Churchill Downs Incorporated Reports 2024 Second Quarter Results
Churchill Downs Incorporated (CHDN) reported record-breaking Q2 2024 results:
- Net revenue of $890.7 million, up from $768.5 million in Q2 2023
- Net income of $209.3 million, compared to $143.0 million in Q2 2023
- Adjusted EBITDA of $444.8 million, up from $363.7 million in Q2 2023
Key highlights:
- Record Q2 revenue and Adjusted EBITDA across all segments
- 150th Kentucky Derby with all-time record handle and contribution to Adjusted EBITDA
- New 7-year agreement with NBC for Kentucky Derby Week coverage
- Opened Terre Haute Casino Resort in Indiana
- Successfully amended revolving credit facility and Term Loan A facility
Segment performance:
- Live and Historical Racing: Revenue up 20%, Adjusted EBITDA up 25%
- TwinSpires: Revenue up 15%, Adjusted EBITDA up 36%
- Gaming: Revenue up 11%, Adjusted EBITDA up 14%
Churchill Downs Incorporated (CHDN) ha riportato risultati record per il secondo trimestre del 2024:
- Ricavi netti di 890,7 milioni di dollari, in aumento rispetto ai 768,5 milioni di dollari del Q2 2023
- Utile netto di 209,3 milioni di dollari, rispetto ai 143,0 milioni di dollari del Q2 2023
- EBITDA rettificato di 444,8 milioni di dollari, in crescita rispetto ai 363,7 milioni di dollari del Q2 2023
Principali punti salienti:
- Ricavi e EBITDA rettificato record nel Q2 in tutti i segmenti
- 150° Kentucky Derby con un totale di scommesse record e contributo all'EBITDA rettificato
- Nuovo accordo di 7 anni con NBC per la copertura della settimana del Kentucky Derby
- Apertura del Terre Haute Casino Resort in Indiana
- Modifica con successo del credito revolving e del prestito Term Loan A
Performance dei segmenti:
- Corse dal vivo e storiche: ricavi in aumento del 20%, EBITDA rettificato in aumento del 25%
- TwinSpires: ricavi in aumento del 15%, EBITDA rettificato in aumento del 36%
- Giochi: ricavi in aumento dell'11%, EBITDA rettificato in aumento del 14%
Churchill Downs Incorporated (CHDN) reportó resultados récord en el segundo trimestre de 2024:
- Ingresos netos de 890.7 millones de dólares, en comparación con 768.5 millones de dólares en el Q2 2023
- Ingreso neto de 209.3 millones de dólares, en comparación con 143.0 millones de dólares en el Q2 2023
- EBITDA ajustado de 444.8 millones de dólares, un aumento desde los 363.7 millones de dólares en el Q2 2023
Puntos destacados:
- Ingresos y EBITDA ajustado récord en el Q2 en todos los segmentos
- 150° Kentucky Derby con un manejo récord y contribución al EBITDA ajustado
- Nuevo acuerdo de 7 años con NBC para la cobertura de la semana del Kentucky Derby
- Apertura del Terre Haute Casino Resort en Indiana
- Enmienda exitosa de la línea de crédito revolving y el préstamo Term Loan A
Desempeño por segmentos:
- Carreras en vivo e históricas: ingresos en aumento del 20%, EBITDA ajustado en aumento del 25%
- TwinSpires: ingresos en aumento del 15%, EBITDA ajustado en aumento del 36%
- Juegos: ingresos en aumento del 11%, EBITDA ajustado en aumento del 14%
Churchill Downs Incorporated (CHDN)는 2024년 2분기 기록적인 실적을 보고했습니다:
- 순수익 8억 9070만 달러, 2023년 2분기의 7억 6850만 달러에서 증가
- 순이익 2억 930만 달러, 2023년 2분기의 1억 4300만 달러와 비교
- 조정된 EBITDA 4억 4480만 달러, 2023년 2분기의 3억 6370만 달러에서 증가
주요 하이라이트:
- 모든 부문에서 2분기 수익 및 조정된 EBITDA 기록
- 역사상 최대의 베팅과 조정된 EBITDA 기여가 있는 150번째 켄터키 더비
- 켄터키 더비 주간 보도를 위한 NBC와의 7년 간의 새로운 계약
- 인디애나주 테르 하우트 카지노 리조트 개장
- 회전 신용 시설 및 배급 대출 A 시설의 성공적인 수정
세그먼트 실적:
- 생방송 및 역사적 경주: 수익 20% 증가, 조정된 EBITDA 25% 증가
- TwinSpires: 수익 15% 증가, 조정된 EBITDA 36% 증가
- 게임: 수익 11% 증가, 조정된 EBITDA 14% 증가
Churchill Downs Incorporated (CHDN) a rapporté des résultats exceptionnels pour le deuxième trimestre de 2024 :
- Chiffre d'affaires net de 890,7 millions de dollars, en hausse par rapport à 768,5 millions de dollars au Q2 2023
- Bénéfice net de 209,3 millions de dollars, comparé à 143,0 millions de dollars au Q2 2023
- EBITDA ajusté de 444,8 millions de dollars, en hausse par rapport à 363,7 millions de dollars au Q2 2023
Points clés :
- Recettes record et EBITDA ajusté record au Q2 dans tous les segments
- 150ème Kentucky Derby avec un montant total de paris record et contribution à l'EBITDA ajusté
- Nouveau contrat de 7 ans avec NBC pour la couverture de la semaine du Kentucky Derby
- Ouverture du Terre Haute Casino Resort dans l'Indiana
- Amendement réussi de la facilité de crédit revolving et de l'installation de prêt à terme A
Performance des segments :
- Courses en direct et historiques : revenus en hausse de 20 %, EBITDA ajusté en hausse de 25 %
- TwinSpires : revenus en hausse de 15 %, EBITDA ajusté en hausse de 36 %
- Jeux : revenus en hausse de 11 %, EBITDA ajusté en hausse de 14 %
Churchill Downs Incorporated (CHDN) hat für das zweite Quartal 2024 Rekordergebnisse gemeldet:
- Nettoumsatz von 890,7 Millionen Dollar, gestiegen von 768,5 Millionen Dollar im Q2 2023
- Reingewinn von 209,3 Millionen Dollar, im Vergleich zu 143,0 Millionen Dollar im Q2 2023
- Bereinigtes EBITDA von 444,8 Millionen Dollar, gestiegen von 363,7 Millionen Dollar im Q2 2023
Wichtige Highlights:
- Rekordumsätze und bereinigtes EBITDA im Q2 in allen Segmenten
- 150. Kentucky Derby mit Rekordwetten und Beitrag zum bereinigten EBITDA
- Neuer 7-Jahres-Vertrag mit NBC für die Berichterstattung zur Kentucky Derby-Woche
- Eröffnung des Terre Haute Casino Resorts in Indiana
