Churchill Downs Incorporated Provides an Update on Louisiana Operations
Churchill Downs Incorporated (CHDN) announced the closure of its Louisiana operations, including the Fair Grounds Race Course & Slots and 15 Off-Track Betting facilities, due to Hurricane Ida. The company is assessing the damages and planning for reopening while providing ongoing pay and benefits to affected employees. CDI has property insurance, including business interruption coverage, subject to deductibles. The impact of this disruption on financial performance remains to be seen as further evaluations continue.
- CDI is providing continued pay and benefits to team members impacted by the hurricane.
- The company has property insurance, including business interruption coverage, potentially mitigating financial losses.
- Closure of Louisiana operations may lead to revenue losses during the evaluation period.
- Ongoing assessments of damage and delays in reopening could further impact financial performance.
LOUISVILLE, Ky., Sept. 08, 2021 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (“CDI” or the “Company”) (Nasdaq: CHDN) announced today that the Company’s operations in Louisiana were closed due to Hurricane Ida and remain closed at this time. CDI’s Louisiana operations include the Fair Grounds Race Course & Slots property and 15 Off-Track Betting facilities (“OTBs”).
CDI continues to evaluate the damage to these properties and is actively developing plans for the re-opening of each property. CDI has property insurance including business interruption coverage subject to applicable deductibles.
Our active team members at Fair Grounds Race Course & Slots and OTBs will continue to receive their pay and benefits at this time and the Company is providing additional assistance to our team members that have been impacted by Hurricane Ida.
About Churchill Downs Incorporated
Churchill Downs Incorporated is an industry-leading racing, online wagering and gaming entertainment company anchored by our iconic flagship event, the Kentucky Derby. We own and operate three pari-mutuel gaming entertainment venues with approximately 3,050 historical racing machines in Kentucky. We also own and operate TwinSpires, one of the largest and most profitable online wagering platforms for horse racing, sports and iGaming in the U.S. and we have seven retail sportsbooks. We are also a leader in brick-and-mortar casino gaming in eight states with approximately 11,000 slot machines and video lottery terminals and 200 table games. www.churchilldownsincorporated.com
Certain statements made in this news release contain various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” and similar words or similar expressions (or negative versions of such words or expressions).
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors, among others, that may materially affect actual results or outcomes include the following: the impact of the novel coronavirus (COVID-19) pandemic, including the emergence of variant strains, and related economic matters on our results of operations, financial conditions and prospects; the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit; additional or increased taxes and fees; the impact of significant competition, and the expectation the competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; loss of key or highly skilled personnel; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine manufacturing and other technology conditions that could impose additional costs; inability to negotiate agreements with industry constituents, including horsemen and other racetracks; inability to successfully expand our TwinSpires Sports and Casino business and effectively compete; inability to identify and complete expansion, acquisition or divestiture projects, on time, on budget or as planned; difficulty in integrating recent or future acquisitions into our operations; costs and uncertainties relating to the development of new venues and expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including fluctuations in market values and environmental regulations; reliance on our technology services and catastrophic events and system failures disrupting our operations; online security risk, including cyber-security breaches, or loss or misuse of our stored information as a result of a breach, including customers’ personal information, could lead to government enforcement actions or other litigation; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or applicable money-laundering regulations; payment-related risks, such as risk associated with fraudulent credit card and debit card use; work stoppages and labor issues; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; and increase in our insurance costs, or obtain similar insurance coverage in the future, and inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| Investor Contact: Nick Zangari (502) 394-1157 Nick.Zangari@KyDerby.com | Media Contact: Tonya Abeln (502) 386-1742 Tonya.Abeln@KyDerby.com |
FAQ
What is the impact of Hurricane Ida on Churchill Downs (CHDN) operations?
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When will Churchill Downs (CHDN) operations in Louisiana reopen?
