Nasdaq:CHDN
Churchill Downs Incorporated Reports 2023 Fourth Quarter and Full Year Results
LOUISVILLE, Ky., Feb. 21, 2024 (GLOBE NEWSWIRE) — Churchill Downs Incorporated (Nasdaq: CHDN) (the “Company”, “CDI”) today reported business results for the quarter and full year ended December 31, 2023.
Company Highlights
- Record 2023 net revenue of $2.5 billion, up 36% compared to $1.8 billion in the prior year.
- 2023 net income of $417 million, down 5% compared to $439 million in the prior year.
- Record 2023 Adjusted EBITDA of $1.0 billion, up 34% compared to $0.8 billion in the prior year.
- We successfully ran the 149th Kentucky Derby on the first Saturday in May generating record Derby Week all-sources handle and record Derby Week contribution to Adjusted EBITDA.
- Derby City Gaming expanded its gaming floor and amenities and opened a new 123-room hotel in June 2023.
- Rosie’s Gaming Emporium opened in Emporia, Virginia in September 2023 as our seventh Rosie’s HRM entertainment venue in Virginia.
- Derby City Gaming Downtown opened in Louisville, Kentucky in December 2023. This represents our sixth HRM entertainment venue in Kentucky.
- We completed the acquisition of Exacta Systems, LLC (“Exacta”) on August 22, 2023 (the “Exacta Transaction”).
- We closed the sale of our Arlington Heights, Illinois property to the Chicago Bears for $197.2 million on February 15, 2023.
- We ended 2023 with net bank leverage of 4.0x and maintained our commitment to returning capital to shareholders:
- We repurchased $55.3 million of shares under our share repurchase program in 2023.
- On December 18, 2023, we entered into a privately negotiated agreement with an affiliate of The Duchossois Group Inc. to repurchase 1,000,000 shares for $123.75 per share and closed the transaction on January 2, 2024.
- On January 5, 2024, we paid a $0.382 per share dividend to shareholders of record which represents the thirteenth consecutive year of increased dividend per share.
| CONSOLIDATED RESULTS |
| Fourth Quarter | Years Ended December 31, | ||||||||||||||
| (in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net revenue | $ | 561.2 | $ | 480.1 | $ | 2,461.7 | $ | 1,809.8 | |||||||
| Net income | $ | 57.6 | $ | 1.0 | $ | 417.3 | $ | 439.4 | |||||||
| Diluted EPS | $ | 0.76 | $ | 0.01 | $ | 5.49 | $ | 5.71 | |||||||
| Adjusted EBITDA(a) | $ | 219.1 | $ | 180.7 | $ | 1,023.9 | $ | 763.6 | |||||||
| (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
| Fourth Quarter | Years Ended December 31, | ||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Revenue | $ | 235.3 | $ | 180.9 | $ | 1,084.6 | $ | 646.4 | |||||||
| Adjusted EBITDA | 88.9 | 61.2 | 475.4 | 287.5 | |||||||||||
Fourth Quarter 2023
- Revenue for the fourth quarter of 2023 increased $54.4 million from the prior year quarter primarily due to $32.8 million in revenue attributable to the Virginia properties acquired in the P2E Transaction, a $9.5 million increase from Derby City Gaming and the opening of Derby City Gaming Downtown in December 2023 in Louisville, Kentucky, a $6.3 million increase driven by continued growth at Turfway and Newport in Northern Kentucky, a $2.5 million increase driven by continued growth from Oak Grove in Southwestern Kentucky, a $2.2 million increase attributable to the Ellis Park and Chasers Transactions, and a $1.1 million increase at Churchill Downs Racetrack.
- Adjusted EBITDA for the fourth quarter of 2023 increased $27.7 million from the prior year quarter primarily due to a $16.2 million increase attributable to the Virginia properties acquired in the P2E Transaction which includes $5.1 million of savings from the Exacta Transaction, a $4.4 million increase from our Northern Kentucky properties, a $3.2 million increase from our Louisville properties, a $2.8 million increase driven by our Southwestern Kentucky property, and a $1.1 million increase attributable to the Ellis Park and Chasers Transactions.
Total Year 2023
- Revenue for 2023 increased $438.2 million driven by a $313.9 million increase attributable to the Virginia properties acquired in the P2E Transaction, a $41.2 million increase in Northern Kentucky primarily due to the opening of Turfway Park in September 2022, a $36.4 million increase attributable to properties acquired in the Ellis Park and Chasers Transactions, a $20.7 million increase due to a record-breaking Derby Week at Churchill Downs Racetrack, a $19.2 million increase due to growth from our Derby City Gaming property and the opening of Derby City Gaming Downtown in December 2023 in Louisville, Kentucky, and a $16.5 million increase from our Oak Grove property in Southwestern Kentucky. These increases were partially offset by a $9.7 million decrease for non-Derby Week racing operations primarily due to the decision to move a portion of the Churchill Downs Racetrack Spring Meet to Ellis Park.
- Adjusted EBITDA for 2023 increased $187.9 million driven by a $145.0 million increase attributable to the Virginia properties acquired in the P2E Transaction and savings as a result of the Exacta Transaction, a $15.7 million increase due to a record-breaking Derby Week at Churchill Downs Racetrack, a $13.1 million increase from continued growth at Oak Grove in Southwestern Kentucky, an $8.6 million increase in Northern Kentucky primarily due to the opening of Turfway Park in September 2022, a $7.2 million increase due to growth from our Derby City Gaming property and the opening of Derby City Gaming Downtown in December 2023 in Louisville, Kentucky, and a $5.4 million increase attributable to our other Live and Historical Racing properties. These increases were partially offset by a $7.1 million decrease for non-Derby Week racing operations primarily driven by the decision to move a portion of the Churchill Downs Racetrack Spring Meet to Ellis Park in 2023.
TwinSpires
| Fourth Quarter | Years Ended December 31, | ||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Revenue | $ | 110.6 | $ | 94.3 | $ | 458.4 | $ | 441.6 | |||||||
| Adjusted EBITDA | 34.9 | 25.0 | 132.1 | 114.1 | |||||||||||
Fourth Quarter 2023
- Revenue for the fourth quarter of 2023 increased $16.3 million from the prior year quarter driven by a $13.6 million increase attributable to the Exacta Transaction, a $2.1 million increase in all other Horse Racing revenue primarily driven by increased handle from our higher-wagering volume customer base, partially offset by lower retail Horse Racing handle due to industry race day cancellations, and a $0.6 million increase from our sports betting business.
- Adjusted EBITDA for the fourth quarter of 2023 increased $9.9 million from the prior year quarter driven by an $8.7 million increase attributable to the Exacta Transaction and a $1.7 million increase primarily from cost reductions associated with the exit of the direct online Sports and Casino business, partially offset by a $0.5 million decrease in all other Horse Racing driven by lower revenue.
Total Year 2023
- Revenue for 2023 increased $16.8 million driven by a $19.1 million increase attributable to the Exacta Transaction, a $5.3 million increase primarily from the B2B expansion strategy associated with United Tote totalisator fees, a $1.9 million increase from our retail sports betting business, and a $1.8 million increase in all other Horse Racing revenue primarily driven by increased handle from our higher-wagering volume customer base, partially offset by lower retail Horse Racing handle due to industry race day cancellations and the decision to move a portion of the Churchill Downs Racetrack Spring Meet to Ellis Park in 2023 and an $11.3 million reduction primarily due to the exit of the direct online Sports and Casino business.
- Adjusted EBITDA for 2023 increased $18.0 million driven by an $11.8 million increase attributable to the Exacta Transaction, an $11.3 million increase primarily from significant cost reductions associated with the exit of the direct online Sports and Casino business, and a $3.7 million increase primarily from the B2B expansion strategy associated with United Tote totalisator fees. These increases were partially offset by an $8.8 million decrease primarily as a result of lower retail Horse Racing handle as well as higher content-related expenses and higher advance deposit wagering taxes in certain jurisdictions.
Gaming
| Fourth Quarter | Years Ended December 31, | ||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Revenue | $ | 230.2 | $ | 212.2 | $ | 974.6 | $ | 761.8 | |||||||
| Adjusted EBITDA | 113.4 | 112.4 | 488.6 | 421.9 | |||||||||||
Fourth Quarter 2023
- Revenue for the fourth quarter of 2023 increased $18.0 million from the prior year quarter primarily due to $22.3 million attributable to the New York and Iowa properties and $3.0 million attributable to the Louisiana and Maryland properties, partially offset by $5.0 million as a result of our decision not to renew the management agreement at Lady Luck and a $2.3 million decrease from our other wholly owned properties in four states.
- Adjusted EBITDA for the fourth quarter of 2023 increased $1.0 million from the prior year quarter driven by a $6.0 million increase attributable to our New York and Iowa properties, a $1.3 million increase attributable to our Louisiana and Maryland properties, and a $0.2 million increase from our equity investments, partially offset by a $4.2 million decrease at our other wholly owned properties and a $2.3 million decrease attributable to proceeds for business interruption insurance claims related to Hurricane Ida received in the fourth quarter of 2022.
Total Year 2023
- Revenue for 2023 increased $212.8 million driven by a $230.0 million increase attributable to the New York and Iowa properties acquired in the P2E Transaction, partially offset by a $16.9 million decrease in Pennsylvania primarily due to our decision not to renew the management agreement at Lady Luck and a $0.3 million net decrease from our other gaming properties.
- Adjusted EBITDA for 2023 increased $66.7 million driven by a $78.9 million increase attributable to the New York and Iowa properties acquired in the P2E Transaction and a $7.1 million increase from our equity investments. These increases were partially offset by a $14.6 million decrease from our other wholly owned Gaming properties primarily driven by Florida, Mississippi, and Pennsylvania and a $4.7 million decrease attributable to proceeds for business interruption insurance claims related to Hurricane Ida. We received $6.3 million of insurance proceeds in 2022 compared to $1.6 million in 2023.
All Other
| Fourth Quarter | Years Ended December 31, | ||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Revenue | $ | 0.2 | $ | 1.1 | $ | 0.9 | $ | 3.3 | |||||||
| Adjusted EBITDA | (18.1 | ) | (17.9 | ) | (72.2 | ) | (59.9 | ) | |||||||
Fourth Quarter 2023
- Net revenue for the fourth quarter of 2023 decreased $0.9 million from the prior year quarter primarily as a result of decreased revenue from Arlington International Racecourse (“Arlington”) which ceased racing and simulcast operations at the end of 2021.
- Adjusted EBITDA for the fourth quarter of 2023 decreased $0.2 million from the prior year quarter due to an increase in corporate compensation expenses driven by enterprise growth.
Total Year 2023
- Net revenue for 2023 decreased $2.4 million primarily as a result of Arlington ceasing racing and simulcast operations at the end of 2021.
- Adjusted EBITDA for 2023 decreased $12.3 million primarily driven by increased corporate compensation and benefits related expenses.
| CAPITAL MANAGEMENT |
Share Repurchase Program
The Company repurchased 151,394 shares of its common stock at an average share price of approximately $118.97 based on trade date under its share repurchase program in the fourth quarter of 2023. The Company repurchased 461,761 shares of its common stock at an average share price of approximately $119.81 based on trade date under its share repurchase program in 2023, at a total cost of $55.3 million. We had $214.9 million of repurchase authority remaining under this program on December 31, 2023.
The Duchossois Group Share Repurchase
On December 18, 2023, the Company entered into an agreement with an affiliate of The Duchossois Group to repurchase 1,000,000 shares of the Company’s common stock for $123.75 per share in a privately negotiated transaction for an aggregate purchase price of $123.75 million. The repurchase of the shares closed on January 2, 2024 and was funded using available cash and borrowings under the senior secured credit facility.
Annual Dividend
On October 24, 2023, the Company’s Board of Directors approved an annual cash dividend on the Company’s common stock of $0.382 per outstanding share, a seven percent (7%) increase over the prior year on a split adjusted basis. The dividend was payable on January 5, 2024, to shareholders of record as of the close of business on December 1, 2023, with the aggregate cash dividend paid to each shareholder rounded to the nearest whole cent. The increase marks the thirteenth consecutive year that the Company has increased the dividend per share.
Capital Investments
We currently expect our project capital to be approximately $450 to $550 million in 2024, although this amount may vary significantly based on the timing of work completed, unanticipated delays, and timing of payments to third parties. We plan to use our operating cash flows and existing revolving credit facility to fund our capital project expenditures.
| NET INCOME |
Fourth Quarter 2023 Results
The Company’s fourth quarter 2023 net income was $57.6 million compared to $1.0 million in the prior year quarter.
