Nasdaq:CHDN
Churchill Downs Incorporated and DraftKings Inc. Enter Agreement to Develop and Launch DK HORSE
DK HORSE Will Give DraftKings’ Customers the Ability to Bet on Horse Racing
LOUISVILLE, Ky. and BOSTON, Nov. 29, 2022 (GLOBE NEWSWIRE) — Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) and DraftKings Inc. (Nasdaq: DKNG) (“DraftKings”) announced today a multi-year agreement that will bring pari-mutuel wagering on horse racing to DraftKings. CDI’s subsidiary, TwinSpires, will provide advance deposit wagering (“ADW”) technology to DraftKings. TwinSpires is the premier, market leading online horse racing wagering platform in the U.S.
DraftKings will launch DK HORSE in the coming months, which will allow DraftKings’ eligible customers to bet on horse racing using a standalone branded app. The initial launch of DK HORSE will require customers to sign up and deposit funds separate from that of their one account, one wallet tethered to the DraftKings Sportsbook, Casino and daily fantasy sports apps. Plans to integrate DK HORSE into the DraftKings product suite will be announced at a later date. DK HORSE is expected to be available initially in 21 states, pending all necessary licensing and regulatory approvals, and is scheduled to launch ahead of the 149th running of the Kentucky Derby in May 2023.
“We are excited to collaborate with Churchill Downs Incorporated, not only to give our existing customers an opportunity to engage with pari-mutuel horse wagering, but also to acquire new customers efficiently during marquee horse racing moments,” said Jason Robins, CEO and Chairman of the Board of DraftKings. “Due to the structure of the agreement, we expect this new product offering to be immediately profitable.”
Under the agreement, CDI will provide DraftKings pari-mutuel wagering rights to horse racing content owned or controlled by CDI, including the Kentucky Oaks and Kentucky Derby. CDI will also secure, on behalf of DraftKings, additional horse racing content for use on DK Horse.
“We believe the depth and quality of our online offering through TwinSpires is unmatched in horse racing,” said Bill Carstanjen, CEO of CDI. “We are excited to establish this relationship with DraftKings and to deliver a full end-to-end white label ADW solution that will introduce their significant base of sports betting customers to horse racing wagering.”
An active member of the American Gaming Association (“AGA”), DraftKings is committed to promoting the AGA’s Have A Game Plan.® Bet Responsibly™ public service campaign, which educates customers on responsible gaming best practices such as establishing and adhering to a budget and only engaging with legal, regulated operators. DraftKings is committed to creating inclusive and responsible pathways for people to build, create, imagine and innovate through the DraftKings S.E.R.V.E.S. program.
About Churchill Downs Incorporated
Churchill Downs Incorporated (“CDI”, NASDAQ: CHDN) has been creating extraordinary entertainment experiences for nearly 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the development of live and historical racing entertainment venues, the growth of the TwinSpires horse racing online wagering business and the operation and development of regional casino gaming properties. More information is available at www.churchilldownsincorporated.com.
About DraftKings
DraftKings Inc. is a digital sports entertainment and gaming company created to fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming and digital media. Headquartered in Boston, and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings is a multi-channel provider of sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. The company operates iGaming in 5 states through its DraftKings brand, as well as operating Golden Nugget Online Gaming, an award-winning iGaming product and iconic gaming brand, in 3 states. DraftKings’ Sportsbook is live with mobile and/or retail betting operations in the United States pursuant to regulations in 21 states and in Ontario, Canada. DraftKings’ daily fantasy sports product is available in 6 countries internationally with 15 distinct sports categories. DraftKings is both an official daily fantasy and sports betting partner of the NFL, NBA, MLB, NHL, PGA TOUR and UFC as well as an official daily fantasy partner of NASCAR. Launched in August 2021, DraftKings Marketplace is a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions. DraftKings also owns Vegas Sports Information Network (VSiN), a multi-platform broadcast and content company.
Churchill Downs Incorporated Forward-Looking Statements
This news release contains various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” and similar words or similar expressions (or negative versions of such words or expressions).
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors, among others, that may materially affect actual results or outcomes include the following: the impact of the novel coronavirus (COVID-19) pandemic, including the emergence of variant strains, and related economic matters on our results of operations, financial conditions and prospects; the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather; the effect of economic conditions on our consumers’ confidence and discretionary spending or our access to credit; including the impact of inflation; additional or increased taxes and fees; the impact of significant competition, and the expectation the competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; loss of key or highly skilled personnel; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and HRM manufacturing and other technology conditions that could impose additional costs; inability to negotiate agreements with industry constituents, including horsemen and other racetracks; inability to identify and / or complete or fully realize the benefits of acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; general risks related to real estate ownership and significant expenditures, including fluctuations in market values and environmental regulations; reliance on our technology services and catastrophic events and system failures disrupting our operations; online security risk, including cyber-security breaches, or loss or misuse of our stored information as a result of a breach, including customers’ personal information, could lead to government enforcement actions or other litigation; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or applicable money-laundering regulations; payment-related risks, such as risk associated with fraudulent credit card and debit card use; work stoppages and labor issues; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; and increase in our insurance costs, or obtain similar insurance coverage in the future, and inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
DraftKings Forward-Looking Statements
Certain statements made in this press release are “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings’ control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see DraftKings’ filings with the U.S. Securities and Exchange Commission. DraftKings does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CDI Contact: [email protected] | DraftKings Contact: [email protected] | |
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Nasdaq:CHDN
Churchill Downs Incorporated Reveals Grandstand Club and Pavilion Renovation Plan for Churchill Downs Racetrack
![churchill-downs-incorporated-reveals-grandstand-club-and-pavilion-renovation-plan-for-churchill-downs-racetrack](https://recentslotreleases.com/wp-content/uploads/2024/07/138478-churchill-downs-incorporated-reveals-grandstand-club-and-pavilion-renovation-plan-for-churchill-downs-racetrack.jpg)
$80-$90 Million Project will Debut for the 151st Kentucky Derby in May 2025
LOUISVILLE, Ky., July 24, 2024 (GLOBE NEWSWIRE) — Churchill Downs Incorporated (“CDI” or “the Company”) announced today an $80-$90 million renovation to the existing grandstand at Churchill Downs Racetrack (“Churchill Downs”) that will update ticketed seating options while significantly improving and adding to the amenities available for all guests in the grandstand area. Construction on the Grandstand Club and Pavilion is scheduled to begin in August with completion planned in time for the 151st Kentucky Derby in May 2025.
The renovation of the Grandstand Club will transform existing outdoor aluminum bleachers into a combination of 8,300 new comfortable seating varieties. Updated seating options will include covered and uncovered stadium-style seats as well as rail boxes along the dirt track’s outer rail that will offer a “trackside” seating experience where guests will be able to closely watch horses break from the Kentucky Derby Starting Gate. First-floor amenities for the Grandstand Club will include new and upgraded permanent concessions, bars and wagering windows.
