07/24/2024 | Press release | Distributed by Public on 07/24/2024 14:07
CONSOLIDATED RESULTS |
Second Quarter | ||||
(in millions, except per share data) | 2024 | 2023 | ||
Net revenue | $ | 890.7 | $ | 768.5 |
Net income attributable to CDI | $ | 209.3 | $ | 143.0 |
Diluted EPS attributable to CDI | $ | 2.79 | $ | 1.86 |
Adjusted EBITDA(a)
|
$ | 444.8 | $ | 363.7 |
(a) This is a non-GAAP measure. See explanation of non-GAAP measures below. |
SEGMENT RESULTS |
Second Quarter | ||||
(in millions) | 2024 | 2023 | ||
Revenue | $ | 490.2 | $ | 408.0 |
Adjusted EBITDA | 279.2 | 223.5 |
Second Quarter | ||||
(in millions) | 2024 | 2023 | ||
Revenue | $ | 159.9 | $ | 139.1 |
Adjusted EBITDA | 46.2 | 33.9 |
Second Quarter | ||||
(in millions) | 2024 | 2023 | ||
Revenue | $ | 274.4 | $ | 247.9 |
Adjusted EBITDA | 140.7 | 123.4 |
Second Quarter | ||||
(in millions) | 2024 | 2023 | ||
Revenue | $ | 1.9 | $ | 0.2 |
Adjusted EBITDA | (21.3) | (17.1) |
CAPITAL MANAGEMENT |
NET INCOME ATTRIBUTABLE TO CDI |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
(in millions, except per common share data) | 2024 | 2023 | 2024 | 2023 | ||||
Net revenue: | ||||||||
Live and Historical Racing | $ | 464.7 | $ | 385.0 | $ | 709.8 | $ | 599.4 |
TwinSpires | 151.7 | 137.4 | 258.3 | 232.2 | ||||
Gaming | 274.2 | 245.9 | 513.4 | 495.9 | ||||
All Other | 0.1 | 0.2 | 0.1 | 0.5 | ||||
Total net revenue | 890.7 | 768.5 | 1,481.6 | 1,328.0 | ||||
Operating expense: | ||||||||
Live and Historical Racing | 221.4 | 204.2 | 378.6 | 347.5 | ||||
TwinSpires | 89.3 | 80.7 | 157.2 | 146.4 | ||||
Gaming | 188.4 | 179.2 | 366.9 | 352.7 | ||||
All Other | 3.6 | 5.7 | 5.7 | 10.7 | ||||
Selling, general and administrative expense | 57.4 | 48.1 | 112.2 | 100.4 | ||||
Asset impairments | - | 24.5 | - | 24.5 | ||||
Transaction expense, net | 0.6 | 0.5 | 4.7 | 0.3 | ||||
Total operating expense | 560.7 | 542.9 | 1,025.3 | 982.5 | ||||
Operating income | 330.0 | 225.6 | 456.3 | 345.5 | ||||
Other (expense) income: | ||||||||
Interest expense, net | (73.5) | (65.2) | (143.9) | (129.9) | ||||
Equity in income of unconsolidated affiliates | 37.7 | 38.8 | 75.5 | 77.1 | ||||
Gain on sale of Arlington | - | - | - | 114.0 | ||||
Miscellaneous, net | 0.1 | - | 8.2 | 1.4 | ||||
Total other (expense) income | (35.7) | (26.4) | (60.2) | 62.6 | ||||
Income from operations before provision for income taxes | 294.3 | 199.2 | 396.1 | 408.1 | ||||
Income tax provision | (84.1) | (56.2) | (105.5) | (109.4) | ||||
Net income | 210.2 | 143.0 | 290.6 | 298.7 | ||||
Net income attributable to noncontrolling interest | 0.9 | - | 0.9 | - | ||||
Net income attributable to Churchill Downs Incorporated | $ | 209.3 | $ | 143.0 | $ | 289.7 | $ | 298.7 |
Net income attributable to Churchill Downs Incorporated per common share data: | ||||||||
Basic net income | $ | 2.82 | $ | 1.90 | $ | 3.90 | $ | 3.97 |
Diluted net income | $ | 2.79 | $ | 1.86 | $ | 3.87 | $ | 3.90 |
