments made in lieu of property taxes (“Funding Commitment”) by the Company’s wholly owned subsidiary, Kansas Speedway Corporation (“KSC”). Principal (mandatory redemption) payments per the Funding Commitment are payable by KSC on October 1 of each year. The semi-annual interest component of the Funding Commitment is payable on April 1 and October 1 of each year. KSC granted a mortgage and security interest in the Kansas project for its Funding Commitment obligation. In September 2016, the Company amended and extended its existing $300.0 million credit facility, maturing November 2017, and entered into a new $300.0 million revolving credit facility (“2016 Credit Facility”). The 2016 Credit Facility contains a feature that allows the Company to increase the credit facility to a total of $500.0 million, subject to certain conditions, provides for separate sub-limits of $25.0 million for standby letters of credit and $10.0 million for swing line loans. The 2016 Credit Facility is scheduled to mature five years from the date of inception, with two 1-year extension options. In August 2017 and August 2018, the Company entered into agreements to extend the maturity of the 2016 Credit Facility by one year, respectively, extending the maturity to September 2023. Interest accrues, at the Company's option, at either LIBOR plus 100.0 — 162.5 basis points or a base rate loan at the highest of i) Wells Fargo Bank's prime lending rate, ii) the Federal Funds rate, as in effect from time to time, plus 0.5 percent, and iii) one month LIBOR plus 1.0 percent. The 2016 Credit Facility also contains a commitment fee ranging from 0.125 percent to 0.225 percent of unused amounts available for borrowing. The interest rate margin on the LIBOR borrowings and commitment fee are variable depending on the better of the Company's debt rating as determined by specified rating agencies or its leverage ratio. Certain of the Company's wholly owned domestic subsidiaries are guarantors on the 2016 Credit Facility. The 2016 Credit Facility requires that the Company's leverage ratio does not exceed 3.50 to 1.0 (4.0 to 1.0 for the four quarters ending after any Permitted Acquisition), and its interest coverage ratio is not less than 2.5 to 1.0. The 2016 Credit Facility also contains various other affirmative and negative restrictive covenants including, among others, limitations on indebtedness, investments, sales of assets, certain transactions with affiliates, entering into certain restrictive agreements and making certain restricted payments as detailed in the agreement. As of November 30, 2018, the Company was in compliance with its various restrictive covenants. At November 30, 2018, the Company had no outstanding borrowings under the 2016 Credit Facility. At November 30, 2018, the Company has approximately $1.2 million, net of tax, deferred in accumulated other comprehensive loss associated with a terminated interest rate swap which is being amortized as interest expense over life of the 4.63 percent Senior Notes (see above). Total interest expense incurred by the Company for the years ended November 30, are as follows (in thousands):
At November 30, 2017 and 2018, the Company recorded deferred financing costs of approximately $3.3 million and $3.0 million, respectively, net of accumulated amortization. These costs are being amortized on a straight line method, which approximates the effective yield method, over the life of the related financing. |
FEDERAL AND STATE INCOME TAXES (Notes) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FEDERAL AND STATE INCOME TAXES | FEDERAL AND STATE INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the provision for income taxes for the years ended November 30, are as follows (in thousands):
The reconciliation of income tax expense (benefit) computed at the federal statutory tax rates to income tax expense (benefit) for the years ended November 30, is as follows (percent of pre-tax income):
The principal cause of the increased effective income tax rate, as compared to the statutory income tax rate, for the fiscal year ended November 30, 2016 is due to increases in certain state tax rates. The principal cause of the decreased effective income tax rate, as compared to the statutory income tax rate, for the fiscal year ended November 30, 2017 is due to a non-recurring tax benefit associated with the worthlessness of our investment in Motorsports Authentics, Inc. ("MA"), discussed below. The principal cause of the decreased effective income tax rate, as compared to the statutory income tax rate, for the fiscal year ended November 30, 2018 is due to the Tax Act discussed below. The components of the net deferred tax assets (liabilities) at November 30, are as follows (in thousands):
At November 30, 2018 the Company has deferred tax assets related to various state loss carryforwards totaling approximately $14.4 million that expire in varying amounts beginning in fiscal 2022. The valuation allowance at November 30, 2017 and 2018 was primarily related to state loss carryforwards that, in the judgment of management, are more likely than not to expire before realized. In evaluating the Company’s ability to recover its deferred income tax assets, it considers all available evidence, both positive and negative, including operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction by jurisdiction basis. Federal returns for fiscal years 2014 through 2017 remain open and subject to examination by the Internal Revenue Service. The Company files and remits state income taxes in various states where the Company has determined it is required to file state income taxes. The Company’s filings with those states remain open for audit for the fiscal years 2013 through 2017. A reconciliation of the beginning and ending amount of unrecognized tax liability is as follows (in thousands):
On December 22, 2017, new tax legislation, commonly referred to as the Tax Act, was enacted, which significantly changed the existing U.S. tax laws. The Tax Act reduced the corporate Federal income tax rate from 35.0 percent to 21.0 percent, eliminated the corporate alternative minimum tax, allowed 100.0 percent expensing of certain qualified capital investments through 2022 (retroactive to September 27, 2017), then reduced by 20.0 percent, per year, from 2023 through 2026, and further limited the deductibility of certain executive compensation, among other provisions. Under current accounting guidance, the Company is recognizing the effects of the Tax Act as of the enactment date, subject to SAB No. 118 (see Note 1), which provides for a provisional one-year measurement period, from the date of the enactment, for entities to finalize their accounting for certain income tax effects due to the Tax Act. During the first quarter of fiscal 2018, as a result of the Tax Act, the Company incurred a material, non-cash reduction of our deferred income tax liabilities and a corresponding material income tax benefit of approximately $143.9 million primarily due to the Federal income tax rate reduction from 35.0 percent to 21.0 percent. In the third quarter of fiscal 2018, the Company recorded an additional approximately $1.2 million reduction of its deferred income tax liabilities and income tax benefit as a result of the aforementioned Federal income tax rate reduction. For fiscal 2018, the Company incurred total non-cash reductions of its deferred income tax liabilities and a corresponding material income tax benefit of approximately $145.1 million due to the aforementioned Federal income tax rate reduction. During the fiscal year ended November 30, 2017, the Company determined its stock investment in MA had become worthless in accordance with U.S. federal income tax rules. During the fiscal year ended November 30, 2009 the Company had previously reduced its carrying value of the investment to nil. However operations continued until August 2017. In August of 2017 management and the board of MA decided to cease operations and liquidate MA. In the third quarter of fiscal 2017, the Company recorded a deferred tax asset of $48.2 million representing the tax benefit associated with the basis in the shares of MA that was not previously required to be recorded in the deferred assets, as it represents the outside basis difference in the shares of a subsidiary not previously held for sale. The basis in MA used to calculate the tax benefit is approximately $122.2 million. In the fourth quarter of fiscal 2017, the Company completed its analysis and determined the loss qualifies as an ordinary loss for federal income tax purposes. As a result of the worthlessness of MA stock and this analysis, the Company recognized an income tax benefit of approximately $48.2 million for the period ending November 30, 2017. Management believes that it is more likely than not that the Company has sufficient taxable income to fully utilize these tax losses. In fiscal 2017, the Company also impaired $2.1 million of deferred tax assets, resulting in a charge to income tax expense, related to federal loss carryforwards. In March 2018, the Company was notified that its 2014 federal income tax return is under examination by the Internal Revenue Service. |
CAPITAL STOCK (Notes) |
12 Months Ended |
