Churchill Downs Incorporated Reports 2025 First Quarter Results
Churchill Downs (CHDN) reported mixed Q1 2025 results with record net revenue of $642.6M, up 9% year-over-year, while net income declined 5% to $76.7M. The company achieved record Adjusted EBITDA of $245.1M, a 1% increase.
Key developments include the opening of Owensboro Racing and Gaming in Western Kentucky featuring 600 historical racing machines, and the announcement of new projects at Churchill Downs Racetrack. However, some capital projects were paused due to economic conditions. The company maintained a net bank leverage of 4.0x and returned $119.5M to shareholders through dividends and share repurchases.
Segment performance showed mixed results: Live and Historical Racing revenue increased $27.5M, Gaming revenue rose $24.0M primarily due to Terre Haute Casino Resort opening, while Wagering Services saw modest growth of $1.7M. The Board approved a new $500M share repurchase program, with $434.6M remaining as of March 31, 2025.
Churchill Downs (CHDN) ha riportato risultati contrastanti nel primo trimestre 2025 con un fatturato netto record di 642,6 milioni di dollari, in crescita del 9% su base annua, mentre l'utile netto è diminuito del 5% a 76,7 milioni di dollari. L'azienda ha raggiunto un EBITDA rettificato record di 245,1 milioni di dollari, con un aumento dell'1%.
Tra gli sviluppi principali si segnala l'apertura di Owensboro Racing and Gaming nel Kentucky occidentale, con 600 macchine da corsa storiche, e l'annuncio di nuovi progetti al Churchill Downs Racetrack. Alcuni progetti di investimento sono stati però sospesi a causa delle condizioni economiche. L'azienda ha mantenuto un rapporto di indebitamento netto bancario di 4,0x e ha restituito 119,5 milioni di dollari agli azionisti tramite dividendi e riacquisto di azioni.
La performance dei segmenti ha mostrato risultati misti: i ricavi da corse dal vivo e storiche sono aumentati di 27,5 milioni di dollari, i ricavi del gaming sono cresciuti di 24,0 milioni principalmente grazie all'apertura del Terre Haute Casino Resort, mentre i servizi di scommesse hanno registrato una crescita contenuta di 1,7 milioni. Il Consiglio ha approvato un nuovo programma di riacquisto azionario da 500 milioni di dollari, con 434,6 milioni ancora disponibili al 31 marzo 2025.
Churchill Downs (CHDN) reportó resultados mixtos en el primer trimestre de 2025 con un ingreso neto récord de 642.6 millones de dólares, un aumento del 9% interanual, mientras que la utilidad neta disminuyó un 5% a 76.7 millones de dólares. La compañía logró un EBITDA ajustado récord de 245.1 millones de dólares, con un incremento del 1%.
Los desarrollos clave incluyen la apertura de Owensboro Racing and Gaming en el oeste de Kentucky, con 600 máquinas de carreras históricas, y el anuncio de nuevos proyectos en Churchill Downs Racetrack. Sin embargo, algunos proyectos de capital fueron pausados debido a las condiciones económicas. La empresa mantuvo un apalancamiento bancario neto de 4.0x y devolvió 119.5 millones de dólares a los accionistas mediante dividendos y recompra de acciones.
El desempeño por segmentos mostró resultados mixtos: los ingresos por carreras en vivo e históricas aumentaron 27.5 millones, los ingresos por juegos crecieron 24.0 millones principalmente por la apertura del Terre Haute Casino Resort, mientras que los servicios de apuestas tuvieron un crecimiento moderado de 1.7 millones. La Junta aprobó un nuevo programa de recompra de acciones por 500 millones de dólares, con 434.6 millones restantes al 31 de marzo de 2025.
처칠 다운스(CHDN)는 2025년 1분기에 기록적인 순매출 6억 4,260만 달러를 기록하며 전년 대비 9% 증가했으나, 순이익은 5% 감소한 7,670만 달러를 보고했습니다. 회사는 기록적인 조정 EBITDA 2억 4,510만 달러를 달성하며 1% 성장했습니다.
주요 발전 사항으로는 켄터키 서부에 600대의 역사적 경마 기기를 갖춘 오웬스버러 레이싱 앤 게이밍 개장과 처칠 다운스 경마장에서의 신규 프로젝트 발표가 포함됩니다. 다만 경제 상황으로 인해 일부 자본 프로젝트는 중단되었습니다. 회사는 순은행 부채비율 4.0배를 유지했으며, 배당금과 자사주 매입을 통해 주주들에게 1억 1,950만 달러를 환원했습니다.
