Churchill Downs Incorporated (NASDAQ:CHDN) (CDI or Company) today
reported business results for the third quarter ended September 30,
2016.
Third Quarter 2016 Highlights
- Record net revenue of $303.4 million, up 8% over the prior
year
- Adjusted EBITDA of $67.3 million, 7% below the prior year
- Net income of $8.7 million, 107% increase over the prior
year
- Diluted net income per share of $0.52, 117% higher than the
prior year
- $1.32 per share dividend, 15% increase over prior year and
sixth consecutive year of increase
CONSOLIDATED
RESULTS |
Third Quarter |
(in millions, except
per share data): |
2016 |
|
2015 |
|
|
|
|
Net revenue |
$ |
303.4 |
|
|
$ |
279.8 |
|
Adjusted EBITDA-a) |
67.3 |
|
|
72.2 |
|
Net income |
8.7 |
|
|
4.2 |
|
Diluted net income per
share |
$ |
0.52 |
|
|
$ |
0.24 |
|
|
(a- Non-GAAP measure.
See explanation of non-GAAP measures below. |
|
|
|
Net revenue growth was driven by an $18.7 million increase from
Big Fish Games primarily from casual and mid-core free-to-play game
growth, a $4.3 million increase from TwinSpires and a $0.3 million
increase from our Casinos segment.
Adjusted EBITDA declined $4.9 million driven by a $9.8 million
decrease from Big Fish Games partially offset by:
- $3.7 million increase from Casinos
- $1.2 million increase from TwinSpires
The increase in net income and diluted net income per share was
primarily a result of:
- $17.4 million increase in operating income due to:
- $12.2 million decrease in Calder exit costs
- $5.3 million increase from Big Fish Games
- $3.1 million increase in TwinSpires
- Partially offset by a $1.1 million decrease from Casinos, a
$1.0 million decrease from Racing and a $1.1 million decrease in
other expense
- $2.6 million increase in income from our equity investments
related to Saratoga Casino Holdings LLC (“SCH”) and Miami Valley
Gaming (“MVG”)
- Partially offsetting these increases were:
- $11.0 million increase in our income tax provision primarily
from additional operating income and an increase in our effective
tax rate
- $4.4 million increase in net interest expense associated with
higher outstanding debt balances
Operating Segment Summaries:
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 U.S. Generally Accepted Accounting Principles (“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 |
Third Quarter |
(in millions): |
2016 |
|
2015 |
|
|
|
|
Net revenue |
$ |
41.3 |
|
|
$ |
41.2 |
|
Adjusted EBITDA |
0.4 |
|
|
0.3 |
|
Net revenue was relatively flat for the quarter as increased
revenue at Churchill Downs was offset by declines at Fair Grounds
and Arlington.
Adjusted EBITDA increased by $0.1 million primarily driven
by:
- $0.5 million increase at Churchill Downs from handle growth
associated with a strong September racing meet
- $0.3 million increase at Calder primarily driven by a property
tax refund associated with cessation of pari-mutuel operations
- Partially offset by a $0.7 million decrease at Fair Grounds
from a decline in revenue and higher variable expenses
CASINOS |
Third Quarter |
(in millions): |
2016 |
|
2015 |
|
|
|
|
Net revenue |
$ |
83.0 |
|
|
$ |
82.7 |
|
Adjusted EBITDA |
30.4 |
|
|
26.7 |
|
Net revenue increased $0.3 million driven by:
- $2.1 million increase in Oxford revenue resulting from
increased visitation and refined successful marketing programs
which drove improved market share
- $0.5 million increase in Calder revenue due to successful
marketing and promotional activities
- Partially offset by:
- $1.4 million decline at Riverwalk due to escalating promotional
offers from competitors in the local market
- $0.7 million decrease at Fair Grounds resulting from a
parish-wide smoking ban, an increase in marketing promotions from
competitors and a depressed Gulf Coast oil and gas industry which
drove a local market decline
Adjusted EBITDA grew $3.7 million primarily driven by:
- $1.8 million increase in Saratoga Casino Holdings management
fee and equity income
- $1.1 million increase at Oxford from increased visitation and
successful promotional activities
- $0.9 million increase in Miami Valley Gaming equity income
driven by strong marketing programs
- $0.9 million decrease in corporate allocated expense
- Partially offset by declines of $0.6 and $0.5 million at our
Mississippi and Louisiana properties, respectively, due to
competitive marketing spending, a depressed regional oil and gas
industry and an Orleans Parish smoking ban in Louisiana
TWINSPIRES |
Third Quarter |
(in millions): |
2016 |
|
2015 |
|
|
|
|
Net revenue |
$ |
55.1 |
|
|
$ |
50.7 |
|
Adjusted EBITDA |
14.3 |
|
|
13.1 |
|
Net revenue increased $4.4 million, or 9%, primarily due to an
8% increase in active players. TwinSpires handle grew 14.3%,
outpacing the U.S. thoroughbred industry performance by 13.5
percentage points.
Adjusted EBITDA grew $1.2 million primarily driven by the
favorable impact of increased wagering, net of content costs, from
handle growth and an increase in active players.
BIG FISH
GAMES |
Third Quarter |
(in millions): |
2016 |
|
2015 |
|
|
|
|
Bookings |
|
|
|
Social casino |
$ |
44.2 |
|
|
$ |
47.5 |
|
Casual and mid-core
free-to-play |
51.8 |
|
|
40.3 |
|
Premium |
22.5 |
|
|
26.7 |
|
Total bookings
-a) |
118.5 |
|
|
114.5 |
|
|
|
|
|
Net revenue |
$ |
122.3 |
|
|
$ |
103.6 |
|
Adjusted EBITDA |
23.4 |
|
|
33.2 |
|
|
|
|
|
(a-
Bookings is a non-GAAP financial measure equal to the revenue
recognized plus the change in deferred revenue for the periods
presented. This non-GAAP measure may differ from other
companies’ definition of this measure, and it should not be
considered a substitute for, or superior to, any other measure
provided in accordance with GAAP. |
Total bookings grew $4.0 million, or 3%, as our casual and
mid-core free-to-play division continued to show strong growth more
than offsetting the declines in the social casino and premium
divisions.
