NASDAQ$CHDN

Churchill Downs Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Churchill Downs Incorporated reported mixed results for Q3 2022, with increased Adjusted EBITDA offset by decreased net revenue and net income.

Churchill Downs Incorporated reported a decrease in net revenue and net income for the third quarter of 2022, while achieving a record third quarter Adjusted EBITDA. The company completed several acquisitions and announced a multi-year agreement with FanDuel.

  • Net revenue decreased to $383.1 million compared to $393.0 million in Q3 2021.
  • Net income decreased to $57.0 million compared to $61.4 million in Q3 2021.
  • Adjusted EBITDA increased to a record $163.2 million compared to $156.1 million in Q3 2021.
  • Completed the acquisition of Ellis Park Racing & Gaming and Chasers Poker Room.

Headline financials

Total Revenue

$383M

Previous: $393M-2.5%
EPS (adj)

$0.81

Previous: $0.81+0.0%
Adjusted EBITDA

$163M

Previous: $156M+4.5%
Capital Expenditures

-$264M

Previous: -$52.1M-406.1%
Free Cash Flow

-$207M

Previous: $9.3M-2322.6%
Net Income

$57M

Previous: $61.4M-7.2%
Operating Income

$63M

Previous: $67.6M-6.8%
Gross Profit

$383M

Previous: $393M-2.5%
Cash & Equivalents

$111M

Previous: $316M-65.0%
Total Assets

$4.67B

Previous: $2.97B+57.2%

Revenue & EPS history

Churchill Downs · Revenue · Quarterly

$383M

Q3 2022-2.5%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Churchill Downs · $183M total across 1 segment · Q3 2022

  • Gaming
    $183M-1.0%

Forward guidance

Churchill Downs Incorporated is focusing on strategic investments and acquisitions to drive future growth. The company is planning significant capital projects to expand its gaming and racing facilities.

Tailwinds

  • Expansion of Derby City Gaming with a new hotel and downtown property.
  • Development of Ellis Park and Owensboro Annex to enhance racing and gaming offerings.
  • Construction of a new charitable gaming facility in New Hampshire.
  • Addition of HRMs in OTBs at Fair Grounds and VSI.
  • Build out of Queen of Terre Haute Casino Resort.

Headwinds

  • Dependence on regulatory approvals for planned projects.
  • Potential difficulties or expenditures relating to the proposed P2E transaction.
  • Impact of economic conditions on consumer spending.
  • Increased competition in the gaming and entertainment industry.
  • Potential for disruptions from extraordinary events or system failures.

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 Q3 2022

Historical avgQ3 2022

+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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