The following items impacted the comparability of the Company’s fourth quarter net income:
- $25.2 million after-tax decrease in asset impairments primarily associated with the Presque Isle asset impairment not recurring in the current year quarter;
- $22.2 million after-tax decrease in expenses related to transaction, pre-opening and other expenses, net; and
- $1.3 million after-tax decrease in legal reserves.
Partially offset by:
- $1.7 million after-tax increase in other charges.
Excluding the items above, fourth quarter 2023 adjusted net income increased $9.6 million primarily due to the following:
- $20.7 million after-tax increase from the prior year quarter driven by the results of our operations; and
- Partially offset by $11.1 million after-tax increase from the prior year quarter in interest expense associated with higher outstanding debt balances.
Full Year 2023 Results
The Company’s 2023 net income was $417.3 million compared to $439.4 million in the prior year.
The following items impacted the comparability of the Company’s full year net income from continuing operations:
- $112.4 million decrease in after-tax gains on property sales; and
- $9.2 million after-tax benefit related to our equity portion of the non-cash change in fair value of Rivers Des Plaines’ interest rate swap that did not recur in 2023.
Partially offset by:
- $16.6 million after-tax decrease in transaction, pre-opening, and other expenses;
- $10.1 million after-tax decrease in non-cash asset impairments; and
- $3.1 million decrease of other charges.
Excluding these items, 2023 adjusted net income increased $69.7 million compared to the prior year primarily due to the following:
- $197.1 million after-tax increase primarily driven by the results of our operations;
- Partially offset by a $127.4 million after-tax increase in interest expense associated with higher outstanding debt balances.
Conference Call
A conference call regarding this news release is scheduled for Thursday, February 22, 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, February 22, 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.
Adjusted EBITDA excludes:
- Transaction expense, net which includes:
- Acquisition, disposition, and property sale related charges;
- Direct online Sports and Casino business exit costs; and
- Other transaction expense, including legal, accounting, and other deal-related expense;
- Stock-based compensation expense;
- Rivers Des Plaines’ impact on our investments in unconsolidated affiliates from:
- The impact of changes in fair value of interest rate swaps; and
- Legal reserves and transaction costs;
- Asset impairments;
- Gain on property and asset sales;
- Legal reserves;
- Pre-opening expense; and
- Other charges, recoveries, and expenses.
On June 26, 2023, the Company’s management agreement for Lady Luck Casino Nemacolin expired and was not renewed. The Company completed the sale of substantially all of its assets at Lady Luck Casino Nemacolin for an immaterial amount.
As of December 31, 2021, 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 2022 and 2023 are treated as an adjustment to EBITDA.
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 (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 http://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 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 the 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 except year ended 2023 and 2022 amounts) |
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| Three Months Ended December 31, |
Years Ended December 31, |
||||||||||||||
| (in millions, except per common share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net revenue: | |||||||||||||||
| Live and Historical Racing | $ | 228.4 | $ | 175.4 | $ | 1,047.3 | $ | 614.6 | |||||||
| TwinSpires | 104.2 | 93.1 | 444.9 | 436.4 | |||||||||||
| Gaming | 228.4 | 210.9 | 968.6 | 755.9 | |||||||||||
| All Other | 0.2 | 0.7 | 0.9 | 2.9 | |||||||||||
| Total net revenue | 561.2 | 480.1 | 2,461.7 | 1,809.8 | |||||||||||
| Operating expense: | |||||||||||||||
| Live and Historical Racing | 156.5 | 131.7 | 662.2 | 400.9 | |||||||||||
| TwinSpires | 68.4 | 64.0 | 288.2 | 293.6 | |||||||||||
| Gaming | 171.7 | 150.9 | 700.0 | 537.9 | |||||||||||
| All Other | 3.6 | 2.2 | 15.6 | 11.0 | |||||||||||
| Selling, general and administrative expense | 51.7 | 51.5 | 202.3 | 164.2 | |||||||||||
| Asset impairments | 0.1 | 33.4 | 24.6 | 38.3 | |||||||||||
| Transaction expense, net | 3.0 | 34.7 | 4.8 | 42.1 | |||||||||||
| Total operating expense | 455.0 | 468.4 | 1,897.7 | 1,488.0 | |||||||||||
| Operating income | 106.2 | 11.7 | 564.0 | 321.8 | |||||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense, net | (70.6 | ) | (54.7 | ) | (268.4 | ) | (147.3 | ) | |||||||
| Equity in income of unconsolidated affiliates | 35.9 | 37.3 | 146.3 | 152.7 | |||||||||||
| Gain on the sale of assets | — | — | 114.0 | 274.6 | |||||||||||
| Miscellaneous, net | 0.4 | 2.6 | 5.9 | 7.0 | |||||||||||
| Total other (expense) income | (34.3 | ) | (14.8 | ) | (2.2 | ) | 287.0 | ||||||||
| Income before provision for income taxes | 71.9 | (3.1 | ) | 561.8 | 608.8 | ||||||||||
| Income tax (provision) benefit | (14.3 | ) | 4.1 | (144.5 | ) | (169.4 | ) | ||||||||
| Net income | $ | 57.6 | $ | 1.0 | $ | 417.3 | $ | 439.4 | |||||||
| Net income per common share – basic | $ | 0.77 | $ | 0.01 | $ | 5.55 | $ | 5.79 | |||||||
| Net income per common share – diluted | $ | 0.76 | $ | 0.01 | $ | 5.49 | $ | 5.71 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 75.1 | 75.2 | 75.2 | 75.9 | |||||||||||
| Diluted | 75.8 | 76.3 | 76.1 | 77.0 | |||||||||||
| CHURCHILL DOWNS INCORPORATED CONSOLIDATED BALANCE SHEETS December 31, |
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| (in millions) | 2023 | 2022 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 144.5 | $ | 129.8 | |||
| Restricted cash | 77.3 | 74.9 | |||||
| Accounts receivable, net | 106.9 | 81.5 | |||||
| Income taxes receivable | 12.6 | 14.0 | |||||
| Other current assets | 59.5 | 44.3 | |||||
| Total current assets | 400.8 | 344.5 | |||||
| Property and equipment, net | 2,561.2 | 1,978.3 | |||||
| Investment in and advances to unconsolidated affiliates | 655.9 | 659.4 | |||||
| Goodwill | 899.9 | 723.8 | |||||
| Other intangible assets, net | 2,418.4 | 2,391.8 | |||||
| Other assets | 19.3 | 27.0 | |||||
| Long-term assets held for sale | — | 82.0 | |||||
| Total assets | $ | 6,955.5 | $ | 6,206.8 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 158.5 | $ | 145.5 | |||
| Accrued expenses and other current liabilities | 426.8 | 363.1 | |||||
| Current deferred revenue | 73.2 | 39.0 | |||||
| Current maturities of long-term debt | 68.0 | 47.0 | |||||
| Dividends payable | 29.3 | 27.0 | |||||
| Total current liabilities | 755.8 | 621.6 | |||||
| Long-term debt (net of current maturities and loan origination fees of $8.9 in 2023 and $10.2 in 2022) | 1,697.1 | 2,081.6 | |||||
| Notes payable (net of debt issuance costs of $28.8 in 2023 and $22.9 in 2022) | 3,071.2 | 2,477.1 | |||||
| Non-current deferred revenue | 11.8 | 11.8 | |||||
| Deferred income taxes | 388.2 | 340.8 | |||||
| Other liabilities | 137.8 | 122.4 | |||||
| Total liabilities | 6,061.9 | 5,655.3 | |||||
| Commitments and contingencies | |||||||
| Shareholders’ equity: | |||||||
| Preferred stock, no par value; 0.3 shares authorized; no shares issued or outstanding | — | — | |||||
| Common stock, no par value; 300.0 shares authorized; 74.5 shares issued and outstanding December 31, 2023 and 74.8 shares at December 31, 2022 | — | — | |||||
| Retained earnings | 894.5 | 552.4 | |||||
| Accumulated other comprehensive loss | (0.9 | ) | (0.9 | ) | |||
| Total shareholders’ equity | 893.6 | 551.5 | |||||
| Total liabilities and shareholders’ equity | $ | 6,955.5 | $ | 6,206.8 | |||
| CHURCHILL DOWNS INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS for the years ended December 31, |
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| (in millions) | 2023 | 2022 | |||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 417.3 | $ | 439.4 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 169.0 | 113.7 | |||||
| Equity in income of unconsolidated affiliates | (146.3 | ) | (152.7 | ) | |||
| Distributions from unconsolidated affiliates | 155.1 | 156.9 | |||||
| Stock-based compensation | 32.9 | 31.8 | |||||
| Deferred income taxes | 47.4 | 108.7 | |||||
| Asset impairments | 24.6 | 38.3 | |||||
| Amortization of operating lease assets | 6.2 | 5.3 | |||||
| Gain on sale of assets | (114.0 | ) | (274.6 | ) | |||
| Other | 5.4 | 7.4 | |||||
| Changes in operating assets and liabilities, net of businesses acquired and dispositions: | |||||||
| Income taxes | (1.1 | ) | 28.2 | ||||
| Deferred revenue | 34.2 | (12.7 | ) | ||||
| Other assets and liabilities | (25.4 | ) | 21.1 | ||||
| Net cash provided by operating activities | 605.3 | 510.8 | |||||
| Cash flows from investing activities: | |||||||
| Capital maintenance expenditures | (77.7 | ) | (50.2 | ) | |||
| Capital project expenditures | (598.8 | ) | (373.3 | ) | |||
| Acquisition of businesses, net of cash acquired | (241.3 | ) | (2,918.5 | ) | |||
| Acquisition of gaming rights, net of cash acquired | — | (33.3 | ) | ||||
| Proceeds from sale of assets | 195.7 | 279.0 | |||||
| Other | 4.1 | (7.4 | ) | ||||
| Net cash used in investing activities | (718.0 | ) | (3,103.7 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from borrowings under long-term debt obligations | 1,771.1 | 2,862.4 | |||||
| Repayments of borrowings under long-term debt obligations | (1,536.0 | ) | (205.4 | ) | |||
| Payment of dividends | (27.1 | ) | (26.0 | ) | |||
| Repurchase of common stock | (55.9 | ) | (174.9 | ) | |||
| Taxes paid related to net share settlement of stock awards | (25.5 | ) | (28.4 | ) | |||
| Proceeds from pending equity transaction | 14.4 | — | |||||
| Debt issuance costs | (13.0 | ) | (27.3 | ) | |||
| Change in bank overdraft | 2.0 | 13.3 | |||||
| Other | (0.7 | ) | 2.3 | ||||
| Net cash provided by financing activities | 129.3 | 2,416.0 | |||||
| Cash flows from discontinued operations: | |||||||
| Operating cash flows of discontinued operations | 0.5 | 26.0 | |||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 17.1 | (150.9 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of year | 204.7 | 355.6 | |||||
| Cash, cash equivalents and restricted cash, end of year | $ | 221.8 | $ | 204.7 | |||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (unaudited) |
|||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| GAAP net income | $ | 57.6 | $ | 1.0 | $ | 417.3 | $ | 439.4 | |||||||
