Company Highlights
- First quarter results:
- Record net revenue of
$590.9 million , up 6% compared to the prior year quarter. - Net income of
$80.4 million , down 48% compared to the prior year quarter. - Record Adjusted EBITDA of
$242.5 million , up 9% compared to the prior year quarter.
- Record net revenue of
- Delivered record first quarter revenue and Adjusted EBITDA for both our Live and Historical and TwinSpires segments
- Live and Historical revenue up 15% and Adjusted EBITDA up 23% compared to the first quarter of 2023
- TwinSpires revenue up 18% and Adjusted EBITDA up 35% compared to the first quarter of 2023
- We announced
The Rose Gaming Resort which is scheduled to open in lateSeptember 2024 with 500 additional HRMs for a total of 1,650 HRMs and$460 million total capital investment. - We announced development plans for
Owensboro Racing & Gaming with a planned opening in the first quarter of 2025, including 600 HRMs, a retail sportsbook, simulcast wagering, and multiple food and beverage offerings. - We ended the first quarter of 2024 with net bank leverage of 4.1x and maintained our commitment to returning capital to shareholders:
- We repurchased
$22.0 million of shares under our share repurchase program in the first quarter of 2024. - On
January 2, 2024 , we closed on the previously announced repurchase of 1,000,000 shares for$123.75 per share from an affiliate ofThe Duchossois Group Inc. - On
January 5, 2024 , we paid a$0.382 per share dividend to shareholders of record which represents the thirteenth consecutive year of an increased dividend per share.
- We repurchased
CONSOLIDATED RESULTS |
First Quarter | |||||||
(in millions, except per share data) | 2024 | 2023 | |||||
Net revenue | $ | 590.9 | $ | 559.5 | |||
Net income | $ | 80.4 | $ | 155.7 | |||
Diluted EPS | $ | 1.08 | $ | 2.05 | |||
Adjusted EBITDA(a) | $ | 242.5 | $ | 222.9 | |||
(a) This is a non-GAAP measure. See explanation of non-GAAP measures below. |
SEGMENT RESULTS |
The summaries below present revenue from external customers and intercompany revenue from each of our reportable segments.
Live and
First Quarter | |||||
(in millions) | 2024 | 2023 | |||
Revenue | $ | 248.9 | $ | 215.8 | |
Adjusted EBITDA | 100.8 | 82.1 | |||
Revenue for the first quarter of 2024 increased
Adjusted EBITDA for the first quarter of 2024 increased
TwinSpires
First Quarter | |||||
(in millions) | 2024 | 2023 | |||
Revenue | $ | 114.1 | $ | 96.3 | |
Adjusted EBITDA | 39.6 | 29.4 | |||
Revenue for the first quarter of 2024 increased
Adjusted EBITDA for the first quarter of 2024 increased
Gaming
First Quarter | |||||
(in millions) | 2024 | 2023 | |||
Revenue | $ | 243.2 | $ | 251.6 | |
Adjusted EBITDA | 122.8 | 129.5 | |||
Revenue for the first quarter of 2024 decreased
Adjusted EBITDA for the first quarter of 2024 decreased
All Other
First Quarter | |||||||
(in millions) | 2024 | 2023 | |||||
Revenue | $ | — | $ | 0.3 | |||
Adjusted EBITDA | (20.7 | ) | (18.1 | ) | |||
Adjusted EBITDA for the first quarter of 2024 decreased
ACQUISITION / DISPOSITION UPDATE |
United Tote Sale
On
CAPITAL MANAGEMENT |
Share Repurchase Program
The Company repurchased 184,821 shares of its common stock at a total cost of
The Duchossois Group Share Repurchase
On
NET INCOME |
The Company's first quarter 2024 net income was
The following impacted the comparability of the Company's first quarter 2024 net income to the prior year quarter:
- an
$86.2 million after-tax gain on the sale of our property inArlington Heights, Illinois ("Arlington") in the prior year quarter; and - a
$4.4 million after-tax net increase in adjustments related to transaction, pre-opening and other expenses.
This was partially offset by:
- a
$5.2 million after-tax increase in other recoveries, net, related to non-recurring insurance claim recoveries.
Excluding the items above, first quarter 2024 net income increased
- a
$14.7 million after-tax increase driven by the results of our operations, - partially offset by a
$4.6 million after-tax increase in interest expense associated with higher outstanding debt balances and higher interest rates.
