Derby fans weathered rainstorms and the unseasonal cold during the
day, to watch post-time favorite Always Dreaming win the 143rd
Kentucky Derby Presented by Yum! Brands over a sloppy track.
Attendance of 158,070, was the seventh highest attendance figure in
track history.
Wagering from all-sources was the highest all-time on both the
Kentucky Derby Day program and on the Kentucky Derby race.
Wagering from all-sources on the Kentucky Derby Day program
totaled $209.2 million, a 9% increase over the 2016 total of $192.6
million, and an increase of 8% over the previous record set in 2015
of $194.3 million. Wagering from all-sources on the Kentucky
Derby race increased 12% to $139.2 million from 2016’s $124.7
million and a 1% increase over the previous record set in 2015 of
$137.9 million.
RACE COMMENTARY “Congratulations to the
connections of Always Dreaming on a very impressive performance to
win the 143rd Kentucky Derby Presented by Yum! Brands,” said Kevin
Flanery, President of Churchill Downs Racetrack. “We were
excited to introduce our latest round of renovations and our
investments in the facility continue to pay off as we strive to
improve the guest experience every year. Thanks and congratulations
to our horsemen, employees and volunteers that made this an amazing
Derby and a phenomenal opening to our 2017 Spring
Meet.”
BUSINESS COMMENTARY “A heartfelt thanks from
all of us at Churchill Downs to all of the fans of the Kentucky
Derby around the world who once again made this an amazing
spectacle rain or shine,” said Bill Carstanjen, CEO of Churchill
Downs Incorporated (“CDI”). “We expect another Adjusted
EBITDA record with growth of $4.0-to-$6.0 million over last year’s
Kentucky Derby week.”
TWINSPIRES TwinSpires, the country’s leading
online and mobile betting platform and the official betting partner
of the Kentucky Derby and the Breeders’ Cup World Championships,
recorded $32.8 million in handle on Churchill Downs races for the
Kentucky Derby Day program, an increase of 22% over the prior year.
TwinSpires’ handle on the Kentucky Derby alone race was $20.1
million, up 22% over 2016.
DERBY WEEK All-sources handle for Opening
Night, Saturday, April 29, through Derby Day, Saturday, May 6, rose
to a new record of $285.1 million, up 7% from 2016’s previous
record. Attendance for those five days was 349,455, down 7% from
the previous record set in 2016.
DERBY WINNER Always Dreaming, owned by MeB
Racing Stables, Brooklyn Boyz Stables, Teresa Viola Stables, St.
Elias Stables, Siena Farm and West Point Thoroughbreds, and bred in
Kentucky by Santa Rosa Partners, cruised to win by three lengths as
the 9-2 favorite, returning $11.40 for each $2 win wager.
Trainer Todd Pletcher won the Kentucky Derby for the second
time. His first win was with Super Saver in 2010.
Jockey John Velazquez also won the Kentucky Derby for the
second time, winning previously on Animal Kingdom in 2011.
The winner covered 1 ¼ miles over a sloppy track in 2:03:59 to win
for the fourth time in six career starts. Always Dreaming is
by Bodemeister out of the In Excess mare Above Perfection.
Lookin at Lee finished second and Battle of Midway finished
third.
USE OF NON-GAAP MEASURES In addition to the
results provided in accordance with generally accepted accounting
principles ("GAAP"), the Company also uses non-GAAP measures,
including EBITDA (earnings before interest, taxes, depreciation and
amortization) and Adjusted EBITDA as described in the Company’s
Annual Report on Form 10-K (“Adjusted EBITDA”).
Adjusted EBITDA includes CDI's portion of the
EBITDA from our equity investments.
Adjusted EBITDA excludes:
- Acquisition expense, net which includes: –
Acquisition-related charges, including fair value adjustments
related to earnouts and deferred payments; and, – Transaction
expense, including legal, accounting, and other deal-related
expense
- Stock-based compensation expense;
- Gain on Calder land sale;
- 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 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 CDI’s core business or operating
results. CDI believes the use of this measure enables management
and investors to evaluate and compare, from period to period, CDI’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 RACETRACK Churchill
Downs, the world’s most legendary racetrack, has conducted
Thoroughbred racing and presented America’s greatest race, The
Kentucky Derby, continuously since 1875. Located in Louisville, the
flagship racetrack of Churchill Downs Incorporated offers
year-round simulcast wagering at the historic track. The track’s
2017 Spring Meet is scheduled for April 29 – June 30-. Churchill
Downs has hosted the Breeders’ Cup World Championships eight times
and will host the event for a ninth time in 2018 tying Churchill
Downs with Santa Anita Park in California for the most ever held at
one venue. Information about Churchill Downs can be found online at
www.churchilldowns.com
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 approximately 10,070 gaming positions in eight 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,” “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 global economic
conditions, a decrease in consumers’ discretionary income;
additional or increased taxes and fees; public perceptions of
integrity or other lack of confidence in 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; inability to respond to rapid
technological changes in a timely manner; adverse 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 person information; payment-related
risks, such as chargebacks for fraudulent credit card use;
compliance with Foreign Corrupt Practices Act or applicable
money-laundering regulations; work stoppages and labor issues;
difficulty in attracting 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; 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 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;
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; 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; failure to develop and publish mobile games
that achieve market acceptance; 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; “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; slower than expected growth in use of
smartphone and tablet devices to facilitate game platforms; and
financial volatility quarter-to-quarter relating to our Big Fish
Games.
Contact: Lauren DePaso
(502) 636-4506
Lauren.depaso@kyderby.com
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