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Nov. 30, 2018 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK The Company’s authorized capital includes 80.0 million shares of Class A Common Stock, par value $.01 (“Class A Common Stock”), 40.0 million shares of Class B Common Stock, par value $.01 (“Class B Common Stock”), and 1.0 million shares of Preferred Stock, par value $.01 (“Preferred Stock”). The shares of Class A Common Stock and Class B Common Stock are identical in all respects, except for voting rights and conversion rights as described below. Each share of Class A Common Stock entitles the holder to one-fifth (1/5) vote on each matter submitted to a vote of the Company’s shareholders and each share of Class B Common Stock entitles the holder to one (1) vote on each such matter, in each case including the election of directors. Holders of Class A Common Stock and Class B Common Stock are entitled to receive dividends at the same rate if and when declared by the Board of Directors out of funds legally available there from, subject to the dividend and liquidation rights of any Preferred Stock that may be issued and outstanding. Class A Common Stock has no conversion rights. Class B Common Stock is convertible into Class A Common Stock, in whole or in part, at any time at the option of the holder on the basis of one share of Class A Common Stock for each share of Class B Common Stock converted. Each share of Class B Common Stock will also automatically convert into one share of Class A Common Stock if, on the record date of any meeting of the shareholders, the number of shares of Class B Common Stock then outstanding is less than 10.0 percent of the aggregate number of shares of Class A Common Stock and Class B Common Stock then outstanding. The Board of Directors of the Company is authorized, without further shareholder action, to divide any or all shares of the authorized Preferred Stock into series and fix and determine the designations, preferences and relative rights and qualifications, limitations, or restrictions thereon of any series so established, including voting powers, dividend rights, liquidation preferences, redemption rights and conversion privileges. No shares of Preferred Stock are outstanding. The Board of Directors has not authorized any series of Preferred Stock, and there are no plans, agreements or understandings for the authorization or issuance of any shares of Preferred Stock. Stock Purchase Plan The Company has a share repurchase program (“Stock Purchase Plan”) under which it is authorized to purchase up to $530.0 million of its outstanding Class A common shares. The timing and amount of any shares repurchased under the Stock Purchase Plan will depend on a variety of factors, including price, corporate and regulatory requirements, capital availability and other market conditions. The Stock Purchase Plan may be suspended or discontinued at any time without prior notice. Upon receipt of the aforementioned NASCAR Offer (see Note 1), the Company immediately terminated the active 10b5-1 plans. No shares have been or will be knowingly purchased from Company insiders or their affiliates. Since inception of the Stock Purchase Plan through November 30, 2018, the Company has purchased 10,566,002 shares of its Class A common shares, for a total of approximately $391.3 million. In fiscal 2016, 2017 and 2018 the Company purchased 1.7 million, 1.0 million and 0.9 million shares of our Class A common shares, at an average cost of approximately $33.25, $35.76 and $38.01 per share (including commissions), for a total of approximately $55.1 million, $35.0 million and $32.9 million, respectively. Transactions occurred in open market purchases and pursuant to a trading plan under Rule 10b5-1. At November 30, 2018, the Company has approximately $138.7 million remaining repurchase authority under the current Stock Purchase Plan. In April 2018, the Company's Board of Directors approved an annual dividend of $0.47 per share, for a total of approximately $20.7 million, paid on June 29, 2018, to common stockholders of record on May 31, 2018. |
COMMITMENTS AND CONTINGENCIES (Notes) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company has a salary incentive plan (the “ISC Plan”) designed to qualify under Section 401(k) of the Internal Revenue Code. Employees of International Speedway Corporation and certain participating subsidiaries who have completed one month of continuous service are eligible to participate in the ISC Plan. After twelve months of continuous service, matching contributions are made to a savings trust (subject to certain limits) concurrent with employees’ contributions. The level of the matching contribution depends upon the amount of the employee contribution. Employees become 100 percent vested upon entrance to the ISC Plan. The contribution expense for the ISC Plan was approximately $1.7 million, $1.8 million and $1.9 million for the years ended November 30, 2016, 2017 and 2018, respectively. The estimated cost to complete approved projects and current construction in progress at November 30, 2018 at the Company’s existing facilities is approximately $101.7 million. Included in Other current liabilities on the Company's Consolidated Balance Sheets are approximately $4.5 million and $4.0 million, of certain administrative costs as of November 30, 2017 and 2018, respectively. In October 2002, the Unified Government issued subordinate sales tax special obligation revenue bonds (“2002 STAR Bonds”) totaling approximately $6.3 million to reimburse the Company for certain construction already completed on the second phase of the Kansas Speedway project and to fund certain additional construction. The 2002 STAR Bonds, which require annual debt service payments and are due December 1, 2022, will be retired with state and local taxes generated within the speedway’s boundaries and are not the Company’s obligation. KSC has agreed to guarantee the payment of principal, any required premium and interest on the 2002 STAR Bonds. At November 30, 2018, the Unified Government had approximately $0.6 million outstanding on 2002 STAR Bonds. Under a keepwell agreement, the Company has agreed to provide financial assistance to KSC, if necessary, to support KSC’s guarantee of the 2002 STAR Bonds. The Company operates Homestead-Miami Speedway under an operating agreement which expires December 31, 2032 and provides for subsequent renewal terms through December 31, 2075. The Company operates Daytona International Speedway under an operating lease agreement which expires November 7, 2054. The Company also has various operating leases for office space and equipment. The future minimum payments under the operating agreement and leases utilized by the Company having initial or remaining non-cancelable terms in excess of one year at November 30, 2018, are as follows (in thousands):
Total expenses incurred under the track operating agreement, operating leases and all other short-term rentals during the years ended November 30, 2016, 2017 and 2018 were approximately $13.7 million, $14.7 million, and $19.9 million, respectively. In connection with the Company’s automobile and workers’ compensation insurance coverages and certain construction contracts, the Company has standby letter of credit agreements in favor of third parties totaling approximately $4.0 million at November 30, 2018. At November 30, 2018, there were no amounts drawn on the standby letters of credit. Current Litigation The Company is from time to time a party to routine litigation incidental to its business. Management does not believe that the resolution of any or all of such litigation will have a material adverse effect on the Company’s financial condition or results of operations. Mergers, such as the one proposed in the NASCAR Offer, often attract litigation from minority shareholders. On December 14, 2018, a putative class-action shareholder lawsuit was filed in the Seventh Judicial Circuit of Volusia County, Florida by attorneys on behalf of the Firemen's Retirement System of St. Louis related to the NASCAR Offer. The complaint names as defendants the Company, its directors, its CFO, NASCAR Holdings and certain of the Family Stockholders, and alleges claims for breaches of fiduciary duty and for aiding and abetting those breaches. The Company currently maintains Directors & Officers Insurance. Applicable insurance policies contain customary limitations, conditions and exclusions and are subject to a self-insured retention amount. |
RELATED PARTY DISCLOSURES AND TRANSACTIONS (Notes) |
12 Months Ended |
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Nov. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY DISCLOSURES AND TRANSACTIONS | RELATED PARTY DISCLOSURES AND TRANSACTIONS On November 9, 2018, NASCAR submitted the NASCAR Offer (See note 1). All of the racing events that take place during the Company’s fiscal year are sanctioned by various racing organizations such as the American Historic Racing Motorcycle Association, the American Motorcyclist Association, the Automobile Racing Club of America, the American Sportbike Racing Association — Championship Cup Series, the Federation Internationale de L’Automobile, the Federation Internationale Motocycliste, IMSA, Historic Sportscar Racing, IndyCar Series, NASCAR, NHRA, the Porsche Club of America, the Sports Car Club of America, the Sportscar Vintage Racing Association, the United States Auto Club and the World Karting Association. NASCAR, which sanctions many of the Company’s principal racing events, is a member of the France Family Group which controls over 74.7 percent of the combined voting power of the outstanding stock of the Company, as of November 30, 2018, and some members of which serve as directors and officers of the Company, (see "Recent Development" Note 1). Under current agreements, NASCAR contracts directly with certain network providers for television rights to the entire Monster Energy NASCAR Cup, Xfinity and Gander Outdoors Truck Series schedules. Under the terms of this arrangement, NASCAR retains 10.0 percent of the gross broadcast rights fees allocated to each NASCAR Cup, Xfinity and Gander Outdoors Truck Series event as a component of its sanction fees. The Company, as the promoter, records 90.0 percent of the gross broadcast rights fees as revenue and then records 25.0 percent of the gross broadcast rights fees as part of its awards to the competitors, included in NASCAR event management fees (discussed below). Ultimately, the promoter retains 65.0 percent of the net cash proceeds from the gross broadcast rights fees allocated to the event. The Company’s television broadcast and ancillary rights fees received from NASCAR for the NASCAR Cup, Xfinity and Gander Outdoors Truck Series events conducted at its wholly owned facilities were approximately $325.1 million, $337.4 million and $350.8 million in fiscal years 2016, 2017 and 2018, respectively. The Company recorded prize money of approximately $89.6 million, $93.3 million and $96.6 million in fiscal years 2016, 2017 and 2018, respectively, included in NASCAR event management fees (discussed below) related to the aforementioned 25.0 percent of gross broadcast rights fees ultimately paid to competitors. Standard NASCAR and IMSA sanction agreements require racetrack operators to pay event management fees (collectively "NASCAR event management or NEM fees"), which include