| Adjustments, continuing operations: | |||||||||||||||
| Changes in fair value of interest rate swaps related to Rivers Des Plaines | — | — | — | (12.6 | ) | ||||||||||
| Legal reserves and transaction costs related to Rivers Des Plaines | — | — | — | 0.6 | |||||||||||
| Other charges | 2.4 | — | 2.4 | 1.0 | |||||||||||
| Transaction, pre-opening and other expense | 9.6 | 40.7 | 39.8 | 62.7 | |||||||||||
| Legal reserves | (1.2 | ) | 0.6 | (1.2 | ) | 3.8 | |||||||||
| Asset impairments | 0.1 | 33.4 | 24.6 | 38.3 | |||||||||||
| Gain on sale of assets | — | — | (114.0 | ) | (274.6 | ) | |||||||||
| Income tax impact on net income adjustments(a) | (3.1 | ) | (19.9 | ) | 10.6 | 51.2 | |||||||||
| Total adjustments | 7.8 | 54.8 | (37.8 | ) | (129.6 | ) | |||||||||
| Adjusted net income | $ | 65.4 | $ | 55.8 | $ | 379.5 | $ | 309.8 | |||||||
| Adjusted diluted EPS | $ | 0.86 | $ | 0.73 | $ | 4.99 | $ | 4.02 | |||||||
| Weighted average shares outstanding – Diluted | 75.8 | 76.3 | 76.1 | 77.0 | |||||||||||
| (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 December 31, | Years Ended December 31, | ||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||
| Total Handle | |||||||
| TwinSpires Horse Racing | 439.1 | 431.0 | 1,991.9 | 1,958.6 | |||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (unaudited except year ended 2023 and 2022 amounts) |
|||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net revenue from external customers: | |||||||||||||||
| Live and Historical Racing: | |||||||||||||||
| Churchill Downs Racetrack | $ | 14.5 | $ | 14.2 | $ | 205.8 | $ | 196.8 | |||||||
| Louisville | 50.8 | 41.4 | 189.0 | 169.9 | |||||||||||
| Northern Kentucky | 22.7 | 16.9 | 85.8 | 46.1 | |||||||||||
| Southwestern Kentucky | 36.1 | 33.6 | 147.8 | 131.4 | |||||||||||
| Western Kentucky | 6.0 | 4.3 | 31.8 | 4.5 | |||||||||||
| Virginia | 95.0 | 62.4 | 375.4 | 62.4 | |||||||||||
| New Hampshire | 3.3 | 2.6 | 11.7 | 3.5 | |||||||||||
| Total Live and Historical Racing | 228.4 | 175.4 | 1,047.3 | 614.6 | |||||||||||
| TwinSpires: | 104.2 | 93.1 | 444.9 | 436.4 | |||||||||||
| Gaming: | |||||||||||||||
| Florida | 24.2 | 25.0 | 100.7 | 106.2 | |||||||||||
| Iowa | 23.5 | 15.6 | 96.0 | 15.6 | |||||||||||
| Louisiana | 35.5 | 33.6 | 145.6 | 140.8 | |||||||||||
| Maine | 26.0 | 26.6 | 114.1 | 114.4 | |||||||||||
| Maryland | 24.0 | 23.3 | 106.9 | 105.3 | |||||||||||
| Mississippi | 23.4 | 23.8 | 100.9 | 101.8 | |||||||||||
| New York | 45.2 | 30.9 | 180.5 | 30.9 | |||||||||||
| Pennsylvania | 26.6 | 32.1 | 123.9 | 140.9 | |||||||||||
| Total Gaming | 228.4 | 210.9 | 968.6 | 755.9 | |||||||||||
| All Other | 0.2 | 0.7 | 0.9 | 2.9 | |||||||||||
| Net revenue from external customers | $ | 561.2 | $ | 480.1 | $ | 2,461.7 | $ | 1,809.8 | |||||||
| Intercompany net revenues: | |||||||||||||||
| Live and Historical Racing | $ | 6.9 | $ | 5.5 | $ | 37.3 | $ | 31.8 | |||||||
| TwinSpires | 6.5 | 1.2 | 13.5 | 5.2 | |||||||||||
| Gaming | 1.8 | 1.3 | 6.0 | 5.9 | |||||||||||
| All Other | — | 0.4 | — | 0.4 | |||||||||||
| Eliminations | (15.2 | ) | (8.4 | ) | (56.8 | ) | (43.3 | ) | |||||||
| Intercompany net revenue | $ | — | $ | — | $ | — | $ | — | |||||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (unaudited except year ended 2023 and 2022 amounts) |
|||||||||||||||||||||||
| Three Months Ended December 31, 2023 | |||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Total | |||||||||||||||||
| Net revenue from external customers | |||||||||||||||||||||||
| Pari-mutuel: | |||||||||||||||||||||||
| Live and simulcast racing | $ | 14.7 | $ | 76.5 | $ | 6.7 | $ | 97.9 | $ | — | $ | 97.9 | |||||||||||
| Historical racing(a) | 189.8 | — | 8.1 | 197.9 | — | 197.9 | |||||||||||||||||
| Racing event-related services | 4.9 | — | 1.6 | 6.5 | — | 6.5 | |||||||||||||||||
| Gaming(a) | 3.2 | 6.4 | 188.1 | 197.7 | — | 197.7 | |||||||||||||||||
| Other(a) | 15.8 | 21.3 | 23.9 | 61.0 | 0.2 | 61.2 | |||||||||||||||||
| Total | $ | 228.4 | $ | 104.2 | $ | 228.4 | $ | 561.0 | $ | 0.2 | $ | 561.2 | |||||||||||
| Three Months Ended December 31, 2022 | |||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other |
Total | |||||||||||||||||
| Net revenue from external customers | |||||||||||||||||||||||
| Pari-mutuel: | |||||||||||||||||||||||
| Live and simulcast racing | $ | 12.9 | $ | 76.5 | $ | 6.1 | $ | 95.5 | $ | — | $ | 95.5 | |||||||||||
| Historical racing(a) | 143.4 | — | 5.0 | 148.4 | — | 148.4 | |||||||||||||||||
| Racing event-related services | 4.4 | — | 1.1 | 5.5 | — | 5.5 | |||||||||||||||||
| Gaming(a) | 2.6 | 6.4 | 177.8 | 186.8 | — | 186.8 | |||||||||||||||||
| Other(a) | 12.1 | 10.2 | 20.9 | 43.2 | 0.7 | 43.9 | |||||||||||||||||
| Total | $ | 175.4 | $ | 93.1 | $ | 210.9 | $ | 479.4 | $ | 0.7 | $ | 480.1 | |||||||||||
| (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 $13.1 million for the three months ended December 31, 2023 and $10.7 million for the three months ended December 31, 2022. |
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (unaudited except year ended 2023 and 2022 amounts) |
|||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other |
Total | |||||||||||||||||
| Net revenue from external customers | |||||||||||||||||||||||
| Pari-mutuel: | |||||||||||||||||||||||
| Live and simulcast racing | $ | 81.9 | $ | 359.7 | $ | 26.6 | $ | 468.2 | $ | — | $ | 468.2 | |||||||||||
| Historical racing(a) | 739.1 | — | 28.6 | 767.7 | — | 767.7 | |||||||||||||||||
| Racing event-related services | 145.9 | — | 6.4 | 152.3 | — | 152.3 | |||||||||||||||||
| Gaming(a) | 11.4 | 17.3 | 803.5 | 832.2 | — | 832.2 | |||||||||||||||||
| Other(a) | 69.0 | 67.9 | 103.5 | 240.4 | 0.9 | 241.3 | |||||||||||||||||
| Total | $ | 1,047.3 | $ | 444.9 | $ | 968.6 | $ | 2,460.8 | $ | 0.9 | $ | 2,461.7 | |||||||||||
| Year Ended December 31, 2022 | |||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other |
Total | |||||||||||||||||
| Net revenue from external customers | |||||||||||||||||||||||
| Pari-mutuel: | |||||||||||||||||||||||
| Live and simulcast racing | $ | 66.8 | $ | 367.4 | $ | 28.1 | $ | 462.3 | $ | — | $ | 462.3 | |||||||||||
| Historical racing(a) | 374.1 | — | 9.8 | 383.9 | — | 383.9 | |||||||||||||||||
| Racing event-related services | 129.8 | — | 1.8 | 131.6 | — | 131.6 | |||||||||||||||||
| Gaming(a) | 3.5 | 28.2 | 647.4 | 679.1 | — | 679.1 | |||||||||||||||||
| Other(a) | 40.4 | 40.8 | 68.8 | 150.0 | 2.9 | 152.9 | |||||||||||||||||
| Total | $ | 614.6 | $ | 436.4 | $ | 755.9 | $ | 1,806.9 | $ | 2.9 | $ | 1,809.8 | |||||||||||
| (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 $50.9 million in 2023 and $33.9 million in 2022. |
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (unaudited except year ended 2023 and 2022 amounts) |
||||||||||||||||||||||||||||
| Adjusted EBITDA by segment is comprised of the following: | ||||||||||||||||||||||||||||
| Three Months Ended December 31, 2023 | ||||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other(a) |
Eliminations | Total | |||||||||||||||||||||
| Revenue | $ | 235.3 | $ | 110.6 | $ | 230.2 | $ | 576.1 | $ | 0.2 | $ | (15.1 | ) | $ | 561.2 | |||||||||||||
| Gaming taxes and purses | (63.8 | ) | (4.8 | ) | (76.1 | ) | (144.7 | ) | — | — | (144.7 | ) | ||||||||||||||||
| Marketing and advertising | (9.7 | ) | (1.8 | ) | (8.9 | ) | (20.4 | ) | 0.1 | (0.1 | ) | (20.4 | ) | |||||||||||||||
| Salaries and benefits | (27.0 | ) | (8.6 | ) | (36.8 | ) | (72.4 | ) | — | — | (72.4 | ) | ||||||||||||||||
| Content expenses | (1.4 | ) | (44.0 | ) | (1.9 | ) | (47.3 | ) | — | 9.7 | (37.6 | ) | ||||||||||||||||
| Selling, general, and administrative expense | (8.5 | ) | (4.3 | ) | (10.3 | ) | (23.1 | ) | (18.1 | ) | 0.5 | (40.7 | ) | |||||||||||||||
| Maintenance, insurance and utilities | (11.4 | ) | (1.2 | ) | (10.3 | ) | (22.9 | ) | (0.1 | ) | — | (23.0 | ) | |||||||||||||||
| Property and other taxes | (1.6 | ) | (1.1 | ) | (3.6 | ) | (6.3 | ) | (0.1 | ) | — | (6.4 | ) | |||||||||||||||
| Other operating expense | (23.2 | ) | (9.8 | ) | (17.7 | ) | (50.7 | ) | (0.1 | ) | 5.0 | (45.8 | ) | |||||||||||||||
| Other income | 0.2 | (0.1 | ) | 48.8 | 48.9 | — | — | 48.9 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 88.9 | $ | 34.9 | $ | 113.4 | $ | 237.2 | $ | (18.1 | ) | $ | — | $ | 219.1 | |||||||||||||
| Three Months Ended December 31, 2022 | |||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other(a) |
Eliminations | Total | ||||||||||||||||||||
| Revenue | $ | 180.9 | $ | 94.3 | $ | 212.2 | $ | 487.4 | $ | 0.4 | $ | (8.4 | ) | $ | 479.4 | ||||||||||||
| Gaming taxes and purses | (50.6 | ) | (5.7 | ) | (72.0 | ) | (128.3 | ) | — | — | (128.3 | ) | |||||||||||||||
| Marketing and advertising | (6.9 | ) | (1.6 | ) | (7.6 | ) | (16.1 | ) | — | 0.2 | (15.9 | ) | |||||||||||||||
| Salaries and benefits | (20.3 | ) | (6.9 | ) | (30.7 | ) | (57.9 | ) | — | — | (57.9 | ) | |||||||||||||||
| Content expenses | (1.2 | ) | (42.8 | ) | (1.9 | ) | (45.9 | ) | — | 7.7 | (38.2 | ) | |||||||||||||||
| Selling, general, and administrative expense | (8.9 | ) | (1.8 | ) | (10.9 | ) | (21.6 | ) | (18.2 | ) | 0.2 | (39.6 | ) | ||||||||||||||
| Maintenance, insurance and utilities | (8.9 | ) | (0.9 | ) | (10.0 | ) | (19.8 | ) | (0.1 | ) | — | (19.9 | ) | ||||||||||||||
| Property and other taxes | (0.9 | ) | (0.1 | ) | (3.0 | ) | (4.0 | ) | — | — | (4.0 | ) | |||||||||||||||
| Other operating expense | (22.1 | ) | (9.6 | ) | (14.6 | ) | (46.3 | ) | — | 0.3 | (46.0 | ) | |||||||||||||||
| Other income | 0.1 | 0.1 | 50.9 | 51.1 | — | — | 51.1 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 61.2 | $ | 25.0 | $ | 112.4 | $ | 198.6 | $ | (17.9 | ) | $ | — | $ | 180.7 | ||||||||||||
| (a) | The revenue and expenses associated with the Adjusted EBITDA for All Other excludes the results of Arlington. |
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (unaudited except year ended 2023 and 2022 amounts) |
|||||||||||||||||||||||||||
| Adjusted EBITDA by segment is comprised of the following: | |||||||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other(a) |
Eliminations | Total | ||||||||||||||||||||
| Revenue | $ | 1,084.6 | $ | 458.4 | $ | 974.6 | $ | 2,517.6 | $ | 0.9 | $ | (56.8 | ) | $ | 2,461.7 | ||||||||||||
| Gaming taxes and purses | (267.7 | ) | (22.6 | ) | (322.8 | ) | (613.1 | ) | — | — | (613.1 | ) | |||||||||||||||
| Marketing and advertising | (37.6 | ) | (9.8 | ) | (35.4 | ) | (82.8 | ) | (0.1 | ) | 0.2 | (82.7 | ) | ||||||||||||||
| Salaries and benefits | (107.0 | ) | (29.3 | ) | (146.0 | ) | (282.3 | ) | — | — | (282.3 | ) | |||||||||||||||
| Content expenses | (6.5 | ) | (205.1 | ) | (8.8 | ) | (220.4 | ) | — | 47.4 | (173.0 | ) | |||||||||||||||
