Churchill Downs Incorporated (Nasdaq:CHDN) ("CDI" or the "Company")
today reported business results for the second quarter ended June
30, 2018.
Second Quarter 2018
Highlights
- Net revenue of $379.4 million, 12% increase over the prior
year
- Net income of $103.1 million compared to $78.3 million in the
prior year
- Adjusted net income of $105.2 million compared to $73.3 million
in the prior year
- Diluted earnings per share ("EPS") of $7.55 compared to $4.81
in the prior year
- Adjusted diluted EPS of $7.71 compared to $4.50 in the prior
year
- Adjusted EBITDA of $174.5 million, 13% increase over the prior
year
CONSOLIDATED RESULTS |
Second Quarter |
(in
millions, except per share data) |
2018 |
|
2017 |
|
|
|
|
Net
revenue |
$ |
379.4 |
|
|
$ |
339.3 |
|
Net
income |
$ |
103.1 |
|
|
$ |
78.3 |
|
Adjusted
net income(a) |
$ |
105.2 |
|
|
$ |
73.3 |
|
Diluted
EPS |
$ |
7.55 |
|
|
$ |
4.81 |
|
Adjusted
diluted EPS(a) |
$ |
7.71 |
|
|
$ |
4.50 |
|
Adjusted
EBITDA(a) |
$ |
174.5 |
|
|
$ |
154.0 |
|
|
(a) This is a non-GAAP measure. See explanation of non-GAAP
measures below. |
|
On January 9, 2018, the Company closed the sale
of its mobile gaming subsidiary, Big Fish Games Inc. ("Big Fish
Games"), to Aristocrat Technologies, Inc. for aggregate
consideration of approximately $990 million in cash ("Big Fish
Transaction"). For purposes of our consolidated financial
statements and information included in this release prepared in
conformity with U.S. generally accepted accounting principles
("GAAP"), the Big Fish Games segment is classified as held for sale
and discontinued operations. Therefore, Big Fish Games is excluded
from GAAP net revenue, operating income and adjusted EBITDA. Net
income and diluted EPS include the results from Big Fish Games'
discontinued operations. For purposes of our condensed consolidated
statements of cash flows, the Company has included the results of
Big Fish Games. See explanation of Non-GAAP measures below.
Net revenue and adjusted EBITDA will be
discussed in more detail below by Operating Segment.
The Company's second quarter 2018 net income
increased $24.8 million, or 32%, to $103.1 million compared to
$78.3 million for the prior year. Income from continuing
operations, net of tax was $103.2 million for the second quarter
2018, compared to $72.7 million for the prior year.
The $30.5 million increase in income from
continuing operations, net of tax was due to:
- $13.7 million increase in operating income primarily driven by
our Racing, TwinSpires and Casino segments;
- $14.2 million decrease in our income tax provision primarily
due to the reduction in the federal statutory corporate tax rate
from 35% to 21% as a result of the Tax Cuts and Jobs Act;
- $1.9 million decrease in net interest expense associated with
lower outstanding debt balances; and
- $1.1 million increase in equity income of our casino equity
investments.
- Partially offset by a $0.4 million decrease from other
sources.
The Company's second quarter 2018 adjusted net
income was $105.2 million compared to $73.3 million for the second
quarter of 2017, and our adjusted diluted EPS was $7.71 in the
second quarter of 2018 compared to $4.50 in the second quarter of
2017. The adjustments remove transaction expenses, Calder
exit costs, pre-opening expenses included in Other Investments, and
Big Fish Games net income, as described in our supplemental
information to this press release.
OPERATING SEGMENT RESULTS:
We use adjusted EBITDA to evaluate segment
performance, develop strategy and allocate resources. We
utilize the adjusted EBITDA metric because we believe the inclusion
or exclusion of certain recurring items is necessary to provide a
more accurate measure of our core operating results and enables
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.
The operating segment summaries below present
net revenue from external customers and intercompany revenue from
each of our operating segments:
Racing |
Second Quarter |
(in
millions) |
2018 |
|
2017 |
|
|
|
|
Net
revenue |
$ |
194.1 |
|
|
$ |
175.7 |
|
Adjusted
EBITDA |
109.1 |
|
|
98.7 |
|
|
|
|
|
|
|
For the second quarter of 2018, net revenue
increased $18.4 million from the prior year primarily due to a
$19.3 million increase in net revenue at Churchill Downs from a
successful Kentucky Derby and Oaks week driven by increased ticket
sales and handle, partially offset by a $0.9 million decrease at
Fair Grounds Race Course primarily driven by the shift in the
Louisiana Derby timing from April 2017 to March 2018.
Adjusted EBITDA increased $10.4 million from the
prior year driven by a $11.1 million increase at Churchill Downs
primarily from a successful Kentucky Derby and Oaks week driven by
increased ticket sales and handle, partially offset by a $0.7
million decrease from Arlington and Fair Grounds Race Course.
TwinSpires |
Second Quarter |
(in
millions) |
2018 |
|
2017 |
|
|
|
|
Net
revenue |
$ |
94.1 |
|
|
$ |
80.8 |
|
Adjusted
EBITDA |
23.1 |
|
|
19.3 |
|
|
|
|
|
|
|
For the second quarter of 2018, net revenue
increased $13.3 million and adjusted EBITDA increased $3.8 million
primarily due to an increase in handle of 12.2%, which outpaced the
U.S. thoroughbred industry performance by 7.2 percentage
points.
Casino |
Second Quarter |
(in
millions) |
2018 |
|
2017 |
|
|
|
|
Net
revenue |
$ |
98.2 |
|
|
$ |
88.3 |
|
Adjusted
EBITDA |
43.9 |
|
|
37.5 |
|
|
|
|
|
|
|
For the second quarter of 2018, net revenue
increased $9.9 million from the prior year primarily driven by:
- $3.5 million increase at Calder due to capital improvements and
the temporary closure of a competitor due to Hurricane Irma which
re-opened during the second quarter of 2018;
- $3.1 million increase at Oxford primarily due to the hotel
opening in December 2017 and expanded gaming floor; and
- $1.7 million increase at our Louisiana properties, and a $1.6
million increase at Riverwalk, both of which resulted from
successful marketing and promotional activities.