prize and point fund monies for each sanctioned event conducted. The prize and point fund monies are distributed by NASCAR to participants in the events. Total NEM fees paid by the Company were approximately $171.8 million, $178.4 million and $185.2 million, for the fiscal years ended November 30, 2016, 2017 and 2018, respectively. The Company has outstanding receivables related to NASCAR and its affiliates of approximately $22.1 million and $22.9 million at November 30, 2017 and 2018, respectively. The Company and NASCAR, along with certain NASCAR affiliates, share a variety of expenses in the ordinary course of business. NASCAR pays rent, as well as a related maintenance fee (allocated based on square footage), to the Company for office space in Daytona Beach, Florida. NASCAR pays the Company for radio, program and strategic initiative advertising, hospitality and suite rentals, various tickets and credentials, catering services, participation in a NASCAR racing event banquet, and track and other equipment rentals. The Company pays NASCAR for certain advertising, participation in NASCAR racing series banquets, the use of NASCAR trademarks and intellectual images and production space on trackside large screen video display units. The Company’s payments to NASCAR for MRN’s broadcast rights to NASCAR Gander Outdoors Truck races represent an agreed-upon percentage of the Company’s advertising revenues attributable to such race broadcasts. NASCAR also reimburses the Company for 50.0 percent of the compensation paid to certain personnel working in the Company’s legal, risk management and transportation departments, as well as 50.0 percent of the compensation expense associated with certain receptionists. The Company reimburses NASCAR for 50.0 percent of the compensation paid to certain personnel working in NASCAR’s legal department. NASCAR’s reimbursement for use of the Company’s mailroom, janitorial services, security services, catering, graphic arts, photo and publishing services, telephone system and the Company’s reimbursement of NASCAR for use of corporate aircraft is based on actual usage or an allocation of total actual usage. The aggregate amount received and receivable from NASCAR for shared expenses, net of amounts paid by the Company for shared expenses, totaled approximately $10.2 million, $10.3 million and $11.1 million during fiscal 2016, 2017 and 2018, respectively. We believe the amounts earned from or charged by us under each of the aforementioned transactions are commercially reasonable. IMSA, a wholly owned subsidiary of NASCAR, sanctions various events at certain of the Company’s facilities. Standard IMSA sanction agreements require racetrack operators to pay event management fees, which include prize and point fund monies for each sanctioned event conducted. The prize and point fund monies are distributed by IMSA to participants in the events. Event management fees paid by the Company to IMSA totaled approximately $1.3 million, $1.2 million and $1.3 million for the years ended November 30, 2016, 2017 and 2018, respectively. AMA Pro Racing, an entity controlled by a member of the France Family Group, sanctions various events at certain of the Company’s facilities. Standard AMA Pro Racing sanction agreements require racetrack operators to pay event management fees, which include prize and point fund monies for each sanctioned event conducted. The prize and point fund monies are distributed by AMA Pro Racing to participants in the events. Event management fees paid by the Company to AMA Pro Racing totaled approximately $0.1 million, $0.1 million and $0.1 million during fiscal 2016, 2017 and 2018, respectively. Furthermore, the Company and AMA Pro Racing share a variety of expenses in the ordinary course of business. The aggregate amount received from AMA Pro Racing by the Company for shared expenses, net of amounts paid by the Company for shared expenses, totaled approximately $0.3 million. The Company strives to ensure, and management believes that, the terms of the Company’s transactions with NASCAR, IMSA and AMA Pro Racing are commercially reasonable. Other Related Party Transactions Certain members of the France Family Group paid the Company for the utilization of security services, event planning, event tickets, purchase of catering services, maintenance services, and certain equipment. The amounts paid for these items were based on actual costs incurred, similar prices paid by unrelated third party purchasers of similar items or estimated fair market values. The net amount received by the Company for these items, totaled approximately $306,000, $504,000 and $374,000 during fiscal 2016, 2017 and 2018, respectively. Cobb Cole, P.A. (“Cobb Cole”) is a law firm located in Volusia County, Florida. Kathy Crotty, the sister of W. Garrett Crotty, one of the Company’s executive officers, is a partner at Cobb Cole. The Company engaged Cobb Cole for certain legal and consulting services. The aggregate amount paid to Cobb Cole by the Company for legal and consulting services totaled approximately $93,000 and $68,000 during fiscal 2017 and 2018, respectively. J. Hyatt Brown, one of the Company’s directors, serves as Chairman of Brown & Brown, Inc. (“Brown & Brown”). Brown & Brown has received commissions for serving as the Company’s insurance broker for several of the Company’s insurance policies, including the Company’s property and casualty policy and certain employee benefit programs. The aggregate commissions received by Brown & Brown in connection with the Company’s policies were approximately $555,000, $519,000 and $532,000 during fiscal 2016, 2017 and 2018, respectively. In fiscal 2017 and 2018, Brown & Brown paid the Company approximately $10,000 and $17,000, respectively, for the purchase of track facility rentals. There were no comparable transactions in fiscal 2016. One of the Company’s directors, Christy F. Harris, is Of Counsel to Kinsey, Vincent Pyle, L.C., a law firm that provided legal services to the Company during fiscal 2016, 2017 and 2018. The Company paid approximately $97,000, $158,000 and $96,000 for these services in fiscal 2016, 2017 and 2018, respectively. We believe the amounts earned from or charged by us under each of the aforementioned transactions are commercially reasonable. |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Notes) |
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid for income taxes and interest for the years ended November 30, is summarized as follows (in thousands):
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LONG-TERM STOCK INCENTIVE PLAN (Notes) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM STOCK INCENTIVE PLAN | LONG-TERM STOCK INCENTIVE PLAN On November 30, 2018, the Company has three share-based compensation plans, which are described below. Compensation cost included in operating expenses in the accompanying consolidated statements of operations for those plans was $3.7 million, $2.7 million, and $3.5 million for the years ended November 30, 2016, 2017 and 2018, respectively. The total income tax benefit recognized in the consolidated statements of operations for share-based compensation arrangements was approximately $1.5 million, $1.3 million and $1.4 million for the years ended November 30, 2016, 2017 and 2018, respectively. The Company’s 1996 Long-Term Stock Incentive Plan (the “1996 Plan”) authorized the grant of stock options (incentive and nonqualified), stock appreciation rights and restricted stock. The Company reserved an aggregate of 1,000,000 shares (subject to adjustment for stock splits and similar capital changes) of the Company’s Class A Common Stock for grants under the 1996 Plan. The 1996 Plan terminated in 2006. All unvested stock options and restricted stock granted prior to the termination will continue to vest and will continue to be exercisable in accordance with their original terms. The Company’s 2006 Long-Term Incentive Plan (the “2006 Plan”) authorized the grant of stock options (incentive and non-qualified), stock appreciation rights, restricted and unrestricted stock, cash awards and Performance Units (as defined in the 2006 Plan) to employees, consultants and advisers of the Company capable of contributing to the Company’s performance. The Company has reserved an aggregate of 1,000,000 shares (subject to adjustment for stock splits and similar capital changes) of the Company’s Class A Common Stock for grants under the 2006 Plan. The 2006 Plan terminated in 2016. All unvested stock options and restricted stock granted prior to the termination will continue to vest and will continue to be exercisable in accordance with their original terms. In April 2017, the Company’s shareholders’ approved the 2017 Long-Term Incentive Plan (the “2017 Plan”) which authorizes the grant of stock options (incentive and non-qualified), stock appreciation rights, restricted and unrestricted stock, cash awards and Performance Units (as defined in the 2017 Plan) to employees, consultants and advisers of the Company capable of contributing to the Company’s performance. The Company has reserved an aggregate of 1,500,000 shares (subject to adjustment for stock splits and similar capital changes) of the Company’s Class A Common Stock for grants under the 2017 Plan. Incentive Stock Options may be granted only to employees eligible to receive them under the Internal Revenue Code of 1996, as amended. The 2017 Plan approved by the shareholders appoints the Compensation Committee (the “Committee”) to administer the 2017 Plan. Awards under the 2017 Plan will contain such terms and conditions not inconsistent with the 2017 Plan as the Committee in its discretion approves. The Committee has discretion to administer the 2017 Plan in the manner which it determines, from time to time, is in the best interest of the Company. Restricted Stock Awards Restricted stock awarded under the 1996 Plan, 2006 Plan, and 2017 Plan (collectively the “Plans”) generally is subject to forfeiture in the event of termination of employment prior to vesting dates. Prior to vesting, the Plans participants own the shares and may vote and receive dividends, but are subject to certain restrictions. Restrictions include the prohibition of the sale or transfer of the shares during the period prior to vesting of the shares. The Company also has the