Churchill Downs rporated(CHDN) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter 2025 net revenue reached a record $642.6 million, an increase of$51.7 million or 9% compared to $590.9 million in the prior year[5] - Net income attributable to Churchill Downs Incorporated (CDI) was$76.7 million, down $3.7 million or 5$80.4 million in the prior year[5] - Adjusted EBITDA for the first quarter 2025 was $245.1 million, up$2.6 million or 1% from $242.5 million in the prior year[5] - Total net revenue for the three months ended March 31, 2025, was$642.6 million, an increase of 8.8% from $590.9 million in the same period of 2024[39] - Net income attributable to Churchill Downs Incorporated for Q1 2025 was$76.7 million, a decrease of 4.6% compared to $80.4 million in Q1 2024[39] - Adjusted net income attributable to Churchill Downs Incorporated for Q1 2025 was$79.9 million, down from $84.7 million in Q1 2024[45] - Basic and diluted net income per share for Q1 2025 was$1.02, compared to $1.09 for Q1 2024[39] - Operating income for Q1 2025 was$134.6 million, an increase from $126.3 million in Q1 2024[39] - Net income for the three months ended March 31, 2025, was$77.2 million, a decrease of 3.9% from $80.4 million in 2024[55] - Adjusted EBITDA for the same period was$245.1 million, up 1.1% from $242.5 million in 2024[55] - Total segment Adjusted EBITDA increased to$266.8 million in 2025 from $263.2 million in 2024, with Gaming segment contributing$123.5 million[55] Revenue Segments - Revenue from Live and Historical Racing segment increased to $276.4 million, up$27.5 million or 11% from $248.9 million in the prior year[8][9] - Revenue from Wagering Services and Solutions segment increased to$115.8 million, up $1.7 million or 1.5$114.1 million in the prior year[11] - Gaming segment revenue increased to $267.2 million, up$24.0 million or 9.9% from $243.2 million in the prior year[15][16] - Total Live and Historical Racing revenue reached$272.5 million in Q1 2025, up from $245.1 million in Q1 2024, reflecting an increase of 11.0$263.2 million in Q1 2025, compared to $239.2 million in Q1 2024, marking a growth of 10.0$106.9 million in Wagering Services and Solutions revenue for Q1 2025, consistent with $106.6 million in Q1 2024[51] - Historical racing revenue was$236.4 million in Q1 2025, up from $212.1 million in Q1 2024, representing an increase of 11.4$500 million share repurchase program was approved by the Board of Directors in March 2025, with $89.4 million of shares repurchased in the first quarter[5][22] - The company ended the first quarter of 2025 with net bank leverage of 4.0x and returned$119.5 million to shareholders through share repurchases and dividends[5] Assets and Liabilities - Total current assets increased to $452.4 million as of March 31, 2025, from$412.3 million at the end of 2024[41] - Total assets rose to $7,347.1 million as of March 31, 2025, compared to$7,275.9 million at the end of 2024[41] - Total liabilities increased to $6,254.0 million as of March 31, 2025, from$6,172.6 million at the end of 2024[41] - Cash and cash equivalents at the end of Q1 2025 were $271.2 million, up from$222.0 million at the end of Q1 2024[43] - Long-term debt as of March 31, 2025, was $816.5 million, down from$839.8 million at the end of 2024[57] - Total liabilities and members' deficit remained stable at $698.1 million as of March 31, 2025, compared to$693.6 million at the end of 2024[57] Expenses - The company’s marketing and advertising expenses were $23.4 million in Q1 2025, slightly higher than$18.3 million in Q1 2024[53] - Salaries and benefits expenses increased to $85.1 million in Q1 2025 from$72.7 million in Q1 2024, a rise of 17.0%[53] New Developments - The company opened Owensboro Racing and Gaming in February 2025, featuring 600 historical racing machines and a retail sportsbook[5] - Planned capital expenditures for 2025 are estimated between $250 million and$290 million, including $75-85 million for the Starting Gate Pavilion and Courtyard project[59] - The company plans to expand its Richmond HRM venue with a budget of$30-35 million, targeted for completion in Q3 2025[59] Other Financial Metrics - The company experienced a $6.7 million after-tax decrease in other recoveries, primarily driven by insurance claim proceeds recorded in the prior year quarter[24] - Net revenue from equity investments was$205.3 million, down 5.8% from $216.9 million in 2024[57] - Operating income from equity investments decreased to$68.8 million, a decline of 9.1% compared to $75.7 million in 2024[57] - Current assets increased to$103.5 million as of March 31, 2025, compared to $100.5 million at the end of 2024[57] - Pari-mutuel taxes and purses for Q1 2025 amounted to$90.9 million, compared to $81.9 million in Q1 2024, reflecting an increase of 11.0$43.2 million for Q1 2025, compared to $47.5 million in Q1 2024[53]