Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company", "CDI",
"we") today reported business results for the quarter and full year
ended December 31, 2024.
Company Highlights
- Record fourth quarter 2024
financial results compared to the prior year:
- Net revenue of $624.2 million, up
$63.0 million or 11%
- Net income attributable to CDI of
$71.7 million, up $14.1 million or 24%
- Adjusted EBITDA of $236.6 million,
up $17.5 million or 8%
- Record 2024 financial results
compared to the prior year:
- Net revenue of $2.7 billion, up
$272.6 million or 11%
- Net income attributable to CDI of
$426.8 million, up $9.5 million or 2%
- Adjusted EBITDA of $1.2 billion, up
$135.3 million or 13%
- We successfully ran the 150th
Kentucky Derby on the first Saturday of May generating all-time
record all-sources handle and all-time record Derby Week Adjusted
EBITDA.
- We opened the Terre Haute Casino
Resort in Indiana in April 2024, and the hotel in May 2024.
- The Rose Gaming Resort opened in
Dumfries, Virginia in November 2024, with 1,650 historical racing
machines and a 102-room hotel as our eighth HRM entertainment venue
in Virginia.
- We opened Owensboro Racing &
Gaming in Owensboro, Kentucky on February 12, 2025, with 600
historical racing machines, a retail sportsbook, simulcast
wagering, and food and beverage offerings.
- We ended 2024 with net bank
leverage of 4.0x and returned $218.3 million of capital to
shareholders through share repurchases and dividends.
| |
Fourth Quarter |
|
Years Ended December 31 |
|
(in millions, except per share data) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| |
|
|
|
|
|
|
|
| Net
revenue |
$ |
624.2 |
|
$ |
561.2 |
|
$ |
2,734.3 |
|
$ |
2,461.7 |
|
Net income attributable to CDI |
$ |
71.7 |
|
$ |
57.6 |
|
$ |
426.8 |
|
$ |
417.3 |
| Diluted
EPS attributable to CDI |
$ |
0.95 |
|
$ |
0.76 |
|
$ |
5.68 |
|
$ |
5.49 |
|
Adjusted EBITDA(a) |
$ |
236.6 |
|
$ |
219.1 |
|
$ |
1,159.2 |
|
$ |
1,023.9 |
| |
|
|
|
|
| (a) This is a
non-GAAP measure. See explanation of non-GAAP measures below. |
The summaries below present revenue from
external customers and intercompany revenue from each of our
reportable segments. We have changed the name of the TwinSpires
segment to Wagering Services and Solutions to better reflect the
businesses that are within this segment. All comparisons are
against the applicable prior year period unless otherwise
noted.
Live and Historical Racing
| |
Fourth Quarter |
|
Years Ended December 31, |
|
(in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| |
|
|
|
|
|
|
|
| Revenue |
$ |
275.5 |
|
$ |
235.3 |
|
$ |
1,267.0 |
|
$ |
1,084.6 |
| Adjusted EBITDA |
|
101.6 |
|
|
88.9 |
|
|
574.6 |
|
|
475.4 |
Fourth Quarter 2024
Fourth quarter 2024 revenue increased $40.2
million due to a $19.6 million increase primarily from the opening
of The Rose Gaming Resort in Northern Virginia, a $10.4 million
increase from our other Virginia HRM venues, a $4.1 million
increase from our Southwestern Kentucky HRM venue, a $2.7 million
increase at Churchill Downs Racetrack, a $2.1 million increase from
our Northern Kentucky HRM venues, and a $1.3 million net increase
from our other HRM venues.
Fourth quarter 2024 Adjusted EBITDA increased
$12.7 million due to a $5.2 million increase primarily from the
opening of The Rose Gaming Resort in Northern Virginia, a $7.6
million increase from our other Virginia HRM venues, a $2.1 million
increase from our Southwestern Kentucky HRM venue, and a $1.5
million increase from our Northern Kentucky HRM venues. These
increases were offset by a $1.8 million decrease related to an
increase in government relations expense allocated to Virginia, a
$1.3 million decrease at Churchill Downs Racetrack and a $0.6
million decrease at our other HRM venues.
Full Year 2024
Full year 2024 revenue increased $182.4 million
due to a $57.2 million increase at Churchill Downs Racetrack due to
a record-breaking 150th Derby Week, a $25.9 million increase in
Northern Virginia including the opening of The Rose Gaming Resort,
a $17.2 million increase from the opening of the Rosie’s Emporia
HRM venue in Southern Virginia in September 2023, a $39.5 million
increase from our other Virginia HRM venues, a $41.5 million
increase from our Kentucky HRM venues, and a $1.1 million increase
from our New Hampshire venue.
Full year 2024 Adjusted EBITDA increased $99.2
million due to a $32.6 million increase at Churchill Downs
Racetrack due to a record-breaking 150th Derby Week, $9.7 million
increase in Northern Virginia including the opening of The Rose
Gaming Resort, a $7.1 million increase from the opening of the
Rosie’s Emporia HRM venue in Southern Virginia in September 2023, a
$38.3 million increase from our other Virginia HRM venues, and an
$11.5 million increase primarily from our other Kentucky HRM
venues.
Wagering Services and
Solutions
| |
Fourth Quarter |
|
Years Ended December 31, |
|
(in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| |
|
|
|
|
|
|
|
| Revenue |
$ |
108.0 |
|
$ |
110.6 |
|
$ |
500.7 |
|
$ |
458.4 |
| Adjusted EBITDA |
|
37.3 |
|
|
34.9 |
|
|
165.6 |
|
|
132.1 |
Fourth Quarter 2024
Fourth quarter 2024 revenue decreased $2.6
million due to a $3.5 million decrease from our sports betting
business and a $1.3 million decrease in TwinSpires Horse Racing
primarily due to market access and shifts in race days at other
tracks. These decreases were partially offset by a $2.2 million
increase from Exacta primarily from the growth of our Virginia HRM
venues.
Fourth quarter 2024 Adjusted EBITDA increased
$2.4 million due to a $2.1 million increase from our Exacta
business primarily because of increased fees from the growth of our
Virginia HRM venues, a $2.2 million increase from a one-time
reduction in compensation expenses related to our Exacta business,
and a $0.3 million increase in TwinSpires Horse Racing. These
increases were partially offset by a $2.2 million decrease
primarily from our sports betting business.
Full Year 2024
Full year 2024 revenue increased $42.3 million
due to a $40.8 million increase from our Exacta business primarily
from growth in our third party HRM business and from the growth of
our Virginia HRM venues and a $2.0 million increase from our sports
betting business, partially offset by a $0.5 million decrease from
TwinSpires Horse Racing.
Full year 2024 Adjusted EBITDA increased $33.5
million due to a $29.2 million increase from our Exacta business
because of increased fees from our Virginia HRM venues, a $2.2
million increase from a one-time reduction in accrued compensation
expenses related to our Exacta business, and a $2.6 million
increase primarily from our sports betting business, partially
offset by a $0.5 million decrease from TwinSpires Horse Racing.
Gaming
| |
Fourth Quarter |
|
Years Ended December 31, |
|
(in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| |
|
|
|
|
|
|
|
| Revenue |
$ |
257.5 |
|
$ |
230.2 |
|
$ |
1,045.4 |
|
$ |
974.6 |
| Adjusted EBITDA |
|
120.1 |
|
|
113.4 |
|
|
506.9 |
|
|
488.6 |
Fourth Quarter 2024
Fourth quarter 2024 revenue increased $27.3
million due to a $30.3 million increase from the opening of the
Terre Haute Casino Resort, partially offset by a $3.0 million
decrease from our other wholly owned gaming properties primarily
due to regional gaming softness and increased competition.
Fourth quarter 2024 Adjusted EBITDA increased
$6.7 million due to an $11.4 million increase from the opening of
the Terre Haute Casino Resort and a $2.7 million increase from our
equity investment in Miami Valley Gaming. These increases were
partially offset by a $2.3 million decrease from our other wholly
owned gaming properties and a $5.1 million decrease from our equity
investment in Rivers Des Plaines primarily due to regional gaming
softness, increased competition, and higher labor and benefit
expense.
Full Year 2024
Full year 2024 revenue increased $70.8 million
primarily due to a $96.6 million increase from the opening of the
Terre Haute Casino Resort. This increase was partially offset by a
$15.6 million decrease from our other wholly owned gaming
properties primarily due to inclement weather in January 2024,
regional gaming softness, and increased competition; and a $10.2
million decrease due to our decision not to renew the management
agreement at Lady Luck at the end of June 2023.