The Grandstand Club will transform existing bleachers to stadium-style seats and rail boxes.
The project will also considerably improve and add amenities for 2,800 guests in the existing third floor box seats under the Starting Gate Suites. The Grandstand Pavilion will create a more upscale social environment by converting the existing second-floor amenity area into a covered outdoor garden environment with new concessions, bars and wagering windows. Expansion to the second floor will create additional space for overall guest circulation and add an outdoor balcony for added dining seats. A new stately entrance to the Grandstand Pavilion will unify the surrounding exterior architecture.
The Grandstand Pavilion will be a covered outdoor garden environment featuring updated finishes, new concessions, bars and wagering windows.
“Like all of our recent enhancements at Churchill Downs, the renovation of the grandstands represents our commitment to providing unique guest seating options while honoring the historic significance of the property in order to achieve a world class sports and entertainment experience for our guests,” said Mike Anderson, President of Churchill Downs.
For more information on purchasing options for the Grandstand Club and Pavilion, sign up for the online sale at KentuckyDerby.com or call (502) 636-4447 for additional purchasing options including personal seat licenses.
About Churchill Downs Incorporated
Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has been creating extraordinary entertainment experiences for over 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the development of live and historical racing entertainment venues, the growth of the TwinSpires horse racing online wagering business and the operation and development of regional casino gaming properties. www.churchilldownsincorporated.com/
This news release contains various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” “scheduled,” and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors, that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers’ confidence and discretionary spending or our access to credit, including the impact of inflation; additional or increased taxes and fees; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, including possible new variants of COVID-19, and related economic matters on our results of operations, financial conditions and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine (HRM) manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; inability to successfully focus on market access and retail operations for our TwinSpires sports betting business and effectively compete; online security risk, including cyber-security breaches, or loss or misuse of our stored information as a result of a breach including customers’ personal information could lead to government enforcement actions or other litigation; reliance on our technology services and catastrophic events and system failures disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates (due to inflation or otherwise), disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; and other factors described under the heading “Risk Factors” in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact: Sam Ullrich (502) 638-3906 [email protected] |
Media Contact: Tonya Abeln (502) 386-1742 [email protected] |
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/0927730a-971b-4878-b2aa-e353e5c3bba3
https://www.globenewswire.com/NewsRoom/AttachmentNg/f9d0736f-c54e-40d6-9ca8-6f6c6ca0a213
Nasdaq:CHDN
Churchill Downs Incorporated Announces Robert L. Fealy Retires From Company’s Board of Directors
![churchill-downs-incorporated-announces-robert-l.-fealy-retires-from-company’s-board-of-directors](https://recentslotreleases.com/wp-content/uploads/2024/07/138480-churchill-downs-incorporated-announces-robert-l-fealy-retires-from-companys-board-of-directors.jpg)
LOUISVILLE, Ky., July 24, 2024 (GLOBE NEWSWIRE) — Churchill Downs Incorporated (“CDI” or “Company”) announced today that Robert L. Fealy retired from CDI’s Board of Directors on July 23, 2024.
“We are grateful for Bob’s long-term exemplary service as a board member of Churchill Downs Incorporated,” said Bill Carstanjen, CDI’s President and Chief Executive Officer. “We will miss his perspective, insight, and dedication to our Company. I want to also personally thank him for his friendship and wisdom over the many years we have worked together.”
About Churchill Downs Incorporated
Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has been creating extraordinary entertainment experiences for over 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the development of live and historical racing entertainment venues, the growth of the TwinSpires horse racing online wagering business and the operation and development of regional casino gaming properties. www.churchilldownsincorporated.com/
Investor Contact: Sam Ullrich
(502) 638-3906
[email protected]
Nasdaq:CHDN
Churchill Downs Incorporated Reports 2024 Second Quarter Results
![churchill-downs-incorporated-reports-2024-second-quarter-results](https://recentslotreleases.com/wp-content/uploads/2024/07/138482-churchill-downs-incorporated-reports-2024-second-quarter-results.jpg)
LOUISVILLE, Ky., July 24, 2024 (GLOBE NEWSWIRE) — Churchill Downs Incorporated (Nasdaq: CHDN) (the “Company”, “CDI”, “we”) today reported business results for the second quarter ended June 30, 2024.
Company Highlights
- All-time record net revenue of $890.7 million compared to $768.5 million in second quarter 2023
- Net income attributable to CDI of $209.3 million compared to $143.0 million in second quarter 2023
- All-time record Adjusted EBITDA of $444.8 million compared to $363.7 million in second quarter 2023
- Delivered record second quarter revenue and Adjusted EBITDA across all of our reporting segments
- Live and Historical revenue up 20% and Adjusted EBITDA up 25% compared to the second quarter of 2023
- TwinSpires revenue up 15% and Adjusted EBITDA up 36% compared to the second quarter of 2023
- Gaming revenue up 11% and Adjusted EBITDA up 14% compared to the second quarter of 2023
- Churchill Downs Racetrack ran the 150th Kentucky Derby with all-time record all-sources handle for the Kentucky Derby Race, Kentucky Derby Day Program, and Kentucky Derby Week Races, and with all-time record Derby Week contribution to Adjusted EBITDA
- We signed a new seven-year agreement with NBC to continue hosting the Kentucky Derby Week on NBC and Peacock for 2026 through 2032
- We opened the Terre Haute Casino Resort in Terre Haute, Indiana on April 5, 2024 and the hotel on May 15, 2024
- On July 3, 2024, we successfully amended our revolving credit facility and Term Loan A facility to, among other things, extend the maturity dates from 2027 to 2029
- We ended the second quarter of 2024 with net bank leverage of 4.0x
CONSOLIDATED RESULTS |
||||||
Second Quarter |
||||||
(in millions, except per share data) | 2024 | 2023 | ||||
Net revenue | $ | 890.7 | $ | 768.5 | ||
Net income attributable to CDI | $ | 209.3 | $ | 143.0 | ||
Diluted EPS attributable to CDI | $ | 2.79 | $ | 1.86 | ||
Adjusted EBITDA(a) | $ | 444.8 | $ | 363.7 | ||
(a) This is a non-GAAP measure. See explanation of non-GAAP measures below. | ||||||
SEGMENT RESULTS |
The summaries below present revenue from external customers and intercompany revenue from each of our reportable segments.
Live and Historical Racing
Second Quarter | ||||||
(in millions) | 2024 | 2023 | ||||
Revenue | $ | 490.2 | $ | 408.0 | ||
Adjusted EBITDA | 279.2 | 223.5 | ||||
Revenue for the second quarter of 2024 increased $82.2 million due to a $53.8 million increase at Churchill Downs Racetrack, which includes a $37.6 million increase due to a record-breaking Derby Week; a $17.4 million increase attributable to growth at our Virginia properties and the opening of the Rosie’s Emporia property in September 2023; a $10.3 million increase attributable to growth at our Kentucky HRM properties; and a $0.7 million increase at our other Live and Historical Racing properties.