Weighted average shares outstanding: | ||||||||
Basic | 73.9 | 75.3 | 74.0 | 75.3 | ||||
Diluted | 74.6 | 76.9 | 74.6 | 76.5 |
(in millions) | June 30, 2024 | December 31, 2023 | ||
ASSETS | ||||
Current assets:
|
||||
Cash and cash equivalents
|
$ | 140.3 | $ | 144.5 |
Restricted cash
|
90.6 | 77.3 | ||
Accounts receivable, net
|
136.1 | 106.9 | ||
Income taxes receivable
|
- | 12.6 | ||
Other current assets
|
69.0 | 59.5 | ||
Total current assets | 436.0 | 400.8 | ||
Property and equipment, net
|
2,752.4 | 2,561.2 | ||
Investment in and advances to unconsolidated affiliates
|
648.8 | 655.9 | ||
Goodwill
|
900.2 | 899.9 | ||
Other intangible assets, net
|
2,414.4 | 2,418.4 | ||
Other assets
|
18.3 | 19.3 | ||
Total assets | $ | 7,170.1 | $ | 6,955.5 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities:
|
||||
Accounts payable
|
$ | 215.0 | $ | 158.5 |
Accrued expenses and other current liabilities | 419.1 | 426.8 | ||
Income taxes payable | 41.3 | - | ||
Current deferred revenue
|
19.2 | 73.2 | ||
Current maturities of long-term debt
|
68.0 | 68.0 | ||
Dividends payable
|
0.6 | 29.3 | ||
Total current liabilities | 763.2 | 755.8 | ||
Long-term debt, net of current maturities and loan origination fees
|
1,717.6 | 1,697.1 | ||
Notes payable, net of debt issuance costs
|
3,073.7 | 3,071.2 | ||
Non-current deferred revenue | 20.1 | 11.8 | ||
Deferred income taxes
|
407.9 | 388.2 | ||
Other liabilities
|
140.6 | 137.8 | ||
Total liabilities | 6,123.1 | 6,061.9 | ||
Commitments and contingencies
|
||||
Redeemable noncontrolling interest | 16.1 | - | ||
Shareholders' equity:
|
||||
Preferred stock
|
- | - | ||
Common stock
|
- | - | ||
Retained earnings
|
1,031.9 | 894.5 | ||
Accumulated other comprehensive loss
|
(1.0) | (0.9) | ||
Total Churchill Downs Incorporated shareholders' equity | 1,030.9 | 893.6 | ||
Total liabilities and shareholders' equity | $ | 7,170.1 | $ | 6,955.5 |
Six Months Ended June 30, | ||||
(in millions) | 2024 | 2023 | ||
Cash flows from operating activities: | ||||
Net income | $ | 290.6 | $ | 298.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 96.1 | 79.7 | ||
Distributions from unconsolidated affiliates | 81.7 | 91.7 | ||
Equity in income of unconsolidated affiliates | (75.5) | (77.1) | ||
Stock-based compensation | 16.1 | 16.7 | ||
Deferred income taxes | 19.7 | 32.4 | ||
Asset impairments | - | 24.5 | ||
Amortization of operating lease assets | 2.7 | 3.5 | ||
Gain on sale of Arlington | - | (114.0) | ||
Other | 4.8 | 3.6 | ||
Changes in operating assets and liabilities: | ||||
Income taxes | 52.9 | 41.6 | ||
Deferred revenue | (45.7) | (15.5) | ||
Other assets and liabilities | 28.3 | 16.8 | ||
Net cash provided by operating activities | 471.7 | 402.6 | ||
Cash flows from investing activities: | ||||
Capital maintenance expenditures | (34.8) | (30.2) | ||
Capital project expenditures | (257.2) | (282.2) | ||