Full year 2024 Adjusted EBITDA increased $18.3
million primarily due to a $44.5 million increase from the opening
of the Terre Haute Casino Resort and a $3.0 million increase from
our equity investment in Miami Valley Gaming. These increases were
partially offset by a $19.5 million decrease from our wholly owned
gaming properties and an $8.5 million decrease from our equity
investment in Rivers Des Plaines primarily due to inclement weather
in January 2024, regional gaming softness, increased competition,
and higher labor and benefit expense; and a $1.2 million decrease
from proceeds for business interruption insurance claims in the
third quarter 2023 that did not reoccur.
All Other
| |
Fourth Quarter |
|
Years Ended December 31, |
|
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
|
|
|
|
|
|
|
| Revenue |
$ |
2.1 |
|
|
$ |
0.2 |
|
|
$ |
6.6 |
|
|
$ |
0.9 |
|
| Adjusted EBITDA |
|
(22.4 |
) |
|
|
(18.1 |
) |
|
|
(87.9 |
) |
|
|
(72.2 |
) |
Fourth Quarter 2024
Fourth quarter 2024 revenue increased $1.9
million due to intercompany revenue related to the captive
insurance company that was established in April 2024. All captive
revenue is eliminated in consolidation.
Fourth quarter 2024 Adjusted EBITDA decreased
$4.3 million driven primarily by increased corporate compensation
related expenses and other corporate administrative expenses driven
by enterprise growth.
Full Year 2024
Full year 2024 revenue increased $5.7 million
primarily due to intercompany revenue related to the captive
insurance company that was established in April 2024. All captive
revenue is eliminated in consolidation.
Full year 2024 Adjusted EBITDA decreased $15.7
million driven primarily by increased corporate compensation
related expenses and other corporate administrative expenses driven
by enterprise growth.
Share Repurchase Program
The Company repurchased 160,466 shares of its
common stock at a total cost of $21.3 million based on trade date
under its share repurchase program in the fourth quarter of 2024.
The Company repurchased 506,300 shares of its common stock at a
total cost of $65.3 million based on trade date under its share
repurchase program in 2024. We had $149.6 million of
repurchase authority remaining under this program as of
December 31, 2024.
Annual Dividend
On October 22, 2024, the Company's Board of
Directors approved an annual cash dividend on the Company's common
stock of $0.409 per outstanding share, a seven percent increase
over the prior year. The dividend was paid on January 3, 2025, to
shareholders of record as of the close of business on December 6,
2024, with the aggregate cash dividend paid to each shareholder
rounded to the nearest whole cent. This marks the fourteenth
consecutive year that the Company has increased the dividend per
share.
Capital Investments
We currently expect our project capital to be
approximately $350 to $400 million in 2025, although this amount
may vary significantly based on the timing of work completed,
unanticipated delays, and timing of payments to third parties. We
plan to use our operating cash flows and existing revolving credit
facility to fund our capital project expenditures.
|
NET INCOME ATTRIBUTABLE TO CDI |
Fourth Quarter 2024 Results
The Company's fourth quarter 2024 net income
attributable to CDI was $71.7 million compared to $57.6 million in
the prior year quarter.
The following factors impacted the comparability
of the Company's fourth quarter 2024 net income to the prior year
quarter:
-
a $9.9 million after-tax decrease in transaction, pre-opening, and
other expense primarily from the settlement of certain liabilities
recorded at the time of the Company's November 2022 acquisition of
substantially all of the assets of Peninsula Pacific Entertainment
LLC,
-
a $1.7 million after-tax increase in other charges and recoveries,
net primarily related to non-recurring insurance claim
recoveries,
-
a $0.2 million decrease of after-tax other charges; and
-
a $0.1 million decrease in after-tax non-cash asset
impairments.
This was partially offset by:
-
a $1.1 million after-tax decrease primarily from legal
reserves.
Excluding the items above, fourth quarter 2024
adjusted net income attributable to CDI increased $3.3 million
primarily due to the following:
-
a $3.9 million after-tax increase primarily driven by the results
of our operations,
-
partially offset by a $0.6 million after-tax increase in interest
expense associated with higher outstanding debt balances and higher
interest rates.
Full Year 2024 Results
The Company's full year 2024 net income
attributable to CDI was $426.8 compared to $417.3 million in the
prior year.
The following factors impacted comparability of
the Company's net income for the year ended December 31, 2024
compared to the prior year:
-
an $86.2 million after-tax gain on the sale of the Arlington
property in the prior year; and
-
a $0.7 million after-tax decrease primarily from legal
reserves.
This was partially offset by:
-
a $15.7 million after-tax decrease in non-cash asset
impairments,
-
a $12.8 million after-tax decrease in transaction, pre-opening, and
other expense primarily from the settlement of certain liabilities
recorded at the time of the Company's November 2022 acquisition of
substantially all of the assets of Peninsula Pacific Entertainment
LLC,
-
a $5.1 million after-tax increase of other charges and recoveries,
net primarily related to non-recurring insurance claim recoveries;
and
-
a $1.6 million after-tax decrease of other charges.
Excluding these items, full year 2024 adjusted
net income attributable to CDI increased $61.2 million primarily
due to the following:
-
a $77.0 million after-tax increase primarily driven by the results
of our operations and equity income from our unconsolidated
affiliates,
-
partially offset by a $15.8 million after-tax increase in interest
expense associated with higher outstanding debt balances and higher
interest rates.
Conference Call
A conference call regarding this news release is
scheduled for Thursday, February 20, 2025 at 9 a.m. ET. Investors
and other interested parties may listen to the teleconference by
accessing the online, real-time webcast and broadcast of the call
at http://ir.churchilldownsincorporated.com/events.cfm, or by
registering in advance via teleconference here. Once registration
is completed, participants will be provided with a dial-in number
containing a personalized conference code to access the call. All
participants are encouraged to dial-in 15 minutes prior to the
start time. An online replay will be available by noon ET on
Thursday, February 20, 2025. A copy of the Company’s news release
announcing quarterly results and relevant financial and statistical
information about the period will be accessible at
www.churchilldownsincorporated.com.
Use of Non-GAAP Measures
In addition to the results provided in
accordance with GAAP, the Company also uses non-GAAP measures,
including adjusted net income, adjusted diluted EPS, EBITDA
(earnings before interest, taxes, depreciation and amortization),
and Adjusted EBITDA.
The Company uses non-GAAP measures as a key
performance measure of the results of operations for purposes of
evaluating performance internally. These measures facilitate
comparison of operating performance between periods and help
investors to better understand the operating results of the Company
by excluding certain items that may not be indicative of the
Company's core business or operating results. The Company believes
the use of these measures enables management and investors to
evaluate and compare, from period to period, the Company’s
operating performance in a meaningful and consistent manner. The
non-GAAP measures are a supplemental measure of our performance
that is not required by, or presented in accordance with, GAAP, and
should not be considered as an alternative to, or more meaningful
than, net income or diluted EPS (as determined in accordance with
GAAP) as a measure of our operating results.
We use Adjusted EBITDA to evaluate segment
performance, develop strategy, and allocate resources. We utilize
the Adjusted EBITDA metric to provide a more accurate measure of
our core operating results and enable management and investors to
evaluate and compare from period to period our operating
performance in a meaningful and consistent manner. Adjusted EBITDA
should not be considered as an alternative to operating income as
an indicator of performance, as an alternative to cash flows from
operating activities as a measure of liquidity, or as an
alternative to any other measure provided in accordance with GAAP.
Our calculation of Adjusted EBITDA may be different from the
calculation used by other companies and, therefore, comparability
may be limited.
Adjusted net income and adjusted diluted EPS
exclude discontinued operations net income or loss; net income or
loss attributable to noncontrolling interest; changes in fair value
for interest rate swaps related to Rivers Des Plaines; Rivers Des
Plaines' legal reserves and transaction costs; transaction expense,
which includes acquisition and disposition related charges, as well
as legal, accounting, and other deal-related expense; pre-opening
expense; and certain other gains, charges, recoveries, and
expenses.
Adjusted EBITDA includes our portion of EBITDA
from our equity investments and the portion of EBITDA attributable
to noncontrolling interest.