Adjusted EBITDA increased $6.4 million primarily
driven by:
- $4.3 million increase from our wholly-owned Casino properties,
including a $1.5 million increase at Calder, a $1.3 million
increase at Riverwalk, a $0.9 million increase at our Louisiana
properties, and a $0.6 million increase at Oxford, all of which
were primarily driven by the increases in net revenue; and
- $2.1 million increase in our Casino equity investments, driven
by solid performance at Ocean Downs and Miami Valley Gaming.
Conference Call
A conference call regarding this news release is
scheduled for Thursday, August 2, 2018 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 dialing
(877) 372-0878 and entering the pass code 6096827 at least 10
minutes before the appointed time. International callers
should dial (253) 237-1169. An online replay will be
available at approximately noon ET on Thursday, August 2, 2018 and
will continue to be available for two weeks. 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.
Adjusted net income and adjusted diluted EPS
exclude impairment of tangible and intangible assets; gain or loss
on disposal of assets; discontinued operations net income; loss on
modification or extinguishment of debt; certain non-recurring
income tax items; 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
charges, recoveries, and expenses.
Adjusted EBITDA includes CDI's portion of the
EBITDA from our equity investments.
Adjusted EBITDA excludes:
- Transaction expense, net which includes:
- Acquisition and disposition related charges, including fair
value adjustments related to earnouts and deferred payments;
and
- Other transaction expense, including legal, accounting, and
other deal-related expense;
- Stock-based compensation expense;
- Asset impairments;
- Gain on Calder land sale;
- Calder exit costs;
- Loss on extinguishment of debt;
- Pre-opening expense; and
- Other charges, recoveries and expenses
For purposes of segment reporting, adjusted
EBITDA includes intercompany revenue and expense totals that are
eliminated in the condensed consolidated statements of
comprehensive income. Refer to the reconciliation of
comprehensive income to adjusted EBITDA included herewith for
additional information.
The Company uses non-GAAP measures as a key
performance measure of the results of operations for purposes of
evaluating performance internally. The measure facilitates
comparison of operating performance between periods and helps
investors to better understand the operating results of CDI by
excluding certain items that may not be indicative of the Company's
core business or operating results. The Company believes the use of
this measure 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.
Due to the Big Fish Transaction, the Company has
presented Big Fish Games as held for sale and discontinued
operations in the condensed consolidated financial statements and
related notes in our Quarterly Report on Form 10-Q. The
Company has not allocated corporate and other certain expenses to
Big Fish Games consistent with the discontinued operations
presentation in the accompanying consolidated statements of
comprehensive income. Accordingly, the prior year amounts
were reclassified to conform to this presentation.
About Churchill Downs
Incorporated
Churchill Downs Incorporated ("CDI") (Nasdaq:
CHDN), headquartered in Louisville, Ky., is an industry-leading
racing, gaming and online entertainment company anchored by our
iconic flagship event - The Kentucky Derby. We are the
largest legal online account wagering platform for horseracing in
the U.S., through our ownership of TwinSpires.com and have
announced our plans to enter the U.S. real money online gaming and
sports betting markets. We are also a leader in
brick-and-mortar casino gaming with approximately 10,000 gaming
positions in eight states. Additional information about CDI
can be found online at www.churchilldownsincorporated.com.
Information set forth in this press release
contains various "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The Private Securities Litigation
Reform Act of 1995 (the "Act") provides certain "safe harbor"
provisions for forward-looking statements. All forward-looking
statements made in this press release are made pursuant to the
Act.
The reader is cautioned that such
forward-looking statements are based on information available at
the time and/or management’s good faith belief with respect to
future events, and are subject to risks and uncertainties that
could cause actual performance or results to differ materially from
those expressed in the statements. Forward-looking statements speak
only as of the date the statement was made. We assume no obligation
to update forward-looking information to reflect actual results,
changes in assumptions or changes in other factors affecting
forward-looking information. 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," and similar
words, 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 effect of
economic conditions on our consumers' confidence and discretionary
spending or our access to credit; additional or increased taxes and
fees; public perceptions or lack of confidence in the integrity of
our business; loss of key or highly skilled personnel; restrictions
in our debt facilities limiting our flexibility to operate our
business; general risks related to real estate ownership, including
fluctuations in market values and environmental regulations;
catastrophic events and system failures disrupting our operations,
including the impact of natural and other disasters on our
operations and our ability to obtain insurance recoveries in
respect of such losses; inability to identify and complete
acquisition, expansion or divestiture projects, on time, on budget
or as planned; difficulty in integrating recent or future
acquisitions into our operations; legalization of online real money
gaming in the United States, and our ability to capitalize on and
predict such legalization; the number of people attending and
wagering on live horse races; inability to respond to rapid
technological changes in a timely manner; inadvertent infringement
of the intellectual property of others; inability to protect our
own intellectual property rights; security breaches and other
security risks related to our technology, personal information,
source code and other proprietary information, including failure to
comply with regulations and other legal obligations relating to
receiving, processing, storing and using personal information;
payment- related risks, such as chargebacks for fraudulent credit
card use; compliance with the Foreign Corrupt Practices Act or
applicable money-laundering regulations; work stoppages and labor
issues; difficulty in attracting a sufficient number of horses and
trainers for full field horseraces; inability to negotiate
agreements with industry constituents, including horsemen and other
racetracks; personal injury litigation related to injuries
occurring at our racetracks; the inability of our totalisator
company, United Tote, to maintain its processes accurately, keep
its technology current or maintain its significant customers;
weather conditions affecting our ability to conduct live racing;
increased competition in the horseracing business; changes in the
regulatory environment of our racing operations; declining
popularity in horseracing; seasonal fluctuations in our horseracing
business due to geographic concentration of our operations;
increased competition in our casino business; changes in regulatory
environment of our casino business; the cost and possibility for
delay, cost overruns and other uncertainties associated with the
development and expansion of casinos; concentration and evolution
of slot machine manufacturing and other technology conditions that
could impose additional costs; impact of further legislation
prohibiting tobacco smoking; geographic concentration of our casino
business; changes in regulatory environment for our advanced
deposit wagering business; increase in competition in the advanced
deposit wagering business; inability to retain current customers or
attract new customers to our advanced deposit wagering business;
uncertainty and changes in the legal landscape relating to our
advanced deposit wagering business; and failure to comply with laws
requiring us to block access to certain individuals could result in
penalties or impairment in our ability to offer advanced deposit
wagering.
