Revenue, earnings rise for Churchill Downs

ssloan@herald-leader.comAugust 6, 2012 

Churchill Downs announced Monday that its second-quarter profit jumped 21 percent, with all the company's lines of business on the rise.

The company, which owns four racetracks, including its flagship in Louisville, said revenue in the quarter rose 8 percent to $270.8 million.

The company's net income increased to $48.6 million, or $2.77 a share, from $40.1 million, or $2.37 a share, in the same period a year earlier.

The company's racing operations, its largest segment of business, had sales of $160.4 million, up 8 percent from the same period a year ago. Racing operations accounted for 59 percent of all revenue.

Churchill Downs credited a record Kentucky Derby and Kentucky Oaks week at its namesake track for boosting that segment.

The company is looking to build on that growth for next year by adding an upscale area called The Mansion at Churchill Downs to target high-end customers.

CEO Robert Evans said in a statement that The Mansion and other projects show that "we continue to build our portfolio of growth opportunities."

The company's online segment saw sales rise 13 percent to $52.7 million.

The gambling segment saw the lowest percentage growth of the company's businesses, at 4 percent, with a total of $51.4 million in sales.

The growth was primarily due to increases in sales at Harlow's Casino Resort & Hotel in Mississippi. The casino saw sales jump 45 percent to $13.8 million. Part of that dramatic jump, compared to a year ago, came because the casino, in Greenville, Miss., was forced to close for 25 days in May 2011 because of flooding.

During the quarter, the company received a final payment of insurance claim recoveries, net of losses, for $5 million for the flooding.

The increases from Harlow's were dragged down by the company's Calder Casino in Florida, which saw sales drop 12 percent to $19.2 million. The company attributed the decline to heightened competition in the south Florida market.

Company executives will hold a conference call with industry analysts at 9 a.m. Tuesday to discuss the quarter's results.

Scott Sloan: (859) 231-1447. Twitter: @HeraldLeaderBiz.

Lexington Herald-Leader is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service