Adjusted EBITDA excludes:
-
Transaction expense, net which includes:
-
Acquisition, disposition, and property sale related charges;
- Other transaction
expense, including legal, accounting, and other deal-related
expense;
- Stock-based
compensation expense;
- Asset
impairments;
- Gain on property
sales;
- Legal reserves;
- Pre-opening expense;
and
- Other charges,
recoveries, and expenses.
As of December 31, 2021, our property in
Arlington Heights, Illinois ("Arlington") ceased racing and
simulcast operations and the property was sold on February 15, 2023
to the Chicago Bears. Arlington's results and exit costs in 2023
are treated as an adjustment.
For segment reporting, Adjusted EBITDA includes
intercompany revenue and expense totals that are eliminated in the
Consolidated Statements of Comprehensive Income. See the
Reconciliation of Net Income to Adjusted EBITDA included herewith
for additional information.
About Churchill Downs
Incorporated
Churchill Downs Incorporated (“CDI”) (Nasdaq:
CHDN) has created extraordinary entertainment experiences for over
150 years, beginning with the company’s most iconic and enduring
asset, the Kentucky Derby. Headquartered in Louisville, Kentucky,
CDI has expanded through the acquisition, development, and
operation of live and historical racing entertainment venues, the
growth of the online wagering businesses, and the acquisition,
development, and operation of regional casino gaming properties.
https://www.churchilldownsincorporated.com/
This news release contains various
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are typically identified by the
use of terms such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,”
“seek,” “should,” “will,” “scheduled,” and similar words or similar
expressions (or negative versions of such words or expressions),
although some forward-looking statements are expressed
differently.
Although we believe that the expectations
reflected in such forward-looking statements are reasonable, we can
give no assurance that such expectations will prove to be correct.
Important factors, that could cause actual results to differ
materially from expectations include the following: the occurrence
of extraordinary events, such as terrorist attacks, public health
threats, civil unrest, and inclement weather, including as a result
of climate change; the effect of economic conditions on our
consumers' confidence and discretionary spending or our access to
credit, including the impact of inflation; changes in, or new
interpretations of, applicable tax laws or rulings that could
result in additional tax liabilities; the impact of any pandemics,
epidemics, or outbreaks of infectious diseases, and related
economic matters on our results of operations, financial conditions
and prospects; lack of confidence in the integrity of our core
businesses or any deterioration in our reputation; negative shifts
in public opinion regarding gambling that could result in increased
regulation of, or new restrictions on, the gaming industry; loss of
key or highly skilled personnel, as well as general disruptions in
the general labor market; the impact of significant competition,
and the expectation that competition levels will increase; changes
in consumer preferences, attendance, wagering, and sponsorships;
risks associated with equity investments, strategic alliances and
other third-party agreements; inability to respond to rapid
technological changes in a timely manner; concentration and
evolution of slot machine and historical racing machine (HRM)
manufacturing and other technology conditions that could impose
additional costs; failure to enter into or maintain agreements with
industry constituents, including horsemen and other racetracks;
inability to successfully focus on market access and retail
operations for our sports betting business and effectively compete;
online security risk, including cyber-security breaches, or loss or
misuse of our stored information as a result of a breach including
customers’ personal information could lead to government
enforcement actions or other litigation; costs of compliance with
increasingly complex laws and regulations regarding data privacy
and protection of personal information; reliance on our technology
services and catastrophic events and system failures disrupting our
operations; inability to identify, complete, or fully realize the
benefits of our proposed acquisitions, divestitures, development of
new venues or the expansion of existing facilities on time, on
budget, or as planned; difficulty in integrating recent or future
acquisitions into our operations; cost overruns and other
uncertainties associated with the development of new venues and the
expansion of existing facilities; general risks related to real
estate ownership and significant expenditures, including risks
related to environmental liabilities; personal injury litigation
related to injuries occurring at our racetracks; compliance with
the Foreign Corrupt Practices Act or other similar laws and
regulations, or applicable anti-money laundering regulations;
payment-related risks, such as risk associated with fraudulent
credit card or debit card use; work stoppages and labor problems;
risks related to pending or future legal proceedings and other
actions; highly regulated operations and changes in the regulatory
environment could adversely affect our business; restrictions in
our debt facilities limiting our flexibility to operate our
business; failure to comply with the financial ratios and other
covenants in our debt facilities and other indebtedness; increases
to interest rates (due to inflation or otherwise), disruption in
the credit markets or changes to our credit ratings may adversely
affect our business; increase in our insurance costs, or inability
to obtain similar insurance coverage in the future, and any
inability to recover under our insurance policies for damages
sustained at our properties in the event of inclement weather and
casualty events; and other factors described under the heading
“Risk Factors” in our most recent Annual Report on Form 10-K and in