CHURCHILL DOWNS
INCORPORATEDCONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME(Unaudited)
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
(in
millions, except per common share data) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Net
revenue: |
|
|
|
|
|
|
|
Racing |
$ |
182.5 |
|
|
$ |
165.3 |
|
|
$ |
206.2 |
|
|
$ |
189.2 |
|
TwinSpires |
93.7 |
|
|
80.5 |
|
|
156.9 |
|
|
132.5 |
|
Casino |
98.2 |
|
|
88.3 |
|
|
196.3 |
|
|
175.8 |
|
Other Investments |
5.0 |
|
|
5.2 |
|
|
9.3 |
|
|
9.3 |
|
Total net revenue |
379.4 |
|
|
339.3 |
|
|
568.7 |
|
|
506.8 |
|
Operating expense: |
|
|
|
|
|
|
|
Racing |
85.3 |
|
|
76.5 |
|
|
121.2 |
|
|
112.9 |
|
TwinSpires |
59.4 |
|
|
51.4 |
|
|
103.4 |
|
|
87.8 |
|
Casinos |
67.3 |
|
|
62.1 |
|
|
132.1 |
|
|
124.8 |
|
Other Investments |
5.0 |
|
|
4.9 |
|
|
9.6 |
|
|
8.8 |
|
Corporate |
0.6 |
|
|
0.6 |
|
|
1.1 |
|
|
1.2 |
|
Selling, general and administrative expense |
23.1 |
|
|
20.2 |
|
|
41.5 |
|
|
38.8 |
|
Calder exit costs |
— |
|
|
0.2 |
|
|
— |
|
|
0.6 |
|
Transaction expense, net |
2.1 |
|
|
0.5 |
|
|
3.5 |
|
|
0.5 |
|
Total operating expense |
242.8 |
|
|
216.4 |
|
|
412.4 |
|
|
375.4 |
|
Operating income |
136.6 |
|
|
122.9 |
|
|
156.3 |
|
|
131.4 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense, net |
(9.7 |
) |
|
(11.6 |
) |
|
(19.3 |
) |
|
(23.4 |
) |
Equity in income of unconsolidated investments |
8.8 |
|
|
7.7 |
|
|
15.3 |
|
|
13.8 |
|
Miscellaneous, net |
0.3 |
|
|
0.7 |
|
|
0.4 |
|
|
0.7 |
|
Total other expense |
(0.6 |
) |
|
(3.2 |
) |
|
(3.6 |
) |
|
(8.9 |
) |
Income from continuing operations before provision for income
taxes |
136.0 |
|
|
119.7 |
|
|
152.7 |
|
|
122.5 |
|
Income tax
provision |
(32.8 |
) |
|
(47.0 |
) |
|
(35.4 |
) |
|
(47.6 |
) |
Income from
continuing operations, net of tax |
103.2 |
|
|
72.7 |
|
|
117.3 |
|
|
74.9 |
|
(Loss)
income from discontinued operations, net of tax |
(0.1 |
) |
|
5.6 |
|
|
167.8 |
|
|
10.7 |
|
Net
income |
$ |
103.1 |
|
|
$ |
78.3 |
|
|
$ |
285.1 |
|
|
$ |
85.6 |
|
Net
income (loss) per common share data - basic: |
|
|
|
|
|
|
|
Continuing operations |
$ |
7.61 |
|
|
$ |
4.52 |
|
|
$ |
8.38 |
|
|
$ |
4.62 |
|
Discontinued operations |
$ |
(0.01 |
) |
|
$ |
0.34 |
|
|
$ |
11.98 |
|
|
$ |
0.65 |
|
Net income per common share data -
basic: |
$ |
7.60 |
|
|
$ |
4.86 |
|
|
$ |
20.36 |
|
|
$ |
5.27 |
|
Net
income (loss) per common share data - diluted: |
|
|
|
|
|
|
|
Continuing operations |
$ |
7.57 |
|
|
$ |
4.47 |
|
|
$ |
8.34 |
|
|
$ |
4.53 |
|
Discontinued operations |
$ |
(0.02 |
) |
|
$ |
0.34 |
|
|
$ |
11.92 |
|
|
$ |
0.65 |
|
Net income per common share data -
diluted: |
$ |
7.55 |
|
|
$ |
4.81 |
|
|
$ |
20.26 |
|
|
$ |
5.18 |
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
Basic |
13.5 |
|
|
16.1 |
|
|
14.0 |
|
|
16.2 |
|
Diluted |
13.6 |
|
|
16.3 |
|
|
14.1 |
|
|
16.5 |
|
Other comprehensive loss: |
|
|
|
|
|
|
|
Foreign currency translation, net of tax |
— |
|
|
(0.3 |
) |
|
— |
|
|
(0.4 |
) |
Change in pension benefits, net of tax |
(0.2 |
) |
|
— |
|
|
(0.2 |
) |
|
— |
|
Other
comprehensive loss |
(0.2 |
) |
|
(0.3 |
) |
|
(0.2 |
) |
|
(0.4 |
) |
Comprehensive income |
$ |
102.9 |
|
|
$ |
78.0 |
|
|
$ |
284.9 |
|
|
$ |
85.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHURCHILL DOWNS
INCORPORATEDCONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited)
(in
millions) |
June 30, 2018 |
|
December 31, 2017 |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
254.6 |
|
|
$ |
51.7 |
|
Restricted cash |
40.1 |
|
|
31.2 |
|
Accounts receivable, net |
37.3 |
|
|
49.6 |
|
Income taxes receivable |
— |
|
|
35.6 |