Adjusted EBITDA for the second quarter of 2024 increased $55.7 million due to a $38.1 million increase at Churchill Downs Racetrack, which includes a $32.2 million increase due to a record-breaking Derby Week; a $16.1 million increase attributable to growth at our Virginia properties, which includes $5.6 million related to Exacta savings; and a $1.5 million increase from growth at our other HRM properties.
TwinSpires
Second Quarter |
||||||
(in millions) | 2024 | 2023 | ||||
Revenue | $ | 159.9 | $ | 139.1 | ||
Adjusted EBITDA | 46.2 | 33.9 | ||||
Revenue for the second quarter of 2024 increased $20.8 million due to a $14.7 million increase attributable to Exacta, a $4.3 million net increase in Horse Racing revenue primarily due to increased affiliate wagering handle partially offset by a decline in TwinSpires retail horse racing handle due to shifts in race days at other tracks and market access, and a $1.8 million increase attributable to our online sports betting market access agreements and our retail sports betting business.
Adjusted EBITDA for the second quarter of 2024 increased $12.3 million due to a $10.1 million increase attributable to Exacta, a $1.9 million increase attributable to our online sports betting market access agreements and our retail sports betting business, and a $0.3 million increase in Horse Racing from increased revenue that was mostly offset by higher content and related expenses.
Gaming
Second Quarter |
||||||
(in millions) | 2024 | 2023 | ||||
Revenue | $ | 274.4 | $ | 247.9 | ||
Adjusted EBITDA | 140.7 | 123.4 | ||||
Revenue for the second quarter of 2024 increased $26.5 million due to a $33.9 million increase attributable to the opening of the Terre Haute Casino Resort in April 2024 and a $1.9 million increase in New York, partially offset by a $5.4 million decrease in Pennsylvania primarily due to our decision not to renew the management agreement at Lady Luck at the end of June 2023, a $2.7 million decrease in Maine primarily due to inclement weather in April 2024, and a $1.2 million net decrease at our other Gaming properties.
Adjusted EBITDA for the second quarter of 2024 increased $17.3 million due to a $19.9 million increase attributable to the opening of the Terre Haute Casino Resort in April 2024 and a $3.5 million increase in New York primarily due to union-related payments in 2023 that did not recur. The increase was partially offset by a $2.2 million decrease in Maine primarily due to inclement weather in April 2024, a $0.9 million decrease in Pennsylvania primarily due to our decision not to renew the management agreement at Lady Luck at the end of June 2023, and a $3.0 million net decrease at our other Gaming properties primarily driven by Louisiana, Maryland, and Mississippi.
All Other
Second Quarter |
||||||||
(in millions) | 2024 | 2023 | ||||||
Revenue | $ | 1.9 | $ | 0.2 | ||||
Adjusted EBITDA | (21.3 | ) | (17.1 | ) | ||||
Revenue for the second quarter of 2024 reflects intercompany revenue related to the captive insurance company that was established in April 2024. All captive revenue is eliminated in consolidation.
Adjusted EBITDA for the second quarter of 2024 decreased $4.2 million driven primarily by increased corporate compensation related expenses and other corporate administrative expenses.
CAPITAL MANAGEMENT | |
Share Repurchase Program
The Company repurchased 93,874 shares of its common stock at a total cost of approximately $13.0 million based on trade date under its share repurchase program in the second quarter of 2024. We had approximately $179.9 million of repurchase authority remaining under this program on June 30, 2024.
Revolving Credit Facility and Term Loan A Facility Amendment
The Company successfully closed an amendment of its senior secured credit agreement to extend the maturity date of its revolving credit facility and Term Loan A facility from 2027 to 2029 and to make certain other changes to its existing credit agreement.
NET INCOME ATTRIBUTABLE TO CDI |
The Company’s second quarter 2024 net income attributable to CDI was $209.3 million compared to $143.0 million in the prior year quarter.
The following impacted the comparability of the Company’s second quarter 2024 net income to the prior year quarter:
- an $18.5 million decrease in after-tax non-cash impairment costs; and
- a $5.8 million after-tax decrease in transaction, pre-open, and other expenses primarily related to Arlington exit costs in 2023.
This was partially offset by:
- a $1.0 million increase of other items.
Excluding the items above, second quarter 2024 net income increased $43.0 million primarily due to the following:
- a $49.1 million after-tax increase primarily driven by the results of our operations,
- partially offset by a $6.1 million after-tax increase in interest expense associated with higher outstanding debt balances and higher interest rates.
Conference Call
A conference call regarding this news release is scheduled for Thursday, July 25, 2024 at 9 a.m. ET. Investors and other interested parties may listen to the teleconference by accessing the online, real-time webcast and broadcast of the call at http://ir.churchilldownsincorporated.com/events.cfm, or by registering in advance via teleconference here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are encouraged to dial-in 15 minutes prior to the start time. An online replay will be available by noon ET on Thursday, July 25, 2024. A copy of the Company’s news release announcing quarterly results and relevant financial and statistical information about the period will be accessible at www.churchilldownsincorporated.com.
Use of Non-GAAP Measures
In addition to the results provided in accordance with GAAP, the Company also uses non-GAAP measures, including adjusted net income, adjusted diluted EPS, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA.
The Company uses non-GAAP measures as a key performance measure of the results of operations for purposes of evaluating performance internally. These measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of the Company by excluding certain items that may not be indicative of the Company’s core business or operating results. The Company believes the use of these measures enables management and investors to evaluate and compare, from period to period, the Company’s operating performance in a meaningful and consistent manner. The non-GAAP measures are a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP, and should not be considered as an alternative to, or more meaningful than, net income or diluted EPS (as determined in accordance with GAAP) as a measure of our operating results.
We use Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.
Adjusted net income and adjusted diluted EPS exclude discontinued operations net income or loss; net income or loss attributable to noncontrolling interest; changes in fair value for interest rate swaps related to Rivers Des Plaines; Rivers Des Plaines’ legal reserves and transaction costs; transaction expense, which includes acquisition and disposition related charges, as well as legal, accounting, and other deal-related expense; pre-opening expense; and certain other gains, charges, recoveries, and expenses.
Adjusted EBITDA includes our portion of EBITDA from our equity investments and the portion of EBITDA attributable to noncontrolling interest.
Adjusted EBITDA excludes:
- Transaction expense, net which includes:
- Acquisition, disposition, and property sale related charges;
- Other transaction expense, including legal, accounting, and other deal-related expense;
- Stock-based compensation expense;
- Asset impairments;
- Gain on property sales;
- Legal reserves;
- Pre-opening expense; and
- Other charges, recoveries, and expenses.