other filings we make with the Securities and Exchange
Commission.
We do not undertake any obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
|
|
|
CHURCHILL DOWNS INCORPORATEDCONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME(Unaudited
except year ended 2024 and 2023 amounts) |
|
|
| |
Three Months Ended December 31, |
|
Years Ended December 31, |
|
(in millions, except per common share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net revenue: |
|
|
|
|
|
|
|
|
Live and Historical Racing |
$ |
268.3 |
|
|
$ |
228.4 |
|
|
$ |
1,225.6 |
|
|
$ |
1,047.3 |
|
|
Wagering Services and Solutions |
|
99.9 |
|
|
|
104.2 |
|
|
|
469.5 |
|
|
|
444.9 |
|
|
Gaming |
|
256.0 |
|
|
|
228.4 |
|
|
|
1,039.1 |
|
|
|
968.6 |
|
|
All Other |
|
— |
|
|
|
0.2 |
|
|
|
0.1 |
|
|
|
0.9 |
|
|
Total net revenue |
|
624.2 |
|
|
|
561.2 |
|
|
|
2,734.3 |
|
|
|
2,461.7 |
|
|
Operating expense: |
|
|
|
|
|
|
|
|
Live and Historical Racing |
|
185.5 |
|
|
|
156.5 |
|
|
|
735.4 |
|
|
|
662.2 |
|
|
Wagering Services and Solutions |
|
67.0 |
|
|
|
68.4 |
|
|
|
296.5 |
|
|
|
288.2 |
|
|
Gaming |
|
187.2 |
|
|
|
171.7 |
|
|
|
748.9 |
|
|
|
700.0 |
|
|
All Other |
|
4.8 |
|
|
|
3.6 |
|
|
|
15.0 |
|
|
|
15.6 |
|
|
Selling, general and administrative expense |
|
65.7 |
|
|
|
51.7 |
|
|
|
237.7 |
|
|
|
202.3 |
|
|
Asset impairments |
|
— |
|
|
|
0.1 |
|
|
|
3.9 |
|
|
|
24.6 |
|
|
Transaction (benefit) expense, net |
|
(12.8 |
) |
|
|
3.0 |
|
|
|
(12.1 |
) |
|
|
4.8 |
|
|
Total operating expense |
|
497.4 |
|
|
|
455.0 |
|
|
|
2,025.3 |
|
|
|
1,897.7 |
|
|
Operating income |
|
126.8 |
|
|
|
106.2 |
|
|
|
709.0 |
|
|
|
564.0 |
|
|
Other (expense) income: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
(72.8 |
) |
|
|
(70.6 |
) |
|
|
(289.8 |
) |
|
|
(268.4 |
) |
|
Equity in income of unconsolidated affiliates |
|
36.0 |
|
|
|
35.9 |
|
|
|
144.9 |
|
|
|
146.3 |
|
|
Gain on sale of Arlington |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
114.0 |
|
|
Miscellaneous, net |
|
1.0 |
|
|
|
0.4 |
|
|
|
9.1 |
|
|
|
5.9 |
|
|
Total other expense |
|
(35.8 |
) |
|
|
(34.3 |
) |
|
|
(135.8 |
) |
|
|
(2.2 |
) |
|
Income from operations before provision for income taxes |
|
91.0 |
|
|
|
71.9 |
|
|
|
573.2 |
|
|
|
561.8 |
|
|
Income tax provision |
|
(18.7 |
) |
|
|
(14.3 |
) |
|
|
(144.1 |
) |
|
|
(144.5 |
) |
|
Net income |
|
72.3 |
|
|
|
57.6 |
|
|
|
429.1 |
|
|
|
417.3 |
|
|
Net income attributable to noncontrolling interest |
|
0.6 |
|
|
|
— |
|
|
|
2.3 |
|
|
|
— |
|
|
Net income attributable to Churchill Downs
Incorporated |
$ |
71.7 |
|
|
$ |
57.6 |
|
|
$ |
426.8 |
|
|
$ |
417.3 |
|
| |
|
|
|
|
|
|
|
|
Net income attributable to Churchill Downs Incorporated per
common share data: |
|
|
|
|
|
|
|
|
Basic net income |
$ |
0.95 |
|
|
$ |
0.77 |
|
|
$ |
5.73 |
|
|
$ |
5.55 |
|
|
Diluted net income |
$ |
0.95 |
|
|
$ |
0.76 |
|
|
$ |
5.68 |
|
|
$ |
5.49 |
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
73.9 |
|
|
|
75.1 |
|
|
|
74.0 |
|
|
|
75.2 |
|
|
Diluted |
|
74.6 |
|
|
|
75.8 |
|
|
|
74.6 |
|
|
|
76.1 |
|
|
|
|
CHURCHILL DOWNS INCORPORATEDCONSOLIDATED
BALANCE SHEETS |
|
|
| (in millions) |
December 31, 2024 |
|
December 31, 2023 |
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
175.5 |
|
|
$ |
144.5 |
|
|
Restricted cash |
|
77.2 |
|
|
|
77.3 |
|
|
Accounts receivable, net |
|
98.7 |
|
|
|
106.9 |
|
|
Income taxes receivable |
|
14.5 |
|
|
|
12.6 |
|
|
Other current assets |
|
46.4 |
|
|
|
59.5 |
|
|
Total current assets |
|
412.3 |
|
|
|
400.8 |
|
|
Property and equipment, net |
|
2,874.9 |
|
|
|
2,561.2 |
|
|
Investment in and advances to unconsolidated affiliates |
|
661.2 |
|
|
|
655.9 |
|
|
Goodwill |
|
900.2 |
|
|
|
899.9 |
|
| Other
intangible assets, net |
|
2,409.0 |
|
|
|
2,418.4 |
|
| Other
assets |
|
18.3 |
|
|
|
19.3 |
|
|
Total assets |
$ |
7,275.9 |
|
|
$ |
6,955.5 |
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ |
180.3 |
|
|
$ |
158.5 |
|
|
Accrued expenses and other current liabilities |
|
402.0 |
|
|
|
426.8 |
|
|
Current deferred revenue |
|
52.9 |
|
|
|
73.2 |
|
|
Current maturities of long-term debt |
|
63.1 |
|
|
|
68.0 |
|
|
Dividends payable |
|
31.0 |
|
|
|
29.3 |
|
|
Total current liabilities |
|
729.3 |
|
|
|
755.8 |
|
|
Long-term debt (net of current maturities and loan origination fees
of $7.7 in 2024 and $8.9 in 2023) |
|
1,767.9 |
|
|
|
1,697.1 |
|
| Notes
payable (net of debt issuance costs of $23.8 in 2024 and $28.8 in
2023) |
|
3,076.2 |
|
|
|
3,071.2 |
|
|
Non-current deferred revenue |
|
20.0 |
|
|
|
11.8 |
|
|
Deferred income taxes |
|
432.7 |
|
|
|
388.2 |
|
| Other
liabilities |
|
146.5 |
|
|
|
137.8 |
|
|
Total liabilities |
|
6,172.6 |
|
|
|
6,061.9 |
|
|
Commitments and contingencies |
|
|
|
|
Redeemable noncontrolling interest |
|
19.7 |
|
|
|
— |
|
|
Shareholders' equity: |
|
|
|
|
Preferred stock, no par value; 0.3 shares authorized; no shares
issued or outstanding |
|
— |
|
|
|
— |
|
|
Common stock, no par value; 300.0 shares authorized; 73.5 shares
issued and outstanding December 31, 2024 and 74.5 shares at
December 31, 2023 |
|
— |
|
|
|
— |
|
|
Retained earnings |
|
1,084.6 |
|
|
|
894.5 |
|
|
Accumulated other comprehensive loss |
|
(1.0 |
) |
|
|
(0.9 |
) |
|
Total shareholders' equity |
|
1,083.6 |
|
|
|
893.6 |
|
|
Total liabilities and shareholders' equity |
$ |
7,275.9 |
|
|
$ |
6,955.5 |
|
|
|
|
CHURCHILL DOWNS INCORPORATEDCONSOLIDATED
STATEMENTS OF CASH FLOWS |
|
|
|
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
Cash flows from operating activities: |
|
|
|
|
Net income |
$ |
429.1 |
|
|
$ |
417.3 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation and amortization |
|
199.1 |
|
|
|
169.0 |
|
|
Distributions from unconsolidated affiliates |
|
138.7 |
|
|
|
155.1 |
|
|
Equity in income of unconsolidated affiliates |
|
(144.9 |
) |
|
|
(146.3 |
) |
|
Stock-based compensation |
|
36.1 |
|
|
|
32.9 |
|
|
Deferred income taxes |
|
44.5 |
|
|
|
47.4 |
|
|
Asset impairments |
|
3.9 |
|
|
|
24.6 |
|
|
Amortization of operating lease assets |
|
5.6 |
|
|
|
6.2 |
|
|
Gain on sale of Arlington |
|
— |
|
|
|
(114.0 |
) |
|
Other |
|
9.7 |
|
|
