Churchill Downs rporated(CHDN) - 2025 Q1 - Quarterly Report

Financial Performance - Net revenue for the three months ended March 31, 2025, was $642.6 million, an increase of$51.7 million compared to $590.9 million in the same period of 2024[113]. - Operating income rose to$134.6 million, up $8.3 million from$126.3 million year-over-year, maintaining an operating income margin of 21%[113]. - Net income attributable to Churchill Downs Incorporated decreased by $3.7 million to$76.7 million compared to $80.4 million in the prior year[113]. - Adjusted EBITDA increased by$2.6 million to $245.1 million, driven by growth in the Live and Historical Racing and Wagering Services segments[113]. - Adjusted EBITDA for the three months ended March 31, 2025, was$245.1 million, an increase of $2.6 million compared to$242.5 million in the same period of 2024[125]. - The company experienced a decrease in net income to $77.2 million for the three months ended March 31, 2025, down from$80.4 million in the same period of 2024[128]. Revenue Segments - The Live and Historical Racing segment generated $276.4 million in revenue, up$27.5 million from $248.9 million in the previous year[117]. - The Gaming segment reported revenue of$267.2 million, an increase of $24.0 million from$243.2 million in the prior year[117]. - The Wagering Services and Solutions segment saw a slight increase in revenue to $115.8 million, up$1.7 million from $114.1 million[117]. - Live and Historical Racing revenue increased by$27.5 million, driven by an $18.2 million increase at Virginia HRM venues and an$8.9 million increase at Kentucky HRM venues[121]. Operating Expenses and Investments - Total operating expenses rose by $43.4 million, primarily due to the openings of Terre Haute Casino Resort and The Rose Gaming Resort[123]. - The company announced project capital investments expected to be between$250.0 million and $290.0 million in 2025, reflecting a temporary pause on certain projects[135]. Assets and Liabilities - Total assets increased by$71.2 million to $7,347.1 million as of March 31, 2025, primarily due to increased capital expenditures[129]. - Total liabilities increased by$81.4 million to $6,254.0 million, driven by increased current deferred revenue related to advance ticket sales[131]. Cash Flow and Debt - Cash flows from operating activities decreased by$8.2 million to $246.5 million for the three months ended March 31, 2025[133]. - Total debt decreased by$31.6 million to $4,907.1 million as of March 31, 2025[139]. - As of March 31, 2025, the Company had a total of$1.8 billion outstanding under its Credit Agreement, which includes a $1.2 billion revolving credit facility,$288.0 million senior secured term loan B-1, and $1.2 billion senior secured term loan A[140][153]. Interest Rates and Lease Obligations - The interest rate margin for the Term Loan B-1 was reduced by 0.25$34.1 million as of March 31, 2025, with $6.7 million due in the next twelve months[150]. - The Company is exposed to a potential$13.4 million reduction in net income and cash flows from operating activities for every one-percentage point increase in the SOFR rate[153]. Stock and Notes - A common stock repurchase program of up to $500.0 million was approved, with approximately$434.6 million of repurchase authority remaining as of March 31, 2025[136]. - The Company has $600.0 million in aggregate principal amount of 5.500$700.0 million in aggregate principal amount of 4.750% senior unsecured notes maturing on January 15, 2028[147]. - The Company has $1.2 billion in aggregate principal amount of 5.750$600.0 million in aggregate principal amount of 6.750% senior unsecured notes maturing on April 25, 2031[149].