|
Other current assets |
22.1 |
|
|
18.9 |
|
Current assets of discontinued operations held for sale |
— |
|
|
69.1 |
|
Total current assets |
354.1 |
|
|
256.1 |
|
Property
and equipment, net |
668.5 |
|
|
608.0 |
|
Investment
in and advances to unconsolidated affiliates |
176.8 |
|
|
171.3 |
|
Goodwill |
317.6 |
|
|
317.6 |
|
Other
intangible assets, net |
166.5 |
|
|
169.4 |
|
Other
assets |
13.1 |
|
|
13.6 |
|
Long-term
assets of discontinued operations held for sale |
— |
|
|
823.4 |
|
Total assets |
$ |
1,696.6 |
|
|
$ |
2,359.4 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
79.0 |
|
|
$ |
54.1 |
|
Purses payable |
26.3 |
|
|
12.5 |
|
Account wagering deposit liabilities |
31.5 |
|
|
24.0 |
|
Accrued expense |
95.2 |
|
|
75.8 |
|
Income taxes payable |
24.5 |
|
|
— |
|
Current deferred revenue |
13.6 |
|
|
70.9 |
|
Current maturities of long-term debt |
4.0 |
|
|
4.0 |
|
Dividends payable |
— |
|
|
23.7 |
|
Current liabilities of discontinued operations held for
sale |
— |
|
|
188.2 |
|
Total current liabilities |
274.1 |
|
|
453.2 |
|
Long-term
debt, net of current maturities and loan origination fees |
389.0 |
|
|
632.9 |
|
Notes
payable, net of debt issuance costs |
492.7 |
|
|
492.3 |
|
Non-current
deferred revenue |
21.1 |
|
|
29.3 |
|
Deferred
income taxes |
48.6 |
|
|
40.6 |
|
Other
liabilities |
17.9 |
|
|
16.0 |
|
Non-current
liabilities of discontinued operations held for sale |
— |
|
|
54.8 |
|
Total liabilities |
1,243.4 |
|
|
1,719.1 |
|
Commitments
and contingencies |
|
|
|
Shareholders' equity: |
|
|
|
Preferred stock, no par value; 0.3 shares authorized; no
shares issued or outstanding |
— |
|
|
— |
|
Common stock, no par value; 50.0 shares authorized; 13.6
shares issued and outstanding at June 30, 2018 and 15.4 shares at
December 31, 2017 |
6.0 |
|
|
7.3 |
|
Retained earnings |
448.1 |
|
|
634.3 |
|
Accumulated other comprehensive loss |
(0.9 |
) |
|
(1.3 |
) |
Total shareholders' equity |
453.2 |
|
|
640.3 |
|
Total liabilities and shareholders'
equity |
$ |
1,696.6 |
|
|
$ |
2,359.4 |
|
|
|
|
|
|
|
|
|
CHURCHILL DOWNS
INCORPORATEDCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOW(unaudited) |
|
Six Months Ended June
30, |
(in
millions) |
2018 |
|
2017 |
Cash flows from operating activities: |
|
|
|
Net income |
$ |
285.1 |
|
|
$ |
85.6 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
29.1 |
|
|
49.3 |
|
Game software development amortization |
0.4 |
|
|
8.7 |
|
Gain on sale of Big Fish Games |
(219.5 |
) |
|
— |
|
Distributed earnings from unconsolidated affiliates |
9.9 |
|
|
8.7 |
|
Equity in income of unconsolidated affiliates |
(15.3 |
) |
|
(13.8 |
) |
Stock-based compensation |
12.6 |
|
|
11.7 |
|
Deferred income taxes |
6.9 |
|
|
— |
|
Big Fish Games earnout payment |
(2.4 |
) |
|
(2.5 |
) |
Big Fish Games deferred payment |
(2.0 |
) |
|
— |
|
Other |
1.7 |
|
|
1.7 |
|
Increase (decrease) in cash resulting from changes in
operating assets and liabilities, net of business acquisitions and
dispositions: |
|
|
|
Game software development |
(0.3 |
) |
|
(11.3 |
) |
Income taxes |
55.3 |
|
|
50.0 |
|
Deferred revenue |
(43.7 |
) |
|
(34.9 |
) |
Other assets and liabilities |
44.5 |
|
|
15.2 |
|
Net cash provided by operating activities |
162.3 |
|
|
168.4 |
|
Cash flows from investing activities: |
|
|
|
Capital maintenance expenditures |
(13.7 |
) |
|
(17.9 |
) |
Capital project expenditures |
(58.7 |
) |
|
(46.1 |
) |
Acquisition of a business |
— |
|
|
(23.1 |
) |
Proceeds from sale of Big Fish Games |
970.7 |
|
|
— |
|
Receivable from escrow |
— |
|
|
13.6 |
|
Investment in unconsolidated affiliates |
— |
