Track firm cites Island failure for income loss
International Speedway Corp., the company that recently abandoned its bid to build a NASCAR track on Staten Island, yesterday reported increased revenues but a loss in fourth-quarter net income, which it blamed in part on its Island failure.
The Daytona Beach, Fla.-based company reported a 7 percent increase in total revenues for the fourth quarter to $253.5 million, from $236.7 million, but its profit for the fourth quarter dropped 86 percent, to $7.8 million, or 15 cents per share, from $55 million, or $1.03 per share, a year ago. Operating income for the quarter was down to $16.7 million from $90.5 million in the fourth quarter last year.
<A href=”http://ads.silive.com/RealMedia/ads/click_nx.ads/www.silive.com/xml/story/si_advance/n/ntop/@StoryAd?x”><IMG src=”http://ads.silive.com/RealMedia/ads/adstream_nx.ads/www.silive.com/xml/story/si_advance/n/ntop/@StoryAd?x”></A> ISC President Lesa France Kennedy called fiscal 2006 “another successful year for the company, anchored by a strong fourth quarter.”
The company blamed some of the immediate loss on abandoning its plan to build an 82,500-seat raceway on the Island’s West Shore. ISC has spent $150 million on the project, and estimates the value of the 675-acre tract at $65 to $75 million, down from the $110 million it paid in late 2004.
But the company has said it expects the property will be worth more than $100 million when its ongoing cleanup of the site is complete. ISC hopes to sell the land, which sits near the Goethals Bridge.
One racing analyst played down the figures yesterday, saying the company is in fine financial shape, and emphasized that the numbers reflect accounting changes by the company, including low-balling the value of the Island property while it continues the remediation.
“These are accounting things that you have to put in, but they have nothing to do with how the operations are doing. . . . They’re writing it down as to what the value is today,” said motor sports industry analyst Dennis McAlpine. “That’s an accounting game.”
McAlpine said that, despite the ups and downs with its beleaguered Island project, ISC’s stock holds steady at $52 a share.
Total revenue for the fiscal year increased to $798.4 million from $740.1 million in 2005. Operating income for the year was down to $199.2 from $265.3 in the prior year.
Friday, January 26, 2007
By SALLY GOLDENBERG
Entry filed under: Uncategorized. Tags: Staten Island.