- Erfolgreiche Anpassung der revolvierenden Kreditfazilität und des Term Loan A
Segmentleistungen:
- Live- und historische Rennen: Umsatz um 20% gestiegen, bereinigtes EBITDA um 25% gestiegen
- TwinSpires: Umsatz um 15% gestiegen, bereinigtes EBITDA um 36% gestiegen
- Spiele: Umsatz um 11% gestiegen, bereinigtes EBITDA um 14% gestiegen
- Record Q2 net revenue of $890.7 million, up 15.9% year-over-year
- Net income increased 46.4% to $209.3 million compared to Q2 2023
- Adjusted EBITDA grew 22.3% to $444.8 million, an all-time record
- All-time record all-sources handle for Kentucky Derby Race, Day Program, and Week Races
- Signed new 7-year agreement with NBC for Kentucky Derby Week coverage through 2032
- Opened Terre Haute Casino Resort in Indiana, contributing to Gaming segment growth
- Successfully amended credit facilities, extending maturity dates from 2027 to 2029
- Net bank leverage ratio of 4.0x at the end of Q2 2024
- Decreased revenue in Pennsylvania due to non-renewal of Lady Luck management agreement
- Decreased revenue in Maine primarily due to inclement weather in April 2024
- Increased corporate compensation and administrative expenses in All Other segment
Churchill Downs Incorporated's Q2 2024 results showcase impressive growth across all segments. The company reported all-time record net revenue of
Key highlights include:
- Live and Historical Racing segment revenue up
20% , driven by a record-breaking Kentucky Derby Week - TwinSpires segment revenue up
15% , with significant growth from Exacta - Gaming segment revenue up
11% , boosted by the new Terre Haute Casino Resort
The company's diversified portfolio and strategic investments are paying off. The new NBC agreement for Kentucky Derby coverage through 2032 secures a valuable media partnership. Additionally, the successful amendment of credit facilities extends debt maturities, providing financial flexibility.
However, investors should note the increase in net leverage to 4.0x, which may limit future growth opportunities if not managed carefully. Overall, CDI's Q2 results reflect a company firing on all cylinders, with strong momentum across its core businesses.
Churchill Downs' Q2 performance offers valuable insights into the broader gaming and entertainment industry. The company's success across multiple segments indicates a robust recovery and growth in consumer discretionary spending, particularly in experiential offerings.
The record-breaking Kentucky Derby results are especially noteworthy, suggesting that high-profile sporting events continue to draw significant interest and spending. This bodes well for other major sports and entertainment properties.
In the gaming sector, the strong performance of the new Terre Haute Casino Resort (
The growth in TwinSpires' online and retail sports betting business, albeit modest at
Lastly, the company's investment in a captive insurance company signals a trend towards self-insurance among large corporations, potentially as a response to rising commercial insurance costs or a desire for more tailored risk management solutions.
LOUISVILLE, Ky., July 24, 2024 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN) (the “Company”, “CDI”, “we”) today reported business results for the second quarter ended June 30, 2024.
Company Highlights
- All-time record net revenue of
$890.7 million compared to$768.5 million in second quarter 2023 - Net income attributable to CDI of
$209.3 million compared to$143.0 million in second quarter 2023 - All-time record Adjusted EBITDA of
$444.8 million compared to$363.7 million in second quarter 2023 - Delivered record second quarter revenue and Adjusted EBITDA across all of our reporting segments
- Live and Historical revenue up
20% and Adjusted EBITDA up25% compared to the second quarter of 2023 - TwinSpires revenue up
15% and Adjusted EBITDA up36% compared to the second quarter of 2023 - Gaming revenue up
11% and Adjusted EBITDA up14% compared to the second quarter of 2023
- Live and Historical revenue up
- Churchill Downs Racetrack ran the 150th Kentucky Derby with all-time record all-sources handle for the Kentucky Derby Race, Kentucky Derby Day Program, and Kentucky Derby Week Races, and with all-time record Derby Week contribution to Adjusted EBITDA
- We signed a new seven-year agreement with NBC to continue hosting the Kentucky Derby Week on NBC and Peacock for 2026 through 2032
- We opened the Terre Haute Casino Resort in Terre Haute, Indiana on April 5, 2024 and the hotel on May 15, 2024
- On July 3, 2024, we successfully amended our revolving credit facility and Term Loan A facility to, among other things, extend the maturity dates from 2027 to 2029
- We ended the second quarter of 2024 with net bank leverage of 4.0x
| CONSOLIDATED RESULTS | ||||||
| Second Quarter | ||||||
| (in millions, except per share data) | 2024 | 2023 | ||||
| Net revenue | $ | 890.7 | $ | 768.5 | ||
| Net income attributable to CDI | $ | 209.3 | $ | 143.0 | ||
| Diluted EPS attributable to CDI | $ | 2.79 | $ | 1.86 | ||
| Adjusted EBITDA(a) | $ | 444.8 | $ | 363.7 | ||
| (a) This is a non-GAAP measure. See explanation of non-GAAP measures below. | ||||||
| SEGMENT RESULTS |
The summaries below present revenue from external customers and intercompany revenue from each of our reportable segments.