|
|
(24.0 |
) |
Other |
(5.9 |
) |
|
0.2 |
|
Net cash provided by (used in) investing activities |
892.4 |
|
|
(97.3 |
) |
Cash flows from financing activities: |
|
|
|
Proceeds from borrowings under long-term debt
obligations |
117.2 |
|
|
543.6 |
|
Repayments of borrowings under long-term debt
obligations |
(361.3 |
) |
|
(394.2 |
) |
Big Fish Games earnout payment |
(31.8 |
) |
|
(31.7 |
) |
Big Fish Games deferred payment |
(26.4 |
) |
|
— |
|
Payment of dividends |
(23.5 |
) |
|
(21.8 |
) |
Repurchase of common stock |
(514.7 |
) |
|
(181.0 |
) |
Other |
(4.4 |
) |
|
3.8 |
|
Net cash used in financing activities |
(844.9 |
) |
|
(81.3 |
) |
Net
increase (decrease) in cash, cash equivalents and restricted
cash |
209.8 |
|
|
(10.2 |
) |
Effect of
exchange rate changes on cash |
(0.6 |
) |
|
0.6 |
|
Cash, cash
equivalents and restricted cash, beginning of period |
85.5 |
|
|
83.0 |
|
Cash, cash
equivalents and restricted cash, end of period |
$ |
294.7 |
|
|
$ |
73.4 |
|
|
|
|
|
|
|
|
|
CHURCHILL DOWNS
INCORPORATEDSUPPLEMENTAL
INFORMATION(Unaudited)
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
GAAP net
income |
$ |
103.1 |
|
|
$ |
78.3 |
|
|
$ |
285.1 |
|
|
$ |
85.6 |
|
|
|
|
|
|
|
|
|
Adjustments, continuing operations: |
|
|
|
|
|
|
|
Transaction expense, net |
2.1 |
|
|
0.5 |
|
|
3.5 |
|
|
0.5 |
|
Calder exit costs |
— |
|
|
0.2 |
|
|
— |
|
|
0.6 |
|
Pre-opening expense included in other investments |
0.7 |
|
|
0.2 |
|
|
1.3 |
|
|
0.2 |
|
Income tax impact on net income adjustments(b) |
(0.8 |
) |
|
(0.3 |
) |
|
(1.1 |
) |
|
(0.4 |
) |
Total
adjustments, continuing operations |
2.0 |
|
|
0.6 |
|
|
3.7 |
|
|
0.9 |
|
Gain on Big
Fish Transaction, net of tax(c) |
— |
|
|
— |
|
|
(168.3 |
) |
|
— |
|
Big Fish
Games net income(c) |
0.1 |
|
|
(5.6 |
) |
|
0.5 |
|
|
(10.7 |
) |
Total
adjustments |
2.1 |
|
|
(5.0 |
) |
|
(164.1 |
) |
|
(9.8 |
) |
Adjusted
net income |
$ |
105.2 |
|
|
$ |
73.3 |
|
|
$ |
121.0 |
|
|
$ |
75.8 |
|
|
|
|
|
|
|
|
|
Adjusted
diluted EPS |
$ |
7.71 |
|
|
$ |
4.50 |
|
|
$ |
8.60 |
|
|
$ |
4.59 |
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - Diluted |
13.6 |
|
|
16.3 |
|
|
14.1 |
|
|
16.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) 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.
(c) Due to the Big Fish Transaction, the Big Fish Games
segment is presented as a discontinued operation.
CHURCHILL DOWNS
INCORPORATEDSUPPLEMENTAL INFORMATION BY OPERATING
UNIT(Unaudited)
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
(in
millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Net
revenue from external customers: |
|
|
|
|
|
|
|
Racing: |
|
|
|
|
|
|
|
Churchill Downs |
$ |
154.9 |
|
|
$ |
136.7 |
|
|
$ |
156.9 |
|
|
$ |
139.0 |
|
Arlington |
17.7 |
|
|
18.0 |
|
|
26.0 |
|
|
26.5 |
|
Fair Grounds |
9.2 |
|
|
10.0 |
|
|
22.0 |
|
|
22.5 |
|
Calder |
0.7 |
|
|
0.6 |
|
|
1.3 |
|
|
1.2 |
|
Total Racing |
182.5 |
|
|
165.3 |
|
|
206.2 |
|
|
189.2 |
|
TwinSpires |
93.7 |
|
|
80.5 |
|
|
156.9 |
|
|
132.5 |
|
Casino: |
|
|
|
|
|
|
|
Oxford Casino |
26.2 |
|
|
23.1 |
|
|
50.4 |
|
|
44.0 |
|
Riverwalk Casino |
13.6 |
|
|
12.0 |
|
|
28.0 |
|
|
23.5 |
|
Harlow’s Casino |
12.5 |
|
|
12.5 |
|
|
25.8 |
|
|
26.0 |
|
Calder Casino |
25.3 |
|
|
21.8 |
|
|
49.6 |
|
|
43.2 |
|
Fair Grounds Slots |
9.2 |
|
|
8.8 |
|
|
19.8 |
|
|
19.0 |
|
VSI |
11.1 |
|
|
9.8 |
|
|
22.1 |
|
|
19.5 |
|
Saratoga |
0.3 |
|
|
0.3 |
|
|
0.6 |
|
|
0.6 |
|
Total Casino |
98.2 |
|
|
88.3 |
|
|
196.3 |
|
|
175.8 |
|
Other Investments |
5.0 |
|
|
5.2 |
|
|
9.3 |
|
|
9.3 |
|
Net revenue from external customers |
$ |
379.4 |
|
|
$ |
339.3 |
|
|
$ |
