Derby Week Helps Improve Churchill Downs Inc. Earnings
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Thanks in part to another strong Kentucky Derby week performance at Churchill Downs racetrack and a significant bump from historical gaming facility Derby City Gaming in Louisville, Ky., Churchill Downs Inc. reports a 23% increase in adjusted earnings for the second quarter to $215 million.
In comparing the second quarter of 2019 to the second quarter of 2018 in its results reported July 31, CDI notes a $14 million increase in adjusted EBITDA to $121.9 million for the three-month period ended June 30, 2019 in its Churchill Downs racetrack segment, which includes the track and Derby City Gaming.
"For the second quarter of 2019, net revenue increased $28.8 million from the second quarter of the prior year due to a $21.2 million increase from the opening of Derby City Gaming in September 2018 and a $7.6 million increase at Churchill Downs racetrack, primarily due to a successful Kentucky Derby and Oaks week driven by increased ticket sales for reserved seating, sponsorship growth, and record handle," the company reported on the track segment in a release at the close of trading July 31.
"Adjusted EBITDA increased $14.0 million from the second quarter of the prior year due to an $8.8 million increase from the opening of Derby City Gaming in September 2018 and a $5.2 million increase at Churchill Downs Racetrack, primarily due to a successful Kentucky Derby and Oaks week driven by increased ticket sales for reserved seating, sponsorship growth, and record handle."
Other quarterly highlights, as reported in the CDI release, include:
- Net revenue of $477.4 million, up 26% over the prior year quarter;
- Net income of $107.1 million, up 4% over the prior year quarter;
- Adjusted net income of $115.0 million, up 9% over the prior year quarter;
- Strong performance of gaming properties primarily due to the performance of Rivers Casino Des Plaines in Des Plaines, Ill., and Presque Isle Downs & Casino in Erie, Pa.
The company repurchased 187,608 shares of its common stock in conjunction with its $300.0 million publicly announced share repurchase program at a total purchase price of $18.0 million in the second quarter of 2019, based on trade date. Approximately $225 million in repurchase authority remains under this program as of June 30, based on trade date.
In trading Wednesday, Churchill Downs stock was down $3.09 a share to $119.65.