Live and Historical Racing
| Second Quarter | ||||||
| (in millions) | 2024 | 2023 | ||||
| Revenue | $ | 490.2 | $ | 408.0 | ||
| Adjusted EBITDA | 279.2 | 223.5 | ||||
Revenue for the second quarter of 2024 increased
Adjusted EBITDA for the second quarter of 2024 increased
TwinSpires
| Second Quarter | ||||||
| (in millions) | 2024 | 2023 | ||||
| Revenue | $ | 159.9 | $ | 139.1 | ||
| Adjusted EBITDA | 46.2 | 33.9 | ||||
Revenue for the second quarter of 2024 increased
Adjusted EBITDA for the second quarter of 2024 increased
Gaming
| Second Quarter | ||||||
| (in millions) | 2024 | 2023 | ||||
| Revenue | $ | 274.4 | $ | 247.9 | ||
| Adjusted EBITDA | 140.7 | 123.4 | ||||
Revenue for the second quarter of 2024 increased
Adjusted EBITDA for the second quarter of 2024 increased
All Other
| Second Quarter | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Revenue | $ | 1.9 | $ | 0.2 | ||||
| Adjusted EBITDA | (21.3 | ) | (17.1 | ) | ||||
Revenue for the second quarter of 2024 reflects intercompany revenue related to the captive insurance company that was established in April 2024. All captive revenue is eliminated in consolidation.
Adjusted EBITDA for the second quarter of 2024 decreased
| CAPITAL MANAGEMENT | |
Share Repurchase Program
The Company repurchased 93,874 shares of its common stock at a total cost of approximately
Revolving Credit Facility and Term Loan A Facility Amendment
The Company successfully closed an amendment of its senior secured credit agreement to extend the maturity date of its revolving credit facility and Term Loan A facility from 2027 to 2029 and to make certain other changes to its existing credit agreement.
| NET INCOME ATTRIBUTABLE TO CDI |
The Company's second quarter 2024 net income attributable to CDI was
The following impacted the comparability of the Company's second quarter 2024 net income to the prior year quarter:
- an
$18.5 million decrease in after-tax non-cash impairment costs; and - a
$5.8 million after-tax decrease in transaction, pre-open, and other expenses primarily related to Arlington exit costs in 2023.
This was partially offset by:
- a
$1.0 million increase of other items.
Excluding the items above, second quarter 2024 net income increased
- a
$49.1 million after-tax increase primarily driven by the results of our operations, - partially offset by a
$6.1 million after-tax increase in interest expense associated with higher outstanding debt balances and higher interest rates.
Conference Call
A conference call regarding this news release is scheduled for Thursday, July 25, 2024 at 9 a.m. ET. Investors and other interested parties may listen to the teleconference by accessing the online, real-time webcast and broadcast of the call at http://ir.churchilldownsincorporated.com/events.cfm, or by registering in advance via teleconference here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are encouraged to dial-in 15 minutes prior to the start time. An online replay will be available by noon ET on Thursday, July 25, 2024. A copy of the Company’s news release announcing quarterly results and relevant financial and statistical information about the period will be accessible at www.churchilldownsincorporated.com.
Use of Non-GAAP Measures
In addition to the results provided in accordance with GAAP, the Company also uses non-GAAP measures, including adjusted net income, adjusted diluted EPS, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA.
The Company uses non-GAAP measures as a key performance measure of the results of operations for purposes of evaluating performance internally. These measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of the Company by excluding certain items that may not be indicative of the Company's core business or operating results. The Company believes the use of these measures enables management and investors to evaluate and compare, from period to period, the Company’s operating performance in a meaningful and consistent manner. The non-GAAP measures are a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP, and should not be considered as an alternative to, or more meaningful than, net income or diluted EPS (as determined in accordance with GAAP) as a measure of our operating results.
We use Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.
Adjusted net income and adjusted diluted EPS exclude discontinued operations net income or loss; net income or loss attributable to noncontrolling interest; changes in fair value for interest rate swaps related to Rivers Des Plaines; Rivers Des Plaines' legal reserves and transaction costs; transaction expense, which includes acquisition and disposition related charges, as well as legal, accounting, and other deal-related expense; pre-opening expense; and certain other gains, charges, recoveries, and expenses.
Adjusted EBITDA includes our portion of EBITDA from our equity investments and the portion of EBITDA attributable to noncontrolling interest.
Adjusted EBITDA excludes:
- Transaction expense, net which includes:
- Acquisition, disposition, and property sale related charges;
- Other transaction expense, including legal, accounting, and other deal-related expense;
- Stock-based compensation expense;
- Asset impairments;
- Gain on property sales;
- Legal reserves;
- Pre-opening expense; and
- Other charges, recoveries, and expenses.
As of December 31, 2021, our property in Arlington Heights, Illinois (“Arlington”) ceased racing and simulcast operations and the property was sold on February 15, 2023 to the Chicago Bears. Arlington's results and exit costs in 2023 are treated as an adjustment to EBITDA and are included in other expenses, net in the Reconciliation of Comprehensive Income to Adjusted EBITDA.
On June 26, 2023, the Company's management agreement for Lady Luck in Farmington, Pennsylvania expired and was not renewed. The Company completed the sale of substantially all its assets at Lady Luck for an immaterial amount.
For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the Consolidated Statements of Comprehensive Income. See the Reconciliation of Comprehensive Income to Adjusted EBITDA included herewith for additional information.
