Caution at International Speedway: Fool by Numbers

On Tuesday, motor sports event and facility operator International Speedway (Nasdaq: ISCA) released results for the first quarter ended Feb. 28. Here are the quick and dirty details.

• Total revenue fell 4.5% as management cited a "year-over-year decline in broadcast revenue due to the start of NASCAR's new eight-year combined television agreements."      
• Diluted earnings fell 19.3% and included an additional $0.03 in depreciation from a building not being used in Daytona, Florida. Results fell below analyst projections for the quarter.
• Management expects 2007 revenue of $800 million to $820 million and non-GAAP diluted earnings of $3.10 to $3.20.        
• International Speedway carries a four-star rating in the Motley Fool CAPS intelligence database, as does rival Speedway Motorsports (NYSE: TRK). Be the first to rate Dover Motorsports (NYSE: DVD) and offer your opinion on any stock out there. The service and ratings are completely free.            

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$185,179	$193,934	(4.5%)
Net Profit	$35,819	$44,053	(18.7%)
EPS	$0.67	$0.83	(19.3%)
Diluted Shares	53,216	53,250	(0.1%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q1 2007	Q1 2006	Change*
Gross Margin	59.90%	59.51%	0.39
Operating Margin	35.52%	40.46%	(4.94)
Net Margin	19.34%	22.72%	(3.38)

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$98,826	$99,411	(0.6%)
Accounts Rec.	$122,346	$128,306	(4.6%)
Inventory	$6,583	$7,895	(16.6%)

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$23,012	$24,562	(6.3%)
Long-Term Debt	$441,641	$418,314	5.6%

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q1 2007	Q1 2006	Change
Cash From Ops.	$59,391	$57,125	4.0%
Capital Expenditures	$37,107	$22,762	63.0%
Free Cash Flow	$22,284	$34,363	(35.2%)

Cash flow is a Fool's best friend.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.