- Social casino bookings declined by $3.3 million compared to the
third quarter of 2015 reflecting an 8% increase in average paying
users and a 14% decline in average bookings per paying user
- Casual and mid-core free-to-play bookings’ growth of $11.5
million was driven by a 23% increase in average paying users and a
5% increase in average bookings per paying user.
- Premium bookings declined $4.2 million, or 16%, primarily
driven by customers continuing to shift from paid PC games to
free-to-play mobile games.
Net revenue increased $18.7 million, driven primarily by:
- $23.5 million increase in casual and mid-core free-to-play
revenue
- The fair value adjustment to Big Fish Games deferred revenue
assumed as part of the acquisition was $1.9 million lower than the
prior year quarter
- Partially offsetting these increases were a $3.6 million
decline in premium games revenue and a $3.1 million decrease in
social casino revenue driven by a decrease in bookings
Adjusted EBITDA decreased $9.8 million, driven primarily by:
- $4.4 million increase in user acquisition spending
- $5.5 million increase in platform fees on higher bookings
- $2.2 million increase in developer fees
- $1.6 million benefit associated with business combination
accounting rules that was higher in the prior year than the third
quarter of 2016
- Partially offsetting these decreases were $4.0 million of
increased bookings
Annual Dividend
In October 2016, the Company's Board of Directors approved an
annual cash dividend of $1.32 per outstanding share, a 15% increase
over prior year, on CDI’s Common stock, payable January 6, 2017, to
shareholders of record on December 2, 2016. This year’s
dividend announcement represents the sixth consecutive year of
increased dividends.
Conference Call
A conference call regarding this news release is scheduled for
Friday, October 28, 2016 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 4902637 at least 10
minutes before the appointed time. International callers should
dial (253) 237-1169. An online replay will be available at
approximately noon EDT on Friday, October 28, 2016 and continue 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.
Non-GAAP Measures
In addition to the results provided in accordance with GAAP, the
Company has provided a non-GAAP measurement, which presents a
financial measure of earnings before interest, taxes, depreciation
and amortization and certain other items as described in the
Company’s Annual Report on Form 10K (“Adjusted EBITDA”).
Adjusted EBITDA includes:
- Changes in Big Fish Games deferred revenue;
- 50% of EBITDA of our joint venture, MVG;
- 25% of EBITDA of our SCH equity investment; and
- Intercompany revenue and expense totals that are eliminated in
the Condensed Consolidated Statements of Comprehensive Income
Adjusted EBITDA excludes:
- Big Fish Games adjustments which include:
- Acquisition-related charges, including the change in fair value
of the Big Fish Games earnout and deferred consideration liability
recorded each reporting period
- Stock-based compensation expense;
- Calder exit costs; and
- Other charges and recoveries
The Company uses Adjusted EBITDA as a key performance measure of
the results of operations for purposes of evaluating performance
internally. 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. Adjusted EBITDA is 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 (as determined in accordance with GAAP)
as a measure of our operating results.
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 a leader in brick-and-mortar
casino gaming with gaming positions in six states, and we are the
largest, legal online account wagering platform for horseracing in
the U.S., through our ownership of TwinSpires.com. We are also one
of the world’s largest producers and distributors of mobile games
through Big Fish Games, Inc. Additional information about CDI can
be found online at www.churchilldownsincorporated.com.
Information set forth in this news 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 effect of global economic conditions, a
decrease in consumers’ discretionary income; additional or
increased taxes and fees; restrictions in our debt facilities
limiting our flexibility to operate our business; 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; adverse
infringement of the intellectual property of others; unauthorized
disclosure of our source code; loss of key personnel; catastrophic
events and system failures disrupting our operations; work
stoppages and labor issues; failure to comply with regulations and
other legal obligations relating to receiving, processing, storing
and using person information; security breaches and other security
risks related to our technology, personal information, and
proprietary information; inability to respond to rapid
technological changes in a timely manner; payment-related risks,
such as chargebacks for fraudulent credit card use; compliance with
Foreign Corrupt Practices Act or applicable money-laundering
regulations; public perceptions of integrity or other lack of
confidence in our business; changes in the regulatory environment
of our racing operations; unfavorable economic trends in the
horseracing industry; increased competition in the horseracing
business; declining popularity in horseracing; seasonal
fluctuations in our horseracing business due to geographic
concentration of our operations; difficulty in attracting
sufficient number of horses and trainers for full field horseraces;
weather conditions affecting our ability to conduct live racing;
inability to negotiate agreements with industry constituents,
including horsemen and other racetracks; personal injury litigation
related to injuries occurring at our racetracks; general risks
related to real estate ownership, including fluctuations in market
values; the inability of our totalisator company, United Tote, to
maintain its processes accurately, keep its technology current or
maintain its significant customers; changes in regulatory
environment related to casino regulations; increased competition in
our casino business; geographic concentration in our casino
business; development and expansion of casinos is costly and
susceptible to delays, cost overruns and other uncertainties;
concentration and evolution of slot machine manufacturing and other
technology conditions would impose additional costs; changes in
regulatory environment for our advanced deposit wagering business;
uncertainty and changes in the legal landscape relating to our
advanced deposit wagering business; failing 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; inability to retain current customers or attract new
customers to our advanced deposit wagering business; increase in
competition in the advanced deposit wagering business; operating in
an evolving and highly competitive market related to our Big Fish
Games; inability to maintain relationships with third party mobile
platforms related to our Big Fish Games; financial volatility
quarter-to-quarter relating to our Big Fish Games; failure to
develop and publish mobile games that achieve market acceptance;
slower than expected growth in use of smartphone and tablet devices
to facilitate game platforms; inability to secure new or ongoing
content from third party development partners on favorable terms;
programming errors or flaws or other technical difficulties,
diminishing our customers’ experience; inability to protected our
intellectual property; retaining quality personnel; and “cheating”
programs, scam offers, black-markets and other actions by third
parties that seek to exploit our games and players may affect our
reputation and harm our operating results; and the impact of
natural and other disasters on our operations and our ability to
obtain insurance recoveries in respect of such losses (including
losses related to business interruption).