| Selling, general, and administrative expense | (31.9 | ) | (12.4 | ) | (42.7 | ) | (87.0 | ) | (72.2 | ) | 1.4 | (157.8 | ) | ||||||||||||||
| Maintenance, insurance and utilities | (43.2 | ) | (3.8 | ) | (40.0 | ) | (87.0 | ) | (0.4 | ) | — | (87.4 | ) | ||||||||||||||
| Property and other taxes | (6.0 | ) | (0.2 | ) | (13.5 | ) | (19.7 | ) | (0.4 | ) | — | (20.1 | ) | ||||||||||||||
| Other operating expense | (110.6 | ) | (44.1 | ) | (70.2 | ) | (224.9 | ) | — | 7.8 | (217.1 | ) | |||||||||||||||
| Other income | 1.3 | 1.0 | 193.4 | 195.7 | — | — | 195.7 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 475.4 | $ | 132.1 | $ | 488.6 | $ | 1,096.1 | $ | (72.2 | ) | $ | — | $ | 1,023.9 | ||||||||||||
| Year Ended December 31, 2022 | |||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other(a) |
Eliminations | Total | ||||||||||||||||||||
| Revenue | $ | 646.4 | $ | 441.6 | $ | 761.8 | $ | 1,849.8 | $ | 0.8 | $ | (43.3 | ) | $ | 1,807.3 | ||||||||||||
| Gaming taxes and purses | (168.6 | ) | (27.0 | ) | (278.1 | ) | (473.7 | ) | — | — | (473.7 | ) | |||||||||||||||
| Marketing and advertising | (19.8 | ) | (13.0 | ) | (18.9 | ) | (51.7 | ) | (0.2 | ) | 0.2 | (51.7 | ) | ||||||||||||||
| Salaries and benefits | (63.4 | ) | (26.8 | ) | (102.7 | ) | (192.9 | ) | — | — | (192.9 | ) | |||||||||||||||
| Content expenses | (3.4 | ) | (203.3 | ) | (8.3 | ) | (215.0 | ) | — | 41.4 | (173.6 | ) | |||||||||||||||
| Selling, general, and administrative expense | (18.6 | ) | (9.7 | ) | (31.3 | ) | (59.6 | ) | (60.1 | ) | 1.3 | (118.4 | ) | ||||||||||||||
| Maintenance, insurance and utilities | (24.3 | ) | (3.0 | ) | (31.1 | ) | (58.4 | ) | (0.4 | ) | — | (58.8 | ) | ||||||||||||||
| Property and other taxes | (2.6 | ) | (0.2 | ) | (10.5 | ) | (13.3 | ) | (0.1 | ) | — | (13.4 | ) | ||||||||||||||
| Other operating expense | (58.6 | ) | (44.6 | ) | (49.9 | ) | (153.1 | ) | — | 0.4 | (152.7 | ) | |||||||||||||||
| Other income | 0.4 | 0.1 | 190.9 | 191.4 | 0.1 | — | 191.5 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 287.5 | $ | 114.1 | $ | 421.9 | $ | 823.5 | $ | (59.9 | ) | $ | — | $ | 763.6 | ||||||||||||
| (a) | The revenue and expenses associated with the Adjusted EBITDA for All Other excludes the results of Arlington. |
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (unaudited except year ended 2023 and 2022 amounts) |
|||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net income and comprehensive income | $ | 57.6 | $ | 1.0 | $ | 417.3 | $ | 439.4 | |||||||
| Additions: | |||||||||||||||
| Depreciation and amortization | 47.2 | 35.0 | 169.0 | 113.7 | |||||||||||
| Interest expense | 70.6 | 54.7 | 268.4 | 147.3 | |||||||||||
| Income tax provision | 14.3 | (4.1 | ) | 144.5 | 169.4 | ||||||||||
| EBITDA | $ | 189.7 | $ | 86.6 | $ | 999.2 | $ | 869.8 | |||||||
| Adjustments to EBITDA: | |||||||||||||||
| Stock-based compensation expense | $ | 8.1 | $ | 8.3 | $ | 32.9 | $ | 31.8 | |||||||
| Legal reserves | (1.2 | ) | 0.6 | (1.2 | ) | 3.8 | |||||||||
| Pre-opening expense | 7.2 | 4.3 | 18.6 | 13.2 | |||||||||||
| Arlington exit costs | — | — | 9.4 | 5.7 | |||||||||||
| Other expense, net | (0.6 | ) | 1.7 | 7.0 | 1.7 | ||||||||||
| Transaction expense, net | 3.0 | 34.7 | 4.8 | 42.1 | |||||||||||
| Asset impairments | 0.1 | 33.4 | 24.6 | 38.3 | |||||||||||
| Other income, expense: | |||||||||||||||
| Interest, depreciation and amortization expense related to equity investments | 10.4 | 11.1 | 40.2 | 42.8 | |||||||||||
| Changes in fair value of Rivers Des Plaines’ interest rate swaps | — | — | — | (12.6 | ) | ||||||||||
| Rivers Des Plaines’ legal reserves and transactions costs | — | — | — | 0.6 | |||||||||||
| Other charges and recoveries, net | 2.4 | — | 2.4 | 1.0 | |||||||||||
| Gain on the sale of assets | — | — | (114.0 | ) | (274.6 | ) | |||||||||
| Total adjustments to EBITDA | 29.4 | 94.1 | 24.7 | (106.2 | ) | ||||||||||
| Adjusted EBITDA | $ | 219.1 | $ | 180.7 | $ | 1,023.9 | $ | 763.6 | |||||||
| Adjusted EBITDA by segment: | |||||||||||||||
| Live and Historical Racing | $ | 88.9 | $ | 61.2 | $ | 475.4 | $ | 287.5 | |||||||
| TwinSpires | 34.9 | 25.0 | 132.1 | 114.1 | |||||||||||
| Gaming | 113.4 | 112.4 | 488.6 | 421.9 | |||||||||||
| Total segment Adjusted EBITDA | 237.2 | 198.6 | 1,096.1 | 823.5 | |||||||||||
| All Other | (18.1 | ) | (17.9 | ) | (72.2 | ) | (59.9 | ) | |||||||
| Total Adjusted EBITDA | $ | 219.1 | $ | 180.7 | $ | 1,023.9 | $ | 763.6 | |||||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL JOINT VENTURE FINANCIAL STATEMENTS (Unaudited) |
|||||||||||||||
| Summarized financial information for our equity investments is comprised of the following: | |||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net revenue | $ | 216.6 | $ | 212.2 | $ | 864.8 | $ | 825.5 | |||||||
| Operating and SG&A expense | 132.2 | 128.7 | 534.0 | 509.1 | |||||||||||
| Depreciation and amortization | 6.3 | 8.3 | 23.8 | 25.8 | |||||||||||
| Operating income | 78.1 | 75.2 | 307.0 | 290.6 | |||||||||||
| Interest and other expense, net | (11.2 | ) | (11.0 | ) | (43.9 | ) | (24.8 | ) | |||||||
| Net income | $ | 66.9 | $ | 64.2 | $ | 263.1 | $ | 265.8 | |||||||
| December 31, | |||||||
| (in millions) | 2023 | 2022 | |||||
| Assets | |||||||
| Current assets | $ | 104.8 | $ | 91.0 | |||
| Property and equipment, net | 339.4 | 345.7 | |||||
| Other assets, net | 266.1 | 265.0 | |||||
| Total assets | $ | 710.3 | $ | 701.7 | |||
| Liabilities and Members’ Deficit | |||||||
| Current liabilities | $ | 106.2 | $ | 97.9 | |||
| Long-term debt | 847.2 | 838.6 | |||||
| Other liabilities | 0.7 | 0.2 | |||||
| Members’ deficit | (243.8 | ) | (235.0 | ) | |||
| Total liabilities and members’ deficit | $ | 710.3 | $ | 701.7 | |||
| CHURCHILL DOWNS INCORPORATED PLANNED CAPITAL PROJECTS (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 (Louisville, Kentucky) |
Paddock Project | May 2024 | $185 – $200 | |
| Jockey Club Suites | May 2024 | $14 | ||
| The Rose (Northern Virginia) |
Property Build Out | Late Third Quarter 2024 | $460 | |
| Owensboro Racing and Gaming (Western Kentucky) |
Property Build Out | First Quarter 2025 | $100 | |
| New Hampshire HRM Facility | Property Build Out | TBD | TBD | |
| Gaming Segment | ||||
| Terre Haute Casino Resort | Property Build Out (Casino) | April 2024 | Up to $290 | |
| Property Build Out (Hotel) | May 2024 | |||
Contact: Kaitlin Buzzetto
(502) 394-1091
[email protected]
Nasdaq:CHDN
Churchill Downs Incorporated Unveils Multi-Year Series of Capital Projects for Churchill Downs Racetrack
The Skye, Conservatory and Infield General Admission Projects Will Create World-Class Premium Hospitality for Kentucky Derby Guests
LOUISVILLE, Ky., Feb. 19, 2025 (GLOBE NEWSWIRE) — Churchill Downs Incorporated (“CDI” or “the Company”) (Nasdaq: CHDN) announced today a multi-year series of capital projects that will enhance and expand the Kentucky Derby experience across three key areas of Churchill Downs Racetrack (“Churchill Downs”). The series of transformational projects are, collectively, the largest expansion and renovation undertaken in the 150-year history of CDI. The three projects are:
- The Skye Reconstruction and Expansion Project (“The Skye Project”),
- Conservatory Project, and
- Infield General Admission Project.
“These projects as well as key infrastructure improvements, reflect the Company’s commitment to providing world-class hospitality and premium seating options for guests for many decades to come,” said Bill Carstanjen, Chief Executive Officer of CDI. “We have a proven track record of prudently investing capital in the Kentucky Derby to create once-in-a lifetime experiences for our guests while also creating significant long-term value for our shareholders.”
The Skye Project
Track view rendering of The Skye
Exterior view rendering of The Skye
The Skye Project will focus on the section of Churchill Downs that starts just past the finish line and extends to the First Turn Club. This project will replace 11,500 existing seats that currently consist of uncovered box seats and dated dining areas with 13,300 seats providing a variety of premium hospitality experiences that include improved track views and upgraded amenities. The existing Skye Terrace structure will be replaced with a new 5-story structure that will transform the iconic Clubhouse turn. The first three floors of The Skye are expected to be operational for the 153rd Kentucky Derby in May 2027 and the remaining areas are expected to be completed for the 154th Kentucky Derby in May 2028. For the 152nd Kentucky Derby in May 2026 and throughout the project transition, Churchill Downs will provide ticketed guests in the existing Skye Terrace areas with the opportunity for alternative premium seating to ensure the same extraordinary bucket list experience.
Conservatory Project
Aerial view rendering of the Conservatory
The Conservatory Project will replace the temporary suites in the infield which line the homestretch of the racetrack. This project will replace 2,100 temporary seats with new permanent structures providing over 7,000 premium experiences for guests including 36 suites. Phase One will feature: the Pagoda Club and Terrace that will capture sweeping views of the grandstand and offer unprecedented visibility to the Kentucky Derby Winner’s Circle; the first Conservatory building with 9 upgraded suites as well as covered rooftop dining presenting unparalleled views of the racetrack, frontside, and infield; and the Stargazer Lounge on the first turn of the infield that will provide VIP guests a unique and private area to enjoy all the sights and spectacle. Phase One of the Conservatory Project is expected to be operational for the 152nd Kentucky Derby in May 2026. Phase Two and Phase Three of the Conservatory Project will involve further construction of Conservatory structures down the homestretch towards the starting gate and are anticipated to be operational for the 153rd Kentucky Derby in 2027 and the 154th Kentucky Derby in 2028, respectively.
Infield General Admission Project
The Infield General Admission Project will introduce three new permanent buildings within the infield that will provide guests with enhanced amenities for the Kentucky Derby. This development will improve the overall experience for general admission guests and will also create ticket upgrade opportunities with additional entertainment and rooftop viewing options. The first building will be open for the 152nd Kentucky Derby in 2026, followed by the second building for the 153rd Kentucky Derby in 2027, and the third building for the 154th Kentucky Derby in 2028.
