International Speedway Corp. (NASDAQ:ISCA) Q4 2014 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 09:00 am ET


International Speedway Corp. (NASDAQ:ISCA) Q4 2014 Earnings Conference Call - Final Transcript


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Dan Houser

effective tax rate for 2014 -- 2015 will be approximately 38.5% to 39.5%. Our current expectations for cash distributions from the casino joint venture to ISC will be approximately $20 million to $22 million.

Cash distributions anticipated for 2015 could be impacted should the casino joint venture decide to commence construction on a hotel development. Equity income from the casino is expected to be approximately $8 million to $10 million for the year. The low end of projections for 2015 include the penalty equal to 1% of gross gaming revenue if the casino has not commenced construction on a hotel development by April, 2015.

Based on all of the above assumptions, we expect fiscal 2015 non-GAAP earnings between $1.10 and $1.30 per diluted share, which includes a charge of approximately $0.15 to $0.18 per diluted share related to additional depreciation on DAYTONA Rising and approximately $0.05 to $0.06 per diluted share related to the non-recurring charges associated with transitioning the merchandize business model. Excluding these charges, non-GAAP earnings guidance for fiscal 2015 would have been between $1.30 and $1.50 per diluted share, comparable to our non-GAAP earnings guidance for 2014.

Our fiscal 2015 non-GAAP earnings guidance excludes any income statement impact is attributable to DAYTONA Rising project, including pre-opening, marketing and consulting cost, non-capitalized cost and accelerated depreciation for the removal of assets not fully depreciated and capitalized interest. Also excluded from non-GAAP earnings are any costs related to legal settlements potential non-capitalized costs or charges that could be recognized related to our ONE DAYTONA development. Financing and pre-opening costs that could be incurred for our casino joint venture should it proceed with hotel construction. Gain or loss on-sale fixed assets and accelerated depreciation and loss on asset retirements or relocations that can be recorded as part of capital improvements other than DAYTONA Rising.

In closing, ISC maintains a solid financial position developed over many years that afford us the ability to follow our disciplined capital allocation strategy and maintain our leadership position in the motorsports industry. Building on this foundation, we will continue to execute our five-year $600 million capital allocation plan through 2017. For the future, we are well positioned to balance the strategic capital needs of our business with returning capital to our shareholders. We look forward to speaking with you on our next earnings conference call in April.

And with that, I'll turn it back over to the operator to lead us through the Q&A portion of the call.