Churchill Downs Inc. (CHDN, Financial) filed Quarterly Report for the period ended 2012-09-30.
Churchill Downs Inc. has a market cap of $1.11 billion; its shares were traded at around $65.7 with a P/E ratio of 14.9 and P/S ratio of 1.6. The dividend yield of Churchill Downs Inc. stocks is 1%. Churchill Downs Inc. had an annual average earning growth of 1.9% over the past 10 years.
Online Business EBITDA decreased $0.8 million, primarily due to expenditures of $1.0 million incurred related to the launch of Luckity and the development of exchange wagering during the three months ended September 30, 2012. In addition, losses from our equity investment in HRTV increased $0.4 million during the three months ended September 30, 2012. The Online Business also recognized a higher corporate overhead allocation of $0.3 million due to increased Online Business revenues. Finally, TwinSpires incurred $0.3 million in expenditures related to a data security incident and $0.3 million of non-recurring employee related charges during the three months ended September 30, 2012. Partially offsetting these declines was an increase in EBITDA generated by TwinSpires, corresponding to a 10.6% increase in pari-mutuel handle during the same period.
Our total net revenues increased $26.3 million, primarily from the continuing growth of our Online Business segment and an increase in Racing Operations revenues. Online Business revenues increased $17.0 million during the nine months ended September 30, 2012, compared to the same period of 2011, primarily reflecting an increase in Online Business handle of 13.0%. Revenues generated by Racing Operations increased $6.7 million, primarily reflecting an increase in revenues at Churchill Downs due to a strong performance from Kentucky Oaks and Kentucky Derby week and a 4% increase in live race days during the nine months ended September 30, 2012. Furthermore, Other operating revenues increased $2.9 million predominantly due to an increase in handle-based revenue from United Tote, and we benefitted from the effect of our Bluff acquisition, which we acquired during 2012. Gaming revenues decreased $0.3 million, primarily reflecting a $3.7 million decline in revenue at Calder Casino during the nine months ended September 30, 2012, which was partially offset by an increase in revenue of $3.3 million at Harlow's during the nine months ended September 30, 2012, which was closed for 25 days during the same period of 2011 as a result of damage sustained from the Mississippi River flooding. Further discussion of net revenue variances by our reported segments is detailed below.
Business of $7.8 million, which corresponds to the 13.0% increase in pari-mutuel handle during the nine months ended September 30, 2012. In addition, we incurred $1.6 million in expenses associated with the October 2012 launch of Luckity and the development of exchange wagering during the nine months ended September 30, 2012. We also recognized a non-recurring expense of $0.4 million to credit the wagering accounts of our Online Business customers impacted by incorrect wagering payoffs from a New York Racing Association error that occurred during 2010 and 2011. Furthermore, we recognized a $2.4 million reduction in sales tax expense at Churchill Downs involving a TIF agreement with the Commonwealth of Kentucky during the nine months ended September 30, 2011. Finally, operating expenses increased due to our acquisition of Bluff during the nine months ended September 30, 2012. Partially offsetting these increases were decreases in labor costs, lower utility expenses and other cost control measures implemented by our Racing Operations during the nine months ended September 30, 2012.
Racing Operations EBITDA decreased $12.0 million, which primarily reflects the net impact of recognizing income of $19.3 million during the nine months ended September 30, 2011 from the release of restrictions on the HRE Trust Fund proceeds. In addition, EBITDA declined from the prior year recognition of a reduction in operating expenses of $2.4 million from a TIF agreement with the Commonwealth of Kentucky during the nine months ended September 30, 2011. Additionally, during the nine months ended September 30, 2011, we received insurance recoveries in excess of losses of $0.6 million for tornado damage sustained at Churchill Downs. Finally, Racing Operations recognized a higher corporate overhead allocation of $0.7 million during the nine months ended September 30, 2012. Partially offsetting these declines was increased profitability of $5.4 million from the Kentucky Oaks and Kentucky Derby week related to improvements in admissions, sponsorships, and pari-mutuel revenues during the nine months ended September 30, 2012. In addition, Racing Operations EBITDA benefited from lower labor costs, utility expenses and other cost control measures as compared to the same period of 2011.
Read the The complete Report
Churchill Downs Inc. has a market cap of $1.11 billion; its shares were traded at around $65.7 with a P/E ratio of 14.9 and P/S ratio of 1.6. The dividend yield of Churchill Downs Inc. stocks is 1%. Churchill Downs Inc. had an annual average earning growth of 1.9% over the past 10 years.
Highlight of Business Operations:
Our total net revenues decreased $1.5 million, due in part to a decrease in Racing Operations revenue and from increased competitive pressure within our Gaming segment. Racing Operations revenues decreased $3.9 million as a result of three fewer live race days at Churchill Downs, which contributed to a decline in revenues of $2.3 million, and weather-related cancellations resulting from above average rainfall at Calder, which contributed to a decline in revenues of $1.0 million. Gaming revenues decreased $2.4 million, primarily reflecting a decrease in revenues of $2.4 million at Calder Casino resulting from increased competitive pressures in the South Florida gaming market during the three months ended September 30, 2012. These decreases were partially offset by a $3.6 million increase in revenues generated by the Online Business during the three months ended September 30, 2012, compared to the same period of 2011, due to Online Business handle growth of 10.6%. According to figures published by Equibase, total industry wagering on U.S. thoroughbred racing increased 2.2% during the three months ended September 30, 2012. As a result, our Online Business growth outpaced the industry growth rate by 8.4%. Finally, Other net revenues increased $1.2 million due to an increase in handle-based revenues from United Tote, and from the effect of our Bluff acquisition, which occurred in February 2012. Further discussion of net revenue variances by our reported segments is detailed below.Online Business EBITDA decreased $0.8 million, primarily due to expenditures of $1.0 million incurred related to the launch of Luckity and the development of exchange wagering during the three months ended September 30, 2012. In addition, losses from our equity investment in HRTV increased $0.4 million during the three months ended September 30, 2012. The Online Business also recognized a higher corporate overhead allocation of $0.3 million due to increased Online Business revenues. Finally, TwinSpires incurred $0.3 million in expenditures related to a data security incident and $0.3 million of non-recurring employee related charges during the three months ended September 30, 2012. Partially offsetting these declines was an increase in EBITDA generated by TwinSpires, corresponding to a 10.6% increase in pari-mutuel handle during the same period.
Our total net revenues increased $26.3 million, primarily from the continuing growth of our Online Business segment and an increase in Racing Operations revenues. Online Business revenues increased $17.0 million during the nine months ended September 30, 2012, compared to the same period of 2011, primarily reflecting an increase in Online Business handle of 13.0%. Revenues generated by Racing Operations increased $6.7 million, primarily reflecting an increase in revenues at Churchill Downs due to a strong performance from Kentucky Oaks and Kentucky Derby week and a 4% increase in live race days during the nine months ended September 30, 2012. Furthermore, Other operating revenues increased $2.9 million predominantly due to an increase in handle-based revenue from United Tote, and we benefitted from the effect of our Bluff acquisition, which we acquired during 2012. Gaming revenues decreased $0.3 million, primarily reflecting a $3.7 million decline in revenue at Calder Casino during the nine months ended September 30, 2012, which was partially offset by an increase in revenue of $3.3 million at Harlow's during the nine months ended September 30, 2012, which was closed for 25 days during the same period of 2011 as a result of damage sustained from the Mississippi River flooding. Further discussion of net revenue variances by our reported segments is detailed below.
Business of $7.8 million, which corresponds to the 13.0% increase in pari-mutuel handle during the nine months ended September 30, 2012. In addition, we incurred $1.6 million in expenses associated with the October 2012 launch of Luckity and the development of exchange wagering during the nine months ended September 30, 2012. We also recognized a non-recurring expense of $0.4 million to credit the wagering accounts of our Online Business customers impacted by incorrect wagering payoffs from a New York Racing Association error that occurred during 2010 and 2011. Furthermore, we recognized a $2.4 million reduction in sales tax expense at Churchill Downs involving a TIF agreement with the Commonwealth of Kentucky during the nine months ended September 30, 2011. Finally, operating expenses increased due to our acquisition of Bluff during the nine months ended September 30, 2012. Partially offsetting these increases were decreases in labor costs, lower utility expenses and other cost control measures implemented by our Racing Operations during the nine months ended September 30, 2012.
Racing Operations EBITDA decreased $12.0 million, which primarily reflects the net impact of recognizing income of $19.3 million during the nine months ended September 30, 2011 from the release of restrictions on the HRE Trust Fund proceeds. In addition, EBITDA declined from the prior year recognition of a reduction in operating expenses of $2.4 million from a TIF agreement with the Commonwealth of Kentucky during the nine months ended September 30, 2011. Additionally, during the nine months ended September 30, 2011, we received insurance recoveries in excess of losses of $0.6 million for tornado damage sustained at Churchill Downs. Finally, Racing Operations recognized a higher corporate overhead allocation of $0.7 million during the nine months ended September 30, 2012. Partially offsetting these declines was increased profitability of $5.4 million from the Kentucky Oaks and Kentucky Derby week related to improvements in admissions, sponsorships, and pari-mutuel revenues during the nine months ended September 30, 2012. In addition, Racing Operations EBITDA benefited from lower labor costs, utility expenses and other cost control measures as compared to the same period of 2011.
Read the The complete Report