Aerial rendering of the three buildings (labeled 1, 2, 3) that make up the Infield General Admission Project
Infrastructure Projects
CDI is also planning to invest in several infrastructure improvements at Churchill Downs anticipated to include backside improvements for horsemen and trainers as well as a new tunnel to the infield that will facilitate seamless access to and from the front side. The tunnel will serve as an immersive underground journey for guests delivering 150 years of Kentucky Derby storytelling magic and building excitement for the day ahead.
Investment Summary
CDI plans to invest the following capital in each of the projects between 2025 and 2028:
- Skye Terrace Renovation and Expansion Project – $455 to $465 million
- Conservatory Project – $320 to $330 million
- Infield General Admission Project – $60 to $70 million
- Infrastructure Projects – $45 to $55 million
Pending approval of incentives that must be approved first by the City of Louisville and then by the appropriate state agencies including the Kentucky Cabinet for Economic Development, CDI anticipates spending $120 to $130 million of this project capital in 2025 and expects to have all three projects as well as the necessary infrastructure improvements completed by the 154th Kentucky Derby in May 2028. CDI believes that these investments will lay the foundation for growth over the next decade and create significant shareholder value over the long term.
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 acquisition, development, and operation of live and historical racing entertainment venues, the growth of online wagering businesses, and the acquisition, development, and operation 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; changes in, or new interpretations of, applicable tax laws or rulings that could result in additional tax liabilities; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, 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; negative shifts in public opinion regarding gambling that could result in increased regulation of, or new restrictions on, the gaming industry; 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 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; costs of compliance with increasingly complex laws and regulations regarding data privacy and protection of personal information; 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/319337e5-57ba-415d-8a1c-b238dd9ebf2e
https://www.globenewswire.com/NewsRoom/AttachmentNg/67adc605-4b37-44e3-91ee-c50cad46c9f5
https://www.globenewswire.com/NewsRoom/AttachmentNg/d7e60b6c-ca97-4ae5-9700-ca89e54c0d52
https://www.globenewswire.com/NewsRoom/AttachmentNg/3083c1b9-6f7b-4db7-8e67-552ed984ff77
LOUISVILLE, Ky., Feb. 19, 2025 (GLOBE NEWSWIRE) — Churchill Downs Incorporated (Nasdaq: CHDN) (the “Company”, “CDI”, “we”) today reported business results for the quarter and full year ended December 31, 2024.
Company Highlights
- Record fourth quarter 2024 financial results compared to the prior year:
- Net revenue of $624.2 million, up $63.0 million or 11%
- Net income attributable to CDI of $71.7 million, up $14.1 million or 24%
- Adjusted EBITDA of $236.6 million, up $17.5 million or 8%
- Record 2024 financial results compared to the prior year:
- Net revenue of $2.7 billion, up $272.6 million or 11%
- Net income attributable to CDI of $426.8 million, up $9.5 million or 2%
- Adjusted EBITDA of $1.2 billion, up $135.3 million or 13%
- We successfully ran the 150th Kentucky Derby on the first Saturday of May generating all-time record all-sources handle and all-time record Derby Week Adjusted EBITDA.
- We opened the Terre Haute Casino Resort in Indiana in April 2024, and the hotel in May 2024.
- The Rose Gaming Resort opened in Dumfries, Virginia in November 2024, with 1,650 historical racing machines and a 102-room hotel as our eighth HRM entertainment venue in Virginia.
- We opened Owensboro Racing & Gaming in Owensboro, Kentucky on February 12, 2025, with 600 historical racing machines, a retail sportsbook, simulcast wagering, and food and beverage offerings.
- We ended 2024 with net bank leverage of 4.0x and returned $218.3 million of capital to shareholders through share repurchases and dividends.
| CONSOLIDATED RESULTS |
| Fourth Quarter | Years Ended December 31 | ||||||||||
| (in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||
| Net revenue | $ | 624.2 | $ | 561.2 | $ | 2,734.3 | $ | 2,461.7 | |||
| Net income attributable to CDI | $ | 71.7 | $ | 57.6 | $ | 426.8 | $ | 417.3 | |||
| Diluted EPS attributable to CDI | $ | 0.95 | $ | 0.76 | $ | 5.68 | $ | 5.49 | |||
| Adjusted EBITDA(a) | $ | 236.6 | $ | 219.1 | $ | 1,159.2 | $ | 1,023.9 | |||
| (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. We have changed the name of the TwinSpires segment to Wagering Services and Solutions to better reflect the businesses that are within this segment. All comparisons are against the applicable prior year period unless otherwise noted.
Live and Historical Racing
| Fourth Quarter | Years Ended December 31, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Revenue | $ | 275.5 | $ | 235.3 | $ | 1,267.0 | $ | 1,084.6 | |||
| Adjusted EBITDA | 101.6 | 88.9 | 574.6 | 475.4 | |||||||
Fourth Quarter 2024
Fourth quarter 2024 revenue increased $40.2 million due to a $19.6 million increase primarily from the opening of The Rose Gaming Resort in Northern Virginia, a $10.4 million increase from our other Virginia HRM venues, a $4.1 million increase from our Southwestern Kentucky HRM venue, a $2.7 million increase at Churchill Downs Racetrack, a $2.1 million increase from our Northern Kentucky HRM venues, and a $1.3 million net increase from our other HRM venues.
Fourth quarter 2024 Adjusted EBITDA increased $12.7 million due to a $5.2 million increase primarily from the opening of The Rose Gaming Resort in Northern Virginia, a $7.6 million increase from our other Virginia HRM venues, a $2.1 million increase from our Southwestern Kentucky HRM venue, and a $1.5 million increase from our Northern Kentucky HRM venues. These increases were offset by a $1.8 million decrease related to an increase in government relations expense allocated to Virginia, a $1.3 million decrease at Churchill Downs Racetrack and a $0.6 million decrease at our other HRM venues.
Full Year 2024
Full year 2024 revenue increased $182.4 million due to a $57.2 million increase at Churchill Downs Racetrack due to a record-breaking 150th Derby Week, a $25.9 million increase in Northern Virginia including the opening of The Rose Gaming Resort, a $17.2 million increase from the opening of the Rosie’s Emporia HRM venue in Southern Virginia in September 2023, a $39.5 million increase from our other Virginia HRM venues, a $41.5 million increase from our Kentucky HRM venues, and a $1.1 million increase from our New Hampshire venue.
Full year 2024 Adjusted EBITDA increased $99.2 million due to a $32.6 million increase at Churchill Downs Racetrack due to a record-breaking 150th Derby Week, $9.7 million increase in Northern Virginia including the opening of The Rose Gaming Resort, a $7.1 million increase from the opening of the Rosie’s Emporia HRM venue in Southern Virginia in September 2023, a $38.3 million increase from our other Virginia HRM venues, and an $11.5 million increase primarily from our other Kentucky HRM venues.
Wagering Services and Solutions
| Fourth Quarter | Years Ended December 31, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Revenue | $ | 108.0 | $ | 110.6 | $ | 500.7 | $ | 458.4 | |||
| Adjusted EBITDA | 37.3 | 34.9 | 165.6 | 132.1 | |||||||
Fourth Quarter 2024
Fourth quarter 2024 revenue decreased $2.6 million due to a $3.5 million decrease from our sports betting business and a $1.3 million decrease in TwinSpires Horse Racing primarily due to market access and shifts in race days at other tracks. These decreases were partially offset by a $2.2 million increase from Exacta primarily from the growth of our Virginia HRM venues.
Fourth quarter 2024 Adjusted EBITDA increased $2.4 million due to a $2.1 million increase from our Exacta business primarily because of increased fees from the growth of our Virginia HRM venues, a $2.2 million increase from a one-time reduction in compensation expenses related to our Exacta business, and a $0.3 million increase in TwinSpires Horse Racing. These increases were partially offset by a $2.2 million decrease primarily from our sports betting business.
Full Year 2024
Full year 2024 revenue increased $42.3 million due to a $40.8 million increase from our Exacta business primarily from growth in our third party HRM business and from the growth of our Virginia HRM venues and a $2.0 million increase from our sports betting business, partially offset by a $0.5 million decrease from TwinSpires Horse Racing.
Full year 2024 Adjusted EBITDA increased $33.5 million due to a $29.2 million increase from our Exacta business because of increased fees from our Virginia HRM venues, a $2.2 million increase from a one-time reduction in accrued compensation expenses related to our Exacta business, and a $2.6 million increase primarily from our sports betting business, partially offset by a $0.5 million decrease from TwinSpires Horse Racing.
Gaming
| Fourth Quarter | Years Ended December 31, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Revenue | $ | 257.5 | $ | 230.2 | $ | 1,045.4 | $ | 974.6 | |||
| Adjusted EBITDA | 120.1 | 113.4 | 506.9 | 488.6 | |||||||
Fourth Quarter 2024
Fourth quarter 2024 revenue increased $27.3 million due to a $30.3 million increase from the opening of the Terre Haute Casino Resort, partially offset by a $3.0 million decrease from our other wholly owned gaming properties primarily due to regional gaming softness and increased competition.
Fourth quarter 2024 Adjusted EBITDA increased $6.7 million due to an $11.4 million increase from the opening of the Terre Haute Casino Resort and a $2.7 million increase from our equity investment in Miami Valley Gaming. These increases were partially offset by a $2.3 million decrease from our other wholly owned gaming properties and a $5.1 million decrease from our equity investment in Rivers Des Plaines primarily due to regional gaming softness, increased competition, and higher labor and benefit expense.
Full Year 2024
Full year 2024 revenue increased $70.8 million primarily due to a $96.6 million increase from the opening of the Terre Haute Casino Resort. This increase was partially offset by a $15.6 million decrease from our other wholly owned gaming properties primarily due to inclement weather in January 2024, regional gaming softness, and increased competition; and a $10.2 million decrease due to our decision not to renew the management agreement at Lady Luck at the end of June 2023.
Full year 2024 Adjusted EBITDA increased $18.3 million primarily due to a $44.5 million increase from the opening of the Terre Haute Casino Resort and a $3.0 million increase from our equity investment in Miami Valley Gaming. These increases were partially offset by a $19.5 million decrease from our wholly owned gaming properties and an $8.5 million decrease from our equity investment in Rivers Des Plaines primarily due to inclement weather in January 2024, regional gaming softness, increased competition, and higher labor and benefit expense; and a $1.2 million decrease from proceeds for business interruption insurance claims in the third quarter 2023 that did not reoccur.
All Other
| Fourth Quarter | Years Ended December 31, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue | $ | 2.1 | $ | 0.2 | $ | 6.6 | $ | 0.9 | |||||||
| Adjusted EBITDA | (22.4 | ) | (18.1 | ) | (87.9 | ) | (72.2 | ) | |||||||
Fourth Quarter 2024
Fourth quarter 2024 revenue increased $1.9 million due to intercompany revenue related to the captive insurance company that was established in April 2024. All captive revenue is eliminated in consolidation.
Fourth quarter 2024 Adjusted EBITDA decreased $4.3 million driven primarily by increased corporate compensation related expenses and other corporate administrative expenses driven by enterprise growth.
Full Year 2024
Full year 2024 revenue increased $5.7 million primarily due to intercompany revenue related to the captive insurance company that was established in April 2024. All captive revenue is eliminated in consolidation.
Full year 2024 Adjusted EBITDA decreased $15.7 million driven primarily by increased corporate compensation related expenses and other corporate administrative expenses driven by enterprise growth.
| CAPITAL MANAGEMENT |
Share Repurchase Program
The Company repurchased 160,466 shares of its common stock at a total cost of $21.3 million based on trade date under its share repurchase program in the fourth quarter of 2024. The Company repurchased 506,300 shares of its common stock at a total cost of $65.3 million based on trade date under its share repurchase program in 2024. We had $149.6 million of repurchase authority remaining under this program as of December 31, 2024.
Annual Dividend
On October 22, 2024, the Company’s Board of Directors approved an annual cash dividend on the Company’s common stock of $0.409 per outstanding share, a seven percent increase over the prior year. The dividend was paid on January 3, 2025, to shareholders of record as of the close of business on December 6, 2024, with the aggregate cash dividend paid to each shareholder rounded to the nearest whole cent. This marks the fourteenth consecutive year that the Company has increased the dividend per share.