Proceeds from sale of Arlington | - | 195.7 | ||
Other | 1.9 | (2.3) | ||
Net cash used in investing activities | (290.1) | (119.0) | ||
Cash flows from financing activities: | ||||
Proceeds from borrowings under long-term debt obligations | 617.4 | 1,223.3 | ||
Repayments of borrowings under long-term debt obligations | (598.3) | (1,201.4) | ||
Payment of dividends | (28.8) | (26.7) | ||
Repurchase of common stock | (154.7) | (0.5) | ||
Taxes paid related to net share settlement of stock awards | (10.5) | (13.2) | ||
Debt issuance costs | - | (12.2) | ||
Change in bank overdraft | 2.6 | (16.2) | ||
Other | (1.2) | (0.8) | ||
Net cash used in financing activities | (173.5) | (47.7) | ||
Cash flows from discontinued operations: | ||||
Operating activities of discontinued operations | 1.0 | 0.5 | ||
Net increase in cash, cash equivalents and restricted cash | 9.1 | 236.4 | ||
Cash, cash equivalents and restricted cash, beginning of period | 221.8 | 204.7 | ||
Cash, cash equivalents and restricted cash, end of period | $ | 230.9 | $ | 441.1 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
(in millions, except per common share data) | 2024 | 2023 | 2024 | 2023 | ||||
GAAP net income attributable to CDI | $ | 209.3 | $ | 143.0 | $ | 289.7 | $ | 298.7 |
Adjustments, continuing operations: | ||||||||
Changes in fair value of interest rate swaps related to Rivers Des Plaines | - | - | - | - | ||||
Legal reserves and transaction costs related to Rivers Des Plaines | 0.3 | - | 0.3 | - | ||||
Other charges and recoveries, net | (0.1) | (1.2) | (6.8) | (0.9) | ||||
Transaction, pre-opening, and other expense | 8.2 | 16.2 | 20.8 | 22.9 | ||||
Legal reserves | - | - | - | - | ||||
Asset impairments | - | 24.5 | - | 24.5 | ||||
Gain on Dispositions | - | - | - | (114.0) | ||||
Income tax impact on net income adjustments (a)
|
(2.3) | (10.1) | (4.0) | 15.7 | ||||
Total adjustments | 6.1 | 29.4 | 10.3 | (51.8) | ||||
Adjusted net income attributable to CDI | $ | 215.4 | $ | 172.4 | $ | 300.0 | $ | 246.9 |
Adjusted diluted EPS | $ | 2.89 | $ | 2.24 | $ | 4.02 | $ | 3.23 |
Weighted average shares outstanding - Diluted | 74.6 | 76.9 | 74.6 | 76.5 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Total Handle | ||||||||
TwinSpires Horse Racing(a)
|
$ | 653.4 | $ | 635.1 | $ | 1,073.0 | $ | 1,045.7 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Net revenue from external customers: | ||||||||
Live and Historical Racing: | ||||||||
Churchill Downs Racetrack | $ | 228.0 | $ | 178.3 | $ | 231.1 | $ | 180.7 |
Louisville | 53.1 | 45.3 | 106.8 | 89.3 | ||||
Northern Kentucky | 22.0 | 17.3 | 50.5 | 43.6 | ||||
Southwestern Kentucky | 40.2 | 37.6 | 78.8 | 74.1 | ||||
Western Kentucky | 6.1 | 9.4 | 12.9 | 14.2 | ||||
Virginia | 111.9 | 94.6 | 223.1 | 192.3 | ||||
New Hampshire | 3.4 | 2.5 | 6.6 | 5.2 | ||||
Total Live and Historical Racing | $ | 464.7 | $ | 385.0 | $ | 709.8 | $ | 599.4 |