Conference Call
A conference call regarding this news release is scheduled for
Use of Non-GAAP Measures
In addition to the results provided in accordance with GAAP, the Company also uses non-GAAP measures, including adjusted net income, adjusted diluted EPS, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA.
The Company uses non-GAAP measures as a key performance measure of the results of operations for purposes of evaluating performance internally. These measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of the Company by excluding certain items that may not be indicative of the Company's core business or operating results. The Company believes the use of these measures enables management and investors to evaluate and compare, from period to period, the Company’s operating performance in a meaningful and consistent manner. The non-GAAP measures are a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP, and should not be considered as an alternative to, or more meaningful than, net income or diluted EPS (as determined in accordance with GAAP) as a measure of our operating results.
We use Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.
Adjusted net income and adjusted diluted EPS exclude discontinued operations net income or loss; net income or loss attributable to noncontrolling interest; changes in fair value for interest rate swaps related to
Adjusted EBITDA includes our portion of EBITDA from our equity investments.
Adjusted EBITDA excludes:
- Transaction expense, net which includes:
- Acquisition, disposition, and property sale related charges;
- Other transaction expense, including legal, accounting, and other deal-related expense;
- Stock-based compensation expense;
- Asset impairments;
- Gain on property sales;
- Legal reserves;
- Pre-opening expense; and
- Other charges, recoveries, and expenses.
As of
On
For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the Consolidated Statements of Comprehensive Income. See the Reconciliation of Comprehensive Income to Adjusted EBITDA included herewith for additional information.
About
This news release contains various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” “scheduled,” and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors, that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; additional or increased taxes and fees; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, including possible new variants of COVID-19, and related economic matters on our results of operations, financial conditions and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine (HRM) manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; inability to successfully focus on market access and retail operations for our TwinSpires sports betting business and effectively compete; online security risk, including cyber-security breaches, or loss or misuse of our stored information as a result of a breach including customers’ personal information could lead to government enforcement actions or other litigation; reliance on our technology services and catastrophic events and system failures disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates (due to inflation or otherwise), disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; and other factors described under the heading “Risk Factors” in our most recent Annual Report on Form 10-K and in other filings we make with the
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | |||||||
Three Months Ended | |||||||
(in millions, except per common share data) | 2024 | 2023 | |||||
Net revenue: | |||||||