Capital Investments
We currently expect our project capital to be approximately $350 to $400 million in 2025, although this amount may vary significantly based on the timing of work completed, unanticipated delays, and timing of payments to third parties. We plan to use our operating cash flows and existing revolving credit facility to fund our capital project expenditures.
| NET INCOME ATTRIBUTABLE TO CDI |
Fourth Quarter 2024 Results
The Company’s fourth quarter 2024 net income attributable to CDI was $71.7 million compared to $57.6 million in the prior year quarter.
The following factors impacted the comparability of the Company’s fourth quarter 2024 net income to the prior year quarter:
- a $9.9 million after-tax decrease in transaction, pre-opening, and other expense primarily from the settlement of certain liabilities recorded at the time of the Company’s November 2022 acquisition of substantially all of the assets of Peninsula Pacific Entertainment LLC,
- a $1.7 million after-tax increase in other charges and recoveries, net primarily related to non-recurring insurance claim recoveries,
- a $0.2 million decrease of after-tax other charges; and
- a $0.1 million decrease in after-tax non-cash asset impairments.
This was partially offset by:
- a $1.1 million after-tax decrease primarily from legal reserves.
Excluding the items above, fourth quarter 2024 adjusted net income attributable to CDI increased $3.3 million primarily due to the following:
- a $3.9 million after-tax increase primarily driven by the results of our operations,
- partially offset by a $0.6 million after-tax increase in interest expense associated with higher outstanding debt balances and higher interest rates.
Full Year 2024 Results
The Company’s full year 2024 net income attributable to CDI was $426.8 compared to $417.3 million in the prior year.
The following factors impacted comparability of the Company’s net income for the year ended December 31, 2024 compared to the prior year:
- an $86.2 million after-tax gain on the sale of the Arlington property in the prior year; and
- a $0.7 million after-tax decrease primarily from legal reserves.
This was partially offset by:
- a $15.7 million after-tax decrease in non-cash asset impairments,
- a $12.8 million after-tax decrease in transaction, pre-opening, and other expense primarily from the settlement of certain liabilities recorded at the time of the Company’s November 2022 acquisition of substantially all of the assets of Peninsula Pacific Entertainment LLC,
- a $5.1 million after-tax increase of other charges and recoveries, net primarily related to non-recurring insurance claim recoveries; and
- a $1.6 million after-tax decrease of other charges.
Excluding these items, full year 2024 adjusted net income attributable to CDI increased $61.2 million primarily due to the following:
- a $77.0 million after-tax increase primarily driven by the results of our operations and equity income from our unconsolidated affiliates,
- partially offset by a $15.8 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, February 20, 2025 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, February 20, 2025. 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.
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 Net Income to Adjusted EBITDA included herewith for additional information.
About Churchill Downs Incorporated
Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has created 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 acquisition, development, and operation of live and historical racing entertainment venues, the growth of the online wagering businesses, and the acquisition, development, and operation 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; changes in, or new interpretations of, applicable tax laws or rulings that could result in additional tax liabilities; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, 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; negative shifts in public opinion regarding gambling that could result in increased regulation of, or new restrictions on, the gaming industry; 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 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; costs of compliance with increasingly complex laws and regulations regarding data privacy and protection of personal information; 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 except year ended 2024 and 2023 amounts) |
|||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| (in millions, except per common share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net revenue: | |||||||||||||||
| Live and Historical Racing | $ | 268.3 | $ | 228.4 | $ | 1,225.6 | $ | 1,047.3 | |||||||
| Wagering Services and Solutions | 99.9 | 104.2 | 469.5 | 444.9 | |||||||||||
| Gaming | 256.0 | 228.4 | 1,039.1 | 968.6 | |||||||||||
| All Other | — | 0.2 | 0.1 | 0.9 | |||||||||||
| Total net revenue | 624.2 | 561.2 | 2,734.3 | 2,461.7 | |||||||||||
| Operating expense: | |||||||||||||||
| Live and Historical Racing | 185.5 | 156.5 | 735.4 | 662.2 | |||||||||||
| Wagering Services and Solutions | 67.0 | 68.4 | 296.5 | 288.2 | |||||||||||
| Gaming | 187.2 | 171.7 | 748.9 | 700.0 | |||||||||||
| All Other | 4.8 | 3.6 | 15.0 | 15.6 | |||||||||||
| Selling, general and administrative expense | 65.7 | 51.7 | 237.7 | 202.3 | |||||||||||
| Asset impairments | — | 0.1 | 3.9 | 24.6 | |||||||||||
| Transaction (benefit) expense, net | (12.8 | ) | 3.0 | (12.1 | ) | 4.8 | |||||||||
| Total operating expense | 497.4 | 455.0 | 2,025.3 | 1,897.7 | |||||||||||
| Operating income | 126.8 | 106.2 | 709.0 | 564.0 | |||||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense, net | (72.8 | ) | (70.6 | ) | (289.8 | ) | (268.4 | ) | |||||||
| Equity in income of unconsolidated affiliates | 36.0 | 35.9 | 144.9 | 146.3 | |||||||||||
| Gain on sale of Arlington | — | — | — | 114.0 | |||||||||||
| Miscellaneous, net | 1.0 | 0.4 | 9.1 | 5.9 | |||||||||||
| Total other expense | (35.8 | ) | (34.3 | ) | (135.8 | ) | (2.2 | ) | |||||||
| Income from operations before provision for income taxes | 91.0 | 71.9 | 573.2 | 561.8 | |||||||||||
| Income tax provision | (18.7 | ) | (14.3 | ) | (144.1 | ) | (144.5 | ) | |||||||
| Net income | 72.3 | 57.6 | 429.1 | 417.3 | |||||||||||
| Net income attributable to noncontrolling interest | 0.6 | — | 2.3 | — | |||||||||||
| Net income attributable to Churchill Downs Incorporated | $ | 71.7 | $ | 57.6 | $ | 426.8 | $ | 417.3 | |||||||
| Net income attributable to Churchill Downs Incorporated per common share data: | |||||||||||||||
| Basic net income | $ | 0.95 | $ | 0.77 | $ | 5.73 | $ | 5.55 | |||||||
| Diluted net income | $ | 0.95 | $ | 0.76 | $ | 5.68 | $ | 5.49 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 73.9 | 75.1 | 74.0 | 75.2 | |||||||||||
| Diluted | 74.6 | 75.8 | 74.6 | 76.1 | |||||||||||
| CHURCHILL DOWNS INCORPORATED CONSOLIDATED BALANCE SHEETS |
|||||||
| (in millions) | December 31, 2024 | December 31, 2023 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 175.5 | $ | 144.5 | |||
| Restricted cash | 77.2 | 77.3 | |||||
| Accounts receivable, net | 98.7 | 106.9 | |||||
| Income taxes receivable | 14.5 | 12.6 | |||||
| Other current assets | 46.4 | 59.5 | |||||
| Total current assets | 412.3 | 400.8 | |||||
| Property and equipment, net | 2,874.9 | 2,561.2 | |||||
| Investment in and advances to unconsolidated affiliates | 661.2 | 655.9 | |||||
| Goodwill | 900.2 | 899.9 | |||||
| Other intangible assets, net | 2,409.0 | 2,418.4 | |||||
| Other assets | 18.3 | 19.3 | |||||
| Total assets | $ | 7,275.9 | $ | 6,955.5 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 180.3 | $ | 158.5 | |||
| Accrued expenses and other current liabilities | 402.0 | 426.8 | |||||
| Current deferred revenue | 52.9 | 73.2 | |||||
| Current maturities of long-term debt | 63.1 | 68.0 | |||||
| Dividends payable | 31.0 | 29.3 | |||||
| Total current liabilities | 729.3 | 755.8 | |||||
| Long-term debt (net of current maturities and loan origination fees of $7.7 in 2024 and $8.9 in 2023) | 1,767.9 | 1,697.1 | |||||
| Notes payable (net of debt issuance costs of $23.8 in 2024 and $28.8 in 2023) | 3,076.2 | 3,071.2 | |||||
| Non-current deferred revenue | 20.0 | 11.8 | |||||
| Deferred income taxes | 432.7 | 388.2 | |||||
| Other liabilities | 146.5 | 137.8 | |||||
| Total liabilities | 6,172.6 | 6,061.9 | |||||
| Commitments and contingencies | |||||||
| Redeemable noncontrolling interest | 19.7 | — | |||||
| Shareholders’ equity: | |||||||
| Preferred stock, no par value; 0.3 shares authorized; no shares issued or outstanding | — | — | |||||
| Common stock, no par value; 300.0 shares authorized; 73.5 shares issued and outstanding December 31, 2024 and 74.5 shares at December 31, 2023 | — | — | |||||
| Retained earnings | 1,084.6 | 894.5 | |||||
| Accumulated other comprehensive loss | (1.0 | ) | (0.9 | ) | |||
| Total shareholders’ equity | 1,083.6 | 893.6 | |||||
| Total liabilities and shareholders’ equity | $ | 7,275.9 | $ | 6,955.5 | |||
| CHURCHILL DOWNS INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
| (in millions) | 2024 | 2023 | |||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 429.1 | $ | 417.3 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 199.1 | 169.0 | |||||
| Distributions from unconsolidated affiliates | 138.7 | 155.1 | |||||
| Equity in income of unconsolidated affiliates | (144.9 | ) | (146.3 | ) | |||
| Stock-based compensation | 36.1 | 32.9 | |||||
| Deferred income taxes | 44.5 | 47.4 | |||||
| Asset impairments | 3.9 | 24.6 | |||||
| Amortization of operating lease assets | 5.6 | 6.2 | |||||
| Gain on sale of Arlington | — | (114.0 | ) | ||||
| Other | 9.7 | 5.4 | |||||
| Changes in operating assets and liabilities: | |||||||
| Income taxes | (4.5 | ) | (1.1 | ) | |||
| Deferred revenue | (12.1 | ) | 34.2 | ||||
| Other assets and liabilities | 66.5 | (25.4 | ) | ||||
| Net cash provided by operating activities | 771.7 | 605.3 | |||||
| Cash flows from investing activities: | |||||||
| Capital maintenance expenditures | (83.6 | ) | (77.7 | ) | |||
| Capital project expenditures | (463.4 | ) | (598.8 | ) | |||
| Acquisition of businesses, net of cash acquired | — | (241.3 | ) | ||||
| Proceeds from sale of Arlington | — | 195.7 | |||||
| Other | 1.8 | 4.1 | |||||
| Net cash used in investing activities | (545.2 | ) | (718.0 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from borrowings under long-term debt obligations | 965.5 | 1,771.1 | |||||
| Repayments of borrowings under long-term debt obligations | (900.8 | ) | (1,536.0 | ) | |||
