Churchill Downs Inc. closed 2011 with record revenue and earnings for the fourth quarter and for the year, according to results released after the market closed Monday.
For the quarter, the Louisville-based racetrack and casino company reported revenue of $149.3 million, up 9 percent over the same quarter in 2010, for profits of $7.6 million for the quarter, compared to a loss of almost $1.9 million in 2010. For the quarter, earnings were 25 cents per share, compared with a loss of 26 cents for fourth quarter 2010.
For the year, Churchilll reported record revenue of $696.9 million, up 19 percent over 2010, and annual earnings per share of $3.55, up 182 percent over 2010. Churchill reported annual profits of $64.4 million for 2011, compared to $16.4 million in 2010.
The growth was largely from the company's gambling and online wagering segments, including TwinSpires.com.
For the fourth quarter, net revenue from gambling operations, including the Harlow's Casino in Mississippi and the Calder Casino in Florida, outpaced revenue from racing, excluding online operations, which surged as well.
For the three months that ended Dec. 31, Churchill reported $51.9 million in revenue from racing, down 13 percent; $52.2 million in revenue from gaming, up 37 percent; and $40 million in online revenue, up 18 percent.
For the year, racing revenue still held the lead, with $298.3 million in revenue, down 3 percent; gaming revenue topped $212.6 million, up 49 percent, while online revenue rose 36 percent to $165.4 million.
"All of us are CDI are proud of the company's performance in 2011," said Robert L. Evans, chairman and CEO, citing the record results as well as a $137.5 million reduction in long-term debt; a 20 percent increase in the annual dividend to shareholders; and a 20.1 percent increase in stock price.
Those "reflect the strategy we have developed and executed over the last several years. As we look toward 2012, we hope to put in place the growth drivers that will enable the company to continue its success in the future," Evans said.
According to Churchill, the company's growth in net revenue in 2011 was due principally to continued expansions of the company's gambling and online businesses, including the effects of the 2010 acquisitions of Youbet.com and Harlow's Casino Resort & Hotel, even though Harlow's was closed for 25 days in May due to flooding on the Mississippi River.
The casino at Calder increased revenues by $17.6 million due to a new marketing strategy, Churchill said.
Racing operations continued to slide, despite increased profitability of Kentucky Derby and Oaks Week, Churchill said. Churchill also received $19.3 million from the Illinois Horse Racing Equity Trust Fund, set up to give racetracks revenue from Illinois casinos.
Churchill executives will discuss the earnings reports in a conference call with market analysts Tuesday. Investors can listen to a webcast at 9 a.m.