사업 부문별 실적은 혼재된 모습을 보였습니다: 라이브 및 역사적 경마 매출은 2,750만 달러 증가했고, 게임 매출은 주로 테르 호트 카지노 리조트 개장 덕분에 2,400만 달러 증가했으며, 베팅 서비스는 170만 달러의 소폭 성장을 기록했습니다. 이사회는 5억 달러 규모의 자사주 매입 프로그램을 승인했으며, 2025년 3월 31일 기준으로 4억 3,460만 달러가 남아 있습니다.
Churchill Downs (CHDN) a publié des résultats mitigés au premier trimestre 2025 avec un chiffre d'affaires net record de 642,6 millions de dollars, en hausse de 9 % sur un an, tandis que le bénéfice net a diminué de 5 % pour atteindre 76,7 millions de dollars. La société a réalisé un EBITDA ajusté record de 245,1 millions de dollars, en progression de 1 %.
Les développements clés incluent l’ouverture de Owensboro Racing and Gaming dans l’ouest du Kentucky, avec 600 machines de courses historiques, ainsi que l’annonce de nouveaux projets au hippodrome de Churchill Downs. Cependant, certains projets d’investissement ont été suspendus en raison des conditions économiques. La société a maintenu un levier bancaire net de 4,0x et a reversé 119,5 millions de dollars aux actionnaires par le biais de dividendes et de rachats d’actions.
La performance par segment a été contrastée : les revenus des courses en direct et historiques ont augmenté de 27,5 millions, les revenus du jeu ont progressé de 24,0 millions principalement grâce à l’ouverture du Terre Haute Casino Resort, tandis que les services de paris ont connu une croissance modeste de 1,7 million. Le conseil d’administration a approuvé un nouveau programme de rachat d’actions de 500 millions de dollars, dont 434,6 millions restaient disponibles au 31 mars 2025.
Churchill Downs (CHDN) meldete gemischte Ergebnisse für das erste Quartal 2025 mit einem rekordverdächtigen Nettoumsatz von 642,6 Mio. USD, was einem Anstieg von 9 % gegenüber dem Vorjahr entspricht, während der Nettogewinn um 5 % auf 76,7 Mio. USD sank. Das Unternehmen erzielte ein rekordverdächtiges bereinigtes EBITDA von 245,1 Mio. USD, was einer Steigerung von 1 % entspricht.
Zu den wichtigsten Entwicklungen zählen die Eröffnung von Owensboro Racing and Gaming im Westen von Kentucky mit 600 historischen Rennmaschinen sowie die Ankündigung neuer Projekte auf der Rennbahn Churchill Downs. Einige Investitionsprojekte wurden jedoch aufgrund der wirtschaftlichen Lage pausiert. Das Unternehmen hielt eine Netto-Bankverschuldung von 4,0x aufrecht und gab 119,5 Mio. USD an die Aktionäre durch Dividenden und Aktienrückkäufe zurück.
Die Segmentleistung zeigte gemischte Ergebnisse: Die Umsätze aus Live- und historischen Rennen stiegen um 27,5 Mio. USD, die Gaming-Umsätze erhöhten sich hauptsächlich durch die Eröffnung des Terre Haute Casino Resort um 24,0 Mio. USD, während die Wettservices ein moderates Wachstum von 1,7 Mio. USD verzeichneten. Der Vorstand genehmigte ein neues Aktienrückkaufprogramm in Höhe von 500 Mio. USD, von dem zum 31. März 2025 noch 434,6 Mio. USD verfügbar waren.
- Record quarterly revenue of $642.6M, up 9% year-over-year
- Record Adjusted EBITDA of $245.1M, up 1%
- Successful opening of Owensboro Racing and Gaming facility
- New $500M share repurchase program approved
- Fourteenth consecutive year of increased dividend payments
- Net income declined 5% to $76.7M
- Paused several capital projects due to economic environment
- Regional gaming softness and increased competition affecting performance
- Higher labor and benefit expenses impacting gaming segment
- Decreased performance in Virginia HRM venues due to consumer softness
Insights
Churchill Downs posted record revenue (+9%) but declining profits (-5%) as new venue growth was offset by softening consumer spending across existing properties.