CHURCHILL
DOWNS INCORPORATED |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME |
(Unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in millions, except
per common share data) |
2016 |
|
2015 |
|
2016 |
|
2015 |
Net revenue: |
|
|
|
|
|
|
|
Racing |
$ |
38.5 |
|
|
$ |
38.8 |
|
|
$ |
220.8 |
|
|
$ |
218.0 |
|
Casinos |
83.0 |
|
|
82.7 |
|
|
253.9 |
|
|
252.5 |
|
TwinSpires |
54.7 |
|
|
50.4 |
|
|
172.3 |
|
|
156.5 |
|
Big Fish Games |
122.3 |
|
|
103.6 |
|
|
369.6 |
|
|
300.0 |
|
Other Investments |
4.5 |
|
|
4.0 |
|
|
12.9 |
|
|
12.1 |
|
Corporate |
0.4 |
|
|
0.3 |
|
|
0.8 |
|
|
0.8 |
|
Total net revenue |
303.4 |
|
|
279.8 |
|
|
1,030.3 |
|
|
939.9 |
|
Operating expense: |
|
|
|
|
|
|
|
Racing |
41.5 |
|
|
41.0 |
|
|
149.4 |
|
|
152.3 |
|
Casinos |
61.4 |
|
|
60.8 |
|
|
182.8 |
|
|
182.9 |
|
TwinSpires |
36.8 |
|
|
33.9 |
|
|
112.8 |
|
|
104.6 |
|
Big Fish Games |
94.5 |
|
|
80.0 |
|
|
309.5 |
|
|
245.6 |
|
Other Investments |
3.9 |
|
|
4.1 |
|
|
11.9 |
|
|
11.8 |
|
Corporate |
0.5 |
|
|
0.5 |
|
|
1.5 |
|
|
2.3 |
|
Selling, general and administrative
expense |
27.6 |
|
|
24.7 |
|
|
75.3 |
|
|
68.3 |
|
Research and development |
8.8 |
|
|
9.9 |
|
|
29.3 |
|
|
30.0 |
|
Calder exit costs |
0.5 |
|
|
12.7 |
|
|
2.4 |
|
|
13.5 |
|
Acquisition-related charges |
1.1 |
|
|
2.8 |
|
|
4.9 |
|
|
17.4 |
|
Total operating
expense |
276.6 |
|
|
270.4 |
|
|
879.8 |
|
|
828.7 |
|
Operating income |
26.8 |
|
|
9.4 |
|
|
150.5 |
|
|
111.2 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
— |
|
|
— |
|
|
— |
|
|
0.2 |
|
Interest expense |
(11.1 |
) |
|
(6.7 |
) |
|
(32.8 |
) |
|
(21.3 |
) |
Equity in income of unconsolidated
investments |
4.9 |
|
|
2.3 |
|
|
13.5 |
|
|
8.2 |
|
Miscellaneous, net |
(0.2 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
|
5.5 |
|
Total other income (expense) |
(6.4 |
) |
|
(4.5 |
) |
|
(19.6 |
) |
|
(7.4 |
) |
Income before income tax provision |
20.4 |
|
|
4.9 |
|
|
130.9 |
|
|
103.8 |
|
Income tax provision |
(11.7 |
) |
|
(0.7 |
) |
|
(49.6 |
) |
|
(46.1 |
) |
Net income |
$ |
8.7 |
|
|
$ |
4.2 |
|
|
$ |
81.3 |
|
|
$ |
57.7 |
|
|
|
|
|
|
|
|
|
Net income per common share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income |
$ |
0.52 |
|
|
$ |
0.24 |
|
|
$ |
4.85 |
|
|
$ |
3.28 |
|
|
|
|
|
|
|
|
|
Diluted net income |
$ |
0.52 |
|
|
$ |
0.24 |
|
|
$ |
4.79 |
|
|
$ |
3.26 |
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
Basic |
16.4 |
|
|
17.3 |
|
|
16.5 |
|
|
17.3 |
|
Diluted |
16.9 |
|
|
17.8 |
|
|
17.0 |
|
|
17.7 |
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss): |
|
|
|
|
|
|
|
Foreign currency translation, net
of tax |
— |
|
|
— |
|
|
0.2 |
|
|
(0.4 |
) |
Other comprehensive income (loss) |
— |
|
|
— |
|
|
0.2 |
|
|
(0.4 |
) |
Comprehensive income |
$ |
8.7 |
|
|
$ |
4.2 |
|
|
$ |
81.5 |
|
|
$ |
57.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHURCHILL
DOWNS INCORPORATED |
CONSOLIDATED
BALANCE SHEETS |
(Unaudited) |
|
|
|
|
(in millions) |
September 30, 2016 |
|
December 31, 2015 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
56.9 |
|
|
$ |
74.5 |
|
Restricted cash |
31.3 |
|
|
29.7 |
|
Accounts
receivable, net |
50.8 |
|
|
67.8 |
|
Income
taxes receivable |
— |
|
|
1.0 |
|
Software
development, net |
10.5 |
|
|
7.1 |
|
Other
current assets |
51.7 |
|
|
39.5 |
|
Total current assets |
201.2 |
|
|
219.6 |
|
Property and equipment,
net |
573.3 |
|
|
573.2 |
|
Software development,
net |
5.2 |
|
|
3.2 |
|
Investment in and
advances to unconsolidated affiliates |
131.4 |
|
|
129.7 |
|
Goodwill |
841.7 |
|
|
841.7 |
|
Other intangible
assets, net |
458.4 |
|
|
496.2 |
|
Other assets |
13.5 |
|
|
13.8 |
|
Total assets |
$ |
2,224.7 |
|
|
$ |
2,277.4 |
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
53.9 |
|
|
$ |
39.1 |
|
Purses
payable |
18.9 |
|
|
12.1 |
|
Account