right of first refusal to purchase any shares of stock issued under the Plans which are offered for sale subsequent to vesting. In accordance with ASC 718, “Compensation - Stock Compensation” the Company is recognizing stock-based compensation on these restricted shares awarded on the accelerated method over the requisite service period. The fair value of nonvested restricted stock is determined based on the opening trading price of the Company’s Class A Common Stock on the grant date. The Company granted 92,583, 98,295 and 89,225 shares of restricted stock awards of the Company’s Class A Common Stock during the fiscal years ended November 30, 2016, 2017 and 2018, respectively, to certain officers, managers, and other employees under the Plans. The shares of restricted stock awarded vest at the rate of 50.0 percent on the third anniversary of the award date and the remaining 50.0 percent on the fifth anniversary of the award date. The weighted average grant date fair value of these restricted stock awards was $33.49, $37.10 and $41.33 per share, respectively. The Company granted 8,073, 7,281 and 6,048 shares of restricted stock awards of the Company’s Class A Common Stock during the fiscal years ended November 30, 2016, 2017 and 2018, respectively, to non-employee directors as partial compensation for their service as a director. The shares of restricted stock awarded vest at the rate of 100.0 percent on the one year anniversary after the date of grant. The weighted average grant date fair value of these restricted share awards was $33.45, $37.55 and $44.70 per share, respectively. A summary of the status of the Company’s restricted stock as of November 30, 2018, and changes during the fiscal year ended November 30, 2018, is presented as follows:
As of November 30, 2018, there was approximately $6.3 million of total unrecognized compensation cost related to unvested restricted stock awards granted under the Stock Plans. This cost is expected to be recognized over a weighted-average period of approximately 3.5 years. The total fair value of restricted stock awards vested during the fiscal years ended November 30, 2016, 2017 and 2018, was approximately $2.3 million, $4.7 million and $3.7 million, respectively. Nonqualified and Incentive Stock Options In fiscal 2010 a portion of each non-employee director’s compensation for their service as a director is through awards of options to acquire shares of the Company’s Class A Common Stock under the Plans. These options become exercisable one year after the date of grant and expire on the tenth anniversary of the date of grant. The Company also grants options to certain non-officer managers to purchase the Company’s Class A Common Stock under the Plans. These options generally vest over a two and one-half year period and expire on the tenth anniversary of the date of grant. The Company records stock-based compensation cost on its stock options awarded on the straight-line method over the requisite service period. The fair value of each option granted is estimated on the grant date using the Black-Scholes-Merton option-pricing valuation model that uses the assumptions noted in the following table. Expected volatilities are based on implied volatilities from historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercises and employee terminations within the valuation model. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted is estimated based on historical exercise behavior and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. A summary of option activity under the Stock Plan as of November 30, 2018, and changes during the year then ended is presented as follows:
There were no options granted in fiscal years 2016, 2017 and 2018. There were 5,321 , 20,295 and 29,563 options exercised during fiscal years 2016, 2017 and 2018, respectively. The total intrinsic value of options exercised during fiscal year ended November 30, 2016, 2017 and 2018, was approximately $0.6 million, $0.5 million and $0.3 million, respectively. The actual tax benefit realized for the tax deductions from exercise of the stock options totaled approximately $20,251, $84,090 and $134,651 for the fiscal years ended November 30, 2016, 2017 and 2018, respectively. As of November 30, 2018, there was no unrecognized compensation cost related to unvested stock options granted under the Stock Plan. |
FINANCIAL INSTRUMENTS (Notes) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS In accordance with the “Financial Instruments” Topic, ASC 825-10 and in accordance with the “Fair Value Measurements and Disclosures” Topic, ASC 820-10, these topics discuss key considerations in determining fair value in such markets, and expanding disclosures on recurring fair value measurements using unobservable inputs (Level 3), clarification and additional disclosure is required about the use of fair value measurements. Various inputs are considered when determining the carrying values of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities. These items approximate fair value due to the short-term maturities of these assets and liabilities. The Company's note receivable is a variable-based financial instrument and, therefore, its carrying value approximates its fair value. The Company’s credit facilities approximate fair value as they bear interest rates that approximate market. Fair values of long-term debt are based on quoted market prices at the date of measurement and determined by quotes from financial institutions. There have been no changes or transfers between category levels or classes. These inputs are summarized in the three broad levels and two classes listed below:
The following table presents estimated fair values and categorization levels of the Company's financial instruments as of November 20, 2017 and 2018, respectively (in thousands):
The Company had no level 3 inputs as of November 30, 2018. |
QUARTERLY DATA (UNAUDITED) (Notes) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY DATA (UNAUDITED) | QUARTERLY DATA (UNAUDITED) The Company derives most of its income from a limited number of NASCAR-sanctioned races. As a result, the Company’s business has been, and is expected to remain, highly seasonal based on the timing of major events. The following table presents certain unaudited financial data for each quarter of fiscal 2017 and 2018 (in thousands, except per share amounts):
(1) Included in operating income (loss) are losses on retirements of long-lived assets of less than $0.1 million, $0.4 million, $0.1 million, and $10.0 million, for each quarter of fiscal 2017, respectively, and $1.2 million, $0.2 million, $2.2 million, and $0.9 million for each quarter of fiscal 2018, respectively. (2) In the second quarter of fiscal 2017, the Company received a favorable settlement relating to certain ancillary operations of approximately $1.0 million. In the third quarter of fiscal 2018, the Company received insurance proceeds of approximately $1.8 million. (3) In the fourth quarter of fiscal 2017, the Company recognized a material income tax benefit of approximately $48.2 million. In the first quarter of fiscal 2018, the Company recognized a material income tax benefit of approximately $143.9 million. In the third quarter of fiscal 2018, the Company recognized an additional $1.2 million reduction of its deferred income tax liabilities and income tax benefit as a result of the aforementioned Federal income tax rate reduction. |
SEGMENT REPORTING (Notes) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING The general nature of the Company’s business is a motorsports themed amusement enterprise, furnishing amusement to the public in the form of motorsports themed entertainment. The Company’s motorsports event operations consist principally of racing events at its major motorsports entertainment facilities. The reporting units within the motorsports segment portfolio are reviewed together as the nature of the products and services, the production processes used, the type or class of customer using our products and services, and the methods used to distribute our products or provide their services are consistent in objectives and principles, and predominately uniform and centralized throughout the Company. The consolidated domestic media rights contract, which continues through the 2024 NASCAR season, continues to be the single-largest contributor to the Company's earnings. These media rights are allocated to specific events, are not facility based, and are derived through a corporate contract, which affects all of the motorsports event facilities within the motorsports event segment. Similarly, corporate sponsorship partnership revenue is primarily derived from corporate contracts, negotiated from the Company's corporate sales team, and allocated to multiple, or all, motorsports entertainment facilities depending on the specific arrangement. Thus, the disclosure of these revenue streams, as they relate to each reporting unit, is not practical. The Company’s remaining business units, which are comprised of the radio network production and syndication of numerous racing events and programs, certain souvenir merchandising operations not associated with the promotion of motorsports events at the Company’s facilities, construction management services, financing and licensing operations, equity investments, and retail leasing operations, including ONE DAYTONA, are included in the “All Other” segment. The Company evaluates financial performance of the business units on operating profit after allocation of corporate general and administrative (“G&A”) expenses. Corporate G&A expenses are allocated to business units based on each business unit’s net revenues to total net revenues. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Intersegment sales are accounted for at prices comparable to unaffiliated customers. Intersegment revenues were approximately $2.2 million, $2.0 million and $2.0 million for the years ended November 30, 2016, 2017 and 2018, respectively. The following table shows information by operating segment (in thousands):
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Schedule II - Valuation and Qualifying Accounts (Notes) |
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SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts (in thousands)
