Churchill Downs Q2 2024 10-Q Filed

TL;DR

CDI 10-Q is in! Check Q2 2024 results for Racing, TwinSpires, Gaming segments.

AI Summary

Churchill Downs Inc. filed its 10-Q for the period ending June 30, 2024. The company reported financial results for its various segments, including Live and Historical Racing, TwinSpires, and Gaming. Specific financial figures for these segments during the second quarter and year-to-date periods of 2024 and 2023 are detailed within the filing.

Why It Matters

This filing provides investors with the latest financial performance data for Churchill Downs Inc., crucial for understanding the company's operational health and future prospects in the racing and gaming industry.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, but the overall risk level is medium due to the inherent volatility of the gaming and racing industries and the potential for significant financial fluctuations.

Key Numbers

• Q2 2024 — Reporting Period (Financial results for the second quarter of 2024 are detailed.)
• Year-to-date 2024 — Reporting Period (Financial results for the first six months of 2024 are detailed.)

Key Players & Entities

• Churchill Downs Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240724 (date) — Filing date
• Live and Historical Racing (segment) — Business segment reported
• TwinSpires (segment) — Business segment reported
• Gaming (segment) — Business segment reported

FAQ

Filing Documents

• chdn-20240630.htm (10-Q) — 1572KB
• ex1001.htm (EX-10.01) — 19KB
• exhibit31a2024063010q.htm (EX-31.A) — 10KB
• exhibit31b2024063010q.htm (EX-31.B) — 10KB
• exhibit322024063010q.htm (EX-32) — 7KB
• ex1001001.jpg (GRAPHIC) — 221KB
• ex1001002.jpg (GRAPHIC) — 254KB
• ex1001003.jpg (GRAPHIC) — 274KB
• ex1001004.jpg (GRAPHIC) — 272KB
• ex1001005.jpg (GRAPHIC) — 123KB
• ex1001006.jpg (GRAPHIC) — 92KB
• ex1001007.jpg (GRAPHIC) — 92KB
• 0000020212-24-000105.txt ( ) — 10450KB
• chdn-20240630.xsd (EX-101.SCH) — 50KB
• chdn-20240630_cal.xml (EX-101.CAL) — 71KB
• chdn-20240630_def.xml (EX-101.DEF) — 258KB
• chdn-20240630_lab.xml (EX-101.LAB) — 582KB
• chdn-20240630_pre.xml (EX-101.PRE) — 446KB
• chdn-20240630_htm.xml (XML) — 1635KB

-FINANCIAL INFORMATION

Part I-FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 3 Condensed Consolidated Balance Sheets at June 30, 2024 and December 31, 2023 4 Condensed Consolidated Statements of Shareholders' Equity for the three and six months ended June 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36

-OTHER INFORMATION

Part II-OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 38 Item 4. Mine Safety Disclosures 38 Item 5. Other Information 38 Item 6. Exhibits 39

Signatures

Signatures 40 FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CHURCHILL DOWNS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions, except per common share data) 2024 2023 2024 2023 Net revenue: Live and Historical Racing $ 464.7 $ 385.0 $ 709.8 $ 599.4 TwinSpires 151.7 137.4 258.3 232.2 Gaming 274.2 245.9 513.4 495.9 All Other 0.1 0.2 0.1 0.5 Total net revenue 890.7 768.5 1,481.6 1,328.0 Operating expense: Live and Historical Racing 221.4 204.2 378.6 347.5 TwinSpires 89.3 80.7 157.2 146.4 Gaming 188.4 179.2 366.9 352.7 All Other 3.6 5.7 5.7 10.7 Selling, general and administrative expense 57.4 48.1 112.2 100.4 Asset impairments — 24.5 — 24.5 Transaction expense, net 0.6 0.5 4.7 0.3 Total operating expense 560.7 542.9 1,025.3 982.5 Operating income 330.0 225.6 456.3 345.5 Other (expense) income: Interest expense, net ( 73.5 ) ( 65.2 ) ( 143.9 ) ( 129.9 ) Equity in income of unconsolidated affiliates 37.7 38.8 75.5 77.1 Gain on sale of Arlington — — — 114.0 Miscellaneous, net 0.1 — 8.2 1.4 Total other (expense) income ( 35.7 ) ( 26.4 ) ( 60.2 ) 62.6 Income from operations before provision for income taxes 294.3 199.2 396.1 408.1 Income tax provision ( 84.1 ) ( 56.2 ) ( 105.5 ) ( 109.4 ) Net income 210.2 143.0 290.6 298.7 Net income attributable to noncontrolling interest 0.9 — 0.9 — Net income attributable to Churchill Downs Incorporated $ 209.3 $ 143.0 $ 289.7 $ 298.7 Net income attributable to Churchill Downs Incorporated per common share data: Basic net income $ 2.82 $ 1.90 $ 3.90 $ 3.97 Diluted net income $ 2.79 $ 1.86 $ 3.87 $ 3.90 Weighted average shares outstanding: Basic 73.9 75.3 74.0 75.3 Diluted 74.6 76.9 74.6 76.5 The accompanying notes are an integral part of the condensed consolidated financial statements. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024 3 CHURCHILL DOWNS INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

View Full Filing

View this 10-Q filing on SEC EDGAR