About Churchill Downs Incorporated
Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has been creating extraordinary entertainment experiences for over 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the development of live and historical racing entertainment venues, the growth of the TwinSpires horse racing online wagering business and the operation and development of regional casino gaming properties. https://www.churchilldownsincorporated.com/
This news release contains various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” “scheduled,” and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors, that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; additional or increased taxes and fees; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, including possible new variants of COVID-19, and related economic matters on our results of operations, financial conditions and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine (HRM) manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; inability to successfully focus on market access and retail operations for our TwinSpires sports betting business and effectively compete; online security risk, including cyber-security breaches, or loss or misuse of our stored information as a result of a breach including customers’ personal information could lead to government enforcement actions or other litigation; reliance on our technology services and catastrophic events and system failures disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates (due to inflation or otherwise), disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; and other factors described under the heading “Risk Factors” in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| CHURCHILL DOWNS INCORPORATED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in millions, except per common share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net revenue: | ||||||||||||||||
| Live and Historical Racing | $ | 464.7 | $ | 385.0 | $ | 709.8 | $ | 599.4 | ||||||||
| TwinSpires | 151.7 | 137.4 | 258.3 | 232.2 | ||||||||||||
| Gaming | 274.2 | 245.9 | 513.4 | 495.9 | ||||||||||||
| All Other | 0.1 | 0.2 | 0.1 | 0.5 | ||||||||||||
| Total net revenue | 890.7 | 768.5 | 1,481.6 | 1,328.0 | ||||||||||||
| Operating expense: | ||||||||||||||||
| Live and Historical Racing | 221.4 | 204.2 | 378.6 | 347.5 | ||||||||||||
| TwinSpires | 89.3 | 80.7 | 157.2 | 146.4 | ||||||||||||
| Gaming | 188.4 | 179.2 | 366.9 | 352.7 | ||||||||||||
| All Other | 3.6 | 5.7 | 5.7 | 10.7 | ||||||||||||
| Selling, general and administrative expense | 57.4 | 48.1 | 112.2 | 100.4 | ||||||||||||
| Asset impairments | — | 24.5 | — | 24.5 | ||||||||||||
| Transaction expense, net | 0.6 | 0.5 | 4.7 | 0.3 | ||||||||||||
| Total operating expense | 560.7 | 542.9 | 1,025.3 | 982.5 | ||||||||||||
| Operating income | 330.0 | 225.6 | 456.3 | 345.5 | ||||||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense, net | (73.5 | ) | (65.2 | ) | (143.9 | ) | (129.9 | ) | ||||||||
| Equity in income of unconsolidated affiliates | 37.7 | 38.8 | 75.5 | 77.1 | ||||||||||||
| Gain on sale of Arlington | — | — | — | 114.0 | ||||||||||||
| Miscellaneous, net | 0.1 | — | 8.2 | 1.4 | ||||||||||||
| Total other (expense) income | (35.7 | ) | (26.4 | ) | (60.2 | ) | 62.6 | |||||||||
| Income from operations before provision for income taxes | 294.3 | 199.2 | 396.1 | 408.1 | ||||||||||||
| Income tax provision | (84.1 | ) | (56.2 | ) | (105.5 | ) | (109.4 | ) | ||||||||
| Net income | 210.2 | 143.0 | 290.6 | 298.7 | ||||||||||||
| Net income attributable to noncontrolling interest | 0.9 | — | 0.9 | — | ||||||||||||
| Net income attributable to Churchill Downs Incorporated | $ | 209.3 | $ | 143.0 | $ | 289.7 | $ | 298.7 | ||||||||
| Net income attributable to Churchill Downs Incorporated per common share data: | ||||||||||||||||
| Basic net income | $ | 2.82 | $ | 1.90 | $ | 3.90 | $ | 3.97 | ||||||||
| Diluted net income | $ | 2.79 | $ | 1.86 | $ | 3.87 | $ | 3.90 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 73.9 | 75.3 | 74.0 | 75.3 | ||||||||||||
| Diluted | 74.6 | 76.9 | 74.6 | 76.5 | ||||||||||||
| CHURCHILL DOWNS INCORPORATED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
| (in millions) | June 30, 2024 | December 31, 2023 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 140.3 | $ | 144.5 | ||||
| Restricted cash | 90.6 | 77.3 | ||||||
| Accounts receivable, net | 136.1 | 106.9 | ||||||
| Income taxes receivable | — | 12.6 | ||||||
| Other current assets | 69.0 | 59.5 | ||||||
| Total current assets | 436.0 | 400.8 | ||||||
| Property and equipment, net | 2,752.4 | 2,561.2 | ||||||
| Investment in and advances to unconsolidated affiliates | 648.8 | 655.9 | ||||||
| Goodwill | 900.2 | 899.9 | ||||||
| Other intangible assets, net | 2,414.4 | 2,418.4 | ||||||
| Other assets | 18.3 | 19.3 | ||||||
| Total assets | $ | 7,170.1 | $ | 6,955.5 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 215.0 | $ | 158.5 | ||||
| Accrued expenses and other current liabilities | 419.1 | 426.8 | ||||||
