Churchill Downs Incorporated Reports First Quarter Results.LOUISVILLE, Ky. -- Churchill Downs Incorporated Churchill Downs Incorporated (NASDAQ: CHDN) is the parent company of Churchill Downs. The company owns several other thoroughbred and standardbred racetracks. History (Nasdaq: CHDN) ("CDI CDI compact disc interactive: a system for storing a mix of software, data, audio, and compressed video for interactive use under processor control " or "Company") today reported results for the first quarter ended March 31, 2005. Net revenues were $56.3 million, up 49.1 percent compared with $37.7 million for the first quarter of 2004. CDI reported a net loss of $13.9 million, or $1.08 per share, compared with a net loss of $11.7 million, or $0.89 per share, in the same period one-year prior. CDI historically operates at a loss for the first quarter because it conducts minimal live racing events during the period. With its acquisition of Fair Grounds Race Course Fair Grounds Race Course, often known as New Orleans Fair Grounds, is a thoroughbred racetrack and racino in New Orleans, Louisiana. History The track was initially opened as the "Union Race Course" in 1852. in October 2004, the Company added 61 race dates in the first quarter of 2005. However, gains resulting from these additional race dates were offset in part by $2.8 million in legislative spending related to the March 8 alternative gaming ballot initiative in Florida, as well as higher corporate expenses, and fewer simulcast dark days at Arlington Park Arlington Park is a horse race track in the Chicago suburb of Arlington Heights, Illinois. Horse racing in the Chicago region has been a popular sport since the early days of the city in the 1830s, and at one time Chicago had more horse racing tracks (six) than any other major versus the same period a year ago. Thomas H. Meeker Meeker may refer to: Places
Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, of Churchill Downs Churchill Downs, Ky.: see Louisville. , as well as the build out of our Customer Relationship Management ("CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ") platform. We closed a successful meet at our new Fair Grounds Race Course operation. We continued to advocate for industry-friendly alternative gaming legislation in Florida. We announced a five-year Kentucky Derby Kentucky Derby One of the classic U.S. Thoroughbred horse races. It was established in 1875 and run annually on the first Saturday in May at Churchill Downs track in Louisville, Ky. With the Preakness and the Belmont Stakes, it makes up U.S. racing's coveted Triple Crown. sponsorship agreement with Visa USA. Also, we announced the renewal of our Derby broadcast rights with NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. , a network that has shown it can raise the profile of our great event and industry through its excellent coverage and marketing. "We expect such efforts to deliver growth over the course of several years and have already begun to see some of our investments manifest themselves onto our top line," continued Meeker. "Our first meet at Fair Grounds Race Course, for example, delivered positive results for the first quarter, resulted in the first on- and off-track wagering wa·ger n. 1. a. An agreement under which each bettor pledges a certain amount to the other depending on the outcome of an unsettled matter. b. A matter bet on; a gamble. 2. gains for the track in four years' time, and featured a Louisiana Derby The Louisiana Derby is a race for Thoroughbred horses run at the Fair Grounds Race Course in New Orleans each year, usually in early March. The race is open to horses, age three, willing to race one and one-sixteenth miles on the dirt. A Grade II, it offers a purse of $600,000. that generated the highest wagering for a single day in state history. Patrons responded very favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the first Kentucky Derby and Oaks held in our newly renovated Churchill Downs facility, as demonstrated by the incredible on-track results that included Derby attendance of 156,435, the second-highest ever; on-track wagering of $22.1 million, a new Derby record; and Oaks attendance of 111,243 and on-track wagering of $12.1 million, both records. We are equally thrilled with the success of the Derby across the country, as more than 20 million viewed the race and total wagering on the 131st running amounted to $156 million, topping the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. , single-day wagering record of $143 million set during last year's Derby." Meeker concluded, "These results, coupled with the roll out of our CRM initiative and Company-wide customer focus, provide us momentum as we transition into the current quarter and the heart of our racing season. The experience garnered from the second quarter should give us a much clearer view of business trends, which we look forward to sharing with you in our disclosures for that period." A conference call regarding this release is scheduled for Wednesday, May 11, 2005, beginning at 9 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . Investors and other interested parties may listen to the teleconference by accessing the online, real-time webcast and broadcast of the call at www.churchilldownsincorporated.com/investor_relations or www.fulldisclosure.com, or by calling (913) 981-5532 at least 10 minutes before the appointed time. The online replay will be available at approximately noon and continue for two weeks. A six-day telephonic replay will be available two hours after the call ends by dialing (719) 457-0820 and entering 5125401 then prompted for the access code. A copy of the Company's news release announcing earnings and relevant financial and statistical information about the period will be accessible at www.churchilldownsincorporated.com/investor_relations. In addition to the results provided in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "), the Company has provided a non-GAAP measurement, which presents a financial measure of Earnings before Interest, Taxes, Depreciation and Amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Churchill Downs Incorporated, headquartered in Louisville, Ky., owns and operates world-renowned horse racing