As of December 31, 2021, our property in Arlington Heights, Illinois (“Arlington”) ceased racing and simulcast operations and the property was sold on February 15, 2023 to the Chicago Bears. Arlington’s results and exit costs in 2023 are treated as an adjustment to EBITDA and are included in other expenses, net in the Reconciliation of Comprehensive Income to Adjusted EBITDA.
On June 26, 2023, the Company’s management agreement for Lady Luck in Farmington, Pennsylvania expired and was not renewed. The Company completed the sale of substantially all its assets at Lady Luck for an immaterial amount.
For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the Consolidated Statements of Comprehensive Income. See the Reconciliation of Comprehensive Income to Adjusted EBITDA included herewith for additional information.
About Churchill Downs Incorporated
Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has been creating extraordinary entertainment experiences for over 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the development of live and historical racing entertainment venues, the growth of the TwinSpires horse racing online wagering business and the operation and development of regional casino gaming properties. https://www.churchilldownsincorporated.com/
This news release contains various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” “scheduled,” and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors, that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers’ confidence and discretionary spending or our access to credit, including the impact of inflation; additional or increased taxes and fees; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, including possible new variants of COVID-19, and related economic matters on our results of operations, financial conditions and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine (HRM) manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; inability to successfully focus on market access and retail operations for our TwinSpires sports betting business and effectively compete; online security risk, including cyber-security breaches, or loss or misuse of our stored information as a result of a breach including customers’ personal information could lead to government enforcement actions or other litigation; reliance on our technology services and catastrophic events and system failures disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates (due to inflation or otherwise), disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; and other factors described under the heading “Risk Factors” in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CHURCHILL DOWNS INCORPORATED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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(in millions, except per common share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Net revenue: | ||||||||||||||||
Live and Historical Racing | $ | 464.7 | $ | 385.0 | $ | 709.8 | $ | 599.4 | ||||||||
TwinSpires | 151.7 | 137.4 | 258.3 | 232.2 | ||||||||||||
Gaming | 274.2 | 245.9 | 513.4 | 495.9 | ||||||||||||
All Other | 0.1 | 0.2 | 0.1 | 0.5 | ||||||||||||
Total net revenue | 890.7 | 768.5 | 1,481.6 | 1,328.0 | ||||||||||||
Operating expense: | ||||||||||||||||
Live and Historical Racing | 221.4 | 204.2 | 378.6 | 347.5 | ||||||||||||
TwinSpires | 89.3 | 80.7 | 157.2 | 146.4 | ||||||||||||
Gaming | 188.4 | 179.2 | 366.9 | 352.7 | ||||||||||||
All Other | 3.6 | 5.7 | 5.7 | 10.7 | ||||||||||||
Selling, general and administrative expense | 57.4 | 48.1 | 112.2 | 100.4 | ||||||||||||
Asset impairments | — | 24.5 | — | 24.5 | ||||||||||||
Transaction expense, net | 0.6 | 0.5 | 4.7 | 0.3 | ||||||||||||
Total operating expense | 560.7 | 542.9 | 1,025.3 | 982.5 | ||||||||||||
Operating income | 330.0 | 225.6 | 456.3 | 345.5 | ||||||||||||
Other (expense) income: | ||||||||||||||||
Interest expense, net | (73.5 | ) | (65.2 | ) | (143.9 | ) | (129.9 | ) | ||||||||
Equity in income of unconsolidated affiliates | 37.7 | 38.8 | 75.5 | 77.1 | ||||||||||||
Gain on sale of Arlington | — | — | — | 114.0 | ||||||||||||
Miscellaneous, net | 0.1 | — | 8.2 | 1.4 | ||||||||||||
Total other (expense) income | (35.7 | ) | (26.4 | ) | (60.2 | ) | 62.6 | |||||||||
Income from operations before provision for income taxes | 294.3 | 199.2 | 396.1 | 408.1 | ||||||||||||
Income tax provision | (84.1 | ) | (56.2 | ) | (105.5 | ) | (109.4 | ) | ||||||||
Net income | 210.2 | 143.0 | 290.6 | 298.7 | ||||||||||||
Net income attributable to noncontrolling interest | 0.9 | — | 0.9 | — | ||||||||||||
Net income attributable to Churchill Downs Incorporated | $ | 209.3 | $ | 143.0 | $ | 289.7 | $ | 298.7 | ||||||||
Net income attributable to Churchill Downs Incorporated per common share data: |
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Basic net income | $ | 2.82 | $ | 1.90 | $ | 3.90 | $ | 3.97 | ||||||||
Diluted net income | $ | 2.79 | $ | 1.86 | $ | 3.87 | $ | 3.90 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 73.9 | 75.3 | 74.0 | 75.3 | ||||||||||||
Diluted | 74.6 | 76.9 | 74.6 | 76.5 | ||||||||||||
CHURCHILL DOWNS INCORPORATED CONSOLIDATED BALANCE SHEETS (Unaudited) |
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(in millions) | June 30, 2024 | December 31, 2023 |
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ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 140.3 | $ | 144.5 | ||||
Restricted cash | 90.6 | 77.3 | ||||||
Accounts receivable, net | 136.1 | 106.9 | ||||||
Income taxes receivable | — | 12.6 | ||||||
Other current assets | 69.0 | 59.5 | ||||||
Total current assets | 436.0 | 400.8 | ||||||