| Income taxes payable | 41.3 | — | ||||||
| Current deferred revenue | 19.2 | 73.2 | ||||||
| Current maturities of long-term debt | 68.0 | 68.0 | ||||||
| Dividends payable | 0.6 | 29.3 | ||||||
| Total current liabilities | 763.2 | 755.8 | ||||||
| Long-term debt, net of current maturities and loan origination fees | 1,717.6 | 1,697.1 | ||||||
| Notes payable, net of debt issuance costs | 3,073.7 | 3,071.2 | ||||||
| Non-current deferred revenue | 20.1 | 11.8 | ||||||
| Deferred income taxes | 407.9 | 388.2 | ||||||
| Other liabilities | 140.6 | 137.8 | ||||||
| Total liabilities | 6,123.1 | 6,061.9 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interest | 16.1 | — | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | — | — | ||||||
| Retained earnings | 1,031.9 | 894.5 | ||||||
| Accumulated other comprehensive loss | (1.0 | ) | (0.9 | ) | ||||
| Total Churchill Downs Incorporated shareholders' equity | 1,030.9 | 893.6 | ||||||
| Total liabilities and shareholders' equity | $ | 7,170.1 | $ | 6,955.5 | ||||
| CHURCHILL DOWNS INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 290.6 | $ | 298.7 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 96.1 | 79.7 | ||||||
| Distributions from unconsolidated affiliates | 81.7 | 91.7 | ||||||
| Equity in income of unconsolidated affiliates | (75.5 | ) | (77.1 | ) | ||||
| Stock-based compensation | 16.1 | 16.7 | ||||||
| Deferred income taxes | 19.7 | 32.4 | ||||||
| Asset impairments | — | 24.5 | ||||||
| Amortization of operating lease assets | 2.7 | 3.5 | ||||||
| Gain on sale of Arlington | — | (114.0 | ) | |||||
| Other | 4.8 | 3.6 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Income taxes | 52.9 | 41.6 | ||||||
| Deferred revenue | (45.7 | ) | (15.5 | ) | ||||
| Other assets and liabilities | 28.3 | 16.8 | ||||||
| Net cash provided by operating activities | 471.7 | 402.6 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital maintenance expenditures | (34.8 | ) | (30.2 | ) | ||||
| Capital project expenditures | (257.2 | ) | (282.2 | ) | ||||
| Proceeds from sale of Arlington | — | 195.7 | ||||||
| Other | 1.9 | (2.3 | ) | |||||
| Net cash used in investing activities | (290.1 | ) | (119.0 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from borrowings under long-term debt obligations | 617.4 | 1,223.3 | ||||||
| Repayments of borrowings under long-term debt obligations | (598.3 | ) | (1,201.4 | ) | ||||
| Payment of dividends | (28.8 | ) | (26.7 | ) | ||||
| Repurchase of common stock | (154.7 | ) | (0.5 | ) | ||||
| Taxes paid related to net share settlement of stock awards | (10.5 | ) | (13.2 | ) | ||||
| Debt issuance costs | — | (12.2 | ) | |||||
| Change in bank overdraft | 2.6 | (16.2 | ) | |||||
| Other | (1.2 | ) | (0.8 | ) | ||||
| Net cash used in financing activities | (173.5 | ) | (47.7 | ) | ||||
| Cash flows from discontinued operations: | ||||||||
| Operating activities of discontinued operations | 1.0 | 0.5 | ||||||
| Net increase in cash, cash equivalents and restricted cash | 9.1 | 236.4 | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 221.8 | 204.7 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 230.9 | $ | 441.1 | ||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) | ||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
| (in millions, except per common share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| GAAP net income attributable to CDI | $ | 209.3 | $ | 143.0 | $ | 289.7 | $ | 298.7 | ||||||||||
| Adjustments, continuing operations: | ||||||||||||||||||
| Changes in fair value of interest rate swaps related to Rivers Des Plaines | — | — | — | — | ||||||||||||||
| Legal reserves and transaction costs related to Rivers Des Plaines | 0.3 | — | 0.3 | — | ||||||||||||||
| Other charges and recoveries, net | (0.1 | ) | (1.2 | ) | (6.8 | ) | (0.9 | ) | ||||||||||
| Transaction, pre-opening, and other expense | 8.2 | 16.2 | 20.8 | 22.9 | ||||||||||||||
| Legal reserves | — | — | — | — | ||||||||||||||
| Asset impairments | — | 24.5 | — | 24.5 | ||||||||||||||
| Gain on Dispositions | — | — | — | (114.0 | ) | |||||||||||||
| Income tax impact on net income adjustments (a) | (2.3 | ) | (10.1 | ) | (4.0 | ) | 15.7 | |||||||||||
| Total adjustments | 6.1 | 29.4 | 10.3 | (51.8 | ) | |||||||||||||
| Adjusted net income attributable to CDI | $ | 215.4 | $ | 172.4 | $ | 300.0 | $ | 246.9 | ||||||||||
| Adjusted diluted EPS | $ | 2.89 | $ | 2.24 | $ | 4.02 | $ | 3.23 | ||||||||||
| Weighted average shares outstanding - Diluted | 74.6 | 76.9 | 74.6 | 76.5 | ||||||||||||||
| (a) | The income tax impact for each adjustment is derived by applying the effective tax rate, including current and deferred income tax expense, based upon the jurisdiction and the nature of the adjustment. | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Total Handle | ||||||||||||
| TwinSpires Horse Racing(a) | $ | 653.4 | $ | 635.1 | $ | 1,073.0 | $ | 1,045.7 | ||||