Live and | $ | 245.1 | $ | 214.4 | |||
TwinSpires | 106.6 | 94.8 | |||||
Gaming | 239.2 | 250.0 | |||||
All Other | — | 0.3 | |||||
Total net revenue | 590.9 | 559.5 | |||||
Operating expense: | |||||||
Live and | 157.2 | 143.3 | |||||
TwinSpires | 67.9 | 65.7 | |||||
Gaming | 178.5 | 173.5 | |||||
All Other | 2.1 | 5.0 | |||||
Selling, general and administrative expense | 54.8 | 52.3 | |||||
Transaction expense, net | 4.1 | (0.2 | ) | ||||
Total operating expense | 464.6 | 439.6 | |||||
Operating income | 126.3 | 119.9 | |||||
Other (expense) income: | |||||||
Interest expense, net | (70.4 | ) | (64.7 | ) | |||
Equity in income of unconsolidated affiliates | 37.8 | 38.3 | |||||
Gain on sale of | — | 114.0 | |||||
Miscellaneous, net | 8.1 | 1.4 | |||||
Total other (expense) income | (24.5 | ) | 89.0 | ||||
Income from operations before provision for income taxes | 101.8 | 208.9 | |||||
Income tax provision | (21.4 | ) | (53.2 | ) | |||
Net income | $ | 80.4 | $ | 155.7 | |||
Net income per common share data: | |||||||
Basic net income | $ | 1.09 | $ | 2.07 | |||
Diluted net income | $ | 1.08 | $ | 2.05 | |||
Weighted average shares outstanding: | |||||||
Basic | 74.1 | 75.3 | |||||
Diluted | 74.7 | 76.1 |
CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
(in millions) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 149.4 | $ | 144.5 | |||
Restricted cash | 72.6 | 77.3 | |||||
Accounts receivable, net | 115.0 | 106.9 | |||||
Income taxes receivable | — | 12.6 | |||||
Other current assets | 79.0 | 59.5 | |||||
Total current assets | 416.0 | 400.8 | |||||
Property and equipment, net | 2,668.5 | 2,561.2 | |||||
Investment in and advances to unconsolidated affiliates | 647.8 | 655.9 | |||||
900.2 | 899.9 | ||||||
Other intangible assets, net | 2,415.0 | 2,418.4 | |||||
Other assets | 19.3 | 19.3 | |||||
Total assets | $ | 7,066.8 | $ | 6,955.5 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 187.8 | $ | 158.5 | |||
Accrued expenses and other current liabilities | 423.3 | 426.8 | |||||
Income taxes payable | 4.1 | — | |||||
Current deferred revenue | 153.3 | 73.2 | |||||
Current maturities of long-term debt | 68.0 | 68.0 | |||||
Dividends payable | 0.7 | 29.3 | |||||
Total current liabilities | 837.2 | 755.8 | |||||
Long-term debt, net of current maturities and loan origination fees | 1,786.5 | 1,697.1 | |||||
Notes payable, net of debt issuance costs | 3,072.4 | 3,071.2 | |||||
Non-current deferred revenue | 11.8 | 11.8 | |||||
Deferred income taxes | 393.1 | 388.2 | |||||
Other liabilities | 138.9 | 137.8 | |||||
Total liabilities | 6,239.9 | 6,061.9 | |||||
Commitments and contingencies | |||||||
Shareholders' equity: | |||||||
Preferred stock | — | — | |||||
Common stock | — | — | |||||
Retained earnings | 827.8 | 894.5 | |||||
Accumulated other comprehensive loss | (0.9 | ) | (0.9 | ) | |||
Total shareholders' equity | 826.9 | 893.6 | |||||
Total liabilities and shareholders' equity | $ | 7,066.8 | $ | 6,955.5 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||
Three Months Ended | |||||||
(in millions) | 2024 | 2023 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 80.4 | $ | 155.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 46.9 | 37.9 | |||||
Distributions from unconsolidated affiliates | 45.0 | 45.8 | |||||
Equity in income of unconsolidated affiliates | (37.8 | ) | (38.3 | ) | |||
Stock-based compensation | 7.2 | 8.6 | |||||
Deferred income taxes | 4.9 | 33.2 | |||||
Amortization of operating lease assets | 1.4 | 2.2 | |||||
Gain on sale of | — | (114.0 | ) | ||||
Other | 1.7 | 0.8 | |||||
