International Speedway Corp (NASDAQ: ISCA) stock rose 4.5 percent today (as of 12:32PM EDT on October 5th, 2017; Source: Google finance) after the company posted better than expected results in the third quarter of FY 17. In the third quarter, the net income fell to $265,000, from $2.2 million, in the same period a year ago. Excluding the non-recurring items, such as a legal settlement, the accelerated depreciation of assets and losses related to the retirement of assets, the adjusted earnings per share came to 6 cents, above the FactSet consensus of 3 cents. The revenue grew 2.2% to $131.9 million, beating the FactSet consensus of $128.2 million, as the declines in admissions and other revenue were offset by increases in revenue for motorsports and other events and food, beverage and merchandise. The operating income was over $2.2 million during the third quarter compared to approximately $3.7 million in the third quarter of fiscal 2016.
In FY16 the company had increased the dividend approximately 58.0 percent to $0.41 per share, and in FY 17, ISCA has increased the dividend approximately 4.9 percent to $0.43 per share. The company expects dividends to increase in 2018 and beyond, by approximately four to five percent annually. For the nine months ended August 31, 2017, ISCA had repurchased 979,328 shares of ISCA on the open market at a weighted average share price of $35.76 for a total of approximately $35.0 million. At August 31st, 2017, the company had approximately $171.6 million remaining repurchase authority under the current $530.0 million Stock Purchase Plan.
The company has affirmed its previous FY17 guidance for revenue of $660 million to $670 million and the adjusted earnings per share is expected in the range of $1.50 to $1.65. Further, in FY 17, EBITDA margin is expected in the range of 31.5% to 32.5%, Operating margin is expected in the range of 15.5% to 17.0% and effective tax rate is expected in the range of 38.0% to 38.5%. The total capital expenditures for 2017 are estimated between approximately $150.0 million to $175.0 million, which include capital expenditures for existing facilities, including The Phoenix Raceway Project and ONE DAYTONA.
Additionally, the Phoenix Raceway Project powered by DC Solar is progressing and the company has the finish line in sight for ONE DAYTONA. The Fairfield Inn and Suites, along with several first-to-market tenants, are planned to open later this year.
ISCA stock has risen % in a year (source: Google Finance).