Record Net Revenues at Churchill Downs Inc.

Record Net Revenues at Churchill Downs Inc.
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With continued success in its gaming and online operations and the Kentucky Derby presented by Yum! Brands (gr. I) week, along with a steady year in racing, Churchill Downs Inc. reported record net revenues in 2013 of $779.3 million.

Even so, CDI chairman Robert Evans acknowledged Feb. 26 that the Louisville, Ky.-based company had hoped for more success.

He said 2013 "was a good year, but we had planned to do even better" after the fourth quarter and yearly earnings reports were released Wednesday.

"While total year net revenues were up 7% to a record $779.3 million, adjusted EBITDA was up 11% to a record $176.2 million, and our common stock price increased 35% during the year," Evans said, "general economy softness, notably in job growth and personal disposable income growth, along with state-specific changes in legislation and regulation, and one-time expenses combined to negatively affect our performance, particularly in the fourth quarter."

Evans is looking forward to more success in 2014.

"Several 2013 developments should favorably affect our results in 2014.  We acquired Oxford Casino in Oxford, Maine, last July and opened our joint venture project, Miami Valley Gaming & Racing, north of Cincinnati in December," Evans said. "Our $26.5 million investment in the new, 2,400-seat grandstand terrace and 15,224 square-foot, 4K-resolution 'Big Board' video board at Churchill Downs racetrack, combined with a new, 10-year media rights deal with NBC, should be reflected in our 2014 Kentucky Oaks and Derby Week results.

"Finally, we completed a $300 million offering of 5.375% senior unsecured notes that mature in 2021, increasing our balance sheet capacity and flexibility to pursue additional growth opportunities in the future."

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