Churchill Downs Inc. Tuesday reported record quarterly revenues, net earnings and earnings per share for the second quarter ending June 30.
Net revenues for the quarter reached $180.5 million, an increase of 4.6 % from $172.6 million reported during the same period last year. Net earnings for the quarter were $28.0 million, a 21.2% increase over net earnings of $23.1 million in 2002. Diluted earnings per share totaled $2.09, compared with $1.73 for the second quarter of 2002.
Thomas H. Meeker, CDI's president and chief executive officer, attributed the Company's revenue growth for the quarter primarily to record-wagering results on the Kentucky Derby and Oaks, a shift in racing dates from the fourth quarter to the second, and strong growth of the Churchill Downs Simulcast Network ("CDSN") fueled in part by additional racing dates.
Wagering on Derby and Oaks Days increased 13.8% and 8.2%, respectively. CDI benefited from 19 additional live race days at Arlington Park in the second quarter of 2003 compared to 2002, and CDSN net revenues increased 23.6% over the same period a year ago.
"Our signature event, the Kentucky Derby, continues to stand apart as one of the world's unique sporting events," Meeker said. "This year's Derby generated record wagering, filled to capacity our available Jockey Club Suites, and set the stage for an exciting Triple Crown run.
"The quality of our live racing and the demand for our product carried over in Churchill Downs racetrack's record-setting Spring Meet and in CDSN's growth over the quarter, which was buoyed by a shift in race start times, continued expansion of account wagering, and gains in market share aided in part by inclement weather in the northeast.
"These factors, coupled with a favorable racing calendar, enabled us to deliver earnings per share for the quarter that exceeded the range previously estimated by the Company,"Meeker added.
"Some of the elements that contributed to our strong second quarter will work against us in the third quarter and remainder of the year."
CDI estimates third quarter earnings per share of $0.55 to $0.58, down from $0.59 per share in 2002. The earnings per share estimate for the full-year remains approximately $1.80 per share as compared to $1.57 per share in 2002.