| (a) Total handle generated by Velocity is not included in total handle from TwinSpires Horse Racing. | ||||||||||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net revenue from external customers: | ||||||||||||||||
| Live and Historical Racing: | ||||||||||||||||
| Churchill Downs Racetrack | $ | 228.0 | $ | 178.3 | $ | 231.1 | $ | 180.7 | ||||||||
| Louisville | 53.1 | 45.3 | 106.8 | 89.3 | ||||||||||||
| Northern Kentucky | 22.0 | 17.3 | 50.5 | 43.6 | ||||||||||||
| Southwestern Kentucky | 40.2 | 37.6 | 78.8 | 74.1 | ||||||||||||
| Western Kentucky | 6.1 | 9.4 | 12.9 | 14.2 | ||||||||||||
| Virginia | 111.9 | 94.6 | 223.1 | 192.3 | ||||||||||||
| New Hampshire | 3.4 | 2.5 | 6.6 | 5.2 | ||||||||||||
| Total Live and Historical Racing | $ | 464.7 | $ | 385.0 | $ | 709.8 | $ | 599.4 | ||||||||
| TwinSpires: | $ | 151.7 | $ | 137.4 | $ | 258.3 | $ | 232.2 | ||||||||
| Gaming: | ||||||||||||||||
| Florida | $ | 26.5 | $ | 26.0 | $ | 52.6 | $ | 52.1 | ||||||||
| Iowa | 23.5 | 24.0 | 46.9 | 48.5 | ||||||||||||
| Indiana | 33.9 | — | 33.9 | — | ||||||||||||
| Louisiana | 37.1 | 33.8 | 81.4 | 77.9 | ||||||||||||
| Maine | 26.8 | 29.5 | 53.6 | 57.2 | ||||||||||||
| Maryland | 26.2 | 27.6 | 47.8 | 50.9 | ||||||||||||
| Mississippi | 24.5 | 25.8 | 50.5 | 53.3 | ||||||||||||
| New York | 46.5 | 44.6 | 91.5 | 89.1 | ||||||||||||
| Pennsylvania | 29.2 | 34.6 | 55.2 | 66.9 | ||||||||||||
| Total Gaming | $ | 274.2 | $ | 245.9 | $ | 513.4 | $ | 495.9 | ||||||||
| All Other | 0.1 | 0.2 | 0.1 | 0.5 | ||||||||||||
| Net revenue from external customers | $ | 890.7 | $ | 768.5 | $ | 1,481.6 | $ | 1,328.0 | ||||||||
| Intercompany net revenues: | ||||||||||||||||
| Live and Historical Racing | $ | 25.5 | $ | 23.0 | $ | 29.3 | $ | 24.4 | ||||||||
| TwinSpires | 8.2 | 1.7 | 15.7 | 3.3 | ||||||||||||
| Gaming | 0.2 | 2.0 | 4.2 | 3.6 | ||||||||||||
| All Other | 1.8 | — | 1.8 | — | ||||||||||||
| Eliminations | (35.7 | ) | (26.7 | ) | (51.0 | ) | (31.3 | ) | ||||||||
| Intercompany net revenue | $ | — | $ | — | $ | — | $ | — | ||||||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) | ||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Total | ||||||||||||
| Net revenue from external customers | ||||||||||||||||||
| Pari-mutuel: | ||||||||||||||||||
| Live and simulcast racing | $ | 50.4 | $ | 115.4 | $ | 4.5 | $ | 170.3 | $ | — | $ | 170.3 | ||||||
| Historical racing(a) | 212.1 | — | 9.3 | 221.4 | — | 221.4 | ||||||||||||
| Racing event-related services | 176.0 | — | 1.4 | 177.4 | — | 177.4 | ||||||||||||
| Gaming(a) | 3.3 | 4.3 | 228.1 | 235.7 | — | 235.7 | ||||||||||||
| Other(a) | 22.9 | 32.0 | 30.9 | 85.8 | 0.1 | 85.9 | ||||||||||||
| Total | $ | 464.7 | $ | 151.7 | $ | 274.2 | $ | 890.6 | $ | 0.1 | $ | 890.7 | ||||||
| Three Months Ended June 30, 2023 | |||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Total | |||||||||||||||
| Net revenue from external customers | |||||||||||||||||||||
| Pari-mutuel: | |||||||||||||||||||||
| Live and simulcast racing | $ | 40.2 | $ | 117.5 | $ | 3.2 | $ | 160.9 | $ | — | $ | 160.9 | |||||||||
| Historical racing(a) | 184.1 | — | 7.0 | 191.1 | — | 191.1 | |||||||||||||||
| Racing event-related services | 136.7 | — | 1.5 | 138.2 | — | 138.2 | |||||||||||||||
| Gaming(a) | 2.5 | 1.2 | 206.9 | 210.6 | — | 210.6 | |||||||||||||||
| Other(a) | 21.5 | 18.7 | 27.3 | 67.5 | 0.2 | 67.7 | |||||||||||||||
| Total | $ | 385.0 | $ | 137.4 | $ | 245.9 | $ | 768.3 | $ | 0.2 | $ | 768.5 | |||||||||
| (a) | Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in Other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were | ||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Total | ||||||||||||
| Net revenue from external customers | ||||||||||||||||||
| Pari-mutuel: | ||||||||||||||||||
| Live and simulcast racing | $ | 61.4 | $ | 195.2 | $ | 15.1 | $ | 271.7 | $ | — | $ | 271.7 | ||||||
| Historical racing(a) | 424.2 | — | 18.1 | 442.3 | — | 442.3 | ||||||||||||
| Racing event-related services | 177.1 | — | 3.6 | 180.7 | — | 180.7 | ||||||||||||
| Gaming(a) | 6.4 | 10.0 | 421.2 | 437.6 | — | 437.6 | ||||||||||||
| Other(a) | 40.7 | 53.1 | 55.4 | 149.2 | 0.1 | 149.3 | ||||||||||||
| Total | $ | 709.8 | $ | 258.3 | $ | 513.4 | $ | 1,481.5 | $ | 0.1 | $ | 1,481.6 | ||||||
| Six Months Ended June 30, 2023 | ||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Total | ||||||||||||||
| Net revenue from external customers | ||||||||||||||||||||
| Pari-mutuel: | ||||||||||||||||||||
| Live and simulcast racing | $ | 51.2 | $ | 196.9 | $ | 14.8 | $ | 262.9 | $ | — | $ | 262.9 | ||||||||
| Historical racing(a) | 369.4 | — | 13.0 | 382.4 | — | 382.4 | ||||||||||||||
| Racing event-related services | 137.7 | — | 3.4 | 141.1 | — | 141.1 | ||||||||||||||
| Gaming(a) | 5.1 | 5.6 | 412.4 | 423.1 | — | 423.1 | ||||||||||||||
| Other(a) | 36.0 | 29.7 | 52.3 | 118.0 | 0.5 | 118.5 | ||||||||||||||
| Total | $ | 599.4 | $ | 232.2 | $ | 495.9 | $ | 1,327.5 | $ | 0.5 | $ | 1,328.0 | ||||||||
| (a) | Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in Other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were | |||||||||||||||||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) | ||||||||||||||||||||||||||||