wagering deposit liabilities |
22.1 |
|
|
20.4 |
|
Accrued
expense |
101.0 |
|
|
97.9 |
|
Income
tax payable |
22.0 |
|
|
— |
|
Tax
refund due to Big Fish Games former equity holders |
— |
|
|
0.4 |
|
Deferred
revenue - Big Fish Games |
86.3 |
|
|
81.3 |
|
Deferred
revenue - all other |
11.1 |
|
|
46.0 |
|
Big Fish
Games deferred payment, current |
28.6 |
|
|
28.1 |
|
Big Fish
Games earnout liability, current |
34.1 |
|
|
279.5 |
|
Current
maturities of long-term debt |
13.0 |
|
|
16.2 |
|
Dividends
payable |
— |
|
|
19.1 |
|
Total current liabilities |
391.0 |
|
|
640.1 |
|
Long-term debt, net of
current maturities and loan origination fees |
312.7 |
|
|
171.9 |
|
Notes payable,
including premium and net of debt issuance costs |
594.5 |
|
|
593.7 |
|
Big Fish Games deferred
payment, net of current amount due |
27.5 |
|
|
26.7 |
|
Big Fish Games earnout
liability, net of current amount due |
33.1 |
|
|
65.7 |
|
Deferred revenue - all
other |
21.4 |
|
|
16.1 |
|
Deferred income
taxes |
133.5 |
|
|
127.9 |
|
Other liabilities |
15.6 |
|
|
18.1 |
|
Total liabilities |
1,529.3 |
|
|
1,660.2 |
|
Commitments and
contingencies |
— |
|
|
— |
|
Preferred stock, no par
value; 0.3 shares authorized; no shares issued |
— |
|
|
— |
|
Common stock, no par value; 50.0 shares
authorized; 16.6 shares issued at September 30, 2016 and 16.6
shares issued at December 31, 2015 |
130.7 |
|
|
134.0 |
|
Retained earnings |
565.1 |
|
|
483.8 |
|
Accumulated other
comprehensive loss |
(0.4 |
) |
|
(0.6 |
) |
Total shareholders' equity |
695.4 |
|
|
617.2 |
|
Total liabilities and shareholders' equity |
$ |
2,224.7 |
|
|
$ |
2,277.4 |
|
|
|
|
|
|
|
|
|
CHURCHILL DOWNS INCORPORATED |
CONSOLIDATED STATEMENTS OF CASH FLOW |
(unaudited) |
|
|
Nine Months Ended September 30, |
(in millions) |
2016 |
|
2015 |
Cash flows from operating
activities: |
|
|
|
Net income |
$ |
81.3 |
|
|
$ |
57.7 |
|
Adjustments to reconcile net income
to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
81.4 |
|
|
82.1 |
|
Software development
amortization |
11.7 |
|
|
5.8 |
|
Acquisition-related charges |
4.9 |
|
|
17.4 |
|
Asset impairment loss |
— |
|
|
12.9 |
|
Gain on sale of equity
investment |
— |
|
|
(5.8 |
) |
Dividend from investment in
unconsolidated affiliates |
12.3 |
|
|
11.0 |
|
Big Fish Games earnout payment |
(19.7 |
) |
|
— |
|
Equity in income of unconsolidated
investments |
(13.5 |
) |
|
(8.2 |
) |
Stock-based compensation |
14.3 |
|
|
10.6 |
|
Other |
1.5 |
|
|
1.6 |
|
Increase (decrease) in cash
resulting from changes in operating assets and liabilities, net of
business acquisitions and dispositions: |
|
|
|
Other current assets and
liabilities |
11.7 |
|
|
(2.7 |
) |
Software development |
(16.3 |
) |
|
(16.2 |
) |
Income taxes |
28.1 |
|
|
38.1 |
|
Deferred revenue |
(7.5 |
) |
|
13.3 |
|
Other assets and liabilities |
(1.2 |
) |
|
5.6 |
|
Net cash provided by operating
activities |
189.0 |
|
|
223.2 |
|
Cash flows from investing
activities: |
|
|
|
Additions to property and
equipment |
(44.1 |
) |
|
(30.8 |
) |
Deferred payments to Big Fish Games
former equity holders |
— |
|
|
(1.0 |
) |
Acquisition of gaming licenses |
(2.5 |
) |
|
(2.3 |
) |
Proceeds from sale of equity
investment |
1.8 |
|
|
6.0 |
|
Other |
(1.4 |
) |
|
(0.3 |
) |
Net cash used in investing
activities |
(46.2 |
) |
|
(28.4 |
) |
Cash flows from financing
activities: |
|
|
|
Borrowings on bank line of
credit |
564.7 |
|
|
382.4 |
|
Repayments of bank line of
credit |
(427.2 |
) |
|
(565.6 |
) |
Big Fish Games earnout payment |
(261.9 |
) |
|
— |
|
Tax refund payments to Big Fish
Games equity holders |
(0.4 |
) |
|
(11.8 |
) |
Payment of dividends |
(19.1 |
) |
|
(17.4 |
) |
Repurchase of common stock |
(20.0 |
) |
|
(7.2 |
) |
Windfall tax provision from
stock-based compensation |
— |
|
|
4.2 |
|