TwinSpires: | $ | 151.7 | $ | 137.4 | $ | 258.3 | $ | 232.2 |
Gaming: | ||||||||
Florida | $ | 26.5 | $ | 26.0 | $ | 52.6 | $ | 52.1 |
Iowa | 23.5 | 24.0 | 46.9 | 48.5 | ||||
Indiana | 33.9 | - | 33.9 | - | ||||
Louisiana | 37.1 | 33.8 | 81.4 | 77.9 | ||||
Maine | 26.8 | 29.5 | 53.6 | 57.2 | ||||
Maryland | 26.2 | 27.6 | 47.8 | 50.9 | ||||
Mississippi | 24.5 | 25.8 | 50.5 | 53.3 | ||||
New York | 46.5 | 44.6 | 91.5 | 89.1 | ||||
Pennsylvania | 29.2 | 34.6 | 55.2 | 66.9 | ||||
Total Gaming | $ | 274.2 | $ | 245.9 | $ | 513.4 | $ | 495.9 |
All Other | 0.1 | 0.2 | 0.1 | 0.5 | ||||
Net revenue from external customers | $ | 890.7 | $ | 768.5 | $ | 1,481.6 | $ | 1,328.0 |
Intercompany net revenues: | ||||||||
Live and Historical Racing | $ | 25.5 | $ | 23.0 | $ | 29.3 | $ | 24.4 |
TwinSpires | 8.2 | 1.7 | 15.7 | 3.3 | ||||
Gaming | 0.2 | 2.0 | 4.2 | 3.6 | ||||
All Other | 1.8 | - | 1.8 | - | ||||
Eliminations | (35.7) | (26.7) | (51.0) | (31.3) | ||||
Intercompany net revenue | $ | - | $ | - | $ | - | $ | - |
Three Months Ended June 30, 2024 | ||||||||||||
(in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Total | ||||||
Net revenue from external customers | ||||||||||||
Pari-mutuel: | ||||||||||||
Live and simulcast racing | $ | 50.4 | $ | 115.4 | $ | 4.5 | $ | 170.3 | $ | - | $ | 170.3 |
Historical racing(a)
|
212.1 | - | 9.3 | 221.4 | - | 221.4 | ||||||
Racing event-related services | 176.0 | - | 1.4 | 177.4 | - | 177.4 | ||||||
Gaming(a)
|
3.3 | 4.3 | 228.1 | 235.7 | - | 235.7 | ||||||
Other(a)
|
22.9 | 32.0 | 30.9 | 85.8 | 0.1 | 85.9 | ||||||
Total | $ | 464.7 | $ | 151.7 | $ | 274.2 | $ | 890.6 | $ | 0.1 | $ | 890.7 |
Three Months Ended June 30, 2023 | ||||||||||||
(in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Total | ||||||
Net revenue from external customers | ||||||||||||
Pari-mutuel: | ||||||||||||
Live and simulcast racing | $ | 40.2 | $ | 117.5 | $ | 3.2 | $ | 160.9 | $ | - | $ | 160.9 |
Historical racing(a)
|
184.1 | - | 7.0 | 191.1 | - | 191.1 | ||||||
Racing event-related services | 136.7 | - | 1.5 | 138.2 | - | 138.2 | ||||||
Gaming(a)
|
2.5 | 1.2 | 206.9 | 210.6 | - | 210.6 | ||||||
Other(a)
|
21.5 | 18.7 | 27.3 | 67.5 | 0.2 | 67.7 | ||||||
Total | $ | 385.0 | $ | 137.4 | $ | 245.9 | $ | 768.3 | $ | 0.2 | $ | 768.5 |
Six Months Ended June 30, 2024 | ||||||||||||
(in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Total | ||||||
Net revenue from external customers | ||||||||||||
Pari-mutuel: | ||||||||||||
Live and simulcast racing | $ | 61.4 | $ | 195.2 | $ | 15.1 | $ | 271.7 | $ | - | $ | 271.7 |
Historical racing(a)
|
424.2 | - | 18.1 | 442.3 | - | 442.3 | ||||||
Racing event-related services | 177.1 | - | 3.6 | 180.7 | - | 180.7 | ||||||
Gaming(a)
|
6.4 | 10.0 | 421.2 | 437.6 | - | 437.6 | ||||||
Other(a)
|
40.7 | 53.1 | 55.4 | 149.2 | 0.1 | 149.3 | ||||||
Total | $ | 709.8 | $ | 258.3 | $ | 513.4 | $ | 1,481.5 | $ | 0.1 | $ | 1,481.6 |