Churchill Downs Incorporated's Q1 2025 results present a mixed financial picture with record revenue of
The company's revenue growth stems almost entirely from new venue openings rather than same-store performance. The November 2024 opening of The Rose Gaming Resort in Virginia and February 2025 opening of Owensboro Racing and Gaming in Kentucky boosted the Live and Historical Racing segment by
While expanding geographically, existing properties face significant headwinds. Management explicitly cites "lower unrated play from consumer softness and competition" in Virginia and "regional gaming softness" across multiple segments. Weather impacts and having one fewer day due to 2024's leap year also contributed to weaker performance.
A particularly telling signal comes from management's decision to pause Kentucky Derby capital projects (The Skye, Conservatory, and Infield General Admission) "due to the current economic environment" - suggesting caution about near-term conditions despite continued expansion elsewhere.
From a capital management perspective, Churchill Downs maintains a net bank leverage ratio of 4.0x while returning
The stark divergence between revenue growth (
LOUISVILLE, Ky., April 23, 2025 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company", "CDI", "we") today reported business results for the first quarter ended March 31, 2025.
Company Highlights
- First quarter 2025 financial results, as compared to the prior year quarter:
- Record net revenue of
$642.6 million , up$51.7 million or9% - Net income attributable to CDI of
$76.7 million , down$3.7 million or5% - Record Adjusted EBITDA of
$245.1 million , up$2.6 million or1%
- Record net revenue of
- We opened Owensboro Racing and Gaming in Western Kentucky in February 2025, with 600 historical racing machines, a retail sportsbook, simulcast wagering, and food and beverage offerings.
- We announced two new projects at Churchill Downs Racetrack that will enhance the 152nd Kentucky Derby experience for our guests in the Finish Line Suites and The Mansion. We also announced that we are pausing The Skye, Conservatory, and Infield General Admission capital projects due to the current economic environment.
- In February 2025, we closed the seventh amendment of the Credit Agreement, which reduced the interest rate for Term Loan B-1 and eliminated the
0.10% credit spread adjustment. - In March 2025, the Board of Directors approved a new
$500 million share repurchase program. - We ended the first quarter of 2025 with net bank leverage of 4.0x and returned
$119.5 million of capital to our shareholders through share repurchases and dividends.- We repurchased
$89.4 million of shares in the first quarter of 2025. - On January 3, 2025, we paid a
$0.40 9 per share dividend to shareholders of record as of December 6, 2024, which represents the fourteenth consecutive year of an increased dividend per share.
- We repurchased
| CONSOLIDATED RESULTS |
| First Quarter | |||||||
| (in millions, except per share data) | 2025 | 2024 | |||||
| Net revenue | $ | 642.6 | $ | 590.9 | |||
| Net income attributable to CDI | $ | 76.7 | $ | 80.4 | |||
| Diluted EPS attributable to CDI | $ | 1.02 | $ | 1.08 | |||
| Adjusted EBITDA(a) | $ | 245.1 | $ | 242.5 | |||
| (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. All comparisons are against the applicable prior year period unless otherwise noted.
Live and Historical Racing
| First Quarter | |||||||
| (in millions) | 2025 | 2024 | |||||
| Revenue | $ | 276.4 | $ | 248.9 | |||
| Adjusted EBITDA | 102.0 | 100.8 | |||||
First Quarter 2025
First quarter 2025 revenue increased
First quarter 2025 Adjusted EBITDA increased
Wagering Services and Solutions
| First Quarter | |||||||
| (in millions) | 2025 | 2024 | |||||
| Revenue | $ | 115.8 | $ | 114.1 | |||
| Adjusted EBITDA | 41.3 | 39.6 | |||||
First Quarter 2025
First quarter 2025 revenue increased
First quarter 2025 Adjusted EBITDA increased
Gaming
| First Quarter | |||||||
| (in millions) | 2025 | 2024 | |||||
| Revenue | $ | 267.2 | $ | 243.2 | |||
| Adjusted EBITDA | 123.5 | 122.8 | |||||
First Quarter 2025
First quarter 2025 revenue increased
First quarter 2025 Adjusted EBITDA increased
All Other
| First Quarter | |||||||
| (in millions) | 2025 | 2024 | |||||
| Revenue | $ | 2.0 | $ | — | |||
| Adjusted EBITDA | (21.7 | ) | (20.7 | ) | |||
First Quarter 2025
First quarter 2025 revenue increased
First quarter 2025 Adjusted EBITDA decreased
| CAPITAL MANAGEMENT |
Share Repurchase Program
On March 12, 2025, the Board of Directors of the Company approved a common stock repurchase program of up to
The Company repurchased 798,250 shares of its common stock at a total cost of
| NET INCOME ATTRIBUTABLE TO CDI |
First Quarter 2025 Results
The Company's first quarter 2025 net income attributable to CDI was
The following factors impacted the comparability of the Company's first quarter 2025 net income to the prior year quarter:
- a
$6.7 million after-tax decrease in other recoveries, net primarily driven by insurance claim proceeds recorded in the prior year quarter.
