International Speedway Corp. (NASDAQ:ISCA) Q1 2019 Earnings Conference Call - Final Transcript
Apr 04, 2019 • 09:00 am ET
Greg S. Motto
at existing facilities, return of capital through payments of an annual cash dividend, and repurchase of our shares under our Stock Purchase Plan. We operate under a five-year capital allocation plan adopted by the Board of Directors covering fiscal years 2017 through 2021. Components of this plan include capital expenditures at existing facilities including the Talladega infield project, the ONE DAYTONA development project, and return of capital to shareholders.
For existing facilities, we expect capital expenditures up to $500 million from fiscal 2017 through fiscal 2021. These include the previously discussed reinvestment at ISM Raceway and Richmond projects and the recently announced infield renovations at Talladega as well as 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 estimated at approximately $40 million to $60 million annually will likely result in a blended return of invested capital in the low to mid-single digits. In addition to the $500 million in capital expenditures for existing facilities, we expect approximately $111 million of capital expenditures, exclusive of capitalized interest and net of public incentives, related to ONE DAYTONA.
For fiscal 2019, we expect total capital expenditures associated with our capital allocation plan to range between $95 million and $115 million for existing facilities, which includes the Talladega infield project and remaining capital expenditures related to the completion of projects at ISM, Richmond Raceways, and the ONE DAYTONA development. Return of capital to shareholders through dividends and share repurchases is a significant pillar of our capital allocation. We expect dividends to increase in 2019 and beyond by approximately 4% to 5% annually. Concerning share repurchases, we terminated our active Rule 10b5-1 plans immediately upon receipt of the previously discussed NASCAR offer. Therefore, we did not repurchase any shares of ISCA during the fiscal quarter of fiscal 2019. At February 28, 2019 we had approximately $138.7 million remaining purchase authority under the current $530 million Stock Purchase Plan.
For 2017 through 2021, we expect our return of capital program to be approximately $280 million comprised of close to $100 million in total annual dividends and $180 million open market repurchase of ISCA shares over the five-year period. We have built the capital allocation plan based on conservative estimates that will maintain a strong financial position, prudently and disciplined reinvestment in the business, and provide stable and growing return to shareholders. And now for our outlook for 2019. In an effort to enhance the comparability and understandability of our forward-looking financial guidance, we adjust for certain non-recurring items that will be included in our future GAAP reporting. We believe this adjusted information best represents our expectations for our 2019 core business performance. Please refer to our earnings release for a detailed list of items excluded from our fiscal 2019 non-GAAP guidance.
For fiscal 2019, we are reaffirming our outlook within the previously provided guidance range. The high end of our range contemplates stabilization in