CDI: 3Q Earnings Up, Revenues Down

Churchill Downs Inc. doubles net earnings in third quarter.

Churchill Downs Inc. more than doubled its net earnings against decreasing revenues from continuing operations in the third quarter, the company announced Nov. 5.

Net earnings from continuing operations were $2.3 million, a 109% increase over the $1.1 million posted during the same period of 2007. Net revenues declined 4% to $99.6 million from $103.9 million, with the company in part blaming an ongoing signal dispute with horsemen’s groups.

“We continue to manage our cost structure in a proactive manner,” Robert L. Evans, CDI’s president and chief executive officer, said in a news release. “Combined with the increasing diversity of our sources of revenue, we have been able to improve our financial performance in what have been rather turbulent economic times.”

In an accompanying quarterly report filed with the Securities and Exchange Commission, CDI reported the total handle for all of its entities decreased 12% to $712.3 million from $811.2 million a year ago. Year-to-date company-wide handle declined 6% to $2.2 billion from $2.4 billion.

Individually during the quarter, handle at Churchill Downs declined 20% to $54.6 million, handle at Arlington Park declined 6% to $360.9 million, handle at Calder Race Course declined 27% to $227.9 million, and handle at Fair Grounds declined 19% to $34.2 million. Online handle through the company's platforms increased 62% to $56.1 million.

The company will conduct a conference call Nov. 6 to discuss the results with analysts and investors.