The Horse Racing Business of July 16, 2011 carried an analysis titled “How Well Managed is Churchill Downs, Inc.?” The post contained the assessment that “…the facts paint a picture of a masterful job [by management] of shepherding CDI through turbulent times, the turbulence caused largely by a languid economy and a pari-mutuel industry in free fall.” Yesterday’s CDI release of operating results for the second quarter of 2011 corroborates this observation and demonstrates a corporate strategy that is working exceedingly well for shareholders:
LOUISVILLE, Ky., July 27, 2011 (GLOBE NEWSWIRE) — Churchill Downs Incorporated (“CDI” or “the Company”) (Nasdaq:CHDN – News) today reported business results for the second quarter and six months ended June 30, 2011.
“This was the first quarter to fully reflect the impact of our growth-through-diversification strategy that we adopted a few years ago,” CDI Chairman and Chief Executive Officer Robert L. Evans said. “Revenues, EBITDA and net earnings from continuing operations set all-time records in the second quarter [emphasis added] despite having to close our Harlow’s casino property for 25 days due to Mississippi River flooding.”
Net revenues from continuing operations for the quarter grew 16 percent compared to the prior-year period–to $249.7 million from $215.4 million–primarily due to the continued expansion and growth of CDI’s Online and Gaming business segments, which now include the Company’s 2010 acquisitions. CDI’s Online and Gaming segments recorded increases in net revenues from continuing operations of $16.7 million (up 56 percent) and $13.6 million (up 38 percent), respectively, when compared to the second quarter of 2010. The Online segment’s results for the second quarter of 2011 include three months of Youbet.com results as opposed to approximately one month of Youbet.com revenues reported during the second quarter of 2010. CDI’s most recent acquisition, Harlow’s Casino Resort & Hotel, generated $9.5 million in net revenues during the quarter, despite being forced to close for 25 days in May due to Mississippi River flooding, while Calder Casino’s net revenues improved $3.5 million over the comparable period in 2010.
Net earnings from continuing operations for the period were $40.0 million, or $2.36 per diluted common share, an increase of 41 percent from net earnings from continuing operations of $28.3 million, or $1.90 per diluted common share, in the second quarter of 2010.
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