NASDAQ$CHDN

Churchill Downs Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Churchill Downs reported record revenue and Adjusted EBITDA, driven by strong performance across all segments and strategic acquisitions.

Churchill Downs Incorporated reported record first-quarter results, with significant growth in net revenue, net income, and Adjusted EBITDA. The company benefited from strategic acquisitions and strong performance across its Live and Historical Racing, TwinSpires, and Gaming segments.

  • Record net revenue of $559.5 million, a significant increase from $364.1 million in Q1 2022.
  • Net income reached $155.7 million, compared to $42.1 million in the same quarter last year.
  • Adjusted EBITDA hit a record $222.9 million, up from $128.5 million in Q1 2022.
  • Closed the sale of Arlington Heights, Illinois property to the Chicago Bears for $197.2 million.

Headline financials

Total Revenue

$560M

Previous: $364M+53.7%
EPS (adj)

$0.98

Previous: $0.59+66.1%
Adjusted EBITDA

$223M

Previous: $129M+73.5%
Capital Expenditures

-$135M

Previous: -$55.5M-142.7%
Free Cash Flow

$21M

Previous: -$13.4M+256.7%
Net Income

$156M

Previous: $42.1M+269.8%
Operating Income

$120M

Previous: $47.4M+153.0%
Gross Profit

$560M

Previous: $364M+53.7%
Cash & Equivalents

$174M

Previous: $295M-41.0%
Total Assets

$6.27B

Previous: $3.04B+106.6%

Revenue & EPS history

Churchill Downs · Revenue · Quarterly

$560M

Q1 2023+53.7%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Churchill Downs · $250M total across 2 segments · Q1 2023

  • Gaming
    $250M+41.0%
  • All Other
    $300K

Forward guidance

Churchill Downs Incorporated is focusing on expanding its operations, enhancing its existing properties, and leveraging its TwinSpires platform. The company's capital projects include investments in new and existing racing and gaming venues.

Tailwinds

  • Planned capital projects include the Churchill Downs Racetrack First Turn Experience.
  • Paddock Project is underway.
  • Derby City Gaming expansion and hotel are set to be completed.
  • Derby City Gaming Downtown property build-out is planned.
  • New Hampshire HRM facility property build-out is in progress.

Headwinds

  • The company faces risks associated with economic conditions affecting consumer spending.
  • Increased competition in the gaming and entertainment industries could impact performance.
  • The company is subject to regulatory changes that could adversely affect its operations.
  • There are risks associated with completing acquisitions and development projects on time and on budget.
  • The company's debt facilities impose restrictions that limit its flexibility.

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 2023

Historical avgQ1 2023

+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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