This was partially offset by:
- a
$5.6 million after-tax decrease in transaction, pre-opening, and other expenses.
Excluding the items above, first quarter 2025 adjusted net income attributable to CDI decreased
- a
$3.0 million after-tax decrease in equity income from our unconsolidated affiliates; - a
$2.0 million after-tax increase in interest expense associated with lower capitalization of interest related to capital projects in the current year, partially offset by lower interest rates; and - a
$0.5 million after-tax decrease due a portion of United Tote's income being recognized as noncontrolling interest.
This was partially offset by:
- a
$0.7 million after-tax increase primarily driven by the results of our operations.
Conference Call
A conference call regarding this news release is scheduled for Thursday, April 24, 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, April 24, 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; 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, as applicable in each period:
- 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;
- Rivers Des Plaines' impact on our investments in unconsolidated affiliates from legal reserves and transaction costs;
- Asset impairments;
- Gain on property sales;
- Legal reserves;
- Pre-opening expense; and
- Other charges, recoveries, and expenses.
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 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) | |||||||
| Three Months Ended March 31, | |||||||
| (in millions, except per common share data) | 2025 | 2024 | |||||
| Net revenue: | |||||||
| Live and Historical Racing | $ | 272.5 | $ | 245.1 | |||
| Wagering Services and Solutions | 106.9 | 106.6 | |||||
| Gaming | 263.2 | 239.2 | |||||
| All Other | — | — | |||||
| Total net revenue | 642.6 | 590.9 | |||||
| Operating expense: | |||||||
| Live and Historical Racing | 189.7 | 157.2 | |||||
| Wagering Services and Solutions | 67.2 | 67.9 | |||||
| Gaming | 192.1 | 178.5 | |||||
| All Other | 4.1 | 2.1 | |||||
| Selling, general and administrative expense | 54.5 | 54.8 | |||||
| Transaction expense, net | 0.4 | 4.1 | |||||
| Total operating expense | 508.0 | 464.6 | |||||
| Operating income | 134.6 | 126.3 | |||||
| Other (expense) income: | |||||||
| Interest expense, net | (72.3 | ) | (70.4 | ) | |||
| Equity in income of unconsolidated affiliates | 33.3 | 37.8 | |||||
| Miscellaneous, net | 0.3 | 8.1 | |||||
| Total other (expense) income | (38.7 | ) | (24.5 | ) | |||
| Income from operations before provision for income taxes | 95.9 | 101.8 | |||||
| Income tax provision | (18.7 | ) | (21.4 | ) | |||
| Net income | 77.2 | 80.4 | |||||
| Net income attributable to noncontrolling interest | 0.5 | — | |||||
| Net income and comprehensive income attributable to Churchill Downs Incorporated | $ | 76.7 | $ | 80.4 | |||
| Net income attributable to Churchill Downs Incorporated per common share data: | |||||||
| Basic net income | $ | 1.02 | $ | 1.09 | |||
| Diluted net income | $ | 1.02 | $ | 1.08 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 73.7 | 74.1 | |||||
| Diluted | 74.4 | 74.7 | |||||
| CHURCHILL DOWNS INCORPORATED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
| (in millions) | March 31, 2025 | December 31, 2024 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 174.2 | $ | 175.5 | |||
| Restricted cash | 97.0 | 77.2 | |||||
| Accounts receivable, net | 108.6 | 98.7 | |||||