|
5.4 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
Income taxes |
|
(4.5 |
) |
|
|
(1.1 |
) |
|
Deferred revenue |
|
(12.1 |
) |
|
|
34.2 |
|
|
Other assets and liabilities |
|
66.5 |
|
|
|
(25.4 |
) |
|
Net cash provided by operating activities |
|
771.7 |
|
|
|
605.3 |
|
|
Cash flows from investing activities: |
|
|
|
|
Capital maintenance expenditures |
|
(83.6 |
) |
|
|
(77.7 |
) |
|
Capital project expenditures |
|
(463.4 |
) |
|
|
(598.8 |
) |
|
Acquisition of businesses, net of cash acquired |
|
— |
|
|
|
(241.3 |
) |
|
Proceeds from sale of Arlington |
|
— |
|
|
|
195.7 |
|
|
Other |
|
1.8 |
|
|
|
4.1 |
|
|
Net cash used in investing activities |
|
(545.2 |
) |
|
|
(718.0 |
) |
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from borrowings under long-term debt obligations |
|
965.5 |
|
|
|
1,771.1 |
|
|
Repayments of borrowings under long-term debt obligations |
|
(900.8 |
) |
|
|
(1,536.0 |
) |
|
Payment of dividends |
|
(29.2 |
) |
|
|
(27.1 |
) |
|
Repurchase of common stock |
|
(186.0 |
) |
|
|
(55.9 |
) |
|
Taxes paid related to net share settlement of stock awards |
|
(30.1 |
) |
|
|
(25.5 |
) |
|
Proceeds from pending equity transaction |
|
— |
|
|
|
14.4 |
|
|
Debt issuance costs |
|
(2.6 |
) |
|
|
(13.0 |
) |
|
Change in bank overdraft |
|
(10.9 |
) |
|
|
2.0 |
|
|
Other |
|
(2.5 |
) |
|
|
(0.7 |
) |
|
Net cash (used in) provided by financing activities |
|
(196.6 |
) |
|
|
129.3 |
|
|
Cash flows from discontinued operations: |
|
|
|
|
Operating activities of discontinued operations |
|
1.0 |
|
|
|
0.5 |
|
|
Net increase in cash, cash equivalents and restricted
cash |
|
30.9 |
|
|
|
17.1 |
|
| Cash,
cash equivalents and restricted cash, beginning of period |
|
221.8 |
|
|
|
204.7 |
|
|
Cash, cash equivalents and restricted cash, end of
period |
$ |
252.7 |
|
|
$ |
221.8 |
|
|
|
|
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL
INFORMATION(Unaudited) |
|
|
| |
Three Months Ended December 31, |
|
Years Ended December 31, |
|
(in millions, except per common share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| GAAP net income attributable
to CDI |
$ |
71.7 |
|
|
$ |
57.6 |
|
|
$ |
426.8 |
|
|
$ |
417.3 |
|
| |
|
|
|
|
|
|
|
| Adjustments, continuing
operations: |
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(114.0 |
) |
|
Asset impairments |
|
— |
|
|
|
0.1 |
|
|
|
3.9 |
|
|
|
24.6 |
|
|
Transaction, pre-opening, and other expense |
|
(3.9 |
) |
|
|
9.6 |
|
|
|
21.7 |
|
|
|
39.8 |
|
|
Other charges and recoveries, net |
|
(0.2 |
) |
|
|
2.4 |
|
|
|
(6.9 |
) |
|
|
2.4 |
|
|
Legal reserves |
|
— |
|
|
|
(1.2 |
) |
|
|
— |
|
|
|
(1.2 |
) |
|
Legal reserves and transaction costs related to Rivers Des
Plaines |
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
Income tax impact on net income adjustments (a) |
|
1.1 |
|
|
|
(3.1 |
) |
|
|
(5.1 |
) |
|
|
10.6 |
|
| Total adjustments |
|
(3.0 |
) |
|
|
7.8 |
|
|
|
13.9 |
|
|
|
(37.8 |
) |
| Adjusted net income
attributable to CDI |
$ |
68.7 |
|
|
$ |
65.4 |
|
|
$ |
440.7 |
|
|
$ |
379.5 |
|
| |
|
|
|
|
|
|
|
| Adjusted diluted EPS |
$ |
0.92 |
|
|
$ |
0.86 |
|
|
$ |
5.91 |
|
|
$ |
4.99 |
|
| |
|
|
|
|
|
|
|
| Weighted average shares
outstanding - Diluted |
|
74.6 |
|
|
|
75.8 |
|
|
|
74.6 |
|
|
|
76.1 |
|
|
(a) |
The income tax impact for each adjustment is derived by applying
the effective tax rate, including current and deferred income tax
expense, based upon the jurisdiction and the nature of the
adjustment. |
| |
|
| |
Three Months Ended December 31, |
|
Years Ended December 31, |
|
(in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| Total
Handle |
|
|
|
|
|
|
|
|
TwinSpires Horse Racing(a) |
$ |
400.0 |
|
$ |
439.1 |
|
$ |
1,942.1 |
|
$ |
1,991.9 |
|
(a) |
Total handle generated by Velocity is not included in total handle
from TwinSpires Horse Racing. |
| |
|
|
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL
INFORMATION (Unaudited except year ended 2024 and
2023 amounts) |
|
|
| |
Three Months Ended December 31, |
|
Years Ended December 31, |
|
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net revenue from external customers: |
|
|
|
|
|
|
|
|
Live and Historical Racing: |
|
|
|
|
|
|
|
|
Churchill Downs Racetrack |
$ |
16.7 |
|
|
$ |
14.5 |
|
|
$ |
259.5 |
|
|
$ |
205.8 |
|
|
Louisville |
|
52.0 |
|
|
|
50.8 |
|
|
|
209.1 |
|
|
|
189.0 |
|
|
Northern Kentucky |
|
25.0 |
|
|
|
22.7 |
|
|
|
98.9 |
|
|
|
85.8 |
|
|
Southwestern Kentucky |
|
40.2 |
|
|
|
36.1 |
|
|
|
158.3 |
|
|
|
147.8 |
|
|
Western Kentucky |
|
6.1 |
|
|
|
6.0 |
|
|
|
28.8 |
|
|
|
31.8 |
|
|
Virginia |
|
125.1 |
|
|
|
95.0 |
|
|
|
458.2 |
|
|
|
375.4 |
|
|
New Hampshire |
|
3.2 |
|
|
|
3.3 |
|
|
|
12.8 |
|
|
|
11.7 |
|
|
Total Live and Historical Racing |
$ |
268.3 |
|
|
$ |
228.4 |
|
|
$ |
1,225.6 |
|
|
$ |
1,047.3 |
|
| |
|
|
|
|
|
|
|
|
Wagering Services and Solutions: |
$ |
99.9 |
|
|
$ |
104.2 |
|
|
$ |
469.5 |
|
|
$ |
444.9 |
|
| |
|
|
|
|
|
|
|
|
Gaming: |
|
|
|
|
|
|
|
|
Florida |
$ |
23.8 |
|
|
$ |
24.2 |
|
|
$ |
100.2 |
|
|
$ |
100.7 |
|
|
Iowa |
|
23.5 |
|
|
|
23.5 |
|
|
|
93.3 |
|
|
|
96.0 |
|
|
Indiana |
|
30.3 |
|
|
|
— |
|
|
|
96.6 |
|
|
|
— |
|
|
Louisiana |
|
36.8 |
|
|
|
35.5 |
|
|
|
150.2 |
|
|
|
145.6 |
|
|
Maine |
|
24.7 |
|
|
|
26.0 |
|
|
|
106.0 |
|
|
|
114.1 |
|
|
Maryland |
|
22.5 |
|
|
|
24.0 |
|
|
|
101.8 |
|
|
|
106.9 |
|
|
Mississippi |
|
24.6 |
|
|
|
23.4 |
|
|
|
98.7 |
|
|
|
100.9 |
|
|
New York |
|
44.7 |
|
|
|
45.2 |
|
|
|
183.0 |
|
|
|
180.5 |
|
|
Pennsylvania |
|
25.1 |
|
|
|
26.6 |
|
|
|
109.3 |
|
|
|
123.9 |
|
|
Total Gaming |
|
256.0 |
|
|
|
228.4 |
|
|
|
1,039.1 |
|
|
|
968.6 |
|
|
All Other |
|
— |
|
|
|
0.2 |
|
|
|
0.1 |
|
|
|
0.9 |
|
|
Net revenue from external customers |
$ |
624.2 |
|
|
$ |
561.2 |
|
|
$ |
2,734.3 |
|
|
$ |
2,461.7 |
|
| |
|
|
|
|
|
|
|
|
Intercompany net revenues: |
|
|
|
|
|
|
|
|
Live and Historical Racing |
$ |
7.2 |
|
|
$ |
6.9 |
|
|
$ |
41.4 |
|
|
$ |
37.3 |
|
|
Wagering Services and Solutions |
|
8.1 |
|
|
|
6.5 |
|
|
|
31.2 |
|
|
|
13.5 |
|
|
Gaming |
|
1.5 |
|
|
|
1.8 |
|
|
|
6.3 |
|
|
|
6.0 |
|
|
All Other |
|
2.1 |
|
|
|
— |
|
|
|
6.5 |
|
|
|
— |
|
|