| Adjusted EBITDA by segment is comprised of the following: | ||||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Eliminations | Total | |||||||||||||||||||||
| Revenues | $ | 490.2 | $ | 159.9 | $ | 274.4 | $ | 924.5 | $ | 1.9 | $ | (35.7 | ) | $ | 890.7 | |||||||||||||
| Gaming taxes and purses | (100.0 | ) | (7.3 | ) | (83.5 | ) | (190.8 | ) | — | — | (190.8 | ) | ||||||||||||||||
| Marketing and advertising | (12.5 | ) | (4.9 | ) | (9.2 | ) | (26.6 | ) | (0.1 | ) | — | (26.7 | ) | |||||||||||||||
| Salaries and benefits | (36.5 | ) | (8.0 | ) | (40.3 | ) | (84.8 | ) | — | — | (84.8 | ) | ||||||||||||||||
| Content expense | (2.1 | ) | (73.3 | ) | (2.6 | ) | (78.0 | ) | — | 27.1 | (50.9 | ) | ||||||||||||||||
| Selling, general and administrative expense | (8.5 | ) | (4.3 | ) | (11.8 | ) | (24.6 | ) | (21.0 | ) | 0.3 | (45.3 | ) | |||||||||||||||
| Maintenance, insurance and utilities | (11.5 | ) | (1.0 | ) | (11.1 | ) | (23.6 | ) | (0.5 | ) | 1.8 | (22.3 | ) | |||||||||||||||
| Property and other taxes | (1.8 | ) | — | (3.3 | ) | (5.1 | ) | (0.2 | ) | — | (5.3 | ) | ||||||||||||||||
| Other operating expense | (38.3 | ) | (14.9 | ) | (20.2 | ) | (73.4 | ) | (1.4 | ) | 6.5 | (68.3 | ) | |||||||||||||||
| Other income | 0.2 | — | 48.3 | 48.5 | — | — | 48.5 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 279.2 | $ | 46.2 | $ | 140.7 | $ | 466.1 | $ | (21.3 | ) | $ | — | $ | 444.8 | |||||||||||||
| Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Eliminations | Total | |||||||||||||||||||||
| Revenues | $ | 408.0 | $ | 139.1 | $ | 247.9 | $ | 795.0 | $ | 0.2 | $ | (26.7 | ) | $ | 768.5 | |||||||||||||
| Gaming taxes and purses | (85.4 | ) | (7.0 | ) | (81.7 | ) | (174.1 | ) | — | — | (174.1 | ) | ||||||||||||||||
| Marketing and advertising | (12.1 | ) | (5.3 | ) | (9.0 | ) | (26.4 | ) | (0.1 | ) | 0.1 | (26.4 | ) | |||||||||||||||
| Salaries and benefits | (30.3 | ) | (7.5 | ) | (39.5 | ) | (77.3 | ) | — | — | (77.3 | ) | ||||||||||||||||
| Content expense | (2.0 | ) | (68.7 | ) | (2.7 | ) | (73.4 | ) | — | 26.5 | (46.9 | ) | ||||||||||||||||
| Selling, general and administrative expense | (7.3 | ) | (2.7 | ) | (10.3 | ) | (20.3 | ) | (16.8 | ) | 0.4 | (36.7 | ) | |||||||||||||||
| Maintenance, insurance and utilities | (10.1 | ) | (0.8 | ) | (9.6 | ) | (20.5 | ) | (0.1 | ) | — | (20.6 | ) | |||||||||||||||
| Property and other taxes | (1.5 | ) | (0.1 | ) | (3.0 | ) | (4.6 | ) | — | — | (4.6 | ) | ||||||||||||||||
| Other operating expense | (36.0 | ) | (13.1 | ) | (17.4 | ) | (66.5 | ) | (0.3 | ) | (0.3 | ) | (67.1 | ) | ||||||||||||||
| Other income | 0.2 | — | 48.7 | 48.9 | — | — | 48.9 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 223.5 | $ | 33.9 | $ | 123.4 | $ | 380.8 | $ | (17.1 | ) | $ | — | $ | 363.7 | |||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Eliminations | Total | |||||||||||||||||||||
| Revenues | $ | 739.1 | $ | 274.0 | $ | 517.6 | $ | 1,530.7 | $ | 1.9 | $ | (51.0 | ) | $ | 1,481.6 | |||||||||||||
| Gaming taxes and purses | (165.0 | ) | (12.2 | ) | (164.0 | ) | (341.2 | ) | — | — | (341.2 | ) | ||||||||||||||||
| Marketing and advertising | (21.8 | ) | (6.1 | ) | (17.0 | ) | (44.9 | ) | (0.1 | ) | — | (45.0 | ) | |||||||||||||||
| Salaries and benefits | (63.3 | ) | (15.9 | ) | (78.3 | ) | (157.5 | ) | — | — | (157.5 | ) | ||||||||||||||||
| Content expense | (3.4 | ) | (117.3 | ) | (4.4 | ) | (125.1 | ) | — | 36.1 | (89.0 | ) | ||||||||||||||||
| Selling, general and administrative expense | (17.3 | ) | (8.8 | ) | (22.0 | ) | (48.1 | ) | (41.5 | ) | 0.6 | (89.0 | ) | |||||||||||||||
| Maintenance, insurance and utilities | (21.8 | ) | (2.0 | ) | (20.7 | ) | (44.5 | ) | (2.0 | ) | 1.8 | (44.7 | ) | |||||||||||||||
| Property and other taxes | (4.5 | ) | (0.1 | ) | (6.7 | ) | (11.3 | ) | (0.4 | ) | — | (11.7 | ) | |||||||||||||||
| Other operating expense | (62.2 | ) | (25.8 | ) | (38.5 | ) | (126.5 | ) | — | 12.5 | (114.0 | ) | ||||||||||||||||
| Other income | 0.2 | — | 97.5 | 97.7 | 0.1 | — | 97.8 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 380.0 | $ | 85.8 | $ | 263.5 | $ | 729.3 | $ | (42.0 | ) | $ | — | $ | 687.3 | |||||||||||||
| Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Eliminations | Total | |||||||||||||||||||||
| Revenues | $ | 623.8 | $ | 235.5 | $ | 499.5 | $ | 1,358.8 | $ | 0.5 | $ | (31.3 | ) | $ | 1,328.0 | |||||||||||||
| Gaming taxes and purses | (141.9 | ) | (12.0 | ) | (165.3 | ) | (319.2 | ) | — | — | (319.2 | ) | ||||||||||||||||
| Marketing and advertising | (20.3 | ) | (6.7 | ) | (17.6 | ) | (44.6 | ) | (0.1 | ) | 0.3 | (44.4 | ) | |||||||||||||||
| Salaries and benefits | (52.1 | ) | (13.7 | ) | (74.0 | ) | (139.8 | ) | — | — | (139.8 | ) | ||||||||||||||||
| Content expense | (3.5 | ) | (111.7 | ) | (4.5 | ) | (119.7 | ) | — | 30.4 | (89.3 | ) | ||||||||||||||||
| Selling, general and administrative expense | (16.0 | ) | (5.1 | ) | (22.5 | ) | (43.6 | ) | (35.1 | ) | 0.6 | (78.1 | ) | |||||||||||||||
