International Speedway Corporation recorded a 72 percent plunge in third-quarter profit, blaming it on mounting losses in its sportswear business and several one-time expenses.
ISC, which owns Daytona International Speedway and 11 other tracks, recorded third-quarter earnings of $9.5 million, or 18 cents per share. That was less than one-third the $34.3 million profit, or 64 cents a share, that it made in last year’s third quarter.
The company also reduced its full-year financial forecast for the second time in three months. It now expects revenue of $810 million to $815 million, down $10 million to $15 million from its last estimate issued in July. Earnings per share are expected to be in the $2.70 to $2.75 range.
While revenue for the June-August quarter rose to a record $196.3 million, several problems cut heavily into the company’s bottom line. Among the setbacks was a charge of $12.4 million to cover ISC’s 50 percent share of losses suffered by Motorsports Authentics, a clothing and souvenir company ISC operates jointly with Speedway Motorsports.
ISC had acknowledged earlier the sportswear business could lose as much as $20 million because its Dale Earnhardt Jr. clothing inventory with “No. 8″ designs became obsolete after Junior revealed plans to change teams. On Wednesday, ISC said the joint venture will lose about $5 million more because of team-hopping by Kyle Busch, the merger of Ginn Racing with DEI Inc., and other racing team changes.
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How bad is it when the Frances bottom line depends on Dale Jr’s T-Shirt sales.
Must be awfully bad when a $22.00 t-shirt controls the financial destiny of a major
corporation. This is a load of BS folks, its a way to take a major write off at
stockholder expense.
I can see a large ticket price raise coming..
Hmmm…wonder if it has anything to do with dumping tons of cash into their failed attempts at tracks in NY and the pacific NW
remember last year they had that ricky bobby movie out, iam sure that had to help sum also.