Property and equipment, net | 2,752.4 | 2,561.2 | ||||||
Investment in and advances to unconsolidated affiliates | 648.8 | 655.9 | ||||||
Goodwill | 900.2 | 899.9 | ||||||
Other intangible assets, net | 2,414.4 | 2,418.4 | ||||||
Other assets | 18.3 | 19.3 | ||||||
Total assets | $ | 7,170.1 | $ | 6,955.5 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 215.0 | $ | 158.5 | ||||
Accrued expenses and other current liabilities | 419.1 | 426.8 | ||||||
Income taxes payable | 41.3 | — | ||||||
Current deferred revenue | 19.2 | 73.2 | ||||||
Current maturities of long-term debt | 68.0 | 68.0 | ||||||
Dividends payable | 0.6 | 29.3 | ||||||
Total current liabilities | 763.2 | 755.8 | ||||||
Long-term debt, net of current maturities and loan origination fees | 1,717.6 | 1,697.1 | ||||||
Notes payable, net of debt issuance costs | 3,073.7 | 3,071.2 | ||||||
Non-current deferred revenue | 20.1 | 11.8 | ||||||
Deferred income taxes | 407.9 | 388.2 | ||||||
Other liabilities | 140.6 | 137.8 | ||||||
Total liabilities | 6,123.1 | 6,061.9 | ||||||
Commitments and contingencies | ||||||||
Redeemable noncontrolling interest | 16.1 | — | ||||||
Shareholders’ equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | — | — | ||||||
Retained earnings | 1,031.9 | 894.5 | ||||||
Accumulated other comprehensive loss | (1.0 | ) | (0.9 | ) | ||||
Total Churchill Downs Incorporated shareholders’ equity | 1,030.9 | 893.6 | ||||||
Total liabilities and shareholders’ equity | $ | 7,170.1 | $ | 6,955.5 | ||||
CHURCHILL DOWNS INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
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Six Months Ended June 30, |
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(in millions) | 2024 | 2023 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 290.6 | $ | 298.7 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization | 96.1 | 79.7 | ||||||
Distributions from unconsolidated affiliates | 81.7 | 91.7 | ||||||
Equity in income of unconsolidated affiliates | (75.5 | ) | (77.1 | ) | ||||
Stock-based compensation | 16.1 | 16.7 | ||||||
Deferred income taxes | 19.7 | 32.4 | ||||||
Asset impairments | — | 24.5 | ||||||
Amortization of operating lease assets | 2.7 | 3.5 | ||||||
Gain on sale of Arlington | — | (114.0 | ) | |||||
Other | 4.8 | 3.6 | ||||||
Changes in operating assets and liabilities: | ||||||||
Income taxes | 52.9 | 41.6 | ||||||
Deferred revenue | (45.7 | ) | (15.5 | ) | ||||
Other assets and liabilities | 28.3 | 16.8 | ||||||
Net cash provided by operating activities | 471.7 | 402.6 | ||||||
Cash flows from investing activities: | ||||||||
Capital maintenance expenditures | (34.8 | ) | (30.2 | ) | ||||
Capital project expenditures | (257.2 | ) | (282.2 | ) | ||||
Proceeds from sale of Arlington | — | 195.7 | ||||||
Other | 1.9 | (2.3 | ) | |||||
Net cash used in investing activities | (290.1 | ) | (119.0 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from borrowings under long-term debt obligations | 617.4 | 1,223.3 | ||||||
Repayments of borrowings under long-term debt obligations | (598.3 | ) | (1,201.4 | ) | ||||
Payment of dividends | (28.8 | ) | (26.7 | ) | ||||
Repurchase of common stock | (154.7 | ) | (0.5 | ) | ||||
Taxes paid related to net share settlement of stock awards | (10.5 | ) | (13.2 | ) | ||||
Debt issuance costs | — | (12.2 | ) | |||||
Change in bank overdraft | 2.6 | (16.2 | ) | |||||
Other | (1.2 | ) | (0.8 | ) | ||||
Net cash used in financing activities | (173.5 | ) | (47.7 | ) | ||||
Cash flows from discontinued operations: | ||||||||
Operating activities of discontinued operations | 1.0 | 0.5 | ||||||
Net increase in cash, cash equivalents and restricted cash | 9.1 | 236.4 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 221.8 | 204.7 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 230.9 | $ | 441.1 | ||||
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) |
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Three Months Ended June 30, | Six Months Ended June 30, |
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(in millions, except per common share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
GAAP net income attributable to CDI | $ | 209.3 | $ | 143.0 | $ | 289.7 | $ | 298.7 | ||||||||||
Adjustments, continuing operations: | ||||||||||||||||||
Changes in fair value of interest rate swaps related to Rivers Des Plaines |
— | — | — | — | ||||||||||||||
Legal reserves and transaction costs related to Rivers Des Plaines |
0.3 | — | 0.3 | — | ||||||||||||||
Other charges and recoveries, net | (0.1 | ) | (1.2 | ) | (6.8 | ) | (0.9 | ) | ||||||||||
Transaction, pre-opening, and other expense | 8.2 | 16.2 | 20.8 | 22.9 | ||||||||||||||
Legal reserves | — | — | — | — | ||||||||||||||
Asset impairments | — | 24.5 | — | 24.5 | ||||||||||||||
Gain on Dispositions | — | — | — | (114.0 | ) | |||||||||||||
Income tax impact on net income adjustments (a) | (2.3 | ) | (10.1 | ) | (4.0 | ) | 15.7 | |||||||||||
Total adjustments | 6.1 | 29.4 | 10.3 | (51.8 | ) | |||||||||||||
Adjusted net income attributable to CDI | $ | 215.4 | $ | 172.4 | $ | 300.0 | $ | 246.9 | ||||||||||
Adjusted diluted EPS | $ | 2.89 | $ | 2.24 | $ | 4.02 | $ | 3.23 | ||||||||||
Weighted average shares outstanding – Diluted | 74.6 | 76.9 | 74.6 | 76.5 | ||||||||||||||
(a) | The income tax impact for each adjustment is derived by applying the effective tax rate, including current and deferred income tax expense, based upon the jurisdiction and the nature of the adjustment. | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, |
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(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||
Total Handle | ||||||||||||