Eliminations |
|
(18.9 |
) |
|
|
(15.2 |
) |
|
|
(85.4 |
) |
|
|
(56.8 |
) |
| Intercompany net revenue |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL
INFORMATION(Unaudited except year ended 2024 and
2023 amounts) |
|
|
| |
Three Months Ended December 31, 2024 |
| (in millions) |
Live and Historical Racing |
|
Wagering Services and Solutions |
|
Gaming |
|
Total Segments |
|
All Other |
|
Total |
| Net revenue from
external customers |
|
|
|
|
|
|
|
|
|
|
|
| Pari-mutuel: |
|
|
|
|
|
|
|
|
|
|
|
|
Live and simulcast racing |
$ |
14.7 |
|
$ |
74.3 |
|
$ |
6.3 |
|
$ |
95.3 |
|
$ |
— |
|
$ |
95.3 |
|
Historical racing(a) |
|
224.8 |
|
|
— |
|
|
9.6 |
|
|
234.4 |
|
|
— |
|
|
234.4 |
| Racing event-related
services |
|
5.9 |
|
|
— |
|
|
1.6 |
|
|
7.5 |
|
|
— |
|
|
7.5 |
| Gaming(a) |
|
3.1 |
|
|
2.9 |
|
|
210.5 |
|
|
216.5 |
|
|
— |
|
|
216.5 |
| Other(a) |
|
19.8 |
|
|
22.7 |
|
|
28.0 |
|
|
70.5 |
|
|
— |
|
|
70.5 |
|
Total |
$ |
268.3 |
|
$ |
99.9 |
|
$ |
256.0 |
|
$ |
624.2 |
|
$ |
— |
|
$ |
624.2 |
| |
Three Months Ended December 31, 2023 |
| (in millions) |
Live and Historical Racing |
|
Wagering Services and Solutions |
|
Gaming |
|
Total Segments |
|
All Other |
|
Total |
| Net revenue from
external customers |
|
|
|
|
|
|
|
|
|
|
|
| Pari-mutuel: |
|
|
|
|
|
|
|
|
|
|
|
|
Live and simulcast racing |
$ |
14.7 |
|
$ |
76.5 |
|
$ |
6.7 |
|
$ |
97.9 |
|
$ |
— |
|
$ |
97.9 |
|
Historical racing(a) |
|
189.8 |
|
|
— |
|
|
8.1 |
|
|
197.9 |
|
|
— |
|
|
197.9 |
| Racing event-related
services |
|
4.9 |
|
|
— |
|
|
1.6 |
|
|
6.5 |
|
|
— |
|
|
6.5 |
| Gaming(a) |
|
3.2 |
|
|
6.4 |
|
|
188.1 |
|
|
197.7 |
|
|
— |
|
|
197.7 |
| Other(a) |
|
15.8 |
|
|
21.3 |
|
|
23.9 |
|
|
61.0 |
|
|
0.2 |
|
|
61.2 |
|
Total |
$ |
228.4 |
|
$ |
104.2 |
|
$ |
228.4 |
|
$ |
561.0 |
|
$ |
0.2 |
|
$ |
561.2 |
|
(a) |
Food and beverage, hotel, and other services furnished to customers
for free as an inducement to wager or through the redemption of our
customers' loyalty points are recorded at the estimated standalone
selling prices in Other revenue with a corresponding offset
recorded as a reduction in historical racing pari-mutuel revenue
for HRMs or gaming revenue for our casino properties. These amounts
were $14.2 million for the three months ended
December 31, 2024 and $13.1 million for the three months
December 31, 2023. |
| |
|
| |
Year Ended December 31, 2024 |
| (in millions) |
Live and Historical Racing |
|
Wagering Services and Solutions |
|
Gaming |
|
Total Segments |
|
All Other |
|
Total |
| Net revenue from
external customers |
|
|
|
|
|
|
|
|
|
|
|
| Pari-mutuel: |
|
|
|
|
|
|
|
|
|
|
|
|
Live and simulcast racing |
$ |
91.3 |
|
$ |
352.2 |
|
$ |
26.4 |
|
$ |
469.9 |
|
$ |
— |
|
$ |
469.9 |
|
Historical racing(a) |
|
854.9 |
|
|
— |
|
|
37.0 |
|
|
891.9 |
|
|
— |
|
|
891.9 |
| Racing event-related
services |
|
188.0 |
|
|
— |
|
|
6.6 |
|
|
194.6 |
|
|
— |
|
|
194.6 |
| Gaming(a) |
|
12.6 |
|
|
17.3 |
|
|
856.0 |
|
|
885.9 |
|
|
— |
|
|
885.9 |
| Other(a) |
|
78.8 |
|
|
100.0 |
|
|
113.1 |
|
|
291.9 |
|
|
0.1 |
|
|
292.0 |
|
Total |
$ |
1,225.6 |
|
$ |
469.5 |
|
$ |
1,039.1 |
|
$ |
2,734.2 |
|
$ |
0.1 |
|
$ |
2,734.3 |
| |
Year Ended December 31, 2023 |
| (in millions) |
Live and Historical Racing |
|
Wagering Services and Solutions |
|
Gaming |
|
Total Segments |
|
All Other |
|
Total |
| Net revenue from
external customers |
|
|
|
|
|
|
|
|
|
|
|
| Pari-mutuel: |
|
|
|
|
|
|
|
|
|
|
|
|
Live and simulcast racing |
$ |
81.9 |
|
$ |
359.7 |
|
$ |
26.6 |
|
$ |
468.2 |
|
$ |
— |
|
$ |
468.2 |
|
Historical racing(a) |
|
739.1 |
|
|
— |
|
|
28.6 |
|
|
767.7 |
|
|
— |
|
|
767.7 |
| Racing event-related
services |
|
145.9 |
|
|
— |
|
|
6.4 |
|
|
152.3 |
|
|
— |
|
|
152.3 |
| Gaming(a) |
|
11.4 |
|
|
17.3 |
|
|
803.5 |
|
|
832.2 |
|
|
— |
|
|
832.2 |
| Other(a) |
|
69.0 |
|
|
67.9 |
|
|
103.5 |
|
|
240.4 |
|
|
0.9 |
|
|
241.3 |
|
Total |
$ |
1,047.3 |
|
$ |
444.9 |
|
$ |
968.6 |
|
$ |
2,460.8 |
|
$ |
0.9 |
|
$ |
2,461.7 |
|
(a) |
Food and beverage, hotel, and other services furnished to customers
for free as an inducement to wager or through the redemption of our
customers' loyalty points are recorded at the estimated standalone
selling prices in Other revenue with a corresponding offset
recorded as a reduction in historical racing pari-mutuel revenue
for HRMs or gaming revenue for our casino properties. These amounts
were $56.0 million for 2024 and $50.9 million for
2023. |
| |
|
|
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL
INFORMATION(Unaudited except year ended 2024 and
2023 amounts) |
|
Adjusted EBITDA by segment is comprised of the following: |
|
|
| |
Three Months Ended December 31, 2024 |
| (in millions) |
Live and Historical Racing |
|
Wagering Services and Solutions |
|
Gaming |
|
Total Segments |
|
All Other |
|
Eliminations |
|
Total |
|
Revenues |
$ |
275.5 |
|
|
$ |
108.0 |
|
|
$ |
257.5 |
|
|
$ |
641.0 |
|
|
$ |
2.1 |
|
|
$ |
(18.9 |
) |
|
$ |
624.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pari-mutuel taxes &
purses |
|
(72.6 |
) |
|
|
(3.9 |
) |
|
|
(10.8 |
) |
|
|
(87.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(87.3 |
) |
| Gaming taxes |
|
(1.4 |
) |
|
|
(0.5 |
) |
|
|
(72.5 |
) |
|
|
(74.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(74.4 |
) |
| Marketing &
advertising |
|
(11.0 |
) |
|
|
(1.4 |
) |
|
|
(8.9 |
) |
|
|
(21.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(21.3 |
) |
| Salaries & benefits |
|
(32.6 |
) |
|
|
(8.9 |
) |
|
|
(43.6 |
) |
|
|
(85.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(85.1 |
) |
| Content expense |
|
(1.3 |
) |
|
|
(42.6 |
) |
|
|
(1.8 |
) |
|
|
(45.7 |
) |
|
|
— |
|
|
|
9.8 |
|
|
|
(35.9 |
) |
| Selling, general &
administrative expense |
|
(13.4 |
) |
|
|
(2.5 |
) |
|
|
(12.2 |
) |
|
|
(28.1 |
) |
|
|
(21.2 |
) |
|
|
0.2 |
|
|
|
(49.1 |
) |
| Maintenance, insurance &
utilities |
|
(11.9 |
) |
|
|
(1.1 |
) |
|
|
(9.7 |
) |
|
|
(22.7 |
) |
|
|
(3.6 |
) |
|
|
2.0 |
|
|
|
(24.3 |
) |
| Gaming equipment rental &
technology costs |
|
(11.1 |
) |
|
|
(1.0 |
) |
|
|
(3.9 |
) |
|
|
(16.0 |
) |
|
|
— |
|
|
|
6.9 |
|
|
|
(9.1 |
) |