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DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
PRINCIPLES OF CONSOLIDATION | The accompanying consolidated financial statements include the accounts of International Speedway Corporation, and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. |
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CASH AND CASH EQUIVALENTS | For purposes of reporting cash flows, cash and cash equivalents include cash on hand, bank demand deposit accounts and overnight sweep accounts used in the Company’s cash management program. All highly liquid investments with stated maturities of three months or less from the date of purchase are classified as cash equivalents. |
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RECEIVABLES | Receivables are stated at their estimated collectible amounts. The allowance for doubtful accounts is estimated based on historical experience of write offs and current expectations of conditions that might impact the collectability of accounts. |
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PROPERTY AND EQUIPMENT | Property and equipment, including improvements to existing facilities, are stated at cost. Depreciation is provided for financial reporting purposes using the straight-line method over the estimated useful lives as follows:
Leasehold improvements are depreciated over the shorter of the related lease term or their estimated useful lives. The Company evaluates the carrying value of property and equipment and if there are indicators of potential impairment. If events or circumstances indicate that the carrying value of an asset may not be recoverable, an impairment loss would be recognized equal to the difference between the carrying value of the asset and its fair value. |
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EQUITY INVESTMENTS | The Company’s investments in joint ventures and other investees where it can exert significant influence on the investee, but does not have effective control over the investee, are accounted for using the equity method of accounting. The Company’s equity in the net income (loss) from equity method investments is recorded as income (loss) with a corresponding increase (decrease) in the investment. Distributions received from the equity investees reduce the investment. Distributions from equity investees representing the Company's share of the equity investee's earnings are treated as cash proceeds from operations while distributions in excess of the equity investee's earnings are considered a return of capital and treated as cash proceeds from investing activities in the Company's consolidated statement of cash flows. |
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GOODWILL AND INTANGIBLE ASSETS | All business combinations are accounted for under the purchase method. The excess of the cost of the acquisition over fair value of the net assets acquired (including recognized intangibles) is recorded as goodwill. Business combinations involving existing motorsports entertainment facilities commonly result in a significant portion of the purchase price being allocated to the fair value of the contract-based intangible asset associated with long-term relationships manifest in the sanction agreements with sanctioning bodies, such as NASCAR and IMSA. The continuity of sanction agreements with these bodies has historically enabled the Company to host these motorsports events year after year. While individual sanction agreements may be of terms as short as one year, a significant portion of the purchase price in excess of the fair value of acquired tangible assets is commonly paid to acquire anticipated future cash flows from events promoted pursuant to these agreements which are expected to continue for the foreseeable future and therefore, in accordance with Accounting Standards Codification (“ASC”) 805, are recorded as indefinite-lived intangible assets recognized apart from goodwill. The Company’s goodwill and other intangible assets are all associated with our Motorsports Event segment. The Company follows applicable authoritative guidance on accounting for goodwill and other intangible assets which specifies, among other things, non-amortization of goodwill and other intangible assets with indefinite useful lives and requires testing for possible impairment, either upon the occurrence of an impairment indicator or at least annually. The Company completes its annual testing in its fiscal fourth quarter, based on assumptions regarding the Company’s future business outlook and expected future discounted cash flows attributable to such assets (using the fair value assessment provision of applicable authoritative guidance), supported by quoted market prices or comparable transactions where available or applicable. In connection with the Company’s fiscal 2018 assessment of goodwill and intangible assets for possible impairment, the Company used the future discounted cash flows / income approach based on Level 3 Fair Value hierarchy. The Company believes its methods used to determine fair value and evaluate possible impairment were appropriate, relevant, and represent methods customarily available and used for such purposes. The Company’s latest annual assessment of goodwill and other intangible assets in the fourth quarter of fiscal 2018 indicated there had been no impairment and the fair value exceeded the carrying value for the respective reporting units. During fiscal 2018, the Company believes there has been no significant change in the long-term fundamentals of its ongoing motorsports event business. The Company believes its present operational and cash flow outlook further support its conclusion. While the Company continues to review and analyze many factors that can impact its business prospects in the future, its analysis is subjective and is based on conditions existing at, and trends leading up to, the time the estimates and assumptions are made. Different conditions or assumptions, or changes in cash flows or profitability, if significant, could have a material adverse effect on the outcome of the impairment evaluation and the Company’s future condition or results of operations. |
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FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS In accordance with the “Financial Instruments” Topic, ASC 825-10 and in accordance with the “Fair Value Measurements and Disclosures” Topic, ASC 820-10, these topics discuss key considerations in determining fair value in such markets, and expanding disclosures on recurring fair value measurements using unobservable inputs (Level 3), clarification and additional disclosure is required about the use of fair value measurements. Various inputs are considered when determining the carrying values of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities. These items approximate fair value due to the short-term maturities of these assets and liabilities. These inputs are summarized in the three broad levels listed below:
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DEFERRED FINANCING FEES | Deferred financing fees are amortized over the term of the related debt and are included in other non-current assets. |
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COMPREHENSIVE INCOME | Comprehensive income is the change in equity of an enterprise except those resulting from shareholder transactions. |
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INCOME TAXES | Income taxes have been presented using the asset and liability method. Under this method, the Company’s estimates of deferred income taxes and the significant items giving rise to deferred tax assets and liabilities reflect its assessment of actual future taxes to be paid on items reflected in its financial statements, giving consideration to both timing and probability of realization. The Company establishes tax reserves related to certain matters, including penalties and interest, in the period when it is determined that it is probable that additional taxes, penalties and interest will be paid, and the amount is reasonably estimable. Such tax reserves are adjusted, as needed, in light of changing circumstances, such as statute of limitations expirations and other developments relating to uncertain tax positions and current tax items under examination, appeal or litigation. |
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REVENUE RECOGNITION | Advance ticket sales and event-related revenues for future events are deferred until earned, which is generally once the events are conducted. The recognition of event-related expenses is matched with the recognition of event-related revenues. The Company has completed its preliminary evaluation of the potential impact that adoption of Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers"("ASC 606")”, may have on its financial statements, including analysis of its revenue streams and associated contracts using the five-step model provided in the new standard. The Company has in place, or plans to establish, associated accounting policies, processes and system requirements to enable timely and accurate reporting, and continue to gather information for required presentation and disclosures. The Company has adopted ASC 606 and the related modifications as of December 1, 2018 using the modified retrospective transition. The Company believes the adoption will not result in a significant cumulative adjustment or materially impact future timing or classification of revenue recognition. NASCAR contracts directly with certain network providers for television rights to the entire Monster Energy NASCAR Cup, Xfinity and Gander Outdoors Truck Series schedules. Event promoters share in the television rights fees in accordance with the provision of the sanction agreement for each Monster Energy NASCAR Cup, Xfinity and Gander Outdoors Truck Series event. Under the terms of this arrangement, NASCAR retains 10.0 percent of the gross broadcast rights fees allocated to each Monster Energy NASCAR Cup, Xfinity and Gander Outdoors Truck Series event as a component of its sanction fees. The Company, as the promoter, records 90.0 percent of the gross broadcast rights fees as revenue and then records 25.0 percent of the gross broadcast rights fees as part of its awards to the competitors. Ultimately, the promoter retains 65.0 percent of the net cash proceeds from the gross broadcast rights fees allocated to the event. The Company's revenues from marketing partnerships are paid in accordance with negotiated contracts, with the identities of partners and the terms of sponsorship changing from time to time. Some of our marketing partnership agreements are for multiple facilities and/or events and include multiple specified elements, such as tickets, hospitality chalets, suites, display space and signage for each included event. The allocation of such marketing partnership revenues among the multiple elements, events and facilities is based on relative selling price. The sponsorship revenue allocated to an event is recognized when the event is conducted. Revenues and related costs from the sale of food, beverage and merchandise to retail customers are recognized at the time of sale. Kansas Speedway ("Kansas") and Chicagoland Speedway ("Chicagoland") offer Preferred Access Speedway Seating (“PASS”) agreements, which give purchasers the exclusive right and obligation to purchase season-ticket packages for certain sanctioned racing events annually, under specified terms and conditions. Among the conditions, licensees are required to purchase all season-ticket packages when and as offered each year. PASS agreements automatically terminate without refund should owners not purchase any offered season tickets. Net fees received under PASS agreements are deferred and are amortized into income over the term of the agreements. |
