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Churchill Downs rporated(CHDN) - 2024 Q2 - Quarterly Report
CHDNChurchill Downs rporated(CHDN)2024-07-24 20:41
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Revenue Growth - Net revenue increased by 153.6million,drivenbya153.6 million, driven by a 110.4 million increase from the Live and Historical Racing segment due to a record-breaking Derby Week at Churchill Downs Racetrack and the opening of the Rosie's Emporia property[142]. - Net revenue for the second quarter of 2024 was 890.7million,anincreaseof890.7 million, an increase of 122.2 million (15.9%) compared to 768.5millionin2023[168].−Netrevenueincreasedby768.5 million in 2023[168]. - Net revenue increased by 122.2 million, driven by a 79.7millionincreasefromtheLiveandHistoricalRacingsegmentduetoarecord−breakingDerbyWeekandtheopeningoftheRosie′sEmporiaproperty[187].−TotalrevenueforthethreemonthsendedJune30,2024,was79.7 million increase from the Live and Historical Racing segment due to a record-breaking Derby Week and the opening of the Rosie's Emporia property[187]. - Total revenue for the three months ended June 30, 2024, was 890.7 million, an increase of 122.2millioncomparedto122.2 million compared to 768.5 million for the same period in 2023[198]. Income and Earnings - Operating income rose by 110.8million,primarilyduetoa110.8 million, primarily due to a 79.3 million increase from the Live and Historical Racing segment and a 15.3millionincreaseintheTwinSpiressegment[142].−NetincomeattributabletoChurchillDownsIncorporateddecreasedby15.3 million increase in the TwinSpires segment[142]. - Net income attributable to Churchill Downs Incorporated decreased by 9.0 million, impacted by an 86.2millionafter−taxgainonthesaleoftheArlingtonpropertyintheprioryear[142].−NetincomeattributabletoChurchillDownsIncorporatedforthethreemonthsendedJune30,2024,was86.2 million after-tax gain on the sale of the Arlington property in the prior year[142]. - Net income attributable to Churchill Downs Incorporated for the three months ended June 30, 2024, was 209.3 million, a 66.3% increase from 143.0millioninthesameperiodof2023[175].−NetincomeattributabletoChurchillDownsIncorporatedincreasedby143.0 million in the same period of 2023[175]. - Net income attributable to Churchill Downs Incorporated increased by 66.3 million, driven by an 18.5milliondecreaseinafter−taxnon−cashimpairmentcostsanda18.5 million decrease in after-tax non-cash impairment costs and a 5.8 million decrease in transaction expenses[196]. Adjusted EBITDA - Adjusted EBITDA increased by 100.7million,witha100.7 million, with a 74.4 million increase from the Live and Historical Racing segment and a 22.5millionincreasefromtheTwinSpiressegment[142].−AdjustedEBITDAforthesecondquarterof2024was22.5 million increase from the TwinSpires segment[142]. - Adjusted EBITDA for the second quarter of 2024 was 444.8 million, up 81.1million(22.381.1 million (22.3%) from 363.7 million in 2023[168]. - Adjusted EBITDA for the three months ended June 30, 2024, was 444.8million,reflectinganincreaseof81.1444.8 million, reflecting an increase of 81.1% from 363.7 million in the same period of 2023[195]. - Adjusted EBITDA rose by 81.1million,withsignificantcontributionsfromtheLiveandHistoricalRacingsegment(81.1 million, with significant contributions from the Live and Historical Racing segment (55.7 million increase) and the Gaming segment (17.3millionincrease)duetotheopeningoftheTerreHauteCasinoResort[196].SegmentPerformance−LiveandHistoricalRacingrevenueincreasedby17.3 million increase) due to the opening of the Terre Haute Casino Resort[196]. Segment Performance - Live and Historical Racing revenue increased by 82.2 million, driven by a record-breaking Derby Week contributing 37.6million[170].−TwinSpiresrevenueroseby37.6 million[170]. - TwinSpires revenue rose by 20.8 million, with a 14.7millionincreasefromExactaanda14.7 million increase from Exacta and a 1.8 million increase from online sports betting agreements[170]. - Gaming revenue increased by 26.5million,primarilyduetotheopeningoftheTerreHauteCasinoResortinApril2024[170].−LiveandHistoricalRacingsegmentreportedarevenueincreaseof26.5 million, primarily due to the opening of the Terre Haute Casino Resort in April 2024[170]. - Live and Historical Racing segment reported a revenue increase of 82.2 million, from 408.0millioninQ22023to408.0 million in Q2 2023 to 490.2 million in Q2 2024[198]. - TwinSpires revenue rose by 38.5million,witha38.5 million, with a 29.0 million increase from Exacta and a 4.0millionincreasefromonlinesportsbettingagreements[216].−Gamingrevenueincreasedby4.0 million increase from online sports betting agreements[216]. - Gaming revenue increased by 18.1 million, primarily due to the opening of the Terre Haute Casino Resort, which contributed 33.9million[216].ExpensesandLiabilities−Thecompanyexperiencedan33.9 million[216]. Expenses and Liabilities - The company experienced an 11.8 million increase in selling, general, and administrative expenses during the quarter[142]. - Operating expenses rose by 17.8millionforthethreemonthsendedJune30,2024,primarilyduetonewpropertyopeningsandtheExactaTransaction[188].−Totalliabilitiesincreasedby17.8 million for the three months ended June 30, 2024, primarily due to new property openings and the Exacta Transaction[188]. - Total liabilities increased by 61.2 million, driven mainly by increased accounts payable and taxes payable[189]. - Total liabilities increased to 6,123.1millionasofJune30,2024,comparedto6,123.1 million as of June 30, 2024, compared to 6,061.9 million at the end of 2023, reflecting a change of 61.2million[204].AssetsandCapitalExpenditures−TotalassetsasofJune30,2024,were61.2 million[204]. Assets and Capital Expenditures - Total assets as of June 30, 2024, were 7,170.1 million, up from 6,955.5millionasofDecember31,2023[162].−Totalassetsincreasedby6,955.5 million as of December 31, 2023[162]. - Total assets increased by 214.6 million, primarily due to increased capital expenditures at the Terre Haute Casino Resort and Churchill Downs Racetrack[189]. - Total capital expenditures for the six months ended June 30, 2024, were 292.0million,downfrom292.0 million, down from 312.4 million in the same period of 2023[214]. - The company anticipates project capital investments of approximately 450.0to450.0 to 550.0 million in 2024 for various renovations and new gaming facilities[206]. Debt and Financial Agreements - The company had total debt of 4,893.1millionasofJune30,2024,anincreaseof4,893.1 million as of June 30, 2024, an increase of 19.1 million from December 31, 2023[180]. - The company closed an amendment of the Credit Agreement on July 3, 2024, extending the maturity date of the Revolver and Term Loan A from 2027 to 2029[180]. - The company had 1.8billionoutstandingunderitsCreditAgreement,withexposuretomarketriskfromvariableinterestrates[231].−Aone−percentagepointincreaseintheSOFRratewouldreducenetincomeandcashflowsfromoperatingactivitiesby1.8 billion outstanding under its Credit Agreement, with exposure to market risk from variable interest rates[231]. - A one-percentage point increase in the SOFR rate would reduce net income and cash flows from operating activities by 13.0 million[231]. Future Plans and Developments - The company plans to open The Rose Gaming Resort in Virginia in late September 2024, contributing to future growth[188]. - The company intends to appeal a ruling that declared the 2021 Historical Horse Racing Act unconstitutional, which could impact HRM results in Louisiana[167].