Churchill Downs Incorporated (CHDN) Bundle
A Brief History of Churchill Downs Incorporated
Overview
As of 2024, Churchill Downs Incorporated (CHDN) operates in the gaming and entertainment sectors, primarily focusing on horse racing, sports betting, and gaming operations.
Financial Performance
For the third quarter ended September 30, 2024, Churchill Downs reported a net revenue of $628.5 million, an increase of $56.0 million from the same period in 2023. For the nine months ended September 30, 2024, net revenue stood at $2,110.1 million, reflecting an increase of $209.6 million.
| Revenue by Segment (in millions) | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Live and Historical Racing | $252.4 | $225.5 | $26.9 | $991.5 | $849.3 | $142.2 |
| TwinSpires | $118.7 | $112.4 | $6.3 | $392.7 | $347.8 | $44.9 |
| Gaming | $270.3 | $244.9 | $25.4 | $787.9 | $744.4 | $43.5 |
| All Other | $2.6 | $0.2 | $2.4 | $4.5 | $0.7 | $3.8 |
| Eliminations | ($15.5) | ($10.5) | ($5.0) | ($66.5) | ($41.7) | ($24.8) |
| Total Net Revenue | $628.5 | $572.5 | $56.0 | $2,110.1 | $1,900.5 | $209.6 |
Adjusted EBITDA
Adjusted EBITDA for the third quarter of 2024 was $235.3 million, an increase of $17.1 million compared to Q3 2023. For the nine months ended September 30, 2024, Adjusted EBITDA reached $922.6 million, up $117.8 million year-over-year.
| Adjusted EBITDA by Segment (in millions) | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Live and Historical Racing | $93.0 | $80.9 | $12.1 | $473.0 | $386.5 | $86.5 |
| TwinSpires | $42.5 | $33.9 | $8.6 | $128.3 | $97.2 | $31.1 |
| Gaming | $123.3 | $122.3 | $1.0 | $386.8 | $375.2 | $11.6 |
| Total Adjusted EBITDA | $235.3 | $218.2 | $17.1 | $922.6 | $804.8 | $117.8 |
Debt and Equity
As of September 30, 2024, total debt was reported at $4,866.9 million, with a net debt amount of $4,770.6 million. The company’s equity increased to $1,114.9 million from $893.6 million at the end of 2023.
| Debt Summary (in millions) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Term Loan B-1 due 2028 | $289.5 | $291.8 |
| Term Loan A due 2029 | $1,187.4 | $1,235.0 |
| Revolver | $290.0 | $247.2 |
| 2027 Senior Notes | $600.0 | $600.0 |
| 2028 Senior Notes | $700.0 | $700.0 |
| 2030 Senior Notes | $1,200.0 | $1,200.0 |
| 2031 Senior Notes | $600.0 | $600.0 |
| Total Debt | $4,866.9 | $4,874.0 |
Share Repurchase Program
As of September 30, 2024, the company had approximately $170.9 million of repurchase authority remaining under its stock repurchase program. In January 2024, CHDN repurchased 1,000,000 shares at $123.75 per share, totaling $123.8 million.
A Who Owns Churchill Downs Incorporated (CHDN)
Major Shareholders
As of 2024, the following table summarizes the major shareholders of Churchill Downs Incorporated:
| Shareholder | Ownership Percentage | Shares Held (in millions) |
|---|---|---|
| The Duchossois Group | 19.6% | 14.5 |
| BlackRock, Inc. | 11.3% | 8.3 |
| Vanguard Group, Inc. | 10.5% | 7.7 |
| State Street Corporation | 7.8% | 5.7 |
| Other Institutional Investors | 50.8% | 37.3 |
Insider Ownership
Insider ownership includes executive officers and board members. The following is a summary of insider ownership as of September 2024:
| Name | Position | Shares Held (in millions) | Ownership Percentage |
|---|---|---|---|
| William C. Carstanjen | CEO | 0.5 | 0.7% |
| Jason D. L. DeMarco | CFO | 0.2 | 0.3% |
| Other Executives | Various | 0.9 | 1.2% |
Stock Performance
As of September 30, 2024, Churchill Downs Incorporated's stock performance is summarized in the table below:
| Metric | Value |
|---|---|
| Current Share Price (as of Sept 30, 2024) | $130.50 |
| 52-Week High | $145.00 |
| 52-Week Low | $110.00 |
| Market Capitalization | $1.48 billion |
| Dividend Yield | 0.5% |
Recent Transactions
In 2024, significant transactions affecting ownership include:
- On January 2, 2024, Churchill Downs repurchased 1,000,000 shares from The Duchossois Group at $123.75 per share, totaling approximately $123.8 million.
- In April 2024, Churchill Downs sold 49% of United Tote to NYRA for $14.4 million, affecting the company's equity structure.