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BUSINESS SEGMENTS | The general nature of the Company’s business is a motorsports themed amusement enterprise, furnishing amusement to the public in the form of motorsports themed entertainment. The Company’s motorsports event operations consist principally of racing events at its major motorsports entertainment facilities. The reporting units within the Motorsports Event segment portfolio are reviewed together as the nature of the products and services, the production processes used, the type or class of customer using our products and services, and the methods used to distribute our products or provide their services are consistent in objectives and principles, and predominately uniform and centralized throughout the Company. The consolidated domestic media rights contract, which continues through the 2024 NASCAR season, continues to be the single-largest contributor to the Company's earnings. These media rights are allocated to specific events, are not facility based, and are derived through a corporate contract, which affects all of the motorsports event facilities within the motorsports event segment. Similarly, corporate sponsorship partnership revenue is primarily derived from corporate contracts, negotiated from the Company's corporate sales team, and allocated to multiple, or all, motorsports entertainment facilities depending on the specific arrangement. Thus, the disclosure of these revenue streams, as they relate to each reporting unit, is not practical. The Company’s remaining business units, which are comprised of the radio network production and syndication of numerous racing events and programs, certain souvenir merchandising operations not associated with the promotion of motorsports events at the Company’s facilities, construction management services, financing and licensing operations, equity investments, and retail leasing operations, including ONE DAYTONA, are included in the “All Other” segment. The Company evaluates financial performance of the business units on operating profit after allocation of corporate general and administrative (“G&A”) expenses. Corporate G&A expenses are allocated to business units based on each business unit’s net revenues to total net revenues. |
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ADVERTISING EXPENSE | Advertising costs are expensed as incurred. |
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LOSS CONTINGENCIES | Legal and other costs incurred in conjunction with loss contingencies are expensed as incurred. |
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USE OF ESTIMATES | The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
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RECLASSIFICATIONS | Certain prior year amounts in the Consolidated Statement of Operations have been reclassified to conform with the current year presentation. |
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NEW ACCOUNTING PRONOUNCEMENTS | In May 2014, the Financial Accounting Standards Board ("FASB"), in conjunction with the International Accounting Standards Board ("IASB"), issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers"("ASC 606")” which supersedes the existing revenue recognition requirements under U.S. generally accepted accounting principles ("GAAP") and eliminate industry-specific guidance. The new revenue recognition standard provides a five step analysis of transactions to determine when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The new guidance includes updated disclosure requirements regarding the qualitative and quantitative information of the Company’s nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. During 2016, the FASB issued additional interpretive guidance relating to the standard which covered the topics of principal versus agent considerations and identifying performance obligations and licensing. The standard, along with the subsequent clarifications issued, are effective for reporting periods beginning after December 15, 2017 including interim reporting periods, making it effective for our fiscal year beginning December 1, 2018. The guidance permits two methods of adoption: the full retrospective method which applies to each prior reporting period presented, and the modified retrospective method in which the cumulative effect of initially applying the new guidance is recognized as of the date of initial application as an adjustment to the opening balance of retained earnings. The Company has completed its preliminary evaluation of the potential impact that adoption may have on its financial statements, including analysis of its revenue streams and associated contracts using the five-step model provided in the new standard. The Company has in place or plans to establish associated accounting policies, processes and system requirements to enable timely and accurate reporting, and continues to gather information for required presentation and disclosures. The Company has adopted ASC 606 and the related modifications as of December 1, 2018 using the modified retrospective transition. The Company believes the adoption will not result in a significant cumulative adjustment or materially impact future timing or classification of revenue recognition. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842): Leases". The objective of this Update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification and creating Topic 842, Leases. This Update, along with International Financial Reporting Standards 16, Leases, are the results of the FASB’s and the IASB’s efforts to meet that objective and improve financial reporting. For a public entity, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted for all entities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2020. In August 2016, the FASB issued ASU No. 2016-16, "Statement of Cash Flows (Topic 23): Classification of Certain Cash Receipts and Cash Payments". The objective of this Update is to provide specific guidance on eight cash flow classification issues and reduce the existing diversity in practice. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company believes that the impact of adopting this new guidance will not result in a material difference in its financial position and will adopt the provisions of this statement in the first quarter of fiscal 2019. In January 2017, the FASB issued ASU No, 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The objective of this Update is to simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test - measuring goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill to the carrying amount of that goodwill. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity should apply the amendments in this Update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this Update. A public business entity that is a U.S. Securities and Exchange Commission ("SEC") filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2021. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") No. 118 (as further clarified by FASB ASU 2018-05, Income Taxes (Topic 740): "Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118") to provide guidance for companies that may not have completed their accounting for the income tax effects of the Tax Cut and Jobs Act ("Tax Act") in the period of enactment, which is the period that includes December 22, 2017. SAB No. 118 provides for a provisional one year measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Act. SAB No. 118 provides guidance where: (i) the accounting for the income tax effect of the Tax Act is complete and reported in the Tax Act's enactment period, (ii) the accounting for the income tax effect of the Tax Act is incomplete and reported as provisional amounts based on reasonable estimates (to the extent determinable) subject to adjustments during a limited measurement period until complete, and (iii) accounting for the income tax effect of the Tax Act is not reasonably estimable (no related provisional amounts are reported in the enactment period) and entities would continue to apply accounting based on tax law provisions in effect prior to the Tax Act enactment until provisional amounts are reasonably estimable. SAB No. 118 requires disclosure of the reasons for incomplete accounting additional information or analysis needed, among other relevant information. The Company finalized its provisional amounts in the fourth quarter of fiscal 2018 (see Note 8 - Federal and State Income Taxes). In February 2018, the FASB issued ASU No, 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company is currently evaluating the impact of adopting this new guidance on its financial position, results of operations, statement of comprehensive income, and cash flows, and will adopt the provisions of this statement in the first quarter of fiscal 2020. |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Nov. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Owned and/or Operated Major Motorsports Entertainment Facilities | As of November 30, 2018, the Company owned and/or operated 13 of the nation’s major motorsports entertainment facilities as follows:
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Property, Plant and Equipment - Estimated Useful Life | Depreciation is provided for financial reporting purposes using the straight-line method over the estimated useful lives as follows:
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EARNINGS PER SHARE (Tables) |
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Nov. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the years ended November 30, (in thousands, except share and per share amounts):
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PROPERTY AND EQUIPMENT (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and equipment consists of the following as of November 30, (in thousands):
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RETIREMENTS OF LONG-LIVED ASSETS (Tables) |
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Nov. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of charges relating to retirement of long-lived assets | The Company recorded before-tax charges relating to retirements of long-lived assets during the fiscal years ending November 30, as follows (in thousands):
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EQUITY AND OTHER INVESTMENTS (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions from Kansas Entertainment | Pre-tax distributions from Kansas Entertainment, for the years ended November 30, are recognized on the Company's consolidated statement of cash flows as follows (in thousands):
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Summarized Financial Information of Equity Investments | Summarized financial information of the Company’s equity investments as of and for the years ended November 30, are as follows (in thousands):
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Intangible Assets | The gross carrying value, accumulated amortization and net carrying value of the major classes of intangible assets relating to the Motorsports Event segment as of November 30, are as follows (in thousands):
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Current and Expected Amortization Expense of the Existing Intangible Assets | The following table presents current and expected amortization expense of the existing intangible assets as of November 30, for each of the following periods (in thousands):
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LONG-TERM DEBT (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-term debt consists of the following as of November 30, (in thousands):
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Schedule of Payments | Schedule of Payments (in thousands)
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Total Interest Expense Incurred | Total interest expense incurred by the Company for the years ended November 30, are as follows (in thousands):
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FEDERAL AND STATE INCOME TAXES (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Components of the Provision for Income Taxes from Continuing Operations | Significant components of the provision for income taxes for the years ended November 30, are as follows (in thousands):
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Reconciliation of Federal Statutory Tax Rates to Income Tax Expense from Continuing Operations | The reconciliation of income tax expense (benefit) computed at the federal statutory tax rates to income tax expense (benefit) for the years ended November 30, is as follows (percent of pre-tax income):
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Components of Net Deferred Tax Assets (Liabilities) | The components of the net deferred tax assets (liabilities) at November 30, are as follows (in thousands):
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Reconciliation of Unrecognized Tax Liability | A reconciliation of the beginning and ending amount of unrecognized tax liability is as follows (in thousands):
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Payments Under Operating Agreement and Leases | The future minimum payments under the operating agreement and leases utilized by the Company having initial or remaining non-cancelable terms in excess of one year at November 30, 2018, are as follows (in thousands):
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables) |
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Paid for Income Taxes and Interest | Cash paid for income taxes and interest for the years ended November 30, is summarized as follows (in thousands):
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LONG-TERM STOCK INCENTIVE PLAN (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Status of Restricted Stock | A summary of the status of the Company’s restricted stock as of November 30, 2018, and changes during the fiscal year ended November 30, 2018, is presented as follows:
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Summary of Option Activity Under Stock Plan | A summary of option activity under the Stock Plan as of November 30, 2018, and changes during the year then ended is presented as follows:
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FINANCIAL INSTRUMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Fair Values of Financial Instruments | The following table presents estimated fair values and categorization levels of the Company's financial instruments as of November 20, 2017 and 2018, respectively (in thousands):
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Schedule of Estimated Fair Values of Financial Instruments | The following table presents estimated fair values and categorization levels of the Company's financial instruments as of November 20, 2017 and 2018, respectively (in thousands):
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QUARTERLY DATA (UNAUDITED) (Tables) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain Unaudited Financial Data For Each Quarter of Fiscal Year | The following table presents certain unaudited financial data for each quarter of fiscal 2017 and 2018 (in thousands, except per share amounts):
|
SEGMENT REPORTING (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | The following table shows information by operating segment (in thousands):
|
- Property, Plant and Equipment - Estimated Useful Life (Details) |
12 Months Ended |
---|---|
Nov. 30, 2018 | |
Buildings, grandstands and motorsports entertainment facilities | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life, minimum | 10 years |
Buildings, grandstands and motorsports entertainment facilities | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life, minimum | 30 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life, minimum | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life, minimum | 8 years |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2018 |
Aug. 31, 2018 |
May 31, 2018 |
Feb. 28, 2018 |
Nov. 30, 2017 |
Aug. 31, 2017 |
May 31, 2017 |
Feb. 28, 2017 |
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 27,237 | $ 12,031 | $ 16,670 | $ 169,347 | $ 76,058 | $ 265 | $ 13,227 | $ 21,273 | $ 225,284 | $ 110,823 | $ 76,338 |
Income from continuing operations (in dollars per share) | $ 5.11 | $ 2.48 | $ 1.66 | ||||||||
Denominator: | |||||||||||
Basic weighted average shares outstanding (in shares) | 44,068,713 | 44,648,586 | 45,981,471 | ||||||||
Common stock options (in shares) | 9,735 | 11,591 | 14,220 | ||||||||
Diluted weighted average shares outstanding (in shares) | 44,078,448 | 44,660,177 | 45,995,691 | ||||||||
Basic and Diluted earnings per share: | |||||||||||
Basic and diluted earnings per share (in dollars per share) | $ 0.62 | $ 0.27 | $ 0.38 | $ 3.83 | $ 1.72 | $ 0.01 | $ 0.29 | $ 0.47 | $ 5.11 | $ 2.48 | $ 1.66 |
Anti-dilutive shares excluded in the computation of diluted earnings per share (in shares) | 35,250 | 51,403 | 81,292 |
PROPERTY AND EQUIPMENT - Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Nov. 30, 2018 |
Nov. 30, 2017 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Land and leasehold improvements | $ 244,979 | $ 244,539 |
Buildings, grandstands and motorsports entertainment facilities | 2,083,126 | 1,845,958 |
Furniture and equipment | 288,946 | 266,622 |
Construction in progress | 27,368 | 153,034 |
Property, plant and equipment, gross, total | 2,644,419 | 2,510,153 |
Less accumulated depreciation | 1,129,378 | 1,030,410 |
Property and equipment, net | $ 1,515,041 | $ 1,479,743 |
PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jan. 31, 2019 |
Oct. 31, 2018 |
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 106,700,000 | $ 109,700,000 | $ 102,200,000 | ||
Incentives to finance infrastructure | $ 40,000,000 | ||||
Cash proceeds received from incentives | 20,000,000 | 0 | 0 | ||
Payments to acquire assets | 159,792,000 | 145,133,000 | 140,793,000 | ||
ONE DAYTONA and The Phoenix Raceway Project | |||||
Property, Plant and Equipment [Line Items] | |||||
Accelerated depreciation | $ 1,200,000 | $ 6,200,000 | $ 0 | ||
ONE DAYTONA | |||||
Property, Plant and Equipment [Line Items] | |||||
Cash proceeds received from incentives | 20,000,000 | ||||
Annual payments to be received from long-term note receivable | $ 10,500,000 | ||||
Subsequent Event | |||||
Property, Plant and Equipment [Line Items] | |||||
Payments to acquire assets | $ 8,500,000 |
RETIREMENTS OF LONG-LIVED ASSETS (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |||
Losses on retirements of long-lived assets | $ 4,471 | $ 10,552 | $ 2,905 |
Less: cash portion of losses on asset retirements | 4,314 | 904 | 506 |
Non-cash losses on retirements of long-lived assets | $ 157 | $ 9,648 | $ 2,399 |
EQUITY AND OTHER INVESTMENTS - Distributions from Kansas Entertainment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||
Equity investments income/(loss) | $ 21,777 | $ 19,111 | $ 14,913 |
Distribution in excess of profits | 22,932 | 20,274 | 16,067 |
Total Distributions | 26,550 | 25,450 | 25,900 |
Kansas Entertainment Limited Liability Company | Cash Distribution | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity investments income/(loss) | 22,853 | 20,274 | 16,067 |