Loan origination fees and debt
issuance costs |
(1.4 |
) |
|
— |
|
Other |
5.3 |
|
|
5.1 |
|
Net cash used in financing
activities |
(160.0 |
) |
|
(210.3 |
) |
Net decrease in cash and cash
equivalents |
(17.2 |
) |
|
(15.5 |
) |
Effect of exchange rate changes on cash
flows |
(0.4 |
) |
|
(1.3 |
) |
Cash and cash equivalents, beginning of
period |
74.5 |
|
|
67.9 |
|
Cash and cash equivalents, end of period |
$ |
56.9 |
|
|
$ |
51.1 |
|
|
|
|
|
|
|
|
|
CHURCHILL
DOWNS INCORPORATED |
SUPPLEMENTAL INFORMATION BY OPERATING UNIT |
(Unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in millions) |
2016 |
|
2015 |
|
2016 |
|
2015 |
Net revenue from external
customers: |
|
|
|
|
|
|
|
Racing: |
|
|
|
|
|
|
|
Churchill Downs |
$ |
8.7 |
|
|
$ |
7.9 |
|
|
$ |
140.1 |
|
|
$ |
136.7 |
|
Arlington |
24.0 |
|
|
25.0 |
|
|
49.8 |
|
|
48.9 |
|
Fair Grounds |
5.1 |
|
|
5.3 |
|
|
28.9 |
|
|
30.4 |
|
Calder |
0.7 |
|
|
0.6 |
|
|
2.0 |
|
|
2.0 |
|
Total Racing |
38.5 |
|
|
38.8 |
|
|
220.8 |
|
|
218.0 |
|
Casinos: |
|
|
|
|
|
|
|
Oxford
Casino |
24.4 |
|
|
22.3 |
|
|
65.4 |
|
|
60.8 |
|
Riverwalk
Casino |
10.6 |
|
|
12.0 |
|
|
35.7 |
|
|
37.7 |
|
Harlow’s
Casino |
11.7 |
|
|
11.8 |
|
|
36.6 |
|
|
37.5 |
|
Calder
Casino |
19.0 |
|
|
18.5 |
|
|
59.8 |
|
|
58.7 |
|
Fair Grounds
Slots |
8.5 |
|
|
8.8 |
|
|
27.9 |
|
|
29.9 |
|
VSI |
8.6 |
|
|
9.0 |
|
|
27.9 |
|
|
27.6 |
|
Saratoga |
0.2 |
|
|
0.3 |
|
|
0.6 |
|
|
0.3 |
|
Total
Casinos |
83.0 |
|
|
82.7 |
|
|
253.9 |
|
|
252.5 |
|
TwinSpires |
54.7 |
|
|
50.4 |
|
|
172.3 |
|
|
156.5 |
|
Big Fish
Games: |
|
|
|
|
|
|
|
Social
casino |
44.3 |
|
|
47.4 |
|
|
138.3 |
|
|
145.4 |
|
Casual and
mid-core free-to-play |
56.1 |
|
|
32.6 |
|
|
162.5 |
|
|
86.5 |
|
Premium |
23.7 |
|
|
27.3 |
|
|
75.0 |
|
|
85.6 |
|
Fair value
adjustments |
(1.8 |
) |
|
(3.7 |
) |
|
(6.2 |
) |
|
(17.5 |
) |
Total Big
Fish Games |
122.3 |
|
|
103.6 |
|
|
369.6 |
|
|
300.0 |
|
Other
Investments |
4.5 |
|
|
4.0 |
|
|
12.9 |
|
|
12.1 |
|
Corporate |
0.4 |
|
|
0.3 |
|
|
0.8 |
|
|
0.8 |
|
Net revenue
from external customers |
$ |
303.4 |
|
|
$ |
279.8 |
|
|
$ |
1,030.3 |
|
|
$ |
939.9 |
|
|
|
|
|
|
|
|
|
Intercompany net
revenue: |
|
|
|
|
|
|
|
Racing: |
|
|
|
|
|
|
|
Churchill
Downs |
$ |
0.9 |
|
|
$ |
0.7 |
|
|
$ |
8.2 |
|
|
$ |
6.3 |
|
Arlington |
1.9 |
|
|
1.7 |
|
|
4.5 |
|
|
4.1 |
|
Fair
Grounds |
— |
|
|
— |
|
|
1.0 |
|
|
0.9 |
|
Total
Racing |
2.8 |
|
|
2.4 |
|
|
13.7 |
|
|
11.3 |
|
TwinSpires |
0.4 |
|
|
0.3 |
|
|
1.0 |
|
|
0.8 |
|
Other
Investments |
0.7 |
|
|
0.8 |
|
|
3.0 |
|
|
2.7 |
|
Eliminations |
(3.9 |
) |
|
(3.5 |
) |
|
(17.7 |
) |
|
(14.8 |
) |
Intercompany
net revenue |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHURCHILL
DOWNS INCORPORATED |
SUPPLEMENTAL INFORMATION BY OPERATING UNIT |
(Unaudited) |
Adjusted EBITDA by
segment is comprised of the following: |
|
|
|
Three Months Ended September 30,
2016 |
(in millions) |
Racing |
|
Casinos |
|
TwinSpires |
|
Big Fish Games |
|
Other Investments |
|
Corporate |
|
Eliminations |
|
Total |
Net revenue |
$ |
41.3 |
|
|
$ |
83.0 |
|
|
$ |
55.1 |
|
|
$ |
122.3 |
|
|
$ |
5.2 |
|
|
$ |
0.4 |
|
|
(3.9 |
) |
|
$ |
303.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes & purses |
(11.2 |
) |
|
(28.1 |
) |
|
(4.0 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(43.3 |
) |
Platform &
development fees |
— |
|
|
— |
|
|
— |
|
|
(45.2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(45.2 |
) |
Marketing &
advertising |
(1.1 |
) |
|
(3.0 |
) |
|
(1.0 |
) |
|
(26.3 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(31.4 |
) |
Salaries &
benefits |
(10.3 |
) |
|
(13.4 |
) |
|
(2.3 |
) |
|
(6.2 |
) |
|
(2.7 |
) |
|
— |
|
|
0.1 |
|
|
(34.8 |
) |
Content expense |
(3.9 |
) |
|
— |
|
|
(26.0 |
) |
|
— |
|
|
— |
|
|
— |
|
|
3.5 |
|
|
(26.4 |
) |
Selling, general &
administrative expense |