| Food & beverage costs |
|
(4.0 |
) |
|
|
— |
|
|
|
(4.3 |
) |
|
|
(8.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8.3 |
) |
| Other operating expense |
|
(14.8 |
) |
|
|
(9.1 |
) |
|
|
(16.3 |
) |
|
|
(40.2 |
) |
|
|
0.1 |
|
|
|
— |
|
|
|
(40.1 |
) |
| Equity in income of
unconsolidated affiliates |
|
— |
|
|
|
— |
|
|
|
46.6 |
|
|
|
46.6 |
|
|
|
— |
|
|
|
— |
|
|
|
46.6 |
|
| Other income |
|
0.2 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.7 |
|
|
Adjusted EBITDA |
$ |
101.6 |
|
|
$ |
37.3 |
|
|
$ |
120.1 |
|
|
$ |
259.0 |
|
|
$ |
(22.4 |
) |
|
$ |
— |
|
|
$ |
236.6 |
|
| |
Three Months Ended December 31, 2023 |
| (in millions) |
Live and Historical Racing |
|
Wagering Services and Solutions |
|
Gaming |
|
Total Segments |
|
All Other |
|
Eliminations |
|
Total |
|
Revenues |
$ |
235.3 |
|
|
$ |
110.6 |
|
|
$ |
230.2 |
|
|
$ |
576.1 |
|
|
$ |
0.2 |
|
|
$ |
(15.1 |
) |
|
$ |
561.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pari-mutuel taxes &
purses |
|
(62.4 |
) |
|
|
(3.9 |
) |
|
|
(10.5 |
) |
|
|
(76.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
(76.8 |
) |
| Gaming taxes |
|
(1.4 |
) |
|
|
(0.9 |
) |
|
|
(65.6 |
) |
|
|
(67.9 |
) |
|
|
— |
|
|
|
— |
|
|
|
(67.9 |
) |
| Marketing &
advertising |
|
(9.7 |
) |
|
|
(1.8 |
) |
|
|
(8.9 |
) |
|
|
(20.4 |
) |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
(20.4 |
) |
| Salaries & benefits |
|
(27.0 |
) |
|
|
(8.6 |
) |
|
|
(36.8 |
) |
|
|
(72.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(72.4 |
) |
| Content expense |
|
(1.4 |
) |
|
|
(44.0 |
) |
|
|
(1.9 |
) |
|
|
(47.3 |
) |
|
|
— |
|
|
|
9.7 |
|
|
|
(37.6 |
) |
| Selling, general &
administrative expense |
|
(8.5 |
) |
|
|
(4.3 |
) |
|
|
(10.3 |
) |
|
|
(23.1 |
) |
|
|
(18.1 |
) |
|
|
0.5 |
|
|
|
(40.7 |
) |
| Maintenance, insurance &
utilities |
|
(11.4 |
) |
|
|
(1.2 |
) |
|
|
(10.3 |
) |
|
|
(22.9 |
) |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(23.0 |
) |
| Gaming equipment rental &
technology costs |
|
(8.8 |
) |
|
|
(0.9 |
) |
|
|
(4.0 |
) |
|
|
(13.7 |
) |
|
|
— |
|
|
|
5.0 |
|
|
|
(8.7 |
) |
| Food & beverage costs |
|
(3.1 |
) |
|
|
— |
|
|
|
(3.7 |
) |
|
|
(6.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
(6.8 |
) |
| Other operating expense |
|
(12.9 |
) |
|
|
(10.0 |
) |
|
|
(13.6 |
) |
|
|
(36.5 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
(36.7 |
) |
| Equity in income of
unconsolidated affiliates |
|
— |
|
|
|
— |
|
|
|
48.7 |
|
|
|
48.7 |
|
|
|
— |
|
|
|
— |
|
|
|
48.7 |
|
| Other income |
|
0.2 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
Adjusted EBITDA |
$ |
88.9 |
|
|
$ |
34.9 |
|
|
$ |
113.4 |
|
|
$ |
237.2 |
|
|
$ |
(18.1 |
) |
|
$ |
— |
|
|
$ |
219.1 |
|
| |
Year Ended December 31, 2024 |
| (in millions) |
Live and Historical Racing |
|
Wagering Services and Solutions |
|
Gaming |
|
Total Segments |
|
All Other |
|
Eliminations |
|
Total |
|
Revenues |
$ |
1,267.0 |
|
|
$ |
500.7 |
|
|
$ |
1,045.4 |
|
|
$ |
2,813.1 |
|
|
$ |
6.6 |
|
|
$ |
(85.4 |
) |
|
$ |
2,734.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pari-mutuel taxes &
purses |
|
(300.0 |
) |
|
|
(19.7 |
) |
|
|
(43.5 |
) |
|
|
(363.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(363.2 |
) |
| Gaming taxes |
|
(5.7 |
) |
|
|
(2.4 |
) |
|
|
(291.6 |
) |
|
|
(299.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
(299.7 |
) |
| Marketing &
advertising |
|
(42.1 |
) |
|
|
(8.9 |
) |
|
|
(35.4 |
) |
|
|
(86.4 |
) |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(86.5 |
) |
| Salaries & benefits |
|
(127.0 |
) |
|
|
(32.8 |
) |
|
|
(164.6 |
) |
|
|
(324.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(324.4 |
) |
| Content expense |
|
(6.4 |
) |
|
|
(205.8 |
) |
|
|
(8.5 |
) |
|
|
(220.7 |
) |
|
|
— |
|
|
|
52.3 |
|
|
|
(168.4 |
) |
| Selling, general &
administrative expense |
|
(40.1 |
) |
|
|
(15.5 |
) |
|
|
(46.1 |
) |
|
|
(101.7 |
) |
|
|
(85.9 |
) |
|
|
1.0 |
|
|
|
(186.6 |
) |
| Maintenance, insurance &
utilities |
|
(46.5 |
) |
|
|
(4.2 |
) |
|
|
(42.1 |
) |
|
|
(92.8 |
) |
|
|
(8.2 |
) |
|
|
6.5 |
|
|
|
(94.5 |
) |
| Gaming equipment rental &
technology costs |
|
(41.6 |
) |
|
|
(3.5 |
) |
|
|
(15.4 |
) |
|
|
(60.5 |
) |
|
|
— |
|
|
|
25.5 |
|
|
|
(35.0 |
) |
| Food & beverage costs |
|
(12.9 |
) |
|
|
— |
|
|
|
(16.7 |
) |
|
|
(29.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(29.6 |
) |
| Other operating expense |
|
(70.6 |
) |
|
|
(42.6 |
) |
|
|
(62.9 |
) |
|
|
(176.1 |
) |
|
|
(0.5 |
) |
|
|
0.1 |
|
|
|
(176.5 |
) |
| Equity in income of
unconsolidated affiliates |
|
— |
|
|
|
— |
|
|
|
186.4 |
|
|
|
186.4 |
|
|
|
— |
|
|
|
— |
|
|
|
186.4 |
|
| Other income |
|
0.5 |
|
|
|
0.3 |
|
|
|
1.9 |
|
|
|
2.7 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
2.9 |
|
|
Adjusted EBITDA |
$ |
574.6 |
|
|
$ |
165.6 |
|
|
$ |
506.9 |
|
|
$ |
1,247.1 |
|
|
$ |
(87.9 |
) |
|
$ |
— |
|
|
$ |
1,159.2 |
|
| |
Year Ended December 31, 2023 |
| (in millions) |
Live and Historical Racing |
|
Wagering Services and Solutions |
|
Gaming |
|
Total Segments |
|
All Other |
|
Eliminations |
|
Total |
|
Revenues |
$ |
1,084.6 |
|
|
$ |
458.4 |
|
|
$ |
974.6 |
|
|
$ |
2,517.6 |
|
|
$ |
0.9 |
|
|
$ |
(56.8 |
) |
|
$ |
2,461.7 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pari-mutuel taxes &
purses |
|
(262.5 |
) |
|
|
(19.9 |
) |
|
|
(39.2 |
) |
|
|
(321.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(321.6 |
) |
| Gaming taxes |
|
(5.2 |
) |
|
|
(2.7 |
) |
|
|
(283.6 |
) |
|
|
(291.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
(291.5 |
) |
| Marketing &
advertising |
|
(37.6 |
) |
|
|
(9.8 |
) |
|
|
(35.4 |
) |
|
|
(82.8 |
) |
|
|
(0.1 |
) |
|
|
0.2 |
|
|
|
(82.7 |
) |
| Salaries & benefits |
|
(107.0 |
) |
|
|
(29.3 |
) |
|
|
(146.0 |
) |
|
|
(282.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(282.3 |
) |
| Content expense |
|
(6.5 |
) |
|
|
(205.1 |
) |
|
|
(8.8 |
) |
|
|
(220.4 |
) |
|
|
— |
|
|
|
47.4 |
|
|
|
(173.0 |
) |
| Selling, general &
administrative expense |
|
(31.9 |
) |
|
|
(12.4 |
) |
|
|
(42.7 |
) |
|
|
(87.0 |
) |
|
|
(72.2 |
) |
|
|
1.4 |
|
|
|
(157.8 |
) |
| Maintenance, insurance &
utilities |
