International Speedway Corp. (NASDAQ:ISCA) Q2 2019 Earnings Conference Call Transcript

Jul 03, 2019 • 09:00 am ET

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International Speedway Corp. (NASDAQ:ISCA) Q2 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Thank you. At this time ladies and gentlemen we will open the lines for questions-and-answers. (Operator Instructions) Our first question comes from the line of Jaime Katz of Morningstar.

Analyst
Jaime Katz

Hi. Good morning, guys.

Executive
John Saunders

Good morning, Jaime.

Executive
Greg Motto

Good morning, Jaime.

Analyst
Jaime Katz

John, I have a question on the integrated sponsorship model. You sort of rushed across that pretty quickly. I'm curious if you have any updates on that, that would be helpful for us to understand.

Executive
John Saunders

I don't have anything, any updates. Just to refresh what we've talked about previously, the NASCAR's approach going forward is to cheer sponsorships. You know the days of Sprint riding a $75 million check to be a series entitlement, we just don't think that's a good model going forward. But the NASCAR has been in the marketplace. They have what they call premier and signature tiered levels for sponsors. They have a lot of interest at both levels of those tiers. But it would really be their announcement when something is signed. But it does include the integrated sponsorship model, does include assets, not just from NASCAR but assets across race facilities and in some cases race teams. So it's including the broadcaster. So we think it's a much better play going forward and they are gaining momentum in the marketplace. But announcements would really come from NASCAR.

Analyst
Jaime Katz

And we would hear more about that over the next six months plus, correct? Is that the right timeline to think about that?

Executive
John Saunders

I would think that's the right timeline.

Analyst
Jaime Katz

Okay. And then as far as this bank partner that's going through bankruptcy, has that given you guys any pause to really reassess how some of these contracts are structured and your ability to maybe replace some partners if it seems like they may not be able to have the liquidity to service their payments with you?

Executive
Greg Motto

Hey Jaime, this is Greg, I'll answer that situation. We do have a defined risk analysis process that we go through in evaluating our partnerships before executing the agreements. This one situation unfortunately has not just impacted us and impacted many in the industry and many in other industries and to the extent of replacing the position, our sales team. And as John mentioned with the integrated sponsorship model, we always look for opportunities to create a new category, new positions for our partners.

Analyst
Jaime Katz

Okay. And then I know you don't want to talk about the buyout. I just want to reiterate what I heard which is that before the vote goes to the outside shareholders, it will go first to FTC or whoever is evaluating antitrust. So there's still some length of time before this transaction theoretically would close. Is that right?

Executive
Greg Motto

Yes. Jaime, the process will be that the Company will prepare a proxy to file with the SEC within 30 days of the -- 30 business days of the merger agreement and then go through a period with the SEC to clear it before a final proxy will be