(4.0 |
) |
|
(5.4 |
) |
|
(3.0 |
) |
|
(4.4 |
) |
|
(0.9 |
) |
|
(2.2 |
) |
|
0.3 |
|
|
(19.6 |
) |
Research &
development |
— |
|
|
— |
|
|
— |
|
|
(8.8 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(8.8 |
) |
Other operating
expense |
(10.5 |
) |
|
(10.0 |
) |
|
(4.5 |
) |
|
(3.9 |
) |
|
(0.9 |
) |
|
(0.2 |
) |
|
— |
|
|
(30.0 |
) |
Other income
(expense) |
0.1 |
|
|
7.3 |
|
|
— |
|
|
(0.3 |
) |
|
0.1 |
|
|
— |
|
|
— |
|
|
7.2 |
|
Change in deferred
revenue(1) |
n/a |
|
n/a |
|
n/a |
|
(3.8 |
) |
|
n/a |
|
n/a |
|
n/a |
|
(3.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment Adjusted
EBITDA |
$ |
0.4 |
|
|
$ |
30.4 |
|
|
$ |
14.3 |
|
|
$ |
23.4 |
|
|
$ |
0.8 |
|
|
$ |
(2.0 |
) |
|
$ |
— |
|
|
$ |
67.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2015 |
(in millions) |
Racing |
|
Casinos |
|
TwinSpires |
|
Big Fish Games |
|
Other Investments |
|
Corporate |
|
Eliminations |
|
Total |
Net revenue |
$ |
41.2 |
|
|
$ |
82.7 |
|
|
$ |
50.7 |
|
|
$ |
103.6 |
|
|
$ |
4.8 |
|
|
$ |
0.3 |
|
|
(3.5 |
) |
|
$ |
279.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes & purses |
(11.2 |
) |
|
(27.5 |
) |
|
(3.6 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(42.3 |
) |
Platform &
development fees |
— |
|
|
— |
|
|
— |
|
|
(36.1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(36.1 |
) |
Marketing &
advertising |
(1.1 |
) |
|
(3.2 |
) |
|
(0.7 |
) |
|
(21.9 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(26.9 |
) |
Salaries &
benefits |
(9.5 |
) |
|
(12.8 |
) |
|
(2.6 |
) |
|
(5.4 |
) |
|
(2.8 |
) |
|
— |
|
|
— |
|
|
(33.1 |
) |
Content expense |
(3.6 |
) |
|
— |
|
|
(23.6 |
) |
|
— |
|
|
— |
|
|
— |
|
|
3.1 |
|
|
(24.1 |
) |
Selling, general &
administrative expense |
(4.3 |
) |
|
(6.9 |
) |
|
(3.1 |
) |
|
(3.8 |
) |
|
(0.7 |
) |
|
(1.7 |
) |
|
0.3 |
|
|
(20.2 |
) |
Research &
development |
— |
|
|
— |
|
|
— |
|
|
(9.9 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(9.9 |
) |
Other operating
expense |
(11.4 |
) |
|
(10.0 |
) |
|
(4.2 |
) |
|
(3.9 |
) |
|
(0.8 |
) |
|
(0.2 |
) |
|
0.1 |
|
|
(30.4 |
) |
Other income
(expense) |
0.2 |
|
|
4.4 |
|
|
0.2 |
|
|
(0.3 |
) |
|
— |
|
|
— |
|
|
— |
|
|
4.5 |
|
Change in deferred
revenue(1) |
n/a |
|
n/a |
|
n/a |
|
10.9 |
|
|
n/a |
|
n/a |
|
n/a |
|
10.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment Adjusted
EBITDA |
$ |
0.3 |
|
|
$ |
26.7 |
|
|
$ |
13.1 |
|
|
$ |
33.2 |
|
|
$ |
0.5 |
|
|
$ |
(1.6 |
) |
|
$ |
— |
|
|
$ |
72.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Change in deferred revenue is included in Adjusted EBITDA only for
Big Fish Games. |
CHURCHILL
DOWNS INCORPORATED |
SUPPLEMENTAL INFORMATION BY OPERATING UNIT |
(Unaudited) |
|
|
|
Nine Months Ended September 30,
2016 |
(in millions) |
Racing |
|
Casinos |
|
TwinSpires |
|
Big Fish Games |
|
Other Investments |
|
Corporate |
|
Eliminations |
|
Total |
Net revenue |
$ |
234.5 |
|
|
$ |
253.9 |
|
|
$ |
173.3 |
|
|
$ |
369.6 |
|
|
$ |
15.9 |
|
|
$ |
0.8 |
|
|
(17.7 |
) |
|
$ |
1,030.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes & purses |
(52.7 |
) |
|
(84.6 |
) |
|
(8.8 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(146.1 |
) |
Platform &
development fees |
— |
|
|
— |
|
|
— |
|
|
(135.2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(135.2 |
) |
Marketing &
advertising |
(3.8 |
) |
|
(9.5 |
) |
|
(5.2 |
) |
|
(106.2 |
) |
|
— |
|
|
— |
|
|
0.3 |
|
|
(124.4 |
) |
Salaries &
benefits |
(31.4 |
) |
|
(38.2 |
) |
|
(6.9 |
) |
|
(18.4 |
) |
|
(8.2 |
) |
|
— |
|
|
— |
|
|
(103.1 |
) |
Content expense |
(12.0 |
) |
|
— |
|
|
(83.4 |
) |
|
— |
|
|
— |
|
|
— |
|
|
16.2 |
|
|
(79.2 |
) |
Selling, general &
administrative expense |
(11.9 |
) |
|
(15.8 |
) |
|
(8.6 |
) |
|
(13.6 |
) |
|
(2.5 |
) |
|
(6.2 |
) |
|
1.0 |
|
|
(57.6 |
) |
Research &
development |
— |
|
|
— |
