International Speedway (NASDAQ:ISCA) reported its second-quarter earnings today on the heels of the Pepsi 400 last weekend at the company's crown jewel Daytona International Speedway. The motorsports event operator said that net earnings fell 50% to $6.1 million, or $0.11 per share, because of one-time charges.
But apparently investors didn't mind the charges too much. The last time I checked, the stock was trading 2.5% higher today. That's because the charges related to the impairment of some long-lived assets at one of its tracks, and other special items, not something operationally amiss. Excluding the items, International Speedway's $0.36 a share was better than last year's $0.27. Furthermore, revenue climbed 11% to $132.7 million from a year earlier.
The company, which operates 12 facilities, reported sold-out attendance at its NASCAR NEXTEL Cup races and record attendance for the Busch series races at California and Richmond. The increased revenue came as a result of overall increased interest by fans. Media, food, beverage, and merchandising sales were all up. The company also announced during the quarter that it would acquire Martinsville Speedway.
International Speedway reiterated its third-quarter guidance of $145 million to $150 million in revenue and earnings of $1.26 to $1.28 per share. That includes a $36 million gain from the sale of its North Carolina track. Excluding the gain, earnings are projected to be between $0.58 and $0.60.
The question, though, is can this motorsports behemoth keep up the pace? Well, just as it would seem there's no way this company could add another lap, a schedule realignment for next year is going to add a second race at its Phoenix track. I wouldn't expect tremendous growth from this well-established business, but it has managed continuous forward progress, and there's no end in sight as of yet.
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Fool contributor Mark Mahorney doesn't own shares of any companies mentioned.