568.7 |
|
|
$ |
506.8 |
|
|
|
|
|
|
|
|
|
Intercompany net revenue: |
|
|
|
|
|
|
|
Racing: |
|
|
|
|
|
|
|
Churchill Downs |
$ |
9.4 |
|
|
$ |
8.4 |
|
|
$ |
9.7 |
|
|
$ |
8.7 |
|
Arlington |
2.1 |
|
|
1.9 |
|
|
3.3 |
|
|
2.9 |
|
Fair Grounds |
0.1 |
|
|
0.1 |
|
|
1.1 |
|
|
1.0 |
|
Total Racing |
11.6 |
|
|
10.4 |
|
|
14.1 |
|
|
12.6 |
|
TwinSpires |
0.4 |
|
|
0.3 |
|
|
0.8 |
|
|
0.6 |
|
Other Investments |
1.5 |
|
|
1.3 |
|
|
2.7 |
|
|
2.7 |
|
Eliminations |
(13.5 |
) |
|
(12.0 |
) |
|
(17.6 |
) |
|
(15.9 |
) |
Intercompany net revenue |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHURCHILL DOWNS
INCORPORATEDSUPPLEMENTAL INFORMATION BY OPERATING
UNIT(Unaudited)
Adjusted EBITDA by segment is comprised of the
following:
|
Three Months Ended June 30,
2018 |
(in
millions) |
Racing |
|
TwinSpires |
|
Casino |
|
Other Investments |
|
Corporate |
|
Eliminations |
|
Total |
Net
revenue |
$ |
194.1 |
|
|
$ |
94.1 |
|
|
$ |
98.2 |
|
|
$ |
6.5 |
|
|
$ |
— |
|
|
$ |
(13.5 |
) |
|
$ |
379.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes &
purses |
(34.4 |
) |
|
(4.6 |
) |
|
(33.4 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(72.4 |
) |
Marketing
& advertising |
(3.6 |
) |
|
(3.1 |
) |
|
(3.5 |
) |
|
(0.1 |
) |
|
— |
|
|
0.1 |
|
|
(10.2 |
) |
Salaries
& benefits |
(15.3 |
) |
|
(2.4 |
) |
|
(13.6 |
) |
|
(3.6 |
) |
|
— |
|
|
— |
|
|
(34.9 |
) |
Content
expense |
(4.7 |
) |
|
(49.8 |
) |
|
— |
|
|
— |
|
|
— |
|
|
12.8 |
|
|
(41.7 |
) |
Selling,
general & administrative expense |
(4.6 |
) |
|
(2.9 |
) |
|
(5.6 |
) |
|
(0.7 |
) |
|
(2.6 |
) |
|
0.4 |
|
|
(16.0 |
) |
Other
operating expense |
(22.8 |
) |
|
(8.2 |
) |
|
(11.1 |
) |
|
(1.1 |
) |
|
(0.1 |
) |
|
0.2 |
|
|
(43.1 |
) |
Other
income |
0.4 |
|
|
— |
|
|
12.9 |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
13.4 |
|
Adjusted
EBITDA |
$ |
109.1 |
|
|
$ |
23.1 |
|
|
$ |
43.9 |
|
|
$ |
1.1 |
|
|
$ |
(2.7 |
) |
|
$ |
— |
|
|
$ |
174.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2017 |
(in
millions) |
Racing |
|
TwinSpires |
|
Casino |
|
Other Investments |
|
Corporate(d) |
|
Eliminations |
|
Total |
Net
revenue |
$ |
175.7 |
|
|
$ |
80.8 |
|
|
$ |
88.3 |
|
|
$ |
6.5 |
|
|
$ |
— |
|
|
$ |
(12.0 |
) |
|
$ |
339.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes &
purses |
(32.9 |
) |
|
(4.1 |
) |
|
(29.7 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(66.7 |
) |
Marketing
& advertising |
(2.2 |
) |
|
(4.6 |
) |
|
(3.0 |
) |
|
— |
|
|
— |
|
|
0.2 |
|
|
(9.6 |
) |
Salaries
& benefits |
(13.5 |
) |
|
(2.6 |
) |
|
(13.4 |
) |
|
(3.3 |
) |
|
— |
|
|
— |
|
|
(32.8 |
) |
Content
expense |
(4.7 |
) |
|
(40.2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
11.3 |
|
|
(33.6 |
) |
Selling,
general & administrative expense |
(4.2 |
) |
|
(3.0 |
) |
|
(5.6 |
) |
|
(0.7 |
) |
|
(2.5 |
) |
|
0.3 |
|
|
(15.7 |
) |
Other
operating expense |
(20.0 |
) |
|
(7.0 |
) |
|
(9.8 |
) |
|
(1.2 |
) |
|
(0.3 |
) |
|
(0.1 |
) |
|
(38.4 |
) |
Other
income |
0.5 |
|
|
— |
|
|
10.7 |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
11.5 |
|
Adjusted
EBITDA |
$ |
98.7 |
|
|
$ |
19.3 |
|
|
$ |
37.5 |
|
|
$ |
1.3 |
|
|
$ |
(2.8 |
) |
|
$ |
— |
|
|
$ |
154.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) The Corporate segment includes
corporate and other certain expenses of $0.7 million for the three
months ended June 30, 2017 that have not been allocated to Big
Fish Games as a result of the Big Fish Transaction. The Big
Fish Games segment is reported as held for sale and discontinued
operations in the condensed consolidated financial statements and
the notes in our Quarterly Report on Form 10-Q.
|
Six Months Ended June 30,
2018 |
(in
millions) |
Racing |
|
TwinSpires |
|
Casino |
|
Other Investments |
|
Corporate |
|
Eliminations |
|
Total |
Net
revenue |
$ |
220.3 |
|
|
$ |
157.7 |
|
|
$ |
196.3 |
|
|
$ |
12.0 |
|
|
$ |
— |
|
|
$ |
(17.6 |
) |
|
$ |
568.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes &
purses |
(44.7 |
) |
|
(8.0 |
) |
|
(65.8 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(118.5 |
) |
Marketing
& advertising |
(4.4 |
) |
|
(3.9 |
) |
|
(6.7 |
) |
|
(0.1 |
) |
|
— |
|
|
0.2 |
|
|
(14.9 |
) |
Salaries
& benefits |
(23.9 |
) |
|
(4.5 |
) |
|
(27.1 |
) |
|
(6.8 |
) |
|
— |
|
|
— |
|
|
(62.3 |
) |
Content
expense |
(7.8 |
) |
|
(82.0 |
) |
|
— |
|
|
— |
|
|
— |
|
|
16.1 |
|
|
(73.7 |
) |
Selling,
general & administrative expense |
(8.6 |
) |
|
(5.7 |
) |
|
(11.0 |
) |
|
(1.4 |
) |
|
(5.0 |
) |
|
0.7 |
|
|
(31.0 |
) |
Other
operating expense |
(31.6 |
) |
|
(14.0 |
) |
|
(21.2 |
) |
|
(2.4 |
) |
|
(0.3 |
) |
|
0.6 |
|
|
(68.9 |
) |
Other
income (expense) |
0.4 |
|
|
— |
|
|
23.7 |
|
|
0.1 |
|
|
0.1 |
|
|
— |
|
|
24.3 |
|
Adjusted
EBITDA |
$ |
99.7 |
|
|
$ |
39.6 |
|
|
$ |
88.2 |
|
|
$ |
1.4 |
|
|
$ |
(5.2 |
) |
|
$ |
— |
|
|
$ |
223.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
2017 |
(in
millions) |
Racing |
|
TwinSpires |
|
Casino |
|
Other Investments |
|
Corporate(e) |
|
Eliminations |
|
Total |
Net
revenue |
$ |
201.8 |
|
|
$ |
133.1 |
|
|
$ |
175.8 |
|
|
$ |
12.0 |
|
|
$ |
— |
|
|
$ |
(15.9 |
) |
|
$ |
506.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes &
purses |
(43.1 |
) |
|
(7.1 |
) |
|
(58.8 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(109.0 |
) |
Marketing
& advertising |
(2.9 |
) |
|
(5.6 |
) |
|
(6.0 |
) |
|
— |
|
|
— |
|
|
0.3 |
|
|
(14.2 |
) |
Salaries
& benefits |
(22.1 |
) |
|
(4.8 |
) |
|
(26.5 |
) |
|
(6.2 |
) |
|
— |
|
|
— |
|
|
(59.6 |
) |
Content
expense |
(7.9 |
) |
|
(65.6 |
) |
|
— |
|
|
— |
|
|
— |
|
|
14.1 |
|
|
(59.4 |
) |
Selling,
general & administrative expense |
(8.0 |
) |
|
(5.7 |
) |
|
(10.8 |
) |
|
(1.5 |
) |
|
(5.4 |
) |
|
0.6 |
|
|
(30.8 |
) |
Other
operating expense |
(29.3 |
) |
|
(11.8 |
) |
|
(21.2 |
) |
|
(2.5 |
) |
|
(0.5 |
) |
|
0.6 |
|
|
(64.7 |
) |
Other
income (expense) |
0.5 |
|
|
— |
|
|
20.3 |
|
|
0.1 |
|
|
— |
|
|
0.3 |
|
|
21.2 |
|
Adjusted
EBITDA |
$ |
89.0 |
|
|
$ |
32.5 |
|
|
$ |
72.8 |
|
|
$ |
1.9 |
|
|
$ |
(5.9 |
) |
|
$ |
— |
|
|
$ |
190.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e) The Corporate segment includes
corporate and other certain expenses of $1.4 million for the six
months ended June 30, 2017 that have not been allocated to Big
Fish Games as a result of the Big Fish Transaction. The Big
Fish Games segment is reported as held for sale and discontinued
operations in the condensed consolidated financial statements and
the notes in our Quarterly Report on Form 10-Q.
CHURCHILL DOWNS
INCORPORATEDSUPPLEMENTAL INFORMATION BY OPERATING
UNIT(Unaudited)
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
(in
millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Reconciliation of Comprehensive Income to Adjusted
EBITDA: |
|
|
|
|
|
|
|
Comprehensive income |
$ |
102.9 |
|
|
$ |
78.0 |
|
|
$ |
284.9 |
|
|
$ |
85.2 |
|
Foreign
currency translation, net of tax |
— |
|
|
0.3 |
|
|
— |
|
|
0.4 |
|
Change in
pension benefits, net of tax |
0.2 |
|
|
— |
|
|
0.2 |
|
|
— |
|
Net
income |
103.1 |
|
|
78.3 |
|
|
285.1 |
|
|
85.6 |
|
Income from discontinued operations, net of tax |
0.1 |
|
|
(5.6 |
) |
|
(167.8 |
) |
|
(10.7 |
) |
Income from
continuing operations, net of tax |
103.2 |
|
|
72.7 |
|
|
117.3 |
|
|
74.9 |
|
|
|
|
|
|
|
|
|
Additions: |
|
|
|
|
|
|
|
Depreciation and amortization |
15.3 |
|
|
14.4 |
|
|
29.1 |
|
|
28.6 |
|
Interest expense |
9.7 |
|
|
11.6 |
|
|
19.3 |
|
|
23.4 |
|
Income tax provision |
32.8 |
|
|
47.0 |
|
|
35.4 |
|
|
47.6 |
|
EBITDA |
$ |
161.0 |
|
|
$ |
145.7 |
|
|
$ |
201.1 |
|
|
$ |
174.5 |
|
|
|
|
|
|
|
|
|
Adjustments
to EBITDA: |
|
|
|
|
|
|
|
Selling, general and administrative: |
|
|
|
|
|
|
|
Stock-based compensation expense |
6.4 |
|
|
4.4 |
|
|
9.2 |
|
|
7.8 |
|
Other charges |
— |
|
|
(0.2 |
) |
|
— |
|
|
— |
|
Pre-opening expense |
0.7 |
|
|
0.3 |
|
|
1.3 |
|
|
0.3 |
|
Other income, expense: |
|
|
|
|
|
|
|
Interest, depreciation and amortization expense related to
equity investments |
4.3 |
|
|
3.1 |
|
|
8.6 |
|
|
6.6 |
|
Transaction expense, net |
2.1 |
|
|
0.5 |
|
|
3.5 |
|
|
0.5 |
|
Calder exit costs |
— |
|
|
0.2 |
|
|
— |
|
|
0.6 |
|
Total adjustments to EBITDA |
13.5 |
|
|
8.3 |
|
|
22.6 |
|
|
15.8 |
|
Adjusted EBITDA |
$ |
174.5 |
|
|
$ |
154.0 |
|
|
$ |
223.7 |
|
|
$ |
190.3 |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA by segment: |
|
|
|
|
|
|
|
Racing |
$ |
109.1 |
|
|
$ |
98.7 |
|
|
$ |
99.7 |
|
|
$ |
89.0 |
|
TwinSpires |
23.1 |
|
|
19.3 |
|
|
39.6 |
|
|
32.5 |
|
Casinos |
43.9 |
|
|
37.5 |
|
|
88.2 |
|
|
72.8 |
|
Other Investments |
1.1 |
|
|
1.3 |
|
|
1.4 |
|
|
1.9 |
|
Corporate(d) |
(2.7 |
) |
|
(2.8 |
) |
|
(5.2 |
) |
|
(5.9 |
) |
Adjusted EBITDA |
$ |
174.5 |
|
|
$ |
154.0 |
|
|
$ |
223.7 |
|
|
$ |
190.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) The Corporate segment includes
corporate and other certain expenses of $0.7 million for the three
months and $1.4 million for the six months ended June 30, 2017
that have not been allocated to Big Fish Games as a result of the
Big Fish Transaction. The Big Fish Games segment is reported
as held for sale and discontinued operations in the condensed
consolidated financial statements and the notes in our Quarterly
Report on Form 10-Q.