Changes in operating assets and liabilities: | |||||||
Income taxes | 17.0 | 19.9 | |||||
Deferred revenue | 80.1 | 81.8 | |||||
Other assets and liabilities | 7.9 | (17.7 | ) | ||||
Net cash provided by operating activities | 254.7 | 215.9 | |||||
Cash flows from investing activities: | |||||||
Capital maintenance expenditures | (12.4 | ) | (11.8 | ) | |||
Capital project expenditures | (142.6 | ) | (122.9 | ) | |||
Proceeds from sale of | — | 195.7 | |||||
Other | 1.6 | (6.5 | ) | ||||
Net cash (used in) provided by investing activities | (153.4 | ) | 54.5 | ||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings under long-term debt obligations | 355.5 | 615.5 | |||||
Repayments of borrowings under long-term debt obligations | (266.7 | ) | (797.5 | ) | |||
Payment of dividends | (28.6 | ) | (26.7 | ) | |||
Repurchase of common stock | (141.7 | ) | (0.5 | ) | |||
Taxes paid related to net share settlement of stock awards | (10.4 | ) | (11.3 | ) | |||
Debt issuance costs | — | (2.5 | ) | ||||
Change in bank overdraft | (8.6 | ) | (14.2 | ) | |||
Other | (0.6 | ) | (0.5 | ) | |||
Net cash used in financing activities | (101.1 | ) | (237.7 | ) | |||
Net increase in cash, cash equivalents and restricted cash | 0.2 | 32.7 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 221.8 | 204.7 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 222.0 | $ | 237.4 |
SUPPLEMENTAL INFORMATION (Unaudited) | |||||||
Three Months Ended | |||||||
(in millions, except per common share data) | 2024 | 2023 | |||||
GAAP net income | $ | 80.4 | $ | 155.7 | |||
Adjustments, continuing operations: | |||||||
Other charges and recoveries, net | (6.7 | ) | 0.3 | ||||
Transaction, pre-opening, and other expense | 12.6 | 6.7 | |||||
Gain on Dispositions | — | (114.0 | ) | ||||
Income tax impact on net income adjustments (a) | (1.6 | ) | 25.9 | ||||
Total adjustments | 4.3 | (81.1 | ) | ||||
Adjusted net income attributable to | $ | 84.7 | $ | 74.6 | |||
Adjusted diluted EPS | $ | 1.13 | $ | 0.98 | |||
Weighted average shares outstanding - Diluted | 74.7 | 76.1 | |||||
(a) The income tax impact for each adjustment is derived by applying the effective tax rate, including current and deferred income tax expense, based upon the jurisdiction and the nature of the adjustment. |
Three Months Ended | |||||
(in millions) | 2024 | 2023 | |||
Total Handle | |||||
$ | 419.7 | $ | 410.5 | ||
(a) Total handle generated by Velocity is not included in total handle from |
SUPPLEMENTAL INFORMATION (Unaudited) | |||||||
Three Months Ended | |||||||
(in millions) | 2024 | 2023 | |||||
Net revenue from external customers: | |||||||
Live and | |||||||
$ | 3.1 | $ | 2.4 | ||||
53.7 | 44.0 | ||||||
28.5 | 26.3 | ||||||
38.6 | 36.5 | ||||||
6.8 | 4.8 | ||||||
111.2 | 97.7 | ||||||
3.2 | 2.7 | ||||||
Total Live and | $ | 245.1 | $ | 214.4 | |||
TwinSpires: | $ | 106.6 | $ | 94.8 | |||
Gaming: | |||||||
$ | 26.1 | $ | 26.1 | ||||
23.4 | 24.5 | ||||||
44.3 | 44.1 | ||||||
26.8 | 27.7 | ||||||
21.6 | 23.3 | ||||||
26.0 | 27.5 | ||||||
45.0 | 44.5 | ||||||
26.0 | 32.3 | ||||||
Total Gaming | $ | 239.2 | $ | 250.0 | |||
All Other | — | 0.3 | |||||
Net revenue from external customers | $ | 590.9 | $ | 559.5 | |||
Intercompany net revenues: | |||||||
Live and | $ | 3.8 | $ | 1.4 | |||
TwinSpires | 7.5 | 1.6 | |||||
Gaming | 4.0 | 1.5 | |||||
All Other | — | 0.2 | |||||
Eliminations | (15.3 | ) | (4.7 | ) | |||
Intercompany net revenue | $ | — | $ | — |
SUPPLEMENTAL INFORMATION (Unaudited) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(in millions) | Live and | TwinSpires | Gaming | Total Segments | All Other | Total | |||||||||||