| Income taxes receivable | — | 14.5 | |||||
| Other current assets | 72.6 | 46.4 | |||||
| Total current assets | 452.4 | 412.3 | |||||
| Property and equipment, net | 2,907.3 | 2,874.9 | |||||
| Investment in and advances to unconsolidated affiliates | 663.1 | 661.2 | |||||
| Goodwill | 900.2 | 900.2 | |||||
| Other intangible assets, net | 2,406.3 | 2,409.0 | |||||
| Other assets | 17.8 | 18.3 | |||||
| Total assets | $ | 7,347.1 | $ | 7,275.9 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 207.1 | $ | 180.3 | |||
| Accrued expenses and other current liabilities | 423.6 | 402.0 | |||||
| Income taxes payable | 4.8 | — | |||||
| Current deferred revenue | 146.8 | 52.9 | |||||
| Current maturities of long-term debt | 63.1 | 63.1 | |||||
| Dividends payable | 0.7 | 31.0 | |||||
| Total current liabilities | 846.1 | 729.3 | |||||
| Long-term debt, net of current maturities and loan origination fees | 1,736.5 | 1,767.9 | |||||
| Notes payable, net of debt issuance costs | 3,077.4 | 3,076.2 | |||||
| Non-current deferred revenue | 20.0 | 20.0 | |||||
| Deferred income taxes | 432.8 | 432.7 | |||||
| Other liabilities | 141.2 | 146.5 | |||||
| Total liabilities | 6,254.0 | 6,172.6 | |||||
| Commitments and contingencies | |||||||
| Redeemable noncontrolling interest | 21.4 | 19.7 | |||||
| Shareholders' equity: | |||||||
| Preferred stock | — | — | |||||
| Common stock | — | — | |||||
| Retained earnings | 1,072.7 | 1,084.6 | |||||
| Accumulated other comprehensive loss | (1.0 | ) | (1.0 | ) | |||
| Total Churchill Downs Incorporated shareholders' equity | 1,071.7 | 1,083.6 | |||||
| Total liabilities and shareholders' equity | $ | 7,347.1 | $ | 7,275.9 | |||
| CHURCHILL DOWNS INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| (in millions) | 2025 | 2024 | |||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 77.2 | $ | 80.4 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 59.2 | 46.9 | |||||
| Distributions from unconsolidated affiliates | 31.4 | 45.0 | |||||
| Equity in income of unconsolidated affiliates | (33.3 | ) | (37.8 | ) | |||
| Stock-based compensation | 3.6 | 7.2 | |||||
| Deferred income taxes | — | 4.9 | |||||
| Amortization of operating lease assets | 1.6 | 1.4 | |||||
| Other | 2.3 | 1.7 | |||||
| Changes in operating assets and liabilities: | |||||||
| Income taxes | 19.0 | 17.0 | |||||
| Deferred revenue | 93.9 | 80.1 | |||||
| Other assets and liabilities | (8.4 | ) | 7.9 | ||||
| Net cash provided by operating activities | 246.5 | 254.7 | |||||
| Cash flows from investing activities: | |||||||
| Capital maintenance expenditures | (12.6 | ) | (12.4 | ) | |||
| Capital project expenditures | (67.5 | ) | (142.6 | ) | |||
| Other | — | 1.6 | |||||
| Net cash used in investing activities | (80.1 | ) | (153.4 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from borrowings under long-term debt obligations | 219.7 | 355.5 | |||||
| Repayments of borrowings under long-term debt obligations | (251.4 | ) | (266.7 | ) | |||
| Payment of dividends | (30.1 | ) | (28.6 | ) | |||
| Repurchase of common stock | (86.4 | ) | (141.7 | ) | |||
| Taxes paid related to net share settlement of stock awards | (3.9 | ) | (10.4 | ) | |||
| Debt issuance costs | (0.3 | ) | — | ||||
| Change in bank overdraft | 4.6 | (8.6 | ) | ||||
| Other | (0.1 | ) | (0.6 | ) | |||
| Net cash used in financing activities | (147.9 | ) | (101.1 | ) | |||