TwinSpires Horse Racing(a) | $ | 653.4 | $ | 635.1 | $ | 1,073.0 | $ | 1,045.7 | ||||
(a) Total handle generated by Velocity is not included in total handle from TwinSpires Horse Racing. | ||||||||||||
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) |
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Three Months Ended June 30, | Six Months Ended June 30, |
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(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Net revenue from external customers: | ||||||||||||||||
Live and Historical Racing: | ||||||||||||||||
Churchill Downs Racetrack | $ | 228.0 | $ | 178.3 | $ | 231.1 | $ | 180.7 | ||||||||
Louisville | 53.1 | 45.3 | 106.8 | 89.3 | ||||||||||||
Northern Kentucky | 22.0 | 17.3 | 50.5 | 43.6 | ||||||||||||
Southwestern Kentucky | 40.2 | 37.6 | 78.8 | 74.1 | ||||||||||||
Western Kentucky | 6.1 | 9.4 | 12.9 | 14.2 | ||||||||||||
Virginia | 111.9 | 94.6 | 223.1 | 192.3 | ||||||||||||
New Hampshire | 3.4 | 2.5 | 6.6 | 5.2 | ||||||||||||
Total Live and Historical Racing | $ | 464.7 | $ | 385.0 | $ | 709.8 | $ | 599.4 | ||||||||
TwinSpires: | $ | 151.7 | $ | 137.4 | $ | 258.3 | $ | 232.2 | ||||||||
Gaming: | ||||||||||||||||
Florida | $ | 26.5 | $ | 26.0 | $ | 52.6 | $ | 52.1 | ||||||||
Iowa | 23.5 | 24.0 | 46.9 | 48.5 | ||||||||||||
Indiana | 33.9 | — | 33.9 | — | ||||||||||||
Louisiana | 37.1 | 33.8 | 81.4 | 77.9 | ||||||||||||
Maine | 26.8 | 29.5 | 53.6 | 57.2 | ||||||||||||
Maryland | 26.2 | 27.6 | 47.8 | 50.9 | ||||||||||||
Mississippi | 24.5 | 25.8 | 50.5 | 53.3 | ||||||||||||
New York | 46.5 | 44.6 | 91.5 | 89.1 | ||||||||||||
Pennsylvania | 29.2 | 34.6 | 55.2 | 66.9 | ||||||||||||
Total Gaming | $ | 274.2 | $ | 245.9 | $ | 513.4 | $ | 495.9 | ||||||||
All Other | 0.1 | 0.2 | 0.1 | 0.5 | ||||||||||||
Net revenue from external customers | $ | 890.7 | $ | 768.5 | $ | 1,481.6 | $ | 1,328.0 | ||||||||
Intercompany net revenues: | ||||||||||||||||
Live and Historical Racing | $ | 25.5 | $ | 23.0 | $ | 29.3 | $ | 24.4 | ||||||||
TwinSpires | 8.2 | 1.7 | 15.7 | 3.3 | ||||||||||||
Gaming | 0.2 | 2.0 | 4.2 | 3.6 | ||||||||||||
All Other | 1.8 | — | 1.8 | — | ||||||||||||
Eliminations | (35.7 | ) | (26.7 | ) | (51.0 | ) | (31.3 | ) | ||||||||
Intercompany net revenue | $ | — | $ | — | $ | — | $ | — | ||||||||
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) |
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Three Months Ended June 30, 2024 |
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(in millions) | Live and Historical Racing |
TwinSpires | Gaming | Total Segments |
All Other | Total |
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Net revenue from external customers |
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Pari-mutuel: | ||||||||||||||||||
Live and simulcast racing | $ | 50.4 | $ | 115.4 | $ | 4.5 | $ | 170.3 | $ | — | $ | 170.3 | ||||||
Historical racing(a) | 212.1 | — | 9.3 | 221.4 | — | 221.4 | ||||||||||||
Racing event-related services | 176.0 | — | 1.4 | 177.4 | — | 177.4 | ||||||||||||
Gaming(a) | 3.3 | 4.3 | 228.1 | 235.7 | — | 235.7 | ||||||||||||
Other(a) | 22.9 | 32.0 | 30.9 | 85.8 | 0.1 | 85.9 | ||||||||||||
Total | $ | 464.7 | $ | 151.7 | $ | 274.2 | $ | 890.6 | $ | 0.1 | $ | 890.7 | ||||||
Three Months Ended June 30, 2023 | |||||||||||||||||||||
(in millions) | Live and Historical Racing |
TwinSpires | Gaming | Total Segments |
All Other | Total |
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Net revenue from external customers |
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Pari-mutuel: | |||||||||||||||||||||
Live and simulcast racing | $ | 40.2 | $ | 117.5 | $ | 3.2 | $ | 160.9 | $ | — | $ | 160.9 | |||||||||
Historical racing(a) | 184.1 | — | 7.0 | 191.1 | — | 191.1 | |||||||||||||||
Racing event-related services | 136.7 | — | 1.5 | 138.2 | — | 138.2 | |||||||||||||||
Gaming(a) | 2.5 | 1.2 | 206.9 | 210.6 | — | 210.6 | |||||||||||||||
Other(a) | 21.5 | 18.7 | 27.3 | 67.5 | 0.2 | 67.7 | |||||||||||||||
Total | $ | 385.0 | $ | 137.4 | $ | 245.9 | $ | 768.3 | $ | 0.2 | $ | 768.5 | |||||||||
(a) | Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers’ loyalty points are recorded at the estimated standalone selling prices in Other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $14.2 million for the three months ended June 30, 2024 and $12.3 million for the three months ended June 30, 2023. | ||||||||||||||||||||
Six Months Ended June 30, 2024 |
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(in millions) | Live and Historical Racing |
TwinSpires | Gaming | Total Segments |
All Other | Total |
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Net revenue from external customers |
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Pari-mutuel: | ||||||||||||||||||
Live and simulcast racing | $ | 61.4 | $ | 195.2 | $ | 15.1 | $ | 271.7 | $ | — | $ | 271.7 | ||||||
Historical racing(a) | 424.2 | — | 18.1 | 442.3 | — | 442.3 | ||||||||||||
Racing event-related services | 177.1 | — | 3.6 | 180.7 | — | 180.7 | ||||||||||||
Gaming(a) | 6.4 | 10.0 | 421.2 | 437.6 | — | 437.6 | ||||||||||||
Other(a) | 40.7 | 53.1 | 55.4 | 149.2 | 0.1 | 149.3 | ||||||||||||
Total | $ | 709.8 | $ | 258.3 | $ | 513.4 | $ | 1,481.5 | $ | 0.1 | $ | 1,481.6 | ||||||
Six Months Ended June 30, 2023 |
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(in millions) | Live and Historical Racing |
TwinSpires | Gaming | Total Segments |
All Other | Total |
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Net revenue from external customers |
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Pari-mutuel: | ||||||||||||||||||||
Live and simulcast racing | $ | 51.2 | $ | 196.9 | $ | 14.8 | $ | 262.9 | $ | — | $ | 262.9 | ||||||||