Net revenue from external customers | |||||||||||||||||
Pari-mutuel: | |||||||||||||||||
Live and simulcast racing | $ | 11.0 | $ | 79.8 | $ | 10.6 | $ | 101.4 | $ | — | $ | 101.4 | |||||
Historical racing(a) | 212.1 | — | 8.8 | 220.9 | — | 220.9 | |||||||||||
Racing event-related services | 1.1 | — | 2.2 | 3.3 | — | 3.3 | |||||||||||
Gaming(a) | 3.1 | 5.7 | 193.1 | 201.9 | — | 201.9 | |||||||||||
Other(a) | 17.8 | 21.1 | 24.5 | 63.4 | — | 63.4 | |||||||||||
Total | $ | 245.1 | $ | 106.6 | $ | 239.2 | $ | 590.9 | $ | — | $ | 590.9 |
Three Months Ended | |||||||||||||||||
(in millions) | Live and | TwinSpires | Gaming | Total Segments | All Other | Total | |||||||||||
Net revenue from external customers | |||||||||||||||||
Pari-mutuel: | |||||||||||||||||
Live and simulcast racing | $ | 11.0 | $ | 79.4 | $ | 11.6 | $ | 102.0 | $ | — | $ | 102.0 | |||||
Historical racing(a) | 185.3 | — | 6.0 | 191.3 | — | 191.3 | |||||||||||
Racing event-related services | 1.0 | — | 1.9 | 2.9 | — | 2.9 | |||||||||||
Gaming(a) | 2.6 | 4.4 | 205.5 | 212.5 | — | 212.5 | |||||||||||
Other(a) | 14.5 | 11.0 | 25.0 | 50.5 | 0.3 | 50.8 | |||||||||||
Total | $ | 214.4 | $ | 94.8 | $ | 250.0 | $ | 559.2 | $ | 0.3 | $ | 559.5 | |||||
(a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in Other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were |
SUPPLEMENTAL INFORMATION (Unaudited) | |||||||||||||||||||||||||||
Adjusted EBITDA by segment is comprised of the following: | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
(in millions) | Live and | TwinSpires | Gaming | Total Segments | All Other | Eliminations | Total | ||||||||||||||||||||
Revenues | $ | 248.9 | $ | 114.1 | $ | 243.2 | $ | 606.2 | $ | — | $ | (15.3 | ) | $ | 590.9 | ||||||||||||
Gaming taxes and purses | (65.0 | ) | (4.9 | ) | (80.5 | ) | (150.4 | ) | — | — | (150.4 | ) | |||||||||||||||
Marketing and advertising | (9.3 | ) | (1.2 | ) | (7.8 | ) | (18.3 | ) | — | — | (18.3 | ) | |||||||||||||||
Salaries and benefits | (26.8 | ) | (7.9 | ) | (38.0 | ) | (72.7 | ) | — | — | (72.7 | ) | |||||||||||||||
Content expense | (1.3 | ) | (44.0 | ) | (1.8 | ) | (47.1 | ) | — | 8.9 | (38.2 | ) | |||||||||||||||
Selling, general and administrative expense | (8.8 | ) | (4.5 | ) | (10.2 | ) | (23.5 | ) | (20.5 | ) | 0.3 | (43.7 | ) | ||||||||||||||
Maintenance, insurance and utilities | (10.3 | ) | (1.0 | ) | (9.6 | ) | (20.9 | ) | — | — | (20.9 | ) | |||||||||||||||
Property and other taxes | (2.7 | ) | (0.1 | ) | (3.4 | ) | (6.2 | ) | (0.2 | ) | — | (6.4 | ) | ||||||||||||||
Other operating expense | (23.9 | ) | (10.9 | ) | (18.3 | ) | (53.1 | ) | — | 6.1 | (47.0 | ) | |||||||||||||||
Other income | — | — | 49.2 | 49.2 | — | — | 49.2 | ||||||||||||||||||||
Adjusted EBITDA | $ | 100.8 | $ | 39.6 | $ | 122.8 | $ | 263.2 | $ | (20.7 | ) | $ | — | $ | 242.5 |
Three Months Ended | |||||||||||||||||||||||||||
(in millions) | Live and | TwinSpires | Gaming | Total Segments | All Other | Eliminations | Total | ||||||||||||||||||||
Revenues | $ | 215.8 | $ | 96.3 | $ | 251.6 | $ | 563.7 | $ | 0.3 | $ | (4.5 | ) | $ | 559.5 | ||||||||||||
Gaming taxes and purses | (56.5 | ) | (5.0 | ) | (83.6 | ) | (145.1 | ) | — | — | (145.1 | ) | |||||||||||||||
Marketing and advertising | (8.2 | ) | (1.4 | ) | (8.6 | ) | (18.2 | ) | — | 0.2 | (18.0 | ) | |||||||||||||||
Salaries and benefits | (21.8 | ) | (6.2 | ) | (34.5 | ) | (62.5 | ) | — | — | (62.5 | ) | |||||||||||||||
Content expense | (1.5 | ) | (43.0 | ) | (1.8 | ) | (46.3 | ) | — | 3.9 | (42.4 | ) | |||||||||||||||