Debt Structure
Churchill Downs Incorporated's total debt as of September 30, 2024, is detailed in the following table:
| Debt Instrument | Principal Amount (in millions) | Maturity Date | Interest Rate |
|---|---|---|---|
| Term Loan B-1 | 289.5 | 2028 | SOFR + 210 bps |
| Term Loan A | 1,187.4 | 2029 | SOFR + 10 bps |
| 2027 Senior Notes | 600.0 | 2027 | 5.500% |
| 2028 Senior Notes | 700.0 | 2028 | 4.750% |
| 2030 Senior Notes | 1,200.0 | 2030 | 5.750% |
| 2031 Senior Notes | 600.0 | 2031 | 6.750% |
| Total Debt | 4,866.9 |
Conclusion on Ownership Structure
The ownership structure of Churchill Downs Incorporated reflects a mix of institutional and insider ownership, with significant stakes held by prominent investment firms and the Duchossois Group. The company continues to engage in strategic transactions to optimize its capital structure and enhance shareholder value.
Churchill Downs Incorporated (CHDN) Mission Statement
Company Overview
Churchill Downs Incorporated (CHDN) operates in the gaming and entertainment sectors, with a strong focus on horse racing, online wagering, and gaming operations. The company is well-known for its iconic Churchill Downs Racetrack, home of the Kentucky Derby.
Mission Statement
As of 2024, Churchill Downs Incorporated's mission is to deliver exceptional entertainment experiences through horse racing, gaming, and online wagering. They aim to create a diverse portfolio of gaming options and to be a leader in the industry by embracing innovation and ensuring customer satisfaction.
Financial Performance
In the third quarter of 2024, Churchill Downs Incorporated reported significant financial growth, reflecting the effectiveness of its operational strategies in alignment with its mission. Key financial metrics include:
| Financial Metric | Q3 2024 | Q3 2023 | Change (in millions) |
|---|---|---|---|
| Net Revenue | $628.5 | $572.5 | $56.0 |
| Adjusted EBITDA | $235.3 | $218.2 | $17.1 |
| Net Income | $66.2 | $61.0 | $5.2 |
| Operating Income | $124.4 | $110.8 | $13.6 |
Revenue Breakdown by Segment
The company's revenue is diversified across various segments, demonstrating its commitment to providing a range of entertainment options.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (in millions) |
|---|---|---|---|
| Live and Historical Racing | $252.4 | $225.5 | $26.9 |
| TwinSpires | $118.7 | $112.4 | $6.3 |
| Gaming | $270.3 | $244.9 | $25.4 |
| All Other | $2.6 | $0.2 | $2.4 |
Strategic Initiatives
CHDN has been actively pursuing strategic initiatives that align with its mission statement. These include:
- Expansion of gaming properties, such as the opening of the Terre Haute Casino Resort in April 2024.
- Enhancement of online wagering platforms, specifically through the TwinSpires segment.
- Investment in technology and infrastructure to improve customer experiences and operational efficiency.
Future Outlook
Looking ahead, Churchill Downs Incorporated plans to continue its growth trajectory by focusing on innovation and customer engagement. The company expects to invest between $450 million to $550 million in capital projects throughout 2024.
Conclusion
Churchill Downs Incorporated's mission statement reflects its commitment to providing exceptional entertainment experiences, a goal that is supported by its robust financial performance and strategic growth initiatives. The company's diverse revenue streams and ongoing investments position it well for future success in the gaming and entertainment sectors.
How Churchill Downs Incorporated (CHDN) Works
Business Segments
Churchill Downs Incorporated operates through several key segments:
- Live and Historical Racing
- TwinSpires (online and retail sports betting)
- Gaming (casinos)
- All Other (including event-related services)
Financial Performance Overview
As of September 30, 2024, Churchill Downs reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenue | $628.5 million | $572.5 million | $56.0 million |
| Operating Income | $234.2 million | $109.8 million | $124.4 million |
| Net Income | $65.4 million | $61.0 million | $4.4 million |
| Adjusted EBITDA | $235.3 million | $218.2 million | $17.1 million |
Revenue by Segment
The following table illustrates the revenue generated from each segment for the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| Live and Historical Racing | $252.4 million | $225.5 million | $991.5 million | $849.3 million |
| TwinSpires | $118.7 million | $112.4 million | $392.7 million | $347.8 million |
| Gaming | $270.3 million | $244.9 million | $787.9 million | $744.4 million |
| All Other | $2.6 million | $0.2 million | $4.5 million | $0.7 million |
Key Drivers of Growth
Churchill Downs’ growth in 2024 was driven by:
- The opening of the Rosie's Emporia property in September 2023, contributing significantly to the Live and Historical Racing segment.
- Launch of the Terre Haute Casino Resort in April 2024, boosting Gaming revenues.
- Increased performance from the TwinSpires segment, primarily due to Exacta.