| Maintenance, insurance and utilities | (19.4 | ) | (1.7 | ) | (19.4 | ) | (40.5 | ) | (0.2 | ) | — | (40.7 | ) | |||||||||||||||
| Property and other taxes | (2.7 | ) | (0.1 | ) | (6.3 | ) | (9.1 | ) | (0.2 | ) | — | (9.3 | ) | |||||||||||||||
| Other operating expense | (62.5 | ) | (22.2 | ) | (34.3 | ) | (119.0 | ) | (0.1 | ) | — | (119.1 | ) | |||||||||||||||
| Other income | 0.2 | 1.0 | 97.3 | 98.5 | — | — | 98.5 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 305.6 | $ | 63.3 | $ | 252.9 | $ | 621.8 | $ | (35.2 | ) | $ | — | $ | 586.6 | |||||||||||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Reconciliation of Comprehensive Income to Adjusted EBITDA: | ||||||||||||||||
| Net income attributable to Churchill Downs Incorporated | $ | 209.3 | $ | 143.0 | $ | 289.7 | $ | 298.7 | ||||||||
| Net income attributable to noncontrolling interest | 0.9 | — | 0.9 | — | ||||||||||||
| Net income and comprehensive income | 210.2 | 143.0 | 290.6 | 298.7 | ||||||||||||
| Additions: | ||||||||||||||||
| Depreciation and amortization | 49.2 | 41.8 | 96.1 | 79.7 | ||||||||||||
| Interest expense | 73.5 | 65.2 | 143.9 | 129.9 | ||||||||||||
| Income tax provision | 84.1 | 56.2 | 105.5 | 109.4 | ||||||||||||
| EBITDA | $ | 417.0 | $ | 306.2 | $ | 636.1 | $ | 617.7 | ||||||||
| Adjustments to EBITDA: | ||||||||||||||||
| Stock-based compensation expense | $ | 8.9 | $ | 8.1 | $ | 16.1 | $ | 16.7 | ||||||||
| Arlington exit costs | — | 5.9 | — | 9.3 | ||||||||||||
| Pre-opening expense | 7.5 | 3.2 | 15.8 | 6.4 | ||||||||||||
| Other expenses, net | 0.1 | 6.6 | 0.3 | 6.9 | ||||||||||||
| Asset impairments | — | 24.5 | — | 24.5 | ||||||||||||
| Transaction expense, net | 0.6 | 0.5 | 4.7 | 0.3 | ||||||||||||
| Other income, expense: | ||||||||||||||||
| Interest, depreciation and amortization expense related to equity investments | 10.5 | 9.9 | 20.8 | 19.7 | ||||||||||||
| Rivers Des Plaines' legal reserves and transaction costs | 0.3 | — | 0.3 | — | ||||||||||||
| Other charges and recoveries, net | (0.1 | ) | (1.2 | ) | (6.8 | ) | (0.9 | ) | ||||||||
| Gain on Arlington sale | — | — | — | (114.0 | ) | |||||||||||
| Total adjustments to EBITDA | 27.8 | 57.5 | 51.2 | (31.1 | ) | |||||||||||
| Adjusted EBITDA | $ | 444.8 | $ | 363.7 | $ | 687.3 | $ | 586.6 | ||||||||
| Adjusted EBITDA by segment: | ||||||||||||||||
| Live and Historical Racing | $ | 279.2 | $ | 223.5 | $ | 380.0 | $ | 305.6 | ||||||||
| TwinSpires | 46.2 | 33.9 | 85.8 | 63.3 | ||||||||||||
| Gaming | 140.7 | 123.4 | 263.5 | 252.9 | ||||||||||||
| Total segment Adjusted EBITDA | 466.1 | 380.8 | 729.3 | 621.8 | ||||||||||||
| All Other | (21.3 | ) | (17.1 | ) | (42.0 | ) | (35.2 | ) | ||||||||
| Total Adjusted EBITDA | $ | 444.8 | $ | 363.7 | $ | 687.3 | $ | 586.6 | ||||||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL JOINT VENTURE FINANCIAL STATEMENTS (Unaudited) | ||||||||||||||||
| Summarized financial information for our equity investments is comprised of the following: | ||||||||||||||||
| Summarized Income Statement | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net revenue | $ | 215.9 | $ | 218.7 | $ | 432.8 | $ | 439.3 | ||||||||
| Operating and SG&A expense | 132.2 | 135.0 | 267.1 | 272.2 | ||||||||||||
| Depreciation and amortization | 7.0 | 5.9 | 13.3 | 11.6 | ||||||||||||
| Total operating expense | 139.2 | 140.9 | 280.4 | 283.8 | ||||||||||||
| Operating income | 76.7 | 77.8 | 152.4 | 155.5 | ||||||||||||
| Interest and other expense, net | (11.4 | ) | (10.7 | ) | (22.4 | ) | (21.6 | ) | ||||||||
| Net income | $ | 65.3 | $ | 67.1 | $ | 130.0 | $ | 133.9 | ||||||||
| Summarized Balance Sheet | ||||||||
| (in millions) | June 30, 2024 | December 31, 2023 | ||||||
| Assets | ||||||||
| Current assets | $ | 91.9 | $ | 104.8 | ||||
| Property and equipment, net | 334.3 | 339.4 | ||||||
| Other assets, net | 270.1 | 266.1 | ||||||
| Total assets | $ | 696.3 | $ | 710.3 | ||||
| Liabilities and Members' Deficit | ||||||||
| Current liabilities | $ | 103.7 | $ | 106.2 | ||||
| Long-term debt | 847.0 | 847.2 | ||||||
| Other liabilities | 0.8 | 0.7 | ||||||
| Members' deficit | (255.2 | ) | (243.8 | ) | ||||
| Total liabilities and members' deficit | $ | 696.3 | $ | 710.3 | ||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) | ||||
| Planned capital projects for the Company are as follows: | ||||
| (in millions) | Project | Target Completion | Planned Spend | |
| Live and Historical Racing Segment | ||||
| Churchill Downs Racetrack | Grandstand Club and Pavilion Renovation | April 2025 | ||
| Northern Virginia | The Rose Gaming Resort (HRM Entertainment Venue) | Late September 2024 | ||
| Virginia | Additional ~560 HRMs | TBD | TBD | |
| Western Kentucky | Owensboro Racing and Gaming (HRM Entertainment Venue) | First Quarter 2025 | ||
| Southwestern Kentucky | Oak Grove HRM Annex | TBD | TBD | |
| New Hampshire | Salem HRM Entertainment Venue | TBD | TBD | |
Contact: Sam Ullrich
(502) 638-3906
Sam.Ullrich@kyderby.com
FAQ
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