Selling, general and administrative expense | (8.7 | ) | (2.3 | ) | (12.2 | ) | (23.2 | ) | (18.3 | ) | 0.1 | (41.4 | ) | ||||||||||||||
Maintenance, insurance and utilities | (9.3 | ) | (0.9 | ) | (9.8 | ) | (20.0 | ) | — | — | (20.0 | ) | |||||||||||||||
Property and other taxes | (1.2 | ) | — | (3.3 | ) | (4.5 | ) | — | — | (4.5 | ) | ||||||||||||||||
Other operating expense | (26.5 | ) | (9.1 | ) | (16.9 | ) | (52.5 | ) | (0.1 | ) | 0.3 | (52.3 | ) | ||||||||||||||
Other income | — | 1.0 | 48.6 | 49.6 | — | — | 49.6 | ||||||||||||||||||||
Adjusted EBITDA | $ | 82.1 | $ | 29.4 | $ | 129.5 | $ | 241.0 | $ | (18.1 | ) | $ | — | $ | 222.9 |
SUPPLEMENTAL INFORMATION (Unaudited) | |||||||
Three Months Ended | |||||||
(in millions) | 2024 | 2023 | |||||
Reconciliation of Comprehensive Income to Adjusted EBITDA: | |||||||
Net income and comprehensive income | $ | 80.4 | $ | 155.7 | |||
Additions: | |||||||
Depreciation and amortization | 46.9 | 37.9 | |||||
Interest expense | 70.4 | 64.7 | |||||
Income tax provision | 21.4 | 53.2 | |||||
EBITDA | $ | 219.1 | $ | 311.5 | |||
Adjustments to EBITDA: | |||||||
Stock-based compensation expense | $ | 7.2 | $ | 8.6 | |||
Pre-opening expense | 8.3 | 3.2 | |||||
Other expenses, net | 0.2 | 3.7 | |||||
Transaction expense, net | 4.1 | (0.2 | ) | ||||
Other income, expense: | |||||||
Interest, depreciation and amortization expense related to equity investments | 10.3 | 9.8 | |||||
Other charges and recoveries, net | (6.7 | ) | 0.3 | ||||
Gain on | — | (114.0 | ) | ||||
Total adjustments to EBITDA | 23.4 | (88.6 | ) | ||||
Adjusted EBITDA | $ | 242.5 | $ | 222.9 | |||
Adjusted EBITDA by segment: | |||||||
Live and | $ | 100.8 | $ | 82.1 | |||
TwinSpires | 39.6 | 29.4 | |||||
Gaming | 122.8 | 129.5 | |||||
Total segment Adjusted EBITDA | 263.2 | 241.0 | |||||
All Other | (20.7 | ) | (18.1 | ) | |||
Total Adjusted EBITDA | $ | 242.5 | $ | 222.9 |
SUPPLEMENTAL JOINT VENTURE FINANCIAL STATEMENTS (Unaudited) | |||||||
Summarized financial information for our equity investments is comprised of the following: | |||||||
Summarized Income Statement | |||||||
Three Months Ended | |||||||
(in millions) | 2024 | 2023 | |||||
Net revenue | $ | 216.9 | $ | 220.6 | |||
Operating and SG&A expense | 134.9 | 137.2 | |||||
Depreciation and amortization | 6.3 | 5.7 | |||||
Total operating expense | 141.2 | 142.9 | |||||
Operating income | 75.7 | 77.7 | |||||
Interest and other expense, net | (11.0 | ) | (10.9 | ) | |||
Net income | $ | 64.7 | $ | 66.8 |
Summarized Balance Sheet | |||||||
(in millions) | |||||||
Assets | |||||||
Current assets | $ | 99.2 | $ | 104.8 | |||
Property and equipment, net | 336.4 | 339.4 | |||||
Other assets, net | 270.1 | 266.1 | |||||
Total assets | $ | 705.7 | $ | 710.3 | |||
Liabilities and Members' Deficit | |||||||
Current liabilities | $ | 116.4 | $ | 106.2 | |||
Long-term debt | 845.6 | 847.2 | |||||
Other liabilities | 0.8 | 0.7 | |||||
Members' deficit | (257.1 | ) | (243.8 | ) | |||
Total liabilities and members' deficit | $ | 705.7 | $ | 710.3 |
SUPPLEMENTAL INFORMATION (Unaudited) | ||||
Planned capital projects for the Company are as follows: | ||||
(in millions) | Project | Target Completion | Planned Spend | |
Live and Historical Racing Segment | ||||
( | ||||
Jockey Club Suites | ||||
The Rose ( | New Property | Late | ||
( | New Property | First Quarter 2025 | ||
New Hampshire HRM Facility | New Property | TBD | TBD | |
Gaming Segment | ||||
Opened | Up to | |||
Contact:
(502) 394-1091
Kaitlin.Buzzetto@kyderby.com
Source:
2024 GlobeNewswire, Inc., source