Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) announced today
that a spirited and vibrant crowd of 150,335 Derby fans at
Churchill Downs Racetrack (“Churchill Downs”) witnessed Mage claim
the Garland of Roses at the 149th running of the Kentucky Derby
presented by Woodford Reserve at 15-1 odds under mostly sunny
skies. CDI also announced that wagering from all sources was the
highest all-time on the Kentucky Derby race, the Kentucky Derby Day
program, and Kentucky Derby Week races.
Mage, owned by OGMA Investments, LLC (Gustavo
Delgado), Ramiro Restrepo, Sterling Racing (Sam Herzberg) and
Commonwealth Thoroughbred LLC (Brian Doxtator and Chase
Chamberlin), bred in Kentucky by Grandview Equine (Robert Clay),
trained by Gustavo Delgado, and ridden by Javier Castellano,
rallied to win by a length. Mage covered the mile and a quarter in
2.01.57 over a fast track.
Wagering from all sources on the Kentucky Derby
Day program set a new record of $288.7 million, beating last year’s
record of $273.8 million. All-sources wagering on the Kentucky
Derby race was a new record of $188.7 million, beating the previous
record of $179.0 million set in 2022. All-sources handle for Derby
Week rose to a new record of $412.0 million, beating last year’s
record of $391.8 million.
TwinSpires, the official betting partner of the
Kentucky Derby, handled a new record of $73.6 million in wagering
on Churchill Downs races for the Kentucky Derby Day program,
compared to last year’s record of $67.4 million. TwinSpires’ handle
on the Kentucky Derby race was a new record of $47.0 million,
beating last year’s record of $44.0 million.
“We were thrilled to debut our new First Turn
Experience, a one-of-a-kind premium accommodation with exclusive
views of the horses and the racetrack from the rail of the first
turn, as we commemorated the 50th anniversary of Secretariat’s
victory in the Run for the Roses,” said Bill Carstanjen, CEO of
CDI. “We expect the Kentucky Derby Week Adjusted EBITDA to reflect
a new record with $14 to $16 million of growth over the prior
record set last year. We will now accelerate our focus on our
year-long celebration in preparation for the 150th Kentucky Derby
in May 2024.”
Use of Non-GAAP Measures
In addition to the results provided in
accordance with GAAP, the Company also uses non-GAAP measures,
including adjusted net income, adjusted diluted EPS, EBITDA
(earnings before interest, taxes, depreciation and amortization),
and Adjusted EBITDA.
The Company uses non-GAAP measures as a key
performance measure of the results of operations for purposes of
evaluating performance internally. These measures facilitate
comparison of operating performance between periods and help
investors to better understand the operating results of the Company
by excluding certain items that may not be indicative of the
Company's core business or operating results. The Company believes
the use of these measures enables management and investors to
evaluate and compare, from period to period, the Company’s
operating performance in a meaningful and consistent manner. The
non-GAAP measures are a supplemental measure of our performance
that is not required by, or presented in accordance with, GAAP, and
should not be considered as an alternative to, or more meaningful
than, net income or diluted EPS (as determined in accordance with
GAAP) as a measure of our operating results.
We use Adjusted EBITDA to evaluate segment
performance, develop strategy, and allocate resources. We utilize
the Adjusted EBITDA metric to provide a more accurate measure of
our core operating results and enable management and investors to
evaluate and compare from period to period our operating
performance in a meaningful and consistent manner. Adjusted EBITDA
should not be considered as an alternative to operating income as
an indicator of performance, as an alternative to cash flows from
operating activities as a measure of liquidity, or as an
alternative to any other measure provided in accordance with GAAP.
Our calculation of Adjusted EBITDA may be different from the
calculation used by other companies and, therefore, comparability
may be limited.
Adjusted net income and adjusted diluted EPS
exclude discontinued operations net income or loss; net income or
loss attributable to noncontrolling interest; changes in fair value
for interest rate swaps related to Rivers Des Plaines; Rivers Des
Plaines' legal reserves and transaction costs; transaction expense,
which includes acquisition and disposition related charges, as well
as legal, accounting, and other deal-related expense; pre-opening
expense; and certain other gains, charges, recoveries, and
expenses.
Adjusted EBITDA includes our portion of EBITDA
from our equity investments.
Adjusted EBITDA excludes:
- Transaction expense, net which includes:
- Acquisition, disposition, and land sale related charges;
- Direct online Sports and Casino business exit costs; and
- Other transaction expense, including legal, accounting, and
other deal-related expense;
- Stock-based compensation expense;
- Rivers Des Plaines' impact on our investments in unconsolidated
affiliates from:
- The impact of changes in fair value of interest rate swaps;
and
- Legal reserves and transaction costs;
- Asset impairments;
- Gain on property sales;
- Legal reserves;
- Pre-opening expense; and
- Other charges, recoveries, and expenses
As of December 31, 2021, Arlington ceased racing
and simulcast operations and the property was sold on February 15,
2023 to the Chicago Bears. Arlington's results in 2022 and 2023 are
treated as an adjustment to EBITDA and are included in Other
expenses, net in the Reconciliation of Comprehensive Income to
Adjusted EBITDA.
About Churchill Downs
Incorporated
Churchill Downs Incorporated (NASDAQ: CHDN) has
been creating extraordinary entertainment experiences for nearly
150 years, beginning with the company’s most iconic and enduring
asset, the Kentucky Derby. Headquartered in Louisville, Kentucky,
CDI has expanded through the development of live and historical
racing entertainment venues, the growth of the TwinSpires horse
racing online wagering business and the operation and development
of regional casino gaming properties. More information is available
at http://www.churchilldownsincorporated.com.
This news release contains various
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are typically identified by the
use of terms such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,”
“seek,” “should,” “will,” 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 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 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; 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 disruptions in the general
labor market; the impact of significant competition, and the
expectation the competition levels will increase; changes in
consumer preferences, attendance, wagering, and sponsorships; risks
associated with equity investments, strategic alliances and other
third-party agreements; inability to respond to rapid technological
changes in a timely manner; concentration and evolution of slot
machine and historical racing machine (HRM) manufacturing or 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 and Casino 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; reliance on our
technology services and catastrophic events and system failures
disrupting our operations; inability to identify and / or complete,
or fully realize the benefits of acquisitions, divestitures,
development of new venues or the expansion of existing facilities
on time, on budget, or as planned; 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
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.
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Investor Contact: Phil Forbis |
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Media Contact: Tonya Abeln |
(502) 394-1094 |
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(502) 386-1742 |
Philip.Forbis@KyDerby.com |
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Tonya.Abeln@KyDerby.com |
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