Distribution in excess of profits | $ 3,697 | $ 5,176 | $ 9,833 |
EQUITY AND OTHER INVESTMENTS - Summarized Financial Information of Equity Investments (Details) - Other Equity Investments - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||
Current assets | $ 19,148 | $ 18,110 | $ 15,856 |
Noncurrent assets | 157,858 | 166,457 | 177,479 |
Current liabilities | 18,797 | 18,963 | 17,380 |
Noncurrent liabilities | 0 | 0 | 0 |
Net sales | 158,322 | 154,524 | 153,276 |
Gross profit | 86,447 | 83,794 | 82,087 |
Operating income | 47,314 | 40,548 | 32,136 |
Net income | $ 47,314 | $ 40,548 | $ 32,136 |
GOODWILL AND INTANGIBLE ASSETS - Current and Expected Amortization Expense of Intangible Assets (Details) $ in Thousands |
12 Months Ended |
---|---|
Nov. 30, 2018
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization expense for the year ended November 30, 2018 | $ 2 |
Estimated amortization expense for the year ending November 30: | |
2019 | 2 |
2020 | 2 |
2021 | 2 |
2022 | 2 |
2023 | $ 12 |
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment | $ 0.1 | $ 0.4 |
LONG-TERM DEBT - Non-printing Section (Details) |
Nov. 30, 2018 |
Nov. 30, 2017 |
---|---|---|
4.63 percent Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate (percent) | 4.63% | 4.63% |
3.95 percent Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate (percent) | 3.95% | 3.95% |
6.25 percent Term Loan | ||
Debt Instrument [Line Items] | ||
Debt, interest rate (percent) | 6.25% | 6.25% |
LONG-TERM DEBT - Schedule of Payments (Details) $ in Thousands |
Nov. 30, 2018
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2019 | $ 4,522 |
2020 | 5,326 |
2021 | 70,808 |
2022 | 6,326 |
2023 | 6,881 |
Thereafter | 163,726 |
Debt outstanding amount | 257,589 |
Net premium | (284) |
Total | $ 257,305 |
LONG-TERM DEBT - Schedule of Interest Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Debt Disclosure [Abstract] | |||
Interest expense | $ 15,394 | $ 15,713 | $ 16,038 |
Less: capitalized interest | 4,532 | 4,080 | 2,201 |
Net interest expense | $ 10,862 | $ 11,633 | $ 13,837 |
FEDERAL AND STATE INCOME TAXES - Significant Components of the Provision for Income Taxes from Continuing Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Feb. 28, 2018 |
Nov. 30, 2017 |
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Current tax expense (benefit): | |||||
Federal | $ 14,578 | $ 6,888 | $ (27,061) | ||
State | 3,078 | 1,440 | 1,856 | ||
Deferred tax expense (benefit): | |||||
Federal | (141,944) | (10,912) | 70,186 | ||
State | 6,270 | (3,041) | 2,750 | ||
Provision (benefit) for income taxes | $ (143,900) | $ (48,200) | $ (118,018) | $ (5,625) | $ 47,731 |
FEDERAL AND STATE INCOME TAXES - Reconciliation of Federal Statutory Tax Rates to Income Tax Expense from Continuing Operations (Details) |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Income tax computed at federal statutory rates | 22.20% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 2.80% | 3.20% | 3.20% |
Investment in MA | 0.00% | (43.80%) | 0.00% |
Tax Cuts and Jobs Act | (135.20%) | 0.00% | 0.00% |
Other, net | 0.20% | 0.30% | 0.30% |
Effective income tax rate (percent) | (110.00%) | (5.30%) | 38.50% |
FEDERAL AND STATE INCOME TAXES - Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands |
Nov. 30, 2018 |
Nov. 30, 2017 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Loss carryforwards | $ 14,250 | $ 13,739 |
Deferred revenues | 644 | 1,249 |
Accruals | 1,248 | 2,251 |
Compensation related | 2,271 | 3,294 |
Interest | 1,386 | 2,084 |
Equity investment | 1,145 | 860 |
Deferred tax assets | 20,944 | 23,477 |
Valuation allowance | (35) | (2,116) |
Deferred tax assets, net of valuation allowance | 20,909 | 21,361 |
Amortization and depreciation | (281,410) | (417,127) |
Other | (165) | (280) |
Deferred tax liabilities | (281,575) | (417,407) |
Net deferred tax liabilities | $ (260,666) | $ (396,046) |
FEDERAL AND STATE INCOME TAXES - Reconciliation of Unrecognized Tax Liability (Details) $ in Thousands |
12 Months Ended |
---|---|
Nov. 30, 2018
USD ($)
| |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning Balance | $ 271 |
Reductions for tax positions of prior years | (77) |
Ending Balance | $ 194 |
COMMITMENTS AND CONTINGENCIES - Future Minimum Payments Under Operating Agreement and Leases (Details) $ in Thousands |
Nov. 30, 2018
USD ($)
|
---|---|
Operating Agreement | |
2019 | $ 1,000 |
2020 | 1,000 |
2021 | 1,000 |
2022 | 1,000 |
2023 | 1,000 |
Thereafter | 9,000 |
Total | 14,000 |
Operating Leases | |
2019 | 11,926 |
2020 | 10,898 |
2021 | 9,990 |
2022 | 9,429 |
2023 | 8,436 |
Thereafter | 54,368 |
Total | $ 105,047 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Supplemental Cash Flow Information [Abstract] | |||
Income taxes paid | $ 13,548 | $ 31,424 | $ 24,392 |
Interest paid | $ 13,667 | $ 13,928 | $ 14,199 |
LONG-TERM STOCK INCENTIVE PLAN - Summary of Status of Restricted Stock (Details) - Restricted Stock Units (RSUs) |
12 Months Ended |
---|---|
Nov. 30, 2018
$ / shares
shares
| |
Restricted Shares | |
Unvested at beginning of period | shares | 369,034 |
Granted | shares | 95,273 |
Vested | shares | (88,917) |
Forfeited | shares | (7,495) |
Unvested at end of period | shares | 367,895 |
Weighted-Average Grant-Date Fair Value (Per Share) | |
Unvested at beginning of period | $ / shares | $ 34.91 |
Granted | $ / shares | 41.33 |
Vested | $ / shares | 34.98 |
Forfeited | $ / shares | 35.12 |
Unvested at end of period | $ / shares | $ 36.55 |
Weighted-Average Remaining Contractual Term | |
Unvested at end of period | 3 years 6 months |
LONG-TERM STOCK INCENTIVE PLAN - Summary of Option Activity Under Stock Plan (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Options Shares | |||
Outstanding at beginning of period | 62,244 | ||
Expired | (13,889) | ||
Exercised | (29,563) | (20,295) | (5,321) |
Forfeited | 0 | ||
Outstanding at end of period | 18,792 | 62,244 | |
Exercisable at end of period | 18,792 | ||
Options Weighted-Average Exercise Price | |||
Outstanding at beginning of period | $ 32.37 | ||
Expired | 39.03 | ||
Exercised | 33.52 | ||
Forfeited | 0.00 | ||
Outstanding at end of period | 25.65 | $ 32.37 | |
Exercisable at end of period | $ 25.65 | ||
Options Weighted-Average Remaining Contractual Term | |||
Outstanding at end of period | 1 year | ||
Exercisable at end of period | 1 year | ||
Options Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 317,653 | ||
Exercisable at end of period | $ 317,653 |
QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2018 |
Aug. 31, 2018 |
May 31, 2018 |
Feb. 28, 2018 |
Nov. 30, 2017 |
Aug. 31, 2017 |
May 31, 2017 |
Feb. 28, 2017 |
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 195,204 | $ 159,278 | $ 171,679 | $ 148,875 | $ 226,264 | $ 131,940 | $ 165,275 | $ 147,954 | $ 675,036 | $ 671,433 | $ 661,016 |
Operating income | 33,140 | 10,271 | 17,257 | 32,494 | 41,762 | 2,151 | 18,425 | 33,818 | 93,162 | 96,156 | 109,827 |
Net income | $ 27,237 | $ 12,031 | $ 16,670 | $ 169,347 | $ 76,058 | $ 265 | $ 13,227 | $ 21,273 | $ 225,284 | $ 110,823 | $ 76,338 |
Basic and diluted earnings per share (in dollars per share) | $ 0.62 | $ 0.27 | $ 0.38 | $ 3.83 | $ 1.72 | $ 0.01 | $ 0.29 | $ 0.47 | $ 5.11 | $ 2.48 | $ 1.66 |
QUARTERLY DATA (UNAUDITED) - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2018 |
Aug. 31, 2018 |
May 31, 2018 |
Feb. 28, 2018 |
Nov. 30, 2017 |
Aug. 31, 2017 |
May 31, 2017 |
Feb. 28, 2017 |
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Loss on retirements of long-lived assets | $ 900 | $ 2,200 | $ 200 | $ 1,200 | $ 10,000 | $ 100 | $ 400 | $ 100 | |||
Other income | $ 1,000 | ||||||||||
Proceeds from insurance | 1,800 | ||||||||||
Material income tax benefit recognized | 143,900 | $ 48,200 | $ 118,018 | $ 5,625 | $ (47,731) | ||||||
Tax Cuts and Jobs Act, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ (1,200) | $ (143,900) | $ (145,100) |
SEGMENT REPORTING - Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Segment Reporting Information [Line Items] | |||
Revenues | $ 677,082 | $ 673,417 | $ 663,166 |
Intersegment Elimination | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,000 | $ 2,000 | $ 2,200 |
SEGMENT REPORTING - Financial Information by Operating Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2018 |
Aug. 31, 2018 |
May 31, 2018 |
Feb. 28, 2018 |
Nov. 30, 2017 |
Aug. 31, 2017 |
May 31, 2017 |
Feb. 28, 2017 |
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 677,082 | $ 673,417 | $ 663,166 | ||||||||
Depreciation and amortization | 106,819 | 109,733 | 102,156 | ||||||||
Operating income | $ 33,140 | $ 10,271 | $ 17,257 | $ 32,494 | $ 41,762 | $ 2,151 | $ 18,425 | $ 33,818 | 93,162 | 96,156 | 109,827 |
Equity investments income/(loss) | 21,777 | 19,111 | 14,913 | ||||||||
Capital expenditures | 159,792 | 145,133 | 140,793 | ||||||||
Total assets | 2,249,360 | 2,208,192 | 2,249,360 | 2,208,192 | 2,172,660 | ||||||
Equity investments | 81,225 | 86,200 | 81,225 | 86,200 | 92,392 | ||||||
Motorsports Event | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 635,271 | 639,615 | 630,213 | ||||||||
Depreciation and amortization | 99,844 | 104,885 | 97,816 | ||||||||
Operating income | 97,402 | 97,262 | 107,690 | ||||||||
Equity investments income/(loss) | 0 | 0 | 0 | ||||||||
Capital expenditures | 131,069 | 84,238 | 100,644 | ||||||||
Total assets | 1,675,016 | 1,644,116 | 1,675,016 | 1,644,116 | 1,651,845 | ||||||
Equity investments | 0 | 0 | 0 | 0 | 0 | ||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 41,811 | 33,802 | 32,953 | ||||||||
Depreciation and amortization | 6,975 | 4,848 | 4,340 | ||||||||
Operating income | (4,240) | (1,106) | 2,137 | ||||||||
Equity investments income/(loss) | 21,777 | 19,111 | 14,913 | ||||||||
Capital expenditures | 28,723 | 60,895 | 40,149 | ||||||||
Total assets | 574,344 | 564,076 | 574,344 | 564,076 | 520,815 | ||||||
Equity investments | $ 81,225 | $ 86,200 | $ 81,225 | $ 86,200 | $ 92,392 |
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance beginning of period | $ 1,000 | $ 1,000 | $ 1,000 | ||
Additions charged to costs and expenses | 2,277 | 53 | 94 | ||
Deductions | [1] | 2,277 | 53 | 94 | |
Balance at end of period | $ 1,000 | $ 1,000 | $ 1,000 | ||
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