|
|
— |
|
|
(29.3 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(29.3 |
) |
Other operating
expense |
(38.8 |
) |
|
(29.4 |
) |
|
(15.6 |
) |
|
(11.8 |
) |
|
(2.6 |
) |
|
(0.5 |
) |
|
0.2 |
|
|
(98.5 |
) |
Other income
(expense) |
0.4 |
|
|
21.6 |
|
|
— |
|
|
(1.2 |
) |
|
0.3 |
|
|
— |
|
|
— |
|
|
21.1 |
|
Change in deferred
revenue(1) |
n/a |
|
n/a |
|
n/a |
|
5.0 |
|
|
n/a |
|
n/a |
|
n/a |
|
5.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment Adjusted
EBITDA |
$ |
84.3 |
|
|
$ |
98.0 |
|
|
$ |
44.8 |
|
|
$ |
58.9 |
|
|
$ |
2.9 |
|
|
$ |
(5.9 |
) |
|
$ |
— |
|
|
$ |
283.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2015 |
(in millions) |
Racing |
|
Casinos |
|
TwinSpires |
|
Big Fish Games |
|
Other Investments |
|
Corporate |
|
Eliminations |
|
Total |
Net revenue |
$ |
229.3 |
|
|
$ |
252.5 |
|
|
$ |
157.3 |
|
|
$ |
300.0 |
|
|
$ |
14.8 |
|
|
$ |
0.8 |
|
|
$ |
(14.8 |
) |
|
$ |
939.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes & purses |
(52.3 |
) |
|
(83.4 |
) |
|
(8.2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(143.9 |
) |
Platform &
development fees |
— |
|
|
— |
|
|
— |
|
|
(103.0 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(103.0 |
) |
Marketing &
advertising |
(5.4 |
) |
|
(9.4 |
) |
|
(3.7 |
) |
|
(76.7 |
) |
|
— |
|
|
— |
|
|
0.2 |
|
|
(95.0 |
) |
Salaries &
benefits |
(30.3 |
) |
|
(38.2 |
) |
|
(7.5 |
) |
|
(16.5 |
) |
|
(8.3 |
) |
|
— |
|
|
— |
|
|
(100.8 |
) |
Content expense |
(11.3 |
) |
|
— |
|
|
(75.9 |
) |
|
— |
|
|
— |
|
|
— |
|
|
13.6 |
|
|
(73.6 |
) |
Selling, general &
administrative expense |
(13.0 |
) |
|
(17.9 |
) |
|
(8.6 |
) |
|
(12.6 |
) |
|
(1.8 |
) |
|
(4.5 |
) |
|
0.7 |
|
|
(57.7 |
) |
Research &
development |
— |
|
|
— |
|
|
— |
|
|
(30.0 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(30.0 |
) |
Other operating
expense |
(41.2 |
) |
|
(31.3 |
) |
|
(14.1 |
) |
|
(10.9 |
) |
|
(2.4 |
) |
|
(1.5 |
) |
|
0.3 |
|
|
(101.1 |
) |
Other income
(expense) |
0.5 |
|
|
14.3 |
|
|
— |
|
|
(0.8 |
) |
|
0.1 |
|
|
— |
|
|
— |
|
|
14.1 |
|
Change in deferred
revenue(1) |
n/a |
|
n/a |
|
n/a |
|
32.0 |
|
|
n/a |
|
n/a |
|
n/a |
|
32.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment Adjusted
EBITDA |
$ |
76.3 |
|
|
$ |
86.6 |
|
|
$ |
39.3 |
|
|
$ |
81.5 |
|
|
$ |
2.4 |
|
|
$ |
(5.2 |
) |
|
$ |
— |
|
|
$ |
280.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Change in deferred revenue is included in Adjusted EBITDA only for
Big Fish Games. |
|
CHURCHILL
DOWNS INCORPORATED |
SUPPLEMENTAL INFORMATION BY OPERATING UNIT |
(Unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in millions) |
2016 |
|
2015 |
|
2016 |
|
2015 |
Reconciliation of segment Adjusted EBITDA
to comprehensive income: |
|
|
|
|
|
|
|
Racing |
$ |
0.4 |
|
|
$ |
0.3 |
|
|
$ |
84.3 |
|
|
$ |
76.3 |
|
Casinos |
30.4 |
|
|
26.7 |
|
|
98.0 |
|
|
86.6 |
|
TwinSpires |
14.3 |
|
|
13.1 |
|
|
44.8 |
|
|
39.3 |
|
Big Fish
Games |
23.4 |
|
|
33.2 |
|
|
58.9 |
|
|
81.5 |
|
Other
Investments |
0.8 |
|
|
0.5 |
|
|
2.9 |
|
|
2.4 |
|
Corporate |
(2.0 |
) |
|
(1.6 |
) |
|
(5.9 |
) |
|
(5.2 |
) |
Total
segment Adjusted EBITDA |
67.3 |
|
|
72.2 |
|
|
283.0 |
|
|
280.9 |
|
Change in
Big Fish Games deferred revenue 1 |
3.8 |
|
|
(10.9 |
) |
|
(5.0 |
) |
|
(32.0 |
) |
Selling,
general and administrative: |
|
|
|
|
|
|
|
Stock-based compensation expense 2 |
(4.9 |
) |
|
(4.5 |
) |
|
(14.3 |
) |
|
(10.6 |
) |
Other
charges 3 |
(3.1 |
) |
|
— |
|
|
(3.4 |
) |
|
— |
|
Other income
(expense): |
|
|
|
|
|
|
|
Equity
investments - interest, depreciation and amortization expense
4 |
(2.5 |
) |
|
(2.2 |
) |
|
(7.5 |
) |
|
(6.4 |
) |
Other
(charges) and recoveries, net 5 |
— |
|
|
(0.1 |
) |
|
(0.4 |
) |
|
6.0 |
|
Big Fish
Games adjustments 6 |
(1.1 |
) |
|
(2.8 |
) |
|
(4.9 |
) |
|
(17.4 |
) |
Calder exit
costs 7 |
(0.5 |
