CDI reports strong second quarter growth
Churchill Downs Inc. (CDI) on Monday reported results for the second quarter and six months ended June 30, 2012.
Due primarily to growth within CDI's Racing Operations, including a record Kentucky Oaks and Derby week, and growth in the Company's Online Business segment, the Company's net revenues from continuing operations for the second quarter of 2012 increased 8 percent, or $21.1 million, to $270.8 million from $249.7 million during the same period of the prior year.
CDI's online wagering company, Twinspires.com, experienced a second quarter handle increase of 13 percent, or $29.7 million, as compared to the prior-year period, driven primarily by new customer growth and an increase in average daily wagering.
Racing Operations EBITDA increased $6.6 million and was primarily driven by increased EBITDA of $5.4 million from Kentucky Oaks and Derby week related to increased admissions, sponsorships and pari-mutuel revenues, as well as 17 additional live race days.
The Gaming Business segment EBITDA increased $6.6 million, or 52 percent, as insurance recoveries, net of losses, increased $4.6 million from the same period of the prior year. During the three months ended June 30, CDI received insurance recoveries, net of losses, of $5 million, which reflects the final insurance claim settlement from the 2011 flood damage sustained at Harlow's Casino Resort & Hotel, which was closed for 25 days during the three months ended June 30, 2011, due to the Mississippi River flooding. During the three months ended June 30, 2011, CDI received insurance recoveries, net of losses, of $400,000, which reflects a settlement for wind damage sustained at Harlow's during 2011. Partially offsetting this increase was a decrease in EBITDA of $1.1 million at Calder Casino due to the impact of heightened competition in the south Florida market.
Net earnings from continuing operations for the period were $48.6 million, or $2.77 per diluted common share, an increase of 21 percent from net earnings from continuing operations of $40.1 million, or $2.36 per diluted common share, during the second quarter of 2011.
"We continue to build our portfolio of growth opportunities," CDI Chairman and Chief Executive Officer Robert L. Evans said. "Construction of the super-premium seating venue, The Mansion at Churchill Downs, has begun along with sales for this area for the 2013 Kentucky Oaks and Kentucky Derby.
"On June 29, the Illinois expanded gaming legislation, Senate Bill 1849, was sent to Governor (Pat) Quinn, who has 60 days to sign or veto the measure.
"On July 26, our joint venture entity with Delaware North Gaming and Entertainment, known as Miami Valley Gaming & Racing LLC, submitted its gaming and racing license applications to the state of Ohio.
"Later this year we hope to launch the real-money gaming site Luckity.com. And we continue to aggressively evaluate various ventures and potential acquisitions."
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