venues This is a list of horse racing venues, sorted by country. In the United States they are usually called horse racing tracks, and in most other English speaking countries they are usually called racecourses. throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company's seven racetracks in California, Florida, Illinois, Indiana, Kentucky and Louisiana host 121 graded-stakes events and many of North America's most prestigious races, including the Kentucky Derby and Kentucky Oaks The Kentucky Oaks is a Grade I stakes race for three-year-old Thoroughbred fillies staged annually in Louisville, Kentucky. The race currently covers 1⅛ miles (1811 metres) at Churchill Downs; carry 121 pounds (55 kg). , Hollywood Gold Cup The Hollywood Gold Cup is a Grade I stakes race for thoroughbred horses inaugurated in 1938 at Hollywood Park Racetrack in Inglewood, California. It was run as a handicap race until 1997 when it was switched to weight-for-age conditions. and Arlington Million The Arlington Million is a Grade 1 flat horse race in the United States for thoroughbred horses aged three years and upward. It is raced over a distance of 1¼ miles (approximately 2,000 metres) on the turf at Arlington Park, Arlington Heights, Illinois (a suburb of Chicago) in . CDI racetracks have hosted nine Breeders' Cup The Breeders' Cup World Championships is an annual series of Grade I thoroughbred horse races operated by Breeders' Cup Limited, a company formed in 1982 by a consortium of North American racing organizations, led by the National Thoroughbred Racing Association. World Thoroughbred Thoroughbred Light breed of racing and jumping horse descended from three desert stallions brought to England between 1689 and 1724. Thoroughbreds have a delicate head, slim body, broad chest, and short back. Most are bay, chestnut, brown, black, or gray. Championships - more than any other North American racing company. CDI also owns off-track betting off-track betting n. Abbr. OTB A system of placing bets away from a racetrack. facilities and has interests in various television production, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and racing services companies that support CDI's network of simulcasting and racing operations. CDI trades on the Nasdaq National Market under the symbol CHDN and can be found on the Internet at www.churchilldownsincorporated.com. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Forward-looking statements speak only as of the date the statement was made. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "should," "will," and similar words, although some forward-looking statements are expressed differently. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from our expectations include: the effect of global economic conditions; the effect (including possible increases in the cost of doing business) resulting from future war and terrorist activities or political uncertainties; the economic environment; the impact of increasing insurance costs; the impact of interest rate fluctuations; the effect of any change in the Company's accounting policies or practices; the financial performance of our racing operations; the impact of gaming competition (including lotteries and riverboat riv·er·boat n. A boat suitable for use on a river. , cruise ship and land-based casinos) and other sports and entertainment options in those markets in which we operate; the impact of live racing day competition with other Florida, Louisiana and California racetracks within those respective markets; costs associated with our efforts in support of alternative gaming initiatives; costs associated with our Customer Relationship Management initiatives; a substantial change in law or regulations affecting our pari-mutuel and gaming activities; a substantial change in allocation of live racing days; litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. surrounding the Rosemont, Illinois Rosemont is a village in Cook County, Illinois, founded in 1956. The population was 4,224 at the 2000 census. Geography Rosemont is located at (41.990730, -87.873816)GR1. , riverboat casino A Riverboat casino is a type of casino unique to several areas of the United States which use a riverboat as a casino. Several states authorized this type of casino to limit the areas where casinos could be constructed. ; changes in Illinois law that impact revenues of racing operations in Illinois; a decrease in riverboat admissions subsidy revenue from our Indiana operations; the impact of an additional Indiana racetrack and its wagering facilities near our operations; our continued ability to effectively compete for the country's top horses and trainers necessary to field high-quality horse racing horse racing, trials of speed involving two or more horses. It includes races among harnessed horses with one of two particular gaits, among saddled Thoroughbreds (or, less frequently, quarterhorses) on a flat track, or among saddled horses over a turf course with ; our continued ability to grow our share of the interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. simulcast market; our ability to execute our acquisition strategy and to complete or successfully operate planned expansion projects; our ability to adequately integrate acquired businesses; market reaction to our expansion projects; any business disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. associated with our facility renovations; the loss of our totalisator totalizator, totalisator a computer-driven, machine-operated betting system which eliminates the bookmaker in the betting industry which surrounds horse and dog racing. Called also parimutuel. companies or their inability to provide adequate reliance on their internal control processes through SAS (1) (SAS Institute Inc., Cary, NC, www.sas.com) A software company that specializes in data warehousing and decision support software based on the SAS System. Founded in 1976, SAS is one of the world's largest privately held software companies. See SAS System. 70 reports or to keep their technology current; the need for various alternative gaming approvals in Louisiana; our accountability for environmental contamination; the loss of key personnel and the volatility of our stock price.
CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS
for the three months ended March 31,
(Unaudited)
(In thousands, except per share data)
2005 2004
---------- ---------
Net revenues $56,252 $37,729
Operating expenses 65,389 47,493
---------- ---------
Gross loss (9,137) (9,764)
Selling, general and administrative expenses 14,142 9,078
---------- ---------
Operating loss (23,279) (18,842)
---------- ---------
Other income (expense):
Interest income 86 116
Interest expense (2,647) (1,384)
Unrealized gain on derivative instruments 206 -
Miscellaneous, net 537 336
---------- ---------
(1,818) (932)
---------- ---------
Loss before income tax benefit (25,097) (19,774)
Income tax benefit 11,200 8,028
---------- ---------
Net loss $(13,897) $(11,746)
========== =========
Basic and diluted net loss per common share $(1.08) $(0.89)
Basic and diluted weighted average shares
outstanding 12,881 13,257
Certain financial statement amounts have been reclassified in the
prior periods to conform to current period presentation.
CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION BY OPERATING UNIT
for the three months ended March 31,
(Unaudited) (In thousands)
2005 2004
--------- ---------
Net revenues from external customers:
Kentucky Operations $4,236 $4,725
Hollywood Park 4,435 5,099
Arlington Park 11,274 16,044
Calder Race Course 1,628 1,530
Hoosier Park 8,839 9,414
Louisiana Operations 16,941 -
CDSN 8,766 879
--------- ---------
Total racing operations 56,119 37,691
Other investments - 38
Corporate 133 -
--------- ---------
$56,252 $37,729
========= =========
Intercompany net revenues:
Kentucky Operations $159 $8
Hollywood Park 90 5
Arlington Park 171 11
Calder Race Course 281 268
Hoosier Park 71 3
Louisiana Operations 5,962 -
--------- ---------
Total racing operations 6,734 295
Other investments 138 145
Corporate 259 278
Eliminations (7,131) (718)
--------- ---------
$- $-
========= =========
EBITDA:
Kentucky Operations $(6,601) $(6,176)
Hollywood Park (3,426) (3,189)
Arlington Park (1,651) 404
Calder Race Course (5,741) (2,652)
Hoosier Park 414 674
Louisiana Operations 1,660 -
CDSN 2,133 (133)
--------- ---------
Total racing operations (13,212) (11,072)
Other investments 178 15
Corporate (3,509) (2,087)
--------- ---------
Total EBITDA (16,543) (13,144)
Depreciation and amortization (5,993) (5,362)
Interest income (expense), net (2,561) (1,268)
Income tax benefit 11,200 8,028
--------- ---------
Net loss $(13,897) $(11,746)
========= =========
Certain financial statement amounts have been reclassified in the
prior periods to conform to current period presentation.
CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) (unaudited)
March 31, December 31,
2005 2004
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents $15,097 $27,712
Restricted cash 3,906 7,267
Accounts receivable, net 21,905 50,523
Deferred income taxes 3,204 3,940
Income taxes receivable 11,305 -
Other current assets 9,547 3,999
----------- ------------
Total current assets 64,964 93,441
Other assets 18,748 17,196
Plant and equipment, net 473,830 458,644
Goodwill 53,528 53,528
Other intangible assets, net 18,925 19,149
----------- ------------
$629,995 $641,958
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $18,425 $34,233
Purses payable 14,271 8,464
Accrued expenses 32,570 37,511
Dividends payable - 6,430
Deferred revenue 43,229 25,941
----------- ------------
Total current liabilities 108,495 112,579
Long-term debt, due after one year 246,382 242,770
Other liabilities 20,788 20,424
Deferred revenue 19,327 19,071
Deferred income taxes 8,681 8,686
----------- ------------
Total liabilities 403,673 403,530
Commitments and contingencies - -
Shareholders' equity:
Preferred stock, no par value; 250
shares authorized; no shares issued - -
Common stock, no par value; 50,000
shares authorized; issued: 12,928
shares March 31, 2005 and 12,904 shares
December 31, 2004 115,578 114,930
Retained earnings 111,716 125,613
Unearned compensation (1,861) (1,935)
Accumulated other comprehensive income
(loss) 889 (180)
----------- ------------
226,322 238,428
----------- ------------
$629,995 $641,958
=========== ============
Certain financial statement amounts have been reclassified in the
prior periods to conform to current period presentation.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion