LOUISVILLE, Ky., Aug. 01, 2018 (GLOBE NEWSWIRE) -- 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 INCORPORATED
CONDENSED 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 INCORPORATED
CONDENSED 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
INCORPORATED
CONDENSED 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 INCORPORATED
SUPPLEMENTAL 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 INCORPORATED
SUPPLEMENTAL 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 INCORPORATED
SUPPLEMENTAL 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 INCORPORATED
SUPPLEMENTAL 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 INCORPORATED
SUPPLEMENTAL 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 INCORPORATED
UNCONSOLIDATED 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 INCORPORATED
UNCONSOLIDATED 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) 394-1157
Nick.Zangari@kyderby.com
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