Historical racing(a) | 369.4 | — | 13.0 | 382.4 | — | 382.4 | ||||||||||||||
Racing event-related services | 137.7 | — | 3.4 | 141.1 | — | 141.1 | ||||||||||||||
Gaming(a) | 5.1 | 5.6 | 412.4 | 423.1 | — | 423.1 | ||||||||||||||
Other(a) | 36.0 | 29.7 | 52.3 | 118.0 | 0.5 | 118.5 | ||||||||||||||
Total | $ | 599.4 | $ | 232.2 | $ | 495.9 | $ | 1,327.5 | $ | 0.5 | $ | 1,328.0 | ||||||||
(a) | Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers’ loyalty points are recorded at the estimated standalone selling prices in Other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $27.6 million for the six months ended June 30, 2024 and $24.5 million for the six months ended June 30, 2023. | |||||||||||||||||||
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) |
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Adjusted EBITDA by segment is comprised of the following: | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 |
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(in millions) | Live and Historical Racing |
TwinSpires | Gaming | Total Segments |
All Other | Eliminations | Total |
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Revenues | $ | 490.2 | $ | 159.9 | $ | 274.4 | $ | 924.5 | $ | 1.9 | $ | (35.7 | ) | $ | 890.7 | |||||||||||||
Gaming taxes and purses |
(100.0 | ) | (7.3 | ) | (83.5 | ) | (190.8 | ) | — | — | (190.8 | ) | ||||||||||||||||
Marketing and advertising |
(12.5 | ) | (4.9 | ) | (9.2 | ) | (26.6 | ) | (0.1 | ) | — | (26.7 | ) | |||||||||||||||
Salaries and benefits | (36.5 | ) | (8.0 | ) | (40.3 | ) | (84.8 | ) | — | — | (84.8 | ) | ||||||||||||||||
Content expense | (2.1 | ) | (73.3 | ) | (2.6 | ) | (78.0 | ) | — | 27.1 | (50.9 | ) | ||||||||||||||||
Selling, general and administrative expense |
(8.5 | ) | (4.3 | ) | (11.8 | ) | (24.6 | ) | (21.0 | ) | 0.3 | (45.3 | ) | |||||||||||||||
Maintenance, insurance and utilities |
(11.5 | ) | (1.0 | ) | (11.1 | ) | (23.6 | ) | (0.5 | ) | 1.8 | (22.3 | ) | |||||||||||||||
Property and other taxes | (1.8 | ) | — | (3.3 | ) | (5.1 | ) | (0.2 | ) | — | (5.3 | ) | ||||||||||||||||
Other operating expense | (38.3 | ) | (14.9 | ) | (20.2 | ) | (73.4 | ) | (1.4 | ) | 6.5 | (68.3 | ) | |||||||||||||||
Other income | 0.2 | — | 48.3 | 48.5 | — | — | 48.5 | |||||||||||||||||||||
Adjusted EBITDA | $ | 279.2 | $ | 46.2 | $ | 140.7 | $ | 466.1 | $ | (21.3 | ) | $ | — | $ | 444.8 | |||||||||||||
Three Months Ended June 30, 2023 |
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(in millions) | Live and Historical Racing |
TwinSpires | Gaming | Total Segments |
All Other | Eliminations | Total |
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Revenues | $ | 408.0 | $ | 139.1 | $ | 247.9 | $ | 795.0 | $ | 0.2 | $ | (26.7 | ) | $ | 768.5 | |||||||||||||
Gaming taxes and purses |
(85.4 | ) | (7.0 | ) | (81.7 | ) | (174.1 | ) | — | — | (174.1 | ) | ||||||||||||||||
Marketing and advertising |
(12.1 | ) | (5.3 | ) | (9.0 | ) | (26.4 | ) | (0.1 | ) | 0.1 | (26.4 | ) | |||||||||||||||
Salaries and benefits | (30.3 | ) | (7.5 | ) | (39.5 | ) | (77.3 | ) | — | — | (77.3 | ) | ||||||||||||||||
Content expense | (2.0 | ) | (68.7 | ) | (2.7 | ) | (73.4 | ) | — | 26.5 | (46.9 | ) | ||||||||||||||||
Selling, general and administrative expense |
(7.3 | ) | (2.7 | ) | (10.3 | ) | (20.3 | ) | (16.8 | ) | 0.4 | (36.7 | ) | |||||||||||||||
Maintenance, insurance and utilities |
(10.1 | ) | (0.8 | ) | (9.6 | ) | (20.5 | ) | (0.1 | ) | — | (20.6 | ) | |||||||||||||||
Property and other taxes | (1.5 | ) | (0.1 | ) | (3.0 | ) | (4.6 | ) | — | — | (4.6 | ) | ||||||||||||||||
Other operating expense | (36.0 | ) | (13.1 | ) | (17.4 | ) | (66.5 | ) | (0.3 | ) | (0.3 | ) | (67.1 | ) | ||||||||||||||
Other income | 0.2 | — | 48.7 | 48.9 | — | — | 48.9 | |||||||||||||||||||||
Adjusted EBITDA | $ | 223.5 | $ | 33.9 | $ | 123.4 | $ | 380.8 | $ | (17.1 | ) | $ | — | $ | 363.7 | |||||||||||||
Six Months Ended June 30, 2024 |
||||||||||||||||||||||||||||
(in millions) | Live and Historical Racing |
TwinSpires | Gaming | Total Segments |
All Other | Eliminations | Total |
|||||||||||||||||||||
Revenues | $ | 739.1 | $ | 274.0 | $ | 517.6 | $ | 1,530.7 | $ | 1.9 | $ | (51.0 | ) | $ | 1,481.6 | |||||||||||||
Gaming taxes and purses |
(165.0 | ) | (12.2 | ) | (164.0 | ) | (341.2 | ) | — | — | (341.2 | ) | ||||||||||||||||
Marketing and advertising |
(21.8 | ) | (6.1 | ) | (17.0 | ) | (44.9 | ) | (0.1 | ) | — | (45.0 | ) | |||||||||||||||
Salaries and benefits | (63.3 | ) | (15.9 | ) | (78.3 | ) | (157.5 | ) | — | — | (157.5 | ) | ||||||||||||||||
Content expense | (3.4 | ) | (117.3 | ) | (4.4 | ) | (125.1 | ) | — | 36.1 | (89.0 | ) | ||||||||||||||||
Selling, general and administrative expense |
(17.3 | ) | (8.8 | ) | (22.0 | ) | (48.1 | ) | (41.5 | ) | 0.6 | (89.0 | ) | |||||||||||||||
Maintenance, insurance and utilities |
(21.8 | ) | (2.0 | ) | (20.7 | ) | (44.5 | ) | (2.0 | ) | 1.8 | (44.7 | ) | |||||||||||||||
Property and other taxes | (4.5 | ) | (0.1 | ) | (6.7 | ) | (11.3 | ) | (0.4 | ) | — | (11.7 | ) | |||||||||||||||
Other operating expense | (62.2 | ) | (25.8 | ) | (38.5 | ) | (126.5 | ) | — | 12.5 | (114.0 | ) | ||||||||||||||||
Other income | 0.2 | — | 97.5 | 97.7 | 0.1 | — | 97.8 | |||||||||||||||||||||
Adjusted EBITDA | $ | 380.0 | $ | 85.8 | $ | 263.5 | $ | 729.3 | $ | (42.0 | ) | $ | — | $ | 687.3 | |||||||||||||
Six Months Ended June 30, 2023 |
||||||||||||||||||||||||||||
(in millions) | Live and Historical Racing |
TwinSpires | Gaming | Total Segments |
All Other | Eliminations | Total |
|||||||||||||||||||||
Revenues | $ | 623.8 | $ | 235.5 | $ | 499.5 | $ | 1,358.8 | $ | 0.5 | $ | (31.3 | ) | $ | 1,328.0 | |||||||||||||
