Pink slips at ISC as attendance, profits, plummet International Speedway Corporation (“ISC”) today announced the implementation of broad-based strategic organizational and structural changes that will create a leaner and more responsive organization, enabling the Company to remain the leader in motorsports entertainment. Included in these changes, Roger VanDerSnick, Executive Vice President and Chief Operating Officer (“COO”), has left the Company. As part of the changes to the organizational structure, there are no plans to replace the COO position and the primary responsibilities of this role will fall under ISC’s President, John Saunders.
As the economic recovery expected earlier in 2010 has not materialized, the Company will initiate additional organizational and structural changes through the remainder of its fiscal year. These changes will have a positive impact on the Company’s financial position and will include streamlining of corporate services, optimization of event and ancillary business models, and process improvements that will result in a reduction of workforce and operational costs. ISC anticipates these initiatives will lower its direct operating expenses, beginning in 2011, by $20 million to $30 million in sustainable reductions. These changes will result in the Company recording a pre-tax charge to earnings of between $1.5 million and $1.9 million, or approximately $0.02 and $0.03 per diluted share, in its fiscal 2010 results. Additional non-material cash and non-cash charges will be incurred in 2011 and 2012, depending on the timing of other business changes.
“ISC remains a profitable and financially sound company but given the ongoing economic challenges, we need to be proactive in improving operations and the bottom line to remain the industry leader in motorsports entertainment,” stated Lesa France Kennedy, ISC’s Chief Executive Officer. “The fan experience remains our top priority and these organizational changes will allow us to continue delivering positive experiences for our guests and business partners. We are confident that our plans will create a more efficient and effective organization, and will better position ISC to achieve its long-term goals.”
In closing, Ms. France Kennedy stated, “We want to thank Roger for his years of service and for elevating the prominence of motorsports entertainment through his contributions at NASCAR and for the past four years at ISC. We wish him well as he enters a new phase in his remarkable career.”
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