CHURCHILL DOWNS
INCORPORATEDSUPPLEMENTAL INFORMATION BY OPERATING
UNIT(Unaudited)
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
(in
millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Corporate allocated expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Racing |
$ |
(1.6 |
) |
|
$ |
(1.4 |
) |
|
$ |
(3.1 |
) |
|
$ |
(2.8 |
) |
TwinSpires |
(1.3 |
) |
|
(1.3 |
) |
|
(2.7 |
) |
|
(2.5 |
) |
Casinos |
(2.1 |
) |
|
(1.8 |
) |
|
(4.1 |
) |
|
(3.5 |
) |
Other
Investments |
(0.4 |
) |
|
(0.4 |
) |
|
(0.7 |
) |
|
(0.7 |
) |
Corporate
allocated expense |
5.4 |
|
|
4.9 |
|
|
10.6 |
|
|
9.5 |
|
Total Corporate allocated expense |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHURCHILL DOWNS
INCORPORATEDUNCONSOLIDATED AFFILIATES' FINANCIAL
RESULTS(Unaudited)
Summarized below are the financial results for our
unconsolidated affiliates:
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
(in
millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Net
revenue |
$ |
114.5 |
|
|
$ |
109.4 |
|
|
$ |
216.1 |
|
|
$ |
212.7 |
|
Operating
and SG&A expense |
84.4 |
|
|
83.8 |
|
|
163.3 |
|
|
165.5 |
|
Depreciation and amortization |
6.6 |
|
|
5.1 |
|
|
13.1 |
|
|
10.9 |
|
Total
operating expense |
91.0 |
|
|
88.9 |
|
|
176.4 |
|
|
176.4 |
|
Operating income |
23.5 |
|
|
20.5 |
|
|
39.7 |
|
|
36.3 |
|
Interest
and other expense, net |
(2.6 |
) |
|
(2.7 |
) |
|
(4.9 |
) |
|
(5.3 |
) |
Net income |
$ |
20.9 |
|
|
$ |
17.8 |
|
|
$ |
34.8 |
|
|
$ |
31.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions) |
June 30, 2018 |
|
December 31, 2017 |
Assets |
Current
assets |
$ |
71.1 |
|
|
$ |
64.5 |
|
Property
and equipment, net |
231.0 |
|
|
234.6 |
|
Other
assets, net |
241.0 |
|
|
236.5 |
|
Total assets |
$ |
543.1 |
|
|
$ |
535.6 |
|
|
|
|
|
Liabilities and Members' Equity |
|
|
|
Current
liabilities |
$ |
96.8 |
|
|
$ |
100.3 |
|
Long-term
debt, excluding current portion |
104.6 |
|
|
110.1 |
|
Other
liabilities |
1.2 |
|
|
0.1 |
|
Members'
equity |
340.5 |
|
|
325.1 |
|
Total liabilities and members' equity |
$ |
543.1 |
|
|
$ |
535.6 |
|
|
|
|
|
|
|
|
|
CHURCHILL DOWNS
INCORPORATEDUNCONSOLIDATED AFFILIATES' FINANCIAL
RESULTS(Unaudited)
Summarized below are the results for our
unconsolidated affiliate, Miami Valley Gaming, LLC:
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
(in
millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Net
revenue |
$ |
43.7 |
|
|
$ |
42.0 |
|
|
$ |
87.0 |
|
|
$ |
83.4 |
|
Operating
and SG&A expense |
29.9 |
|
|
29.0 |
|
|
59.6 |
|
|
57.6 |
|
Depreciation and amortization |
3.5 |
|
|
3.2 |
|
|
6.9 |
|
|
6.3 |
|
Total
operating expense |
33.4 |
|
|
32.2 |
|
|
66.5 |
|
|
63.9 |
|
Operating income |
10.3 |
|
|
9.8 |
|
|
20.5 |
|
|
19.5 |
|
Interest
and other expense, net |
(0.4 |
) |
|
(0.6 |
) |
|
(0.9 |
) |
|
(1.3 |
) |
Net income |
$ |
9.9 |
|
|
$ |
9.2 |
|
|
$ |
19.6 |
|
|
$ |
18.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions) |
June 30, 2018 |
|
December 31, 2017 |
Assets |
|
|
Current
assets |
$ |
18.7 |
|
|
$ |
18.1 |
|
Property
and equipment, net |
99.9 |
|
|
103.5 |
|
Other
assets, net |
106.9 |
|
|
106.6 |
|
Total assets |
$ |
225.5 |
|
|
$ |
228.2 |
|
|
|
|
|
Liabilities and Members' Equity |
|
|
|
Current
liabilities |
$ |
18.4 |
|
|
$ |
19.0 |
|
Long-term
debt |
3.5 |
|
|
7.1 |
|
Other
liabilities |
0.1 |
|
|
0.1 |
|
Members'
equity |
203.5 |
|
|
202.0 |
|
Total liabilities and members' equity |
$ |
225.5 |
|
|
$ |
228.2 |
|
|
|
|
|
|
|
|
|
Contact: Nick Zangari(502) 394-1157Nick.Zangari@kyderby.com
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