NASDAQ$CHDN

Churchill Downs Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Churchill Downs Incorporated reported a net revenue decrease of 5% and a net loss attributable to CDI compared to net income in the prior year quarter.

Churchill Downs Incorporated reported first quarter results for 2020, with a decrease in net revenue and a net loss attributable to CDI. The company has taken steps to address the adverse impact of the coronavirus pandemic.

  • Net revenue decreased by 5% over the prior year quarter, reaching $252.9 million.
  • Net loss attributable to CDI was $23.4 million, compared to net income of $11.6 million in the prior year quarter.
  • Adjusted EBITDA decreased by 26% compared to the prior year quarter, totaling $55.3 million.
  • TwinSpires demonstrated strong performance with handle growth of 8.3% over the prior year quarter.

Headline financials

Total Revenue

$253M

Previous: $265M-4.7%
EPS (adj)

$0.03

Previous: $0.32-90.6%
Adjusted EBITDA

$55.3M

Previous: $74.6M-25.9%
Capital Expenditures

-$48.3M

Previous: -$13.9M-247.5%
Free Cash Flow

-$71.7M

Previous: -$2.3M-3017.4%
Net Income

-$23.4M

Previous: $11.6M-301.7%
Operating Income

-$11.6M

Previous: $28M-141.4%
Gross Profit

$253M

Previous: $265M-4.7%
Cash & Equivalents

$701M

Previous: $120M+485.5%
Total Assets

$3.2B

Previous: $2.48B+29.3%
Stock-Based Comp

$4.3M

Previous: $4.7M-8.5%

Revenue & EPS history

Churchill Downs · Revenue · Quarterly

$253M

Q1 2020-4.7%vs Q1 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Churchill Downs · $122M total across 1 segment · Q1 2020

  • Gaming
    $122M

Forward guidance

The Company is unable to determine when it will be able to reopen its properties and operations and the conditions upon which it will reopen. Our second quarter of 2020 financial results will be materially impacted by the rescheduling of the Kentucky Oaks and Derby from the second quarter of 2020 to the third quarter of 2020, by the continued closure and suspended operations of our wholly-owned gaming properties and certain wholly-owned racing operations, and by the continued closure of the casino properties related to our two equity investments.

Tailwinds

  • Strong balance sheet
  • Deep experience
  • Resilience of the team
  • Adequate cash for at least the next twelve months to fund our business operations
  • Invest in key growth capital projects

Headwinds

  • COVID-19 pandemic impact
  • Rescheduling of the Kentucky Oaks and Derby from the second quarter of 2020 to the third quarter of 2020
  • Continued closure and suspended operations of our wholly-owned gaming properties
  • Continued closure of the casino properties related to our two equity investments
  • Unable to determine when we will be able to reopen our properties and operations and the conditions upon which we will reopen

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.2%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.1%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+14.0%

Q3 2011

Best reaction

-16.2%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%+10.5%-6.4%
Q4 2025-6.1%-2.8%-12.1%
Q3 2025+7.5%+3.5%+10.4%
Q1 2025-16.2%-13.0%-11.2%
Q4 2024-0.4%-4.4%-6.2%
Q3 2024+4.4%+5.2%+5.7%
Q2 2024-2.6%+2.3%-2.4%
Q1 2024+4.6%+5.4%+7.7%
Q4 2023+3.1%+3.9%+1.3%
Q3 2023-3.0%-2.2%+8.3%
Q2 2023-8.9%-11.2%-5.0%
Q1 2023+13.2%+17.5%+8.4%
Q4 2022+0.7%+0.7%+0.0%
Q3 2022-4.9%-0.1%+7.5%
Q2 2022+0.9%-2.5%-4.3%
Q1 2022+3.9%+5.6%+1.1%
Q4 2021+1.9%+12.3%+4.4%
Q3 2021-5.7%-4.8%-8.8%
Q2 2021-1.1%-1.8%+11.1%
Q1 2021+0.9%+2.4%-8.3%
Q4 2020+0.6%+4.2%+2.2%
Q3 2020-6.6%-6.8%+12.7%
Q2 2020+10.6%+14.2%+41.5%
Q1 2020-1.8%-7.7%+30.1%
Q4 2019-7.6%-14.5%-37.4%
Q3 2019-2.0%-6.4%-2.0%
Q2 2019+2.9%-6.4%+0.4%
Q1 2019+5.3%+13.8%+7.6%
Q4 2018-4.0%-7.3%-7.6%
Q3 2018+11.0%+9.9%+13.9%
Q2 2018-2.4%-1.8%-1.2%
Q1 2018+7.4%+7.3%+19.8%
Q4 2017-0.0%+3.4%-4.8%
Q3 2017+0.4%+2.0%+11.8%
Q2 2017+2.1%+0.6%+4.1%
Q1 2017+1.4%-2.0%-0.4%
Q4 2016-0.4%-1.0%+3.9%
Q3 2016-2.9%-3.6%+12.1%
Q2 2016+6.7%+8.6%+14.4%
Q1 2016-6.9%
Q4 2015+4.4%
Q3 2015+4.3%
Q2 2015+5.7%
Q1 2015+5.0%
Q4 2014+3.3%
Q3 2014-0.9%
Q2 2014+0.1%
Q1 2014-0.9%
Q4 2013-1.5%
Q3 2013-2.3%
Q2 2013+3.3%
Q1 2013+1.3%
Q4 2012+1.9%
Q3 2012-3.9%
Q2 2012+4.1%
Q1 2011+5.2%
Q1 2012+5.2%
Q4 2011+8.3%
Q3 2010+14.0%
Q3 2011+14.0%
Q4 2010+1.4%
Q2 2011+1.4%
Q2 2010+1.4%
Q4 2009+1.4%
Q1 2010-3.8%

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