Six Months Ended June 30, 2023 | ||||||||||||
(in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Total | ||||||
Net revenue from external customers | ||||||||||||
Pari-mutuel: | ||||||||||||
Live and simulcast racing | $ | 51.2 | $ | 196.9 | $ | 14.8 | $ | 262.9 | $ | - | $ | 262.9 |
Historical racing(a)
|
369.4 | - | 13.0 | 382.4 | - | 382.4 | ||||||
Racing event-related services | 137.7 | - | 3.4 | 141.1 | - | 141.1 | ||||||
Gaming(a)
|
5.1 | 5.6 | 412.4 | 423.1 | - | 423.1 | ||||||
Other(a)
|
36.0 | 29.7 | 52.3 | 118.0 | 0.5 | 118.5 | ||||||
Total | $ | 599.4 | $ | 232.2 | $ | 495.9 | $ | 1,327.5 | $ | 0.5 | $ | 1,328.0 |
Three Months Ended June 30, 2024 | ||||||||||||||
(in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Eliminations | Total | |||||||
Revenues | $ | 490.2 | $ | 159.9 | $ | 274.4 | $ | 924.5 | $ | 1.9 | $ | (35.7) | $ | 890.7 |
Gaming taxes and purses | (100.0) | (7.3) | (83.5) | (190.8) | - | - | (190.8) | |||||||
Marketing and advertising | (12.5) | (4.9) | (9.2) | (26.6) | (0.1) | - | (26.7) | |||||||
Salaries and benefits | (36.5) | (8.0) | (40.3) | (84.8) | - | - | (84.8) | |||||||
Content expense | (2.1) | (73.3) | (2.6) | (78.0) | - | 27.1 | (50.9) | |||||||
Selling, general and administrative expense | (8.5) | (4.3) | (11.8) | (24.6) | (21.0) | 0.3 | (45.3) | |||||||
Maintenance, insurance and utilities | (11.5) | (1.0) | (11.1) | (23.6) | (0.5) | 1.8 | (22.3) | |||||||
Property and other taxes | (1.8) | - | (3.3) | (5.1) | (0.2) | - | (5.3) | |||||||
Other operating expense | (38.3) | (14.9) | (20.2) | (73.4) | (1.4) | 6.5 | (68.3) | |||||||
Other income | 0.2 | - | 48.3 | 48.5 | - | - | 48.5 | |||||||
Adjusted EBITDA | $ | 279.2 | $ | 46.2 | $ | 140.7 | $ | 466.1 | $ | (21.3) | $ | - | $ | 444.8 |
Three Months Ended June 30, 2023 | ||||||||||||||
(in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Eliminations | Total | |||||||
Revenues | $ | 408.0 | $ | 139.1 | $ | 247.9 | $ | 795.0 | $ | 0.2 | $ | (26.7) | $ | 768.5 |
Gaming taxes and purses | (85.4) | (7.0) | (81.7) | (174.1) | - | - | (174.1) | |||||||
Marketing and advertising | (12.1) | (5.3) | (9.0) | (26.4) | (0.1) | 0.1 | (26.4) | |||||||
Salaries and benefits | (30.3) | (7.5) | (39.5) | (77.3) | - | - | (77.3) | |||||||
Content expense | (2.0) | (68.7) | (2.7) | (73.4) | - | 26.5 | (46.9) | |||||||
Selling, general and administrative expense | (7.3) | (2.7) | (10.3) | (20.3) | (16.8) | 0.4 | (36.7) | |||||||
Maintenance, insurance and utilities | (10.1) | (0.8) | (9.6) | (20.5) | (0.1) | - | (20.6) | |||||||
Property and other taxes | (1.5) | (0.1) | (3.0) | (4.6) | - | - | (4.6) | |||||||
Other operating expense | (36.0) | (13.1) | (17.4) | (66.5) | (0.3) | (0.3) | (67.1) | |||||||
Other income | 0.2 | - | 48.7 | 48.9 | - | - | 48.9 | |||||||
Adjusted EBITDA | $ | 223.5 | $ | 33.9 | $ | 123.4 | $ | 380.8 | $ | (17.1) | $ | - | $ | 363.7 |
Six Months Ended June 30, 2024 | ||||||||||||||
(in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Eliminations | Total | |||||||
Revenues | $ | 739.1 | $ | 274.0 | $ | 517.6 | $ | 1,530.7 | $ | 1.9 | $ | (51.0) | $ | 1,481.6 |
Gaming taxes and purses | (165.0) | (12.2) | (164.0) | (341.2) | - | - | (341.2) | |||||||
Marketing and advertising | (21.8) | (6.1) | (17.0) | (44.9) | (0.1) | - | (45.0) | |||||||
Salaries and benefits | (63.3) | (15.9) | (78.3) | (157.5) | - | - | (157.5) | |||||||
Content expense | (3.4) | (117.3) | (4.4) | (125.1) | - | 36.1 | (89.0) | |||||||
Selling, general and administrative expense | (17.3) | (8.8) | (22.0) | (48.1) | (41.5) | 0.6 | (89.0) | |||||||
Maintenance, insurance and utilities | (21.8) | (2.0) | (20.7) | (44.5) | (2.0) | 1.8 | (44.7) | |||||||
Property and other taxes | (4.5) | (0.1) | (6.7) | (11.3) | (0.4) | - | (11.7) | |||||||
Other operating expense | (62.2) | (25.8) | (38.5) | (126.5) | - | 12.5 | (114.0) | |||||||
Other income | 0.2 | - | 97.5 | 97.7 | 0.1 | - | 97.8 | |||||||
Adjusted EBITDA | $ | 380.0 | $ | 85.8 | $ | 263.5 | $ | 729.3 | $ | (42.0) | $ | - | $ | 687.3 |
Six Months Ended June 30, 2023 | ||||||||||||||
(in millions) | Live and Historical Racing | TwinSpires | Gaming | Total Segments | All Other | Eliminations | Total | |||||||
Revenues | $ | 623.8 | $ | 235.5 | $ | 499.5 | $ | 1,358.8 | $ | 0.5 | $ | (31.3) | $ | 1,328.0 |
Gaming taxes and purses | (141.9) | (12.0) | (165.3) | (319.2) | - | - | (319.2) | |||||||
Marketing and advertising | (20.3) | (6.7) | (17.6) | (44.6) | (0.1) | 0.3 | (44.4) | |||||||
Salaries and benefits | (52.1) | (13.7) | (74.0) | (139.8) | - | - | (139.8) | |||||||
Content expense | (3.5) | (111.7) | (4.5) | (119.7) | - | 30.4 | (89.3) | |||||||
Selling, general and administrative expense | (16.0) | (5.1) | (22.5) | (43.6) | (35.1) | 0.6 | (78.1) | |||||||
Maintenance, insurance and utilities | (19.4) | (1.7) | (19.4) | (40.5) | (0.2) | - | (40.7) | |||||||
Property and other taxes | (2.7) | (0.1) | (6.3) | (9.1) | (0.2) | - | (9.3) | |||||||
Other operating expense | (62.5) | (22.2) | (34.3) | (119.0) | (0.1) | - | (119.1) | |||||||
Other income | 0.2 | 1.0 | 97.3 | 98.5 | - | - | 98.5 | |||||||
Adjusted EBITDA | $ | 305.6 | $ | 63.3 | $ | 252.9 | $ | 621.8 | $ | (35.2) | $ | - | $ | 586.6 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Reconciliation of Comprehensive Income to Adjusted EBITDA: | ||||||||
Net income attributable to Churchill Downs Incorporated | $ | 209.3 | $ | 143.0 | $ | 289.7 | $ | 298.7 |
Net income attributable to noncontrolling interest | 0.9 | - | 0.9 | - | ||||
Net income and comprehensive income | 210.2 | 143.0 | 290.6 | 298.7 | ||||
Additions: | ||||||||
Depreciation and amortization | 49.2 | 41.8 | 96.1 | 79.7 | ||||
Interest expense | 73.5 | 65.2 | 143.9 | 129.9 | ||||
Income tax provision | 84.1 | 56.2 | 105.5 | 109.4 | ||||
EBITDA | $ | 417.0 | $ | 306.2 | $ | 636.1 | $ | 617.7 |
Adjustments to EBITDA: | ||||||||
Stock-based compensation expense | $ | 8.9 | $ | 8.1 | $ | 16.1 | $ | 16.7 |
Arlington exit costs | - | 5.9 | - | 9.3 | ||||
Pre-opening expense | 7.5 | 3.2 | 15.8 | 6.4 | ||||
Other expenses, net | 0.1 | 6.6 | 0.3 | 6.9 | ||||
Asset impairments | - | 24.5 | - | 24.5 | ||||
Transaction expense, net | 0.6 | 0.5 | 4.7 | 0.3 | ||||
Other income, expense: | ||||||||
Interest, depreciation and amortization expense related to equity investments | 10.5 | 9.9 | 20.8 | 19.7 | ||||
Rivers Des Plaines' legal reserves and transaction costs | 0.3 | - | 0.3 | - | ||||
Other charges and recoveries, net | (0.1) | (1.2) | (6.8) | (0.9) | ||||
Gain on Arlington sale | - | - | - | (114.0) | ||||
Total adjustments to EBITDA | 27.8 | 57.5 | 51.2 | (31.1) | ||||
Adjusted EBITDA | $ | 444.8 | $ | 363.7 | $ | 687.3 | $ | 586.6 |
Adjusted EBITDA by segment: | ||||||||
Live and Historical Racing | $ | 279.2 | $ | 223.5 | $ | 380.0 | $ | 305.6 |
TwinSpires | 46.2 | 33.9 | 85.8 | 63.3 | ||||
Gaming | 140.7 | 123.4 | 263.5 | 252.9 | ||||
Total segment Adjusted EBITDA | 466.1 | 380.8 | 729.3 | 621.8 | ||||
All Other | (21.3) | (17.1) | (42.0) | (35.2) | ||||
Total Adjusted EBITDA | $ | 444.8 | $ | 363.7 | $ | 687.3 | $ | 586.6 |
Summarized Income Statement | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Net revenue | $ | 215.9 | $ | 218.7 | $ | 432.8 | $ | 439.3 |
Operating and SG&A expense | 132.2 | 135.0 | 267.1 | 272.2 | ||||
Depreciation and amortization | 7.0 | 5.9 | 13.3 | 11.6 | ||||
Total operating expense | 139.2 | 140.9 | 280.4 | 283.8 | ||||
Operating income | 76.7 | 77.8 | 152.4 | 155.5 | ||||
Interest and other expense, net | (11.4) | (10.7) | (22.4) | (21.6) | ||||
Net income | $ | 65.3 | $ | 67.1 | $ | 130.0 | $ | 133.9 |
Summarized Balance Sheet | ||||
(in millions) | June 30, 2024 | December 31, 2023 | ||
Assets | ||||
Current assets | $ | 91.9 | $ | 104.8 |
Property and equipment, net | 334.3 | 339.4 | ||
Other assets, net | 270.1 | 266.1 | ||
Total assets | $ | 696.3 | $ | 710.3 |
Liabilities and Members' Deficit | ||||
Current liabilities | $ | 103.7 | $ | 106.2 |
Long-term debt | 847.0 | 847.2 | ||
Other liabilities | 0.8 | 0.7 | ||
Members' deficit | (255.2) | (243.8) | ||
Total liabilities and members' deficit | $ | 696.3 | $ | 710.3 |
(in millions) | Project | Target Completion | Planned Spend |
Live and Historical Racing Segment | |||
Churchill Downs Racetrack | Grandstand Club and Pavilion Renovation | April 2025 | $80-90 |
Northern Virginia |
The Rose Gaming Resort (HRM Entertainment Venue) |
Late September 2024 | $460 |
Virginia | Additional ~560 HRMs | TBD | TBD |
Western Kentucky | Owensboro Racing and Gaming (HRM Entertainment Venue) | First Quarter 2025 | $100 |
Southwestern Kentucky | Oak Grove HRM Annex | TBD | TBD |
New Hampshire | Salem HRM Entertainment Venue | TBD | TBD |