Gaming taxes and purses |
(141.9 | ) | (12.0 | ) | (165.3 | ) | (319.2 | ) | — | — | (319.2 | ) | ||||||||||||||||
Marketing and advertising |
(20.3 | ) | (6.7 | ) | (17.6 | ) | (44.6 | ) | (0.1 | ) | 0.3 | (44.4 | ) | |||||||||||||||
Salaries and benefits | (52.1 | ) | (13.7 | ) | (74.0 | ) | (139.8 | ) | — | — | (139.8 | ) | ||||||||||||||||
Content expense | (3.5 | ) | (111.7 | ) | (4.5 | ) | (119.7 | ) | — | 30.4 | (89.3 | ) | ||||||||||||||||
Selling, general and administrative expense |
(16.0 | ) | (5.1 | ) | (22.5 | ) | (43.6 | ) | (35.1 | ) | 0.6 | (78.1 | ) | |||||||||||||||
Maintenance, insurance and utilities |
(19.4 | ) | (1.7 | ) | (19.4 | ) | (40.5 | ) | (0.2 | ) | — | (40.7 | ) | |||||||||||||||
Property and other taxes | (2.7 | ) | (0.1 | ) | (6.3 | ) | (9.1 | ) | (0.2 | ) | — | (9.3 | ) | |||||||||||||||
Other operating expense | (62.5 | ) | (22.2 | ) | (34.3 | ) | (119.0 | ) | (0.1 | ) | — | (119.1 | ) | |||||||||||||||
Other income | 0.2 | 1.0 | 97.3 | 98.5 | — | — | 98.5 | |||||||||||||||||||||
Adjusted EBITDA | $ | 305.6 | $ | 63.3 | $ | 252.9 | $ | 621.8 | $ | (35.2 | ) | $ | — | $ | 586.6 | |||||||||||||
CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION |
||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Reconciliation of Comprehensive Income to Adjusted EBITDA: |
||||||||||||||||
Net income attributable to Churchill Downs Incorporated | $ | 209.3 | $ | 143.0 | $ | 289.7 | $ | 298.7 | ||||||||
Net income attributable to noncontrolling interest | 0.9 | — | 0.9 | — | ||||||||||||
Net income and comprehensive income | 210.2 | 143.0 | 290.6 | 298.7 | ||||||||||||
Additions: | ||||||||||||||||
Depreciation and amortization | 49.2 | 41.8 | 96.1 | 79.7 | ||||||||||||
Interest expense | 73.5 | 65.2 | 143.9 | 129.9 | ||||||||||||
Income tax provision | 84.1 | 56.2 | 105.5 | 109.4 | ||||||||||||
EBITDA | $ | 417.0 | $ | 306.2 | $ | 636.1 | $ | 617.7 | ||||||||
Adjustments to EBITDA: | ||||||||||||||||
Stock-based compensation expense | $ | 8.9 | $ | 8.1 | $ | 16.1 | $ | 16.7 | ||||||||
Arlington exit costs | — | 5.9 | — | 9.3 | ||||||||||||
Pre-opening expense | 7.5 | 3.2 | 15.8 | 6.4 | ||||||||||||
Other expenses, net | 0.1 | 6.6 | 0.3 | 6.9 | ||||||||||||
Asset impairments | — | 24.5 | — | 24.5 | ||||||||||||
Transaction expense, net | 0.6 | 0.5 | 4.7 | 0.3 | ||||||||||||
Other income, expense: | ||||||||||||||||
Interest, depreciation and amortization expense related to equity investments |
10.5 | 9.9 | 20.8 | 19.7 | ||||||||||||
Rivers Des Plaines’ legal reserves and transaction costs |
0.3 | — | 0.3 | — | ||||||||||||
Other charges and recoveries, net | (0.1 | ) | (1.2 | ) | (6.8 | ) | (0.9 | ) | ||||||||
Gain on Arlington sale | — | — | — | (114.0 | ) | |||||||||||
Total adjustments to EBITDA | 27.8 | 57.5 | 51.2 | (31.1 | ) | |||||||||||
Adjusted EBITDA | $ | 444.8 | $ | 363.7 | $ | 687.3 | $ | 586.6 | ||||||||
Adjusted EBITDA by segment: | ||||||||||||||||
Live and Historical Racing | $ | 279.2 | $ | 223.5 | $ | 380.0 | $ | 305.6 | ||||||||
TwinSpires | 46.2 | 33.9 | 85.8 | 63.3 | ||||||||||||
Gaming | 140.7 | 123.4 | 263.5 | 252.9 | ||||||||||||
Total segment Adjusted EBITDA | 466.1 | 380.8 | 729.3 | 621.8 | ||||||||||||
All Other | (21.3 | ) | (17.1 | ) | (42.0 | ) | (35.2 | ) | ||||||||
Total Adjusted EBITDA | $ | 444.8 | $ | 363.7 | $ | 687.3 | $ | 586.6 | ||||||||
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL JOINT VENTURE FINANCIAL STATEMENTS (Unaudited) |
||||||||||||||||
Summarized financial information for our equity investments is comprised of the following: | ||||||||||||||||
Summarized Income Statement |
||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, |
|||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Net revenue | $ | 215.9 | $ | 218.7 | $ | 432.8 | $ | 439.3 | ||||||||
Operating and SG&A expense | 132.2 | 135.0 | 267.1 | 272.2 | ||||||||||||
Depreciation and amortization | 7.0 | 5.9 | 13.3 | 11.6 | ||||||||||||
Total operating expense | 139.2 | 140.9 | 280.4 | 283.8 | ||||||||||||
Operating income | 76.7 | 77.8 | 152.4 | 155.5 | ||||||||||||
Interest and other expense, net | (11.4 | ) | (10.7 | ) | (22.4 | ) | (21.6 | ) | ||||||||
Net income | $ | 65.3 | $ | 67.1 | $ | 130.0 | $ | 133.9 | ||||||||
Summarized Balance Sheet |
||||||||
(in millions) | June 30, 2024 | December 31, 2023 |
||||||
Assets | ||||||||
Current assets | $ | 91.9 | $ | 104.8 | ||||
Property and equipment, net | 334.3 | 339.4 | ||||||
Other assets, net | 270.1 | 266.1 | ||||||
Total assets | $ | 696.3 | $ | 710.3 | ||||
Liabilities and Members’ Deficit | ||||||||
Current liabilities | $ | 103.7 | $ | 106.2 | ||||
Long-term debt | 847.0 | 847.2 | ||||||
Other liabilities | 0.8 | 0.7 | ||||||
Members’ deficit | (255.2 | ) | (243.8 | ) | ||||
Total liabilities and members’ deficit | $ | 696.3 | $ | 710.3 | ||||
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) |
||||
Planned capital projects for the Company are as follows: | ||||
(in millions) | Project | Target Completion | Planned Spend | |
Live and Historical Racing Segment | ||||
Churchill Downs Racetrack | Grandstand Club and Pavilion Renovation | April 2025 | $80-90 | |
Northern Virginia | The Rose Gaming Resort (HRM Entertainment Venue) |
Late September 2024 | $460 | |
Virginia | Additional ~560 HRMs | TBD | TBD | |
Western Kentucky | Owensboro Racing and Gaming (HRM Entertainment Venue) |
First Quarter 2025 | $100 | |
Southwestern Kentucky | Oak Grove HRM Annex | TBD | TBD | |
New Hampshire | Salem HRM Entertainment Venue | TBD | TBD | |
Contact: Sam Ullrich
(502) 638-3906
[email protected]
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