| Net increase in cash, cash equivalents and restricted cash | 18.5 | 0.2 | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 252.7 | 221.8 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 271.2 | $ | 222.0 | |||
| Three Months Ended March 31, | |||||||
| (in millions, except per common share data) | 2025 | 2024 | |||||
| GAAP net income attributable to CDI | $ | 76.7 | $ | 80.4 | |||
| Adjustments, continuing operations: | |||||||
| Transaction, pre-opening, and other expense | 4.3 | 12.6 | |||||
| Other recoveries, net | — | (6.7 | ) | ||||
| Income tax impact on net income adjustments (a) | (1.1 | ) | (1.6 | ) | |||
| Total adjustments | 3.2 | 4.3 | |||||
| Adjusted net income attributable to CDI | $ | 79.9 | $ | 84.7 | |||
| Adjusted diluted EPS | $ | 1.07 | $ | 1.13 | |||
| Weighted average shares outstanding - Diluted | 74.4 | 74.7 | |||||
(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 March 31, | |||||||
| (in millions) | 2025 | 2024 | |||||
| Total Handle | |||||||
| TwinSpires Horse Racing(a) | $ | 400.5 | $ | 419.7 | |||
(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 March 31, | |||||||
| (in millions) | 2025 | 2024 | |||||
| Net revenue from external customers: | |||||||
| Live and Historical Racing: | |||||||
| Churchill Downs Racetrack | $ | 3.6 | $ | 3.1 | |||
| Louisville | 52.2 | 53.7 | |||||
| Northern Kentucky | 31.2 | 28.5 | |||||
| Southwestern Kentucky | 40.5 | 38.6 | |||||
| Western Kentucky | 12.4 | 6.8 | |||||
| Virginia | 129.3 | 111.2 | |||||
| New Hampshire | 3.3 | 3.2 | |||||
| Total Live and Historical Racing | $ | 272.5 | $ | 245.1 | |||
| Wagering Services and Solutions: | $ | 106.9 | $ | 106.6 | |||
| Gaming: | |||||||
| Florida | $ | 25.3 | $ | 26.1 | |||
| Iowa | 23.5 | 23.4 | |||||
| Indiana | 31.6 | — | |||||
| Louisiana | 44.6 | 44.3 | |||||
| Maine | 25.0 | 26.8 | |||||
| Maryland | 20.8 | 21.6 | |||||
| Mississippi | 25.1 | 26.0 | |||||
| New York | 43.4 | 45.0 | |||||
| Pennsylvania | 23.9 | 26.0 | |||||
| Total Gaming | $ | 263.2 | $ | 239.2 | |||
| All Other | — | — | |||||
| Net revenue from external customers | $ | 642.6 | $ | 590.9 | |||
| Intercompany net revenues: | |||||||
| Live and Historical Racing | $ | 3.9 | $ | 3.8 | |||
| Wagering Services and Solutions | 8.9 | 7.5 | |||||
| Gaming | 4.0 | 4.0 | |||||
| All Other | 2.0 | — | |||||
| Eliminations | (18.8 | ) | (15.3 | ) | |||
| Intercompany net revenue | $ | — | $ | — | |||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) | |||||||||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||
| (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 | $ | 11.2 | $ | 80.1 | $ | 10.7 | $ | 102.0 | $ | — | $ | 102.0 | |||||||||||
| Historical racing(a) | 236.4 | — | 9.7 | 246.1 | — | 246.1 | |||||||||||||||||
| Racing event-related services | 1.4 | — | 0.7 | 2.1 | — | 2.1 | |||||||||||||||||
| Gaming(a) | 3.3 | 3.9 | 213.7 | 220.9 | — | 220.9 | |||||||||||||||||
| Other(a) | 20.2 | 22.9 | 28.4 | 71.5 | — | 71.5 | |||||||||||||||||
| Total | $ | 272.5 | $ | 106.9 | $ | 263.2 | $ | 642.6 | $ | — | $ | 642.6 | |||||||||||
| Three Months Ended March 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 | $ | 11.0 | $ | 79.8 | $ | 10.6 | $ | 101.4 | $ | — | $ | 101.4 | |||||||||||
| Historical racing(a) | 212.1 | — | 8.8 | 220.9 | — | 220.9 | |||||||||||||||||
| Racing event-related services | 1.1 | — | 2.2 | 3.3 | — | 3.3 | |||||||||||||||||
| Gaming(a) | 3.1 | 5.7 | 193.1 | 201.9 | — | 201.9 | |||||||||||||||||