|
(43.2 |
) |
|
|
(3.8 |
) |
|
|
(40.0 |
) |
|
|
(87.0 |
) |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(87.4 |
) |
| Gaming equipment rental &
technology costs |
|
(48.7 |
) |
|
|
(3.7 |
) |
|
|
(15.6 |
) |
|
|
(68.0 |
) |
|
|
— |
|
|
|
7.6 |
|
|
|
(60.4 |
) |
| Food & beverage costs |
|
(11.3 |
) |
|
|
— |
|
|
|
(14.9 |
) |
|
|
(26.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(26.2 |
) |
| Other operating expense |
|
(56.6 |
) |
|
|
(40.6 |
) |
|
|
(53.2 |
) |
|
|
(150.4 |
) |
|
|
(0.4 |
) |
|
|
0.2 |
|
|
|
(150.6 |
) |
| Equity in income of
unconsolidated affiliates |
|
— |
|
|
|
— |
|
|
|
191.6 |
|
|
|
191.6 |
|
|
|
— |
|
|
|
— |
|
|
|
191.6 |
|
| Other income |
|
1.3 |
|
|
|
1.0 |
|
|
|
1.8 |
|
|
|
4.1 |
|
|
|
— |
|
|
|
— |
|
|
|
4.1 |
|
|
Adjusted EBITDA |
$ |
475.4 |
|
|
$ |
132.1 |
|
|
$ |
488.6 |
|
|
$ |
1,096.1 |
|
|
$ |
(72.2 |
) |
|
$ |
— |
|
|
$ |
1,023.9 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL
INFORMATION(Unaudited except year ended 2024 and
2023 amounts) |
|
|
| |
Three Months Ended December 31, |
|
Years Ended December 31, |
|
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Reconciliation of Net Income to Adjusted
EBITDA: |
|
|
|
|
|
|
|
| Net
income attributable to Churchill Downs Incorporated |
$ |
71.7 |
|
|
$ |
57.6 |
|
|
$ |
426.8 |
|
|
$ |
417.3 |
|
|
Net income attributable to noncontrolling interest |
|
0.6 |
|
|
|
— |
|
|
|
2.3 |
|
|
|
— |
|
| Net
income |
|
72.3 |
|
|
|
57.6 |
|
|
|
429.1 |
|
|
|
417.3 |
|
| |
|
|
|
|
|
|
|
| Adjustments: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
53.4 |
|
|
|
47.2 |
|
|
|
199.1 |
|
|
|
169.0 |
|
|
Interest expense |
|
72.8 |
|
|
|
70.6 |
|
|
|
289.8 |
|
|
|
268.4 |
|
|
Income tax provision |
|
18.7 |
|
|
|
14.3 |
|
|
|
144.1 |
|
|
|
144.5 |
|
|
Stock-based compensation expense |
|
12.9 |
|
|
|
8.1 |
|
|
|
36.1 |
|
|
|
32.9 |
|
|
Legal reserves |
|
— |
|
|
|
(1.2 |
) |
|
|
— |
|
|
|
(1.2 |
) |
|
Arlington exit costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.4 |
|
|
Pre-opening expense |
|
6.0 |
|
|
|
7.2 |
|
|
|
29.6 |
|
|
|
18.6 |
|
|
Other expenses, net |
|
2.9 |
|
|
|
(0.6 |
) |
|
|
4.2 |
|
|
|
7.0 |
|
|
Asset impairments |
|
— |
|
|
|
0.1 |
|
|
|
3.9 |
|
|
|
24.6 |
|
|
Transaction (benefit) expense, net |
|
(12.8 |
) |
|
|
3.0 |
|
|
|
(12.1 |
) |
|
|
4.8 |
|
|
Other income, expense: |
|
|
|
|
|
|
|
|
Interest, depreciation and amortization expense related to equity
investments |
|
10.6 |
|
|
|
10.4 |
|
|
|
42.0 |
|
|
|
40.2 |
|
|
Rivers Des Plaines' legal reserves and transaction costs |
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
Other charges and recoveries, net |
|
(0.2 |
) |
|
|
2.4 |
|
|
|
(6.9 |
) |
|
|
2.4 |
|
|
Gain on sale of Arlington |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(114.0 |
) |
|
Total adjustments |
|
164.3 |
|
|
|
161.5 |
|
|
|
730.1 |
|
|
|
606.6 |
|
| Adjusted
EBITDA |
$ |
236.6 |
|
|
$ |
219.1 |
|
|
$ |
1,159.2 |
|
|
$ |
1,023.9 |
|
| |
|
|
|
|
|
|
|
|
Adjusted EBITDA by segment: |
|
|
|
|
|
|
|
| Live
and Historical Racing |
$ |
101.6 |
|
|
$ |
88.9 |
|
|
$ |
574.6 |
|
|
$ |
475.4 |
|
|
Wagering Services and Solutions |
|
37.3 |
|
|
|
34.9 |
|
|
|
165.6 |
|
|
|
132.1 |
|
|
Gaming |
|
120.1 |
|
|
|
113.4 |
|
|
|
506.9 |
|
|
|
488.6 |
|
|
Total segment Adjusted EBITDA |
|
259.0 |
|
|
|
237.2 |
|
|
|
1,247.1 |
|
|
|
1,096.1 |
|
| All
Other |
|
(22.4 |
) |
|
|
(18.1 |
) |
|
|
(87.9 |
) |
|
|
(72.2 |
) |
|
Total Adjusted EBITDA |
$ |
236.6 |
|
|
$ |
219.1 |
|
|
$ |
1,159.2 |
|
|
$ |
1,023.9 |
|
|
|
|
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL
JOINT VENTURE FINANCIAL
STATEMENTS(Unaudited) |
|
|
| Summarized
financial information for our equity investments is comprised of
the following: |
| |
Summarized Income Statement |
| |
Three Months Ended December 31, |
|
Years Ended December 31, |
|
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net revenue |
$ |
210.3 |
|
|
$ |
216.6 |
|
|
$ |
851.5 |
|
|
$ |
864.8 |
|
| |
|
|
|
|
|
|
|
| Operating and SG&A
expense |
|
129.2 |
|
|
|
132.2 |
|
|
|
528.5 |
|
|
|
534.0 |
|
| Depreciation and
amortization |
|
6.9 |
|
|
|
6.3 |
|
|
|
27.0 |
|
|
|
23.8 |
|
|
Operating income |
|
74.2 |
|
|
|
78.1 |
|
|
|
296.0 |
|
|
|
307.0 |
|
| Interest and other expense,
net |
|
(10.7 |
) |
|
|
(11.2 |
) |
|
|
(44.2 |
) |
|
|
(43.9 |
) |
|
Net income |
$ |
63.5 |
|
|
$ |
66.9 |
|
|
$ |
251.8 |
|
|
$ |
263.1 |
|
| |
|
|
|
|
|
|
|
| |
December 31, |
|
(in millions) |
|
2024 |
|
|
|
2023 |
|
| Assets |
|
|
|
| Current assets |
$ |
100.5 |
|
|
$ |
104.8 |
|
| Property and equipment,
net |
|
325.6 |
|
|
|
339.4 |
|
| Other assets, net |
|
267.5 |
|
|
|
266.1 |
|
|
Total assets |
$ |
693.6 |
|
|
$ |
710.3 |
|
| |
|
|
|
| Liabilities and
Members' Deficit |
|
|
|
| Current liabilities |
$ |
89.9 |
|
|
$ |
106.2 |
|
| Long-term debt |
|
839.8 |
|
|
|
847.2 |
|
| Other liabilities |
|
1.7 |
|
|
|
0.7 |
|
| Members' deficit |
|
(237.8 |
) |
|
|
(243.8 |
) |
|
Total liabilities and members' deficit |
$ |
693.6 |
|
|
$ |
710.3 |
|
|
|
|
CHURCHILL DOWNS INCORPORATED SUPPLEMENTAL
INFORMATION(Unaudited) |
| |
| Planned capital
projects for the Company are as follows: |
| |
|
(in millions) |
Project |
Target Completion |
2025 Planned Spend |
|
|
|
|
|
|
Live and Historical Racing Segment |
|
|
|
Churchill Downs Racetrack |
Starting Gate Pavilion and Courtyard |
April 2025 |
$75-85 |
|
Skye Reconstruction and Expansion, Conservatory, and Infield
General Admission Projects |
2026-2028 |
$120-130 |
|
Virginia |
Richmond (HRM Expansion) |
Third Quarter 2025 |
$30-35 |
|
Henrico (Roseshire - HRM Venue) |
Fourth Quarter 2025 |
$30-35 |
|
Southwestern Kentucky |
Calvert City (Marshall Yards Racing and Gaming - HRM Venue) |
First Quarter 2026 |
$30-35 |
|
New Hampshire |
Salem (HRM Venue) |
TBD |
TBD |
|
All Other Projects |
|
|
|
All Other |
All Other |
TBD |
$65-80 |
| |
|
Total: |
$350-400 |
Contact: Sam Ullrich(502)
638-3906Sam.Ullrich@kyderby.com
Churchill Downs (NASDAQ:CHDN)
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De Jan 2025 até Fev 2025
Churchill Downs (NASDAQ:CHDN)
Gráfico Histórico do Ativo
De Fev 2024 até Fev 2025