| Payment of dividends | (29.2 | ) | (27.1 | ) | |||
| Repurchase of common stock | (186.0 | ) | (55.9 | ) | |||
| Taxes paid related to net share settlement of stock awards | (30.1 | ) | (25.5 | ) | |||
| Proceeds from pending equity transaction | — | 14.4 | |||||
| Debt issuance costs | (2.6 | ) | (13.0 | ) | |||
| Change in bank overdraft | (10.9 | ) | 2.0 | ||||
| Other | (2.5 | ) | (0.7 | ) | |||
| Net cash (used in) provided by financing activities | (196.6 | ) | 129.3 | ||||
| Cash flows from discontinued operations: | |||||||
| Operating activities of discontinued operations | 1.0 | 0.5 | |||||
| Net increase in cash, cash equivalents and restricted cash | 30.9 | 17.1 | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 221.8 | 204.7 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 252.7 | $ | 221.8 | |||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) |
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| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| (in millions, except per common share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| GAAP net income attributable to CDI | $ | 71.7 | $ | 57.6 | $ | 426.8 | $ | 417.3 | |||||||
| Adjustments, continuing operations: | |||||||||||||||
| Gain on sale of assets | — | — | — | (114.0 | ) | ||||||||||
| Asset impairments | — | 0.1 | 3.9 | 24.6 | |||||||||||
| Transaction, pre-opening, and other expense | (3.9 | ) | 9.6 | 21.7 | 39.8 | ||||||||||
| Other charges and recoveries, net | (0.2 | ) | 2.4 | (6.9 | ) | 2.4 | |||||||||
| Legal reserves | — | (1.2 | ) | — | (1.2 | ) | |||||||||
| Legal reserves and transaction costs related to Rivers Des Plaines | — | — | 0.3 | — | |||||||||||
| Income tax impact on net income adjustments (a) | 1.1 | (3.1 | ) | (5.1 | ) | 10.6 | |||||||||
| Total adjustments | (3.0 | ) | 7.8 | 13.9 | (37.8 | ) | |||||||||
| Adjusted net income attributable to CDI | $ | 68.7 | $ | 65.4 | $ | 440.7 | $ | 379.5 | |||||||
| Adjusted diluted EPS | $ | 0.92 | $ | 0.86 | $ | 5.91 | $ | 4.99 | |||||||
| Weighted average shares outstanding – Diluted | 74.6 | 75.8 | 74.6 | 76.1 | |||||||||||
| (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 December 31, | Years Ended December 31, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Total Handle | |||||||||||
| TwinSpires Horse Racing(a) | $ | 400.0 | $ | 439.1 | $ | 1,942.1 | $ | 1,991.9 | |||
| (a) | Total handle generated by Velocity is not included in total handle from TwinSpires Horse Racing. |
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited except year ended 2024 and 2023 amounts) |
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| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net revenue from external customers: | |||||||||||||||
| Live and Historical Racing: | |||||||||||||||
| Churchill Downs Racetrack | $ | 16.7 | $ | 14.5 | $ | 259.5 | $ | 205.8 | |||||||
| Louisville | 52.0 | 50.8 | 209.1 | 189.0 | |||||||||||
| Northern Kentucky | 25.0 | 22.7 | 98.9 | 85.8 | |||||||||||
| Southwestern Kentucky | 40.2 | 36.1 | 158.3 | 147.8 | |||||||||||
| Western Kentucky | 6.1 | 6.0 | 28.8 | 31.8 | |||||||||||
| Virginia | 125.1 | 95.0 | 458.2 | 375.4 | |||||||||||
| New Hampshire | 3.2 | 3.3 | 12.8 | 11.7 | |||||||||||
| Total Live and Historical Racing | $ | 268.3 | $ | 228.4 | $ | 1,225.6 | $ | 1,047.3 | |||||||
| Wagering Services and Solutions: | $ | 99.9 | $ | 104.2 | $ | 469.5 | $ | 444.9 | |||||||
| Gaming: | |||||||||||||||
| Florida | $ | 23.8 | $ | 24.2 | $ | 100.2 | $ | 100.7 | |||||||
| Iowa | 23.5 | 23.5 | 93.3 | 96.0 | |||||||||||
| Indiana | 30.3 | — | 96.6 | — | |||||||||||
| Louisiana | 36.8 | 35.5 | 150.2 | 145.6 | |||||||||||
| Maine | 24.7 | 26.0 | 106.0 | 114.1 | |||||||||||
| Maryland | 22.5 | 24.0 | 101.8 | 106.9 | |||||||||||
| Mississippi | 24.6 | 23.4 | 98.7 | 100.9 | |||||||||||
| New York | 44.7 | 45.2 | 183.0 | 180.5 | |||||||||||
| Pennsylvania | 25.1 | 26.6 | 109.3 | 123.9 | |||||||||||
| Total Gaming | 256.0 | 228.4 | 1,039.1 | 968.6 | |||||||||||
| All Other | — | 0.2 | 0.1 | 0.9 | |||||||||||
| Net revenue from external customers | $ | 624.2 | $ | 561.2 | $ | 2,734.3 | $ | 2,461.7 | |||||||
| Intercompany net revenues: | |||||||||||||||
| Live and Historical Racing | $ | 7.2 | $ | 6.9 | $ | 41.4 | $ | 37.3 | |||||||
| Wagering Services and Solutions | 8.1 | 6.5 | 31.2 | 13.5 | |||||||||||
| Gaming | 1.5 | 1.8 | 6.3 | 6.0 | |||||||||||
| All Other | 2.1 | — | 6.5 | — | |||||||||||
| Eliminations | (18.9 | ) | (15.2 | ) | (85.4 | ) | (56.8 | ) | |||||||
| Intercompany net revenue | $ | — | $ | — | $ | — | $ | — | |||||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited except year ended 2024 and 2023 amounts) |
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| Three Months Ended December 31, 2024 | |||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Total | |||||||||||
| Net revenue from external customers | |||||||||||||||||
| Pari-mutuel: | |||||||||||||||||
| Live and simulcast racing | $ | 14.7 | $ | 74.3 | $ | 6.3 | $ | 95.3 | $ | — | $ | 95.3 | |||||
| Historical racing(a) | 224.8 | — | 9.6 | 234.4 | — | 234.4 | |||||||||||
| Racing event-related services | 5.9 | — | 1.6 | 7.5 | — | 7.5 | |||||||||||
| Gaming(a) | 3.1 | 2.9 | 210.5 | 216.5 | — | 216.5 | |||||||||||
| Other(a) | 19.8 | 22.7 | 28.0 | 70.5 | — | 70.5 | |||||||||||
| Total | $ | 268.3 | $ | 99.9 | $ | 256.0 | $ | 624.2 | $ | — | $ | 624.2 | |||||
| Three Months Ended December 31, 2023 | |||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Total | |||||||||||
| Net revenue from external customers | |||||||||||||||||
| Pari-mutuel: | |||||||||||||||||
| Live and simulcast racing | $ | 14.7 | $ | 76.5 | $ | 6.7 | $ | 97.9 | $ | — | $ | 97.9 | |||||
| Historical racing(a) | 189.8 | — | 8.1 | 197.9 | — | 197.9 | |||||||||||
| Racing event-related services | 4.9 | — | 1.6 | 6.5 | — | 6.5 | |||||||||||
| Gaming(a) | 3.2 | 6.4 | 188.1 | 197.7 | — | 197.7 | |||||||||||
| Other(a) | 15.8 | 21.3 | 23.9 | 61.0 | 0.2 | 61.2 | |||||||||||
| Total | $ | 228.4 | $ | 104.2 | $ | 228.4 | $ | 561.0 | $ | 0.2 | $ | 561.2 | |||||
| (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 December 31, 2024 and $13.1 million for the three months December 31, 2023. |
| Year Ended December 31, 2024 | |||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Total | |||||||||||
| Net revenue from external customers | |||||||||||||||||
| Pari-mutuel: | |||||||||||||||||
| Live and simulcast racing | $ | 91.3 | $ | 352.2 | $ | 26.4 | $ | 469.9 | $ | — | $ | 469.9 | |||||
| Historical racing(a) | 854.9 | — | 37.0 | 891.9 | — | 891.9 | |||||||||||
| Racing event-related services | 188.0 | — | 6.6 | 194.6 | — | 194.6 | |||||||||||
| Gaming(a) | 12.6 | 17.3 | 856.0 | 885.9 | — | 885.9 | |||||||||||
| Other(a) | 78.8 | 100.0 | 113.1 | 291.9 | 0.1 | 292.0 | |||||||||||
| Total | $ | 1,225.6 | $ | 469.5 | $ | 1,039.1 | $ | 2,734.2 | $ | 0.1 | $ | 2,734.3 | |||||
| Year Ended December 31, 2023 | |||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Total | |||||||||||
| Net revenue from external customers | |||||||||||||||||
| Pari-mutuel: | |||||||||||||||||
| Live and simulcast racing | $ | 81.9 | $ | 359.7 | $ | 26.6 | $ | 468.2 | $ | — | $ | 468.2 | |||||
| Historical racing(a) | 739.1 | — | 28.6 | 767.7 | — | 767.7 | |||||||||||
| Racing event-related services | 145.9 | — | 6.4 | 152.3 | — | 152.3 | |||||||||||
| Gaming(a) | 11.4 | 17.3 | 803.5 | 832.2 | — | 832.2 | |||||||||||
| Other(a) | 69.0 | 67.9 | 103.5 | 240.4 | 0.9 | 241.3 | |||||||||||
| Total | $ | 1,047.3 | $ | 444.9 | $ | 968.6 | $ | 2,460.8 | $ | 0.9 | $ | 2,461.7 | |||||
| (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 $56.0 million for 2024 and $50.9 million for 2023. |
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited except year ended 2024 and 2023 amounts) |
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| Adjusted EBITDA by segment is comprised of the following: | |||||||||||||||||||||||||||
| Three Months Ended December 31, 2024 | |||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Eliminations | Total | ||||||||||||||||||||
| Revenues | $ | 275.5 | $ | 108.0 | $ | 257.5 | $ | 641.0 | $ | 2.1 | $ | (18.9 | ) | $ | 624.2 | ||||||||||||
| Pari-mutuel taxes & purses | (72.6 | ) | (3.9 | ) | (10.8 | ) | (87.3 | ) | — | — | (87.3 | ) | |||||||||||||||
| Gaming taxes | (1.4 | ) | (0.5 | ) | (72.5 | ) | (74.4 | ) | — | — | (74.4 | ) | |||||||||||||||
| Marketing & advertising | (11.0 | ) | (1.4 | ) | (8.9 | ) | (21.3 | ) | — | — | (21.3 | ) | |||||||||||||||
| Salaries & benefits | (32.6 | ) | (8.9 | ) | (43.6 | ) | (85.1 | ) | — | — | (85.1 | ) | |||||||||||||||
| Content expense | (1.3 | ) | (42.6 | ) | (1.8 | ) | (45.7 | ) | — | 9.8 | (35.9 | ) | |||||||||||||||
| Selling, general & administrative expense | (13.4 | ) | (2.5 | ) | (12.2 | ) | (28.1 | ) | (21.2 | ) | 0.2 | (49.1 | ) | ||||||||||||||
| Maintenance, insurance & utilities | (11.9 | ) | (1.1 | ) | (9.7 | ) | (22.7 | ) | (3.6 | ) | 2.0 | (24.3 | ) | ||||||||||||||
| Gaming equipment rental & technology costs | (11.1 | ) | (1.0 | ) | (3.9 | ) | (16.0 | ) | — | 6.9 | (9.1 | ) | |||||||||||||||
| Food & beverage costs | (4.0 | ) | — | (4.3 | ) | (8.3 | ) | — | — | (8.3 | ) | ||||||||||||||||
| Other operating expense | (14.8 | ) | (9.1 | ) | (16.3 | ) | (40.2 | ) | 0.1 | — | (40.1 | ) | |||||||||||||||
| Equity in income of unconsolidated affiliates | — | — | 46.6 | 46.6 | — | — | 46.6 | ||||||||||||||||||||
| Other income | 0.2 | 0.3 | — | 0.5 | 0.2 | — | 0.7 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 101.6 | $ | 37.3 | $ | 120.1 | $ | 259.0 | $ | (22.4 | ) | $ | — | $ | 236.6 | ||||||||||||
| Three Months Ended December 31, 2023 | |||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Eliminations | Total | ||||||||||||||||||||
| Revenues | $ | 235.3 | $ | 110.6 | $ | 230.2 | $ | 576.1 | $ | 0.2 | $ | (15.1 | ) | $ | 561.2 | ||||||||||||
| Pari-mutuel taxes & purses | (62.4 | ) | (3.9 | ) | (10.5 | ) | (76.8 | ) | — | — | (76.8 | ) | |||||||||||||||
| Gaming taxes | (1.4 | ) | (0.9 | ) | (65.6 | ) | (67.9 | ) | — | — | (67.9 | ) | |||||||||||||||
| Marketing & advertising | (9.7 | ) | (1.8 | ) | (8.9 | ) | (20.4 | ) | 0.1 | (0.1 | ) | (20.4 | ) | ||||||||||||||
| Salaries & benefits | (27.0 | ) | (8.6 | ) | (36.8 | ) | (72.4 | ) | — | — | (72.4 | ) | |||||||||||||||
| Content expense | (1.4 | ) | (44.0 | ) | (1.9 | ) | (47.3 | ) | — | 9.7 | (37.6 | ) | |||||||||||||||
| Selling, general & administrative expense | (8.5 | ) | (4.3 | ) | (10.3 | ) | (23.1 | ) | (18.1 | ) | 0.5 | (40.7 | ) | ||||||||||||||