| Other(a) | 17.8 | 21.1 | 24.5 | 63.4 | — | 63.4 | |||||||||||||||||
| Total | $ | 245.1 | $ | 106.6 | $ | 239.2 | $ | 590.9 | $ | — | $ | 590.9 | |||||||||||
(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 March 31, 2025 | |||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Eliminations | Total | ||||||||||||||||||||
| Revenues | $ | 276.4 | $ | 115.8 | $ | 267.2 | $ | 659.4 | $ | 2.0 | $ | (18.8 | ) | $ | 642.6 | ||||||||||||
| Pari-mutuel taxes & purses | (71.9 | ) | (4.4 | ) | (14.6 | ) | (90.9 | ) | — | — | (90.9 | ) | |||||||||||||||
| Gaming taxes | (1.5 | ) | (0.4 | ) | (72.4 | ) | (74.3 | ) | — | — | (74.3 | ) | |||||||||||||||
| Marketing & advertising | (13.8 | ) | (1.4 | ) | (8.2 | ) | (23.4 | ) | (0.1 | ) | (0.1 | ) | (23.6 | ) | |||||||||||||
| Salaries & benefits | (32.7 | ) | (8.1 | ) | (44.3 | ) | (85.1 | ) | — | — | (85.1 | ) | |||||||||||||||
| Content expense | (1.4 | ) | (43.7 | ) | (1.8 | ) | (46.9 | ) | — | 9.0 | (37.9 | ) | |||||||||||||||
| Selling, general & administrative expense | (10.5 | ) | (5.2 | ) | (11.1 | ) | (26.8 | ) | (21.4 | ) | 0.3 | (47.9 | ) | ||||||||||||||
| Maintenance, insurance & utilities | (10.4 | ) | (0.9 | ) | (9.5 | ) | (20.8 | ) | (2.2 | ) | 2.0 | (21.0 | ) | ||||||||||||||
| Gaming equipment rental & technology costs | (11.8 | ) | (0.7 | ) | (4.2 | ) | (16.7 | ) | — | 7.6 | (9.1 | ) | |||||||||||||||
| Food & beverage costs | (3.6 | ) | — | (4.2 | ) | (7.8 | ) | — | — | (7.8 | ) | ||||||||||||||||
| Other operating expense | (16.9 | ) | (9.7 | ) | (16.8 | ) | (43.4 | ) | — | — | (43.4 | ) | |||||||||||||||
| Equity in income of unconsolidated affiliates | — | — | 43.2 | 43.2 | — | — | 43.2 | ||||||||||||||||||||
| Other income | 0.1 | — | 0.2 | 0.3 | — | — | 0.3 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 102.0 | $ | 41.3 | $ | 123.5 | $ | 266.8 | $ | (21.7 | ) | $ | — | $ | 245.1 | ||||||||||||
| Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Eliminations | Total | ||||||||||||||||||||
| Revenues | $ | 248.9 | $ | 114.1 | $ | 243.2 | $ | 606.2 | $ | — | $ | (15.3 | ) | $ | 590.9 | ||||||||||||
| Pari-mutuel taxes & purses | (63.6 | ) | (4.1 | ) | (14.2 | ) | (81.9 | ) | — | — | (81.9 | ) | |||||||||||||||
| Gaming taxes | (1.4 | ) | (0.8 | ) | (66.3 | ) | (68.5 | ) | — | — | (68.5 | ) | |||||||||||||||
| Marketing & advertising | (9.3 | ) | (1.2 | ) | (7.8 | ) | (18.3 | ) | — | — | (18.3 | ) | |||||||||||||||
| Salaries & benefits | (26.8 | ) | (7.9 | ) | (38.0 | ) | (72.7 | ) | — | — | (72.7 | ) | |||||||||||||||
| Content expense | (1.3 | ) | (44.0 | ) | (1.8 | ) | (47.1 | ) | — | 8.9 | (38.2 | ) | |||||||||||||||
| Selling, general & administrative expense | (8.8 | ) | (4.5 | ) | (10.2 | ) | (23.5 | ) | (20.5 | ) | 0.3 | (43.7 | ) | ||||||||||||||
| Maintenance, insurance & utilities | (10.3 | ) | (1.0 | ) | (9.6 | ) | (20.9 | ) | — | — | (20.9 | ) | |||||||||||||||
| Gaming equipment rental & technology costs | (10.1 | ) | (1.0 | ) | (3.3 | ) | (14.4 | ) | — | — | (14.4 | ) | |||||||||||||||
| Food & beverage costs | (3.1 | ) | — | (3.8 | ) | (6.9 | ) | — | — | (6.9 | ) | ||||||||||||||||
| Other operating expense | (13.4 | ) | (10.0 | ) | (14.6 | ) | (38.0 | ) | (0.2 | ) | 6.1 | (32.1 | ) | ||||||||||||||
| Equity in income of unconsolidated affiliates | — | — | 47.5 | 47.5 | — | — | 47.5 | ||||||||||||||||||||