Operating Expenses
For the three months ended September 30, 2024, the consolidated operating expenses were reported as follows:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Salaries and Benefits | $121.0 million | $109.2 million |
| Marketing and Advertising | $26.5 million | $26.5 million |
| Gaming Taxes and Purses | $251.8 million | $246.7 million |
| Other Operating Expenses | $59.8 million | $52.5 million |
Balance Sheet Highlights
As of September 30, 2024, the balance sheet reflected:
| Item | Amount (in millions) |
|---|---|
| Total Assets | $7,172.5 million |
| Total Liabilities | $6,057.6 million |
| Total Equity | $1,114.9 million |
Debt Profile
The company's total debt outstanding as of September 30, 2024, is summarized below:
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan A | $1,187.4 million |
| Term Loan B-1 | $289.5 million |
| 2027 Senior Notes | $600.0 million |
| 2028 Senior Notes | $700.0 million |
| 2029 Senior Notes | $1,200.0 million |
| Total Debt | $4,866.9 million |
Cash Flow Summary
For the nine months ended September 30, 2024, the cash flow summary is as follows:
| Cash Flow Type | Amount (in millions) |
|---|---|
| Operating Activities | $641.1 million |
| Investing Activities | ($415.8 million) |
| Financing Activities | ($216.7 million) |
How Churchill Downs Incorporated (CHDN) Makes Money
Business Segments
Churchill Downs Incorporated (CHDN) generates revenue through three primary segments: Live and Historical Racing, TwinSpires, and Gaming.
Live and Historical Racing
This segment includes revenues from horse racing events, historical racing machines (HRMs), and related services. In the third quarter of 2024, the revenue from Live and Historical Racing was $252.4 million, compared to $225.5 million in the same period of 2023, marking an increase of $26.9 million.
The year-to-date revenue for this segment increased significantly from $849.3 million in 2023 to $991.5 million in 2024, a growth of $142.2 million.
TwinSpires
TwinSpires operates as an online betting platform, focusing on horse racing and sports betting. For Q3 2024, TwinSpires generated $118.7 million in revenue, up from $112.4 million in Q3 2023, reflecting a $6.3 million increase. Year-to-date revenue rose from $347.8 million in 2023 to $392.7 million in 2024, an increase of $44.9 million.
Gaming
The Gaming segment comprises revenue from casino operations and gaming machines. In Q3 2024, this segment reported revenue of $270.3 million, a $25.4 million increase from $244.9 million in Q3 2023. For the nine months ended September 30, 2024, revenue increased from $744.4 million in 2023 to $787.9 million in 2024, a $43.5 million growth.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Year-to-Date 2024 Revenue (in millions) | Year-to-Date 2023 Revenue (in millions) | Change (in millions) |
|---|---|---|---|---|---|
| Live and Historical Racing | $252.4 | $225.5 | $991.5 | $849.3 | $142.2 |
| TwinSpires | $118.7 | $112.4 | $392.7 | $347.8 | $44.9 |
| Gaming | $270.3 | $244.9 | $787.9 | $744.4 | $43.5 |
| All Other | $2.6 | $0.2 | $4.5 | $0.7 | $3.8 |
| Total Net Revenue | $628.5 | $572.5 | $2,110.1 | $1,900.5 | $209.6 |
Financial Performance
Churchill Downs reported an operating income of $125.9 million for Q3 2024, an increase of $13.6 million from $112.3 million in Q3 2023. Year-to-date operating income increased from $457.8 million in 2023 to $582.2 million in 2024, reflecting a $124.4 million growth.
Adjusted EBITDA for Q3 2024 was $235.3 million, up from $218.2 million in Q3 2023, an increase of $17.1 million. Year-to-date adjusted EBITDA rose from $804.8 million in 2023 to $922.6 million in 2024, a growth of $117.8 million.
| Financial Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Year-to-Date 2024 (in millions) | Year-to-Date 2023 (in millions) | Change (in millions) |
|---|---|---|---|---|---|
| Operating Income | $125.9 | $112.3 | $582.2 | $457.8 | $124.4 |
| Adjusted EBITDA | $235.3 | $218.2 | $922.6 | $804.8 | $117.8 |
Recent Developments
The opening of the Rosie's Emporia property in September 2023 and the Terre Haute Casino Resort in April 2024 have been significant contributors to the revenue growth in their respective segments. The strong performance during Derby Week in 2024 also had a substantial positive impact on the Live and Historical Racing segment.
Overall, Churchill Downs Incorporated's diversified revenue streams from racing, gaming, and online betting platforms have positioned the company for continued financial success as of 2024. The company's strategic expansions and operational efficiencies are reflected in its financial growth metrics.
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Article updated on 8 Nov 2024
Resources:
- Churchill Downs Incorporated (CHDN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Churchill Downs Incorporated (CHDN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Churchill Downs Incorporated (CHDN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.