) |
|
(12.7 |
) |
|
(2.4 |
) |
|
(13.5 |
) |
Depreciation
and amortization |
(27.5 |
) |
|
(27.4 |
) |
|
(81.4 |
) |
|
(82.1 |
) |
Interest
(expense) income, net |
(11.1 |
) |
|
(6.7 |
) |
|
(32.8 |
) |
|
(21.1 |
) |
Income
before income tax provision |
20.4 |
|
|
4.9 |
|
|
130.9 |
|
|
103.8 |
|
Income tax
provision |
(11.7 |
) |
|
(0.7 |
) |
|
(49.6 |
) |
|
(46.1 |
) |
Net
income |
8.7 |
|
|
4.2 |
|
|
81.3 |
|
|
57.7 |
|
Foreign
currency translation, net of tax |
— |
|
|
— |
|
|
0.2 |
|
|
(0.4 |
) |
Comprehensive income |
$ |
8.7 |
|
|
$ |
4.2 |
|
|
$ |
81.5 |
|
|
$ |
57.3 |
|
- Value of deferred revenue balances assumed as part of
acquisitions that are adjusted down to fair value
- Value of compensation expense to named executive officers and
other key executives based upon restricted stock awards and other
awards based on achieving certain key performance metrics
- Accrual related to potential liability for non-filing of
federal withholding tax information for certain casino customers
and severance and relocation expenses related to TwinSpires
- Interest, depreciation and amortization expense from equity
investments
- Proceeds from sale of HRTV and other expenses
- Acquisition-related charges, including the change in fair value
of the Big Fish Games earnout and deferred consideration liability
recorded each reporting period
- Demolition costs related to the removal of the Calder
grandstand
CHURCHILL
DOWNS INCORPORATED |
SUPPLEMENTAL INFORMATION BY OPERATING UNIT |
(Unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in millions) |
2016 |
|
2015 |
|
2016 |
|
2015 |
Corporate allocated
expense: |
|
|
|
|
|
|
|
Racing |
$ |
(1.5 |
) |
|
$ |
(1.7 |
) |
|
$ |
(4.3 |
) |
|
$ |
(5.4 |
) |
Casinos |
(1.8 |
) |
|
(2.7 |
) |
|
(5.0 |
) |
|
(6.0 |
) |
TwinSpires |
(1.3 |
) |
|
(1.6 |
) |
|
(3.9 |
) |
|
(3.7 |
) |
Big Fish Games |
(0.8 |
) |
|
(0.8 |
) |
|
(2.1 |
) |
|
(2.3 |
) |
Other Investments |
(0.4 |
) |
|
(0.1 |
) |
|
(1.1 |
) |
|
(0.3 |
) |
Corporate allocated expense |
5.8 |
|
|
6.9 |
|
|
16.4 |
|
|
17.7 |
|
Total Corporate allocated
expense |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHURCHILL
DOWNS INCORPORATED |
JOINT
VENTURE FINANCIAL STATEMENTS |
(Unaudited) |
|
Summarized financial information for
Miami Valley Gaming, LLC is comprised of the following: |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in millions) |
2016 |
|
2015 |
|
2016 |
|
2015 |
Casino revenue |
$ |
36.1 |
|
|
$ |
32.1 |
|
|
$ |
108.7 |
|
|
$ |
97.2 |
|
Non-casino revenue |
1.2 |
|
|
1.5 |
|
|
5.2 |
|
|
5.3 |
|
Net
revenue |
37.3 |
|
|
33.6 |
|
|
113.9 |
|
|
102.5 |
|
Operating and SG&A
expense |
26.4 |
|
|
24.6 |
|
|
79.7 |
|
|
74.2 |
|
Adjusted EBITDA |
10.9 |
|
|
9.0 |
|
|
34.2 |
|
|
28.3 |
|
Depreciation &
amortization expense |
3.4 |
|
|
3.3 |
|
|
9.9 |
|
|
9.6 |
|
Operating
income |
7.5 |
|
|
5.7 |
|
|
24.3 |
|
|
18.7 |
|
Interest and other
expense, net |
(0.8 |
) |
|
(1.0 |
) |
|
(2.6 |
) |
|
(3.2 |
) |
Net
income |
$ |
6.7 |
|
|
$ |
4.7 |
|
|
$ |
21.7 |
|
|
$ |
15.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
September 30, 2016 |
|
December 31, 2015 |
Assets |
|
|
|
Current assets |
$ |
15.0 |
|
|
$ |
24.5 |
|
Property and equipment,
net |
112.1 |
|
|
119.7 |
|
Other assets, net |
107.3 |
|
|
106.6 |
|
Total
assets |
$ |
234.4 |
|
|
$ |
250.8 |
|
|
|
|
|
Liabilities and
Members' Equity |
|
|
|
Current
liabilities |
$ |
11.3 |
|
|
$ |
21.6 |
|
Current portion of
long-term debt |
8.3 |
|
|
8.3 |
|
Long-term debt,
excluding current portion |
15.7 |
|
|
20.5 |
|
Other liabilities |
0.1 |
|
|
0.1 |
|
Members' equity |
199.0 |
|
|
200.3 |
|
Total
liabilities and members' equity |
$ |
234.4 |
|
|
$ |
250.8 |
|
|
|
|
|
|
|
|
|
Contact: Lauren DePaso
(502) 636-4506
Lauren.DePaso@kyderby.com
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