| Other income | — | — | 1.7 | 1.7 | — | — | 1.7 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 100.8 | $ | 39.6 | $ | 122.8 | $ | 263.2 | $ | (20.7 | ) | $ | — | $ | 242.5 | ||||||||||||
| CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL INFORMATION (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| (in millions) | 2025 | 2024 | |||||
| Reconciliation of Comprehensive Income to Adjusted EBITDA: | |||||||
| Net income and comprehensive income attributable to Churchill Downs Incorporated | $ | 76.7 | $ | 80.4 | |||
| Net income attributable to noncontrolling interest | 0.5 | — | |||||
| Net income | 77.2 | 80.4 | |||||
| Adjustments: | |||||||
| Depreciation and amortization | 59.2 | 46.9 | |||||
| Interest expense | 72.3 | 70.4 | |||||
| Income tax provision | 18.7 | 21.4 | |||||
| Stock-based compensation expense | 3.6 | 7.2 | |||||
| Pre-opening expense | 4.2 | 8.3 | |||||
| Other expenses, net | (0.4 | ) | 0.2 | ||||
| Transaction expense, net | 0.4 | 4.1 | |||||
| Other income, expense: | |||||||
| Interest, depreciation and amortization expense related to equity investments | 9.9 | 10.3 | |||||
| Other charges and recoveries, net | — | (6.7 | ) | ||||
| Total adjustments | 167.9 | 162.1 | |||||
| Adjusted EBITDA | $ | 245.1 | $ | 242.5 | |||
| Adjusted EBITDA by segment: | |||||||
| Live and Historical Racing | $ | 102.0 | $ | 100.8 | |||
| Wagering Services and Solutions | 41.3 | 39.6 | |||||
| Gaming | 123.5 | 122.8 | |||||
| Total segment Adjusted EBITDA | 266.8 | 263.2 | |||||
| All Other | (21.7 | ) | (20.7 | ) | |||
| Total Adjusted EBITDA | $ | 245.1 | $ | 242.5 | |||
| 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 March 31, | |||||||
| (in millions) | 2025 | 2024 | |||||
| Net revenue | $ | 205.3 | $ | 216.9 | |||
| Operating and SG&A expense | 130.3 | 134.9 | |||||
| Depreciation and amortization | 6.2 | 6.3 | |||||
| Operating income | 68.8 | 75.7 | |||||
| Interest and other expense, net | (10.6 | ) | (11.0 | ) | |||
| Net income | $ | 58.2 | $ | 64.7 | |||
| Summarized Balance Sheet | |||||||
| (in millions) | March 31, 2025 | December 31, 2024 | |||||
| Assets | |||||||
| Current assets | $ | 103.5 | $ | 100.5 | |||
| Property and equipment, net | 324.4 | 325.6 | |||||
| Other assets, net | 270.2 | 267.5 | |||||
| Total assets | $ | 698.1 | $ | 693.6 | |||
| Liabilities and Members' Deficit | |||||||
| Current liabilities | $ | 116.4 | $ | 89.9 | |||
| Long-term debt | 816.5 | 839.8 | |||||
| Other liabilities | 0.4 | 1.7 | |||||
| Members' deficit | (235.2 | ) | (237.8 | ) | |||
| Total liabilities and members' deficit | $ | 698.1 | $ | 693.6 | |||
| 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 | |
| Finish Line Suites / The Mansion | April 2026 | ||
| The Skye, Conservatory, and Infield General Admission Projects | TBD | TBD | |
| Virginia | Richmond (HRM Expansion) | Third Quarter 2025 | |
| Henrico (Roseshire - HRM Venue) | Fourth Quarter 2025 | ||
| Southwestern Kentucky | Calvert City (Marshall Yards Racing and Gaming - HRM Venue) | First Quarter 2026 | |
| New Hampshire | Salem (HRM Venue) | TBD | TBD |
| All Other Projects | |||
| All Other | All Other | TBD | |
| Total: | |||
Contact: Sam Ullrich
(502) 638-3906
Sam.Ullrich@kyderby.com
FAQ
What were Churchill Downs (CHDN) key financial metrics for Q1 2025?
How much capital did CHDN return to shareholders in Q1 2025?
What is the size of CHDN's new share repurchase program announced in March 2025?
What new gaming facility did Churchill Downs open in Q1 2025?
