Churchill Downs Inc. on Oct. 29 reported record adjusted earnings for the third quarter for the racetrack and casino owner.
Third-quarter adjusted earnings (EBITDA) reached $32.2 million, up 1% from last year's third quarter.
"We were pleased with our third-quarter results which were in line with our internal expectations," said CDI chief executive officer Bill Carstanjen."We produced record adjusted EBITDA of $32.2 million, despite generally soft regional gaming trends and changes to the legal and tax environment affecting our online operations.
"We continued to make strategic investments in the development of our real-money Internet gaming platform and incurred costs associated with our Capital View Casino joint venture bid for a New York gaming license."
Other highlights included:
• Net revenues of $173.7 million declined 6% compared to prior year, driven by the closure of racing operations at Calder Casino & Race Course and loss of Texas online wagering
• Gaming Operations Adjusted EBITDA increased $4.4 million, 22% above 2013's third quarter, as a result of CDI's share of the increase in operating income from Miami Valley Gaming (MVG) and a full period of results from Oxford Casino.
• Online Business Adjusted EBITDA declined $1.9 million, 15% below the same period in 2013, as organic growth was outpaced by the loss of Texas online wagering and new online wagering taxes.
• Earnings from continuing operations dropped $5.7 million, or 62%, primarily as the result of one-time effects of leasing the pari-mutuel operations at Calder and the non-recurrence of $4.2 million in Illinois Horse Racing Equity Trust Fund income that occurred in the third quarter of 2013.