Churchill Downs rporated(CHDN) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter 2025 net revenue reached a record $683.0 million, an increase of $54.5 million or 9% compared to $628.5 million in the prior year[5] - Net income attributable to CDI was $38.1 million, down $27.3 million or 42% from $65.4 million in the prior year, primarily due to a one-time, non-cash impairment[5] - Adjusted net income attributable to CDI increased to $77.1 million, up $5.0 million or 7% from $72.1 million in the prior year[5] - Adjusted EBITDA for the third quarter was $262.3 million, an increase of $27.0 million or 11% compared to $235.3 million in the prior year[5] - Operating income for Q3 2025 was $98.0 million, down 22.2% from $125.9 million in Q3 2024[34] - Basic net income per share for Q3 2025 was $0.54, down from $0.87 in Q3 2024[34] - GAAP net income attributable to CDI for Q3 2025 was $38.1 million, down from $65.4 million in Q3 2024, representing a decrease of 41.1%[40] - Adjusted net income attributable to CDI for Q3 2025 increased to $77.1 million, compared to $72.1 million in Q3 2024, reflecting a growth of 4.1%[40] - Total net revenue for Q3 2025 reached $683.0 million, a 8.7% increase from $628.5 million in Q3 2024[34] - For the nine months ended September 30, 2025, total net revenue was $2,260.0 million, an increase of 7.1% from $2,110.1 million in the same period of 2024[44] Revenue Segments - Revenue from Live and Historical Racing segment increased by $53.3 million, driven by growth in Virginia and Kentucky HRM venues[8] - Live and Historical Racing revenue increased to $300.0 million, up 21.2% from $247.5 million year-over-year[34] - Net revenue from external customers for Live and Historical Racing was $300.0 million in Q3 2025, compared to $247.5 million in Q3 2024, indicating a growth of 21.2%[44] - Wagering Services and Solutions segment revenue rose by $8.5 million, attributed to increases from TwinSpires Horse Racing and Exacta[10] - Net revenue from Wagering Services and Solutions for Q3 2025 was $118.0 million, compared to $111.3 million in Q3 2024, reflecting a growth of 6.0%[44] - Total Gaming revenue for Q3 2025 was $265.0 million, slightly down from $269.7 million in Q3 2024, a decrease of 1.7%[44] Acquisitions and Investments - The company completed the acquisition of 90% of Casino Salem for $180 million and began operating a temporary mini casino in New Hampshire[5] - The company completed an acquisition of gaming rights, net of cash acquired, amounting to $185.3 million during the nine months ended September 30, 2025[38] - Capital projects planned for 2025 are estimated to cost between $200 million and $240 million, including various expansions and improvements across multiple segments[60] Shareholder Returns - The Board of Directors approved a dividend of $0.438 per share, marking the fifteenth consecutive year of increased dividends[5] - The company ended the quarter with net bank leverage of 4.1x and returned $53.5 million to shareholders through share repurchases[5] Assets and Liabilities - Total assets as of September 30, 2025, were $7,454.8 million, an increase from $7,275.9 million at the end of 2024[36] - Long-term debt, net of current maturities, increased to $1,963.2 million from $1,767.9 million at the end of 2024[36] - Total assets as of September 30, 2025, were reported at $691.6 million, with current liabilities of $114.6 million and long-term debt of $794.1 million[58] Operational Metrics - Cash flows from operating activities for the nine months ended September 30, 2025, were $673.8 million, compared to $641.1 million in 2024, indicating a growth of 5.1%[38] - The company reported asset impairments of $45.1 million in Q3 2025, compared to $3.9 million in Q3 2024[34] - The company reported total adjustments of $39.0 million for Q3 2025, compared to $6.7 million in Q3 2024, indicating a significant increase in adjustments[40] Future Outlook - Future outlook includes continued focus on market expansion and potential new product development to enhance revenue streams[51] - The company plans to maintain strategic investments in technology and gaming equipment to support growth initiatives[51]