Churchill Downs Q1 2020 Earnings Report
Key Takeaways
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.
Churchill Downs
Churchill Downs
Churchill Downs Revenue by Segment
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.
Positive Outlook
- 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
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income