| Maintenance, insurance & utilities | (11.4 | ) | (1.2 | ) | (10.3 | ) | (22.9 | ) | (0.1 | ) | — | (23.0 | ) | ||||||||||||||
| Gaming equipment rental & technology costs | (8.8 | ) | (0.9 | ) | (4.0 | ) | (13.7 | ) | — | 5.0 | (8.7 | ) | |||||||||||||||
| Food & beverage costs | (3.1 | ) | — | (3.7 | ) | (6.8 | ) | — | — | (6.8 | ) | ||||||||||||||||
| Other operating expense | (12.9 | ) | (10.0 | ) | (13.6 | ) | (36.5 | ) | (0.2 | ) | — | (36.7 | ) | ||||||||||||||
| Equity in income of unconsolidated affiliates | — | — | 48.7 | 48.7 | — | — | 48.7 | ||||||||||||||||||||
| Other income | 0.2 | (0.1 | ) | 0.1 | 0.2 | — | — | 0.2 | |||||||||||||||||||
| Adjusted EBITDA | $ | 88.9 | $ | 34.9 | $ | 113.4 | $ | 237.2 | $ | (18.1 | ) | $ | — | $ | 219.1 | ||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Eliminations | Total | ||||||||||||||||||||
| Revenues | $ | 1,267.0 | $ | 500.7 | $ | 1,045.4 | $ | 2,813.1 | $ | 6.6 | $ | (85.4 | ) | $ | 2,734.3 | ||||||||||||
| Pari-mutuel taxes & purses | (300.0 | ) | (19.7 | ) | (43.5 | ) | (363.2 | ) | — | — | (363.2 | ) | |||||||||||||||
| Gaming taxes | (5.7 | ) | (2.4 | ) | (291.6 | ) | (299.7 | ) | — | — | (299.7 | ) | |||||||||||||||
| Marketing & advertising | (42.1 | ) | (8.9 | ) | (35.4 | ) | (86.4 | ) | (0.1 | ) | — | (86.5 | ) | ||||||||||||||
| Salaries & benefits | (127.0 | ) | (32.8 | ) | (164.6 | ) | (324.4 | ) | — | — | (324.4 | ) | |||||||||||||||
| Content expense | (6.4 | ) | (205.8 | ) | (8.5 | ) | (220.7 | ) | — | 52.3 | (168.4 | ) | |||||||||||||||
| Selling, general & administrative expense | (40.1 | ) | (15.5 | ) | (46.1 | ) | (101.7 | ) | (85.9 | ) | 1.0 | (186.6 | ) | ||||||||||||||
| Maintenance, insurance & utilities | (46.5 | ) | (4.2 | ) | (42.1 | ) | (92.8 | ) | (8.2 | ) | 6.5 | (94.5 | ) | ||||||||||||||
| Gaming equipment rental & technology costs | (41.6 | ) | (3.5 | ) | (15.4 | ) | (60.5 | ) | — | 25.5 | (35.0 | ) | |||||||||||||||
| Food & beverage costs | (12.9 | ) | — | (16.7 | ) | (29.6 | ) | — | — | (29.6 | ) | ||||||||||||||||
| Other operating expense | (70.6 | ) | (42.6 | ) | (62.9 | ) | (176.1 | ) | (0.5 | ) | 0.1 | (176.5 | ) | ||||||||||||||
| Equity in income of unconsolidated affiliates | — | — | 186.4 | 186.4 | — | — | 186.4 | ||||||||||||||||||||
| Other income | 0.5 | 0.3 | 1.9 | 2.7 | 0.2 | — | 2.9 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 574.6 | $ | 165.6 | $ | 506.9 | $ | 1,247.1 | $ | (87.9 | ) | $ | — | $ | 1,159.2 | ||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Eliminations | Total | ||||||||||||||||||||
| Revenues | $ | 1,084.6 | $ | 458.4 | $ | 974.6 | $ | 2,517.6 | $ | 0.9 | $ | (56.8 | ) | $ | 2,461.7 | ||||||||||||
| Pari-mutuel taxes & purses | (262.5 | ) | (19.9 | ) | (39.2 | ) | (321.6 | ) | — | — | (321.6 | ) | |||||||||||||||
| Gaming taxes | (5.2 | ) | (2.7 | ) | (283.6 | ) | (291.5 | ) | — | — | (291.5 | ) | |||||||||||||||
| Marketing & advertising | (37.6 | ) | (9.8 | ) | (35.4 | ) | (82.8 | ) | (0.1 | ) | 0.2 | (82.7 | ) | ||||||||||||||
| Salaries & benefits | (107.0 | ) | (29.3 | ) | (146.0 | ) | (282.3 | ) | — | — | (282.3 | ) | |||||||||||||||
| Content expense | (6.5 | ) | (205.1 | ) | (8.8 | ) | (220.4 | ) | — | 47.4 | (173.0 | ) | |||||||||||||||
| Selling, general & administrative expense | (31.9 | ) | (12.4 | ) | (42.7 | ) | (87.0 | ) | (72.2 | ) | 1.4 | (157.8 | ) | ||||||||||||||
| Maintenance, insurance & utilities | (43.2 | ) | (3.8 | ) | (40.0 | ) | (87.0 | ) | (0.4 | ) | — | (87.4 | ) | ||||||||||||||
| Gaming equipment rental & technology costs | (48.7 | ) | (3.7 | ) | (15.6 | ) | (68.0 | ) | — | 7.6 | (60.4 | ) | |||||||||||||||
| Food & beverage costs | (11.3 | ) | — | (14.9 | ) | (26.2 | ) | — | — | (26.2 | ) | ||||||||||||||||
| Other operating expense | (56.6 | ) | (40.6 | ) | (53.2 | ) | (150.4 | ) | (0.4 | ) | 0.2 | (150.6 | ) | ||||||||||||||
| Equity in income of unconsolidated affiliates | — | — | 191.6 | 191.6 | — | — | 191.6 | ||||||||||||||||||||
| Other income | 1.3 | 1.0 | 1.8 | 4.1 | — | — | 4.1 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 475.4 | $ | 132.1 | $ | 488.6 | $ | 1,096.1 | $ | (72.2 | ) | $ | — | $ | 1,023.9 | ||||||||||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited except year ended 2024 and 2023 amounts) |
|||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Reconciliation of Net Income to Adjusted EBITDA: | |||||||||||||||
| Net income attributable to Churchill Downs Incorporated | $ | 71.7 | $ | 57.6 | $ | 426.8 | $ | 417.3 | |||||||
| Net income attributable to noncontrolling interest | 0.6 | — | 2.3 | — | |||||||||||
| Net income | 72.3 | 57.6 | 429.1 | 417.3 | |||||||||||
| Adjustments: | |||||||||||||||
| Depreciation and amortization | 53.4 | 47.2 | 199.1 | 169.0 | |||||||||||
| Interest expense | 72.8 | 70.6 | 289.8 | 268.4 | |||||||||||
| Income tax provision | 18.7 | 14.3 | 144.1 | 144.5 | |||||||||||
| Stock-based compensation expense | 12.9 | 8.1 | 36.1 | 32.9 | |||||||||||
| Legal reserves | — | (1.2 | ) | — | (1.2 | ) | |||||||||
| Arlington exit costs | — | — | — | 9.4 | |||||||||||
| Pre-opening expense | 6.0 | 7.2 | 29.6 | 18.6 | |||||||||||
| Other expenses, net | 2.9 | (0.6 | ) | 4.2 | 7.0 | ||||||||||
| Asset impairments | — | 0.1 | 3.9 | 24.6 | |||||||||||
| Transaction (benefit) expense, net | (12.8 | ) | 3.0 | (12.1 | ) | 4.8 | |||||||||
| Other income, expense: | |||||||||||||||
| Interest, depreciation and amortization expense related to equity investments | 10.6 | 10.4 | 42.0 | 40.2 | |||||||||||
| Rivers Des Plaines’ legal reserves and transaction costs | — | — | 0.3 | — | |||||||||||
| Other charges and recoveries, net | (0.2 | ) | 2.4 | (6.9 | ) | 2.4 | |||||||||
| Gain on sale of Arlington | — | — | — | (114.0 | ) | ||||||||||
| Total adjustments | 164.3 | 161.5 | 730.1 | 606.6 | |||||||||||
| Adjusted EBITDA | $ | 236.6 | $ | 219.1 | $ | 1,159.2 | $ | 1,023.9 | |||||||
| Adjusted EBITDA by segment: | |||||||||||||||
| Live and Historical Racing | $ | 101.6 | $ | 88.9 | $ | 574.6 | $ | 475.4 | |||||||
| Wagering Services and Solutions | 37.3 | 34.9 | 165.6 | 132.1 | |||||||||||
| Gaming | 120.1 | 113.4 | 506.9 | 488.6 | |||||||||||
| Total segment Adjusted EBITDA | 259.0 | 237.2 | 1,247.1 | 1,096.1 | |||||||||||
| All Other | (22.4 | ) | (18.1 | ) | (87.9 | ) | (72.2 | ) | |||||||
| Total Adjusted EBITDA | $ | 236.6 | $ | 219.1 | $ | 1,159.2 | $ | 1,023.9 | |||||||
| 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 December 31, | Years Ended December 31, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net revenue | $ | 210.3 | $ | 216.6 | $ | 851.5 | $ | 864.8 | |||||||
| Operating and SG&A expense | 129.2 | 132.2 | 528.5 | 534.0 | |||||||||||
| Depreciation and amortization | 6.9 | 6.3 | 27.0 | 23.8 | |||||||||||
| Operating income | 74.2 | 78.1 | 296.0 | 307.0 | |||||||||||
| Interest and other expense, net | (10.7 | ) | (11.2 | ) | (44.2 | ) | (43.9 | ) | |||||||
| Net income | $ | 63.5 | $ | 66.9 | $ | 251.8 | $ | 263.1 | |||||||
| December 31, | |||||||
| (in millions) | 2024 | 2023 | |||||
| Assets | |||||||
| Current assets | $ | 100.5 | $ | 104.8 | |||
| Property and equipment, net | 325.6 | 339.4 | |||||
| Other assets, net | 267.5 | 266.1 | |||||
| Total assets | $ | 693.6 | $ | 710.3 | |||
| Liabilities and Members’ Deficit | |||||||
| Current liabilities | $ | 89.9 | $ | 106.2 | |||
| Long-term debt | 839.8 | 847.2 | |||||
| Other liabilities | 1.7 | 0.7 | |||||
| Members’ deficit | (237.8 | ) | (243.8 | ) | |||
| Total liabilities and members’ deficit | $ | 693.6 | $ | 710.3 | |||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) |
|||
| Planned capital projects for the Company are as follows: | |||
| (in millions) | Project | Target Completion | 2025 Planned Spend |
| Live and Historical Racing Segment | |||
| Churchill Downs Racetrack | Starting Gate Pavilion and Courtyard | April 2025 | $75-85 |
| Skye Reconstruction and Expansion, Conservatory, and Infield General Admission Projects | 2026-2028 | $120-130 | |
| Virginia | Richmond (HRM Expansion) | Third Quarter 2025 | $30-35 |
| Henrico (Roseshire – HRM Venue) | Fourth Quarter 2025 | $30-35 | |
| Southwestern Kentucky | Calvert City (Marshall Yards Racing and Gaming – HRM Venue) | First Quarter 2026 | $30-35 |
| New Hampshire | Salem (HRM Venue) | TBD | TBD |
| All Other Projects | |||
| All Other | All Other | TBD | $65-80 |
| Total: | $350-400 | ||
Contact: Sam Ullrich
(502) 638-3906
[email protected]
$100 Million Investment Provides World-Class Entertainment While Supporting Purse Funding for Ellis Park
OWENSBORO, K.Y., Feb. 12, 2025 (GLOBE NEWSWIRE) — Churchill Downs Incorporated (“CDI” or “the Company”) (Nasdaq: CHDN) today announced the grand opening of Owensboro Racing & Gaming, the Company’s seventh premier historical horse racing entertainment venue in Kentucky. The $100 million gaming and entertainment venue in Owensboro, Kentucky, features 600 state-of-the-art historical racing machines (“HRM”), a retail sportsbook, simulcast wagering, and multiple food and beverage options. The new HRM entertainment venue will support purse funding for Ellis Park Racing & Gaming’s (“Ellis Park”) summer racing meet in Henderson, Kentucky.
“Today marks an exciting milestone for our company as we expand our footprint in western Kentucky and further strengthen our commonwealth’s signature horse racing industry,” said Bill Carstanjen, CEO of CDI. “Owensboro’s newest entertainment destination will drive new tourism, entertainment and economic opportunities in eastern Daviess County.”
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 acquisition, development, and operation of live and historical racing entertainment venues, the growth of the online wagering businesses, and the acquisition, development, and operation 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; changes in, or new interpretations of, applicable tax laws or rulings that could result in additional tax liabilities; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, 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; negative shifts in public opinion regarding gambling that could result in increased regulation of, or new restrictions on, the gaming industry; 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 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; costs of compliance with increasingly complex laws and regulations regarding data privacy and protection of personal information; 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 | Media Contact: Tonya Abeln |
| (502) 638-3906 | (502) 386-1742 |
| [email protected] | [email protected] |
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