NOTE: There were no changes to line items in our consolidated statements of comprehensive income (loss) below operating income for any annual or interim period.
CHURCHILL DOWNS INCORPORATED
Recast Segment Revenue
(unaudited)
Three Months Ended
Year Ended December 31,
(in millions)
March 31, 2021
June 30, 2021
September 30, 2021
December 31, 2021
2021
2020
Net revenue from external customers:
Live and Historical Racing:
Churchill Downs Racetrack
$
2.0
$
105.2
$
7.4
$
13.5
$
128.1
$
63.3
Derby City Gaming
32.9
39.9
40.2
41.3
154.3
79.5
Oak Grove
19.4
25.6
27.1
28.6
100.7
16.6
Turfway Park
4.5
0.7
0.7
2.3
8.1
7.1
Newport
4.4
4.5
4.3
4.6
17.9
3.1
Total Live and Historical Racing
63.2
175.9
79.7
90.3
409.1
169.6
TwinSpires:
Horse Racing
96.5
132.4
98.8
88.9
416.6
418.8
Sports and Casino
7.0
8.4
8.7
10.7
34.8
11.3
Total TwinSpires
103.5
140.8
107.5
99.6
451.4
430.1
Gaming:
Fair Grounds and VSI
38.3
35.1
24.8
35.4
133.6
97.6
Presque Isle
23.8
30.5
35.9
29.4
119.6
73.1
Calder
20.9
27.4
25.9
25.8
100.0
51.8
Oxford
15.7
24.6
31.8
27.7
99.8
44.9
Ocean Downs
20.0
27.0
31.7
21.9
100.6
60.2
Riverwalk
14.4
18.4
14.5
13.9
61.2
46.3
Harlow’s
14.0
16.6
13.3
12.2
56.1
40.7
Lady Luck Nemacolin
4.9
6.4
7.4
5.8
24.5
20.7
Total Gaming
152.0
186.0
185.3
172.1
695.4
435.3
All Other
5.6
12.4
20.5
2.8
41.3
19.0
Net revenue from external customers
$
324.3
$
515.1
$
393.0
$
364.8
$
1,597.2
$
1,054.0
(in millions)
Three Months Ended
Year Ended December 31,
Intercompany net revenue:
March 31, 2021
June 30, 2021
September 30, 2021
December 31, 2021
2021
2020
Live and Historical Racing
$
1.5
$
14.6
$
1.8
$
3.6
$
21.5
$
19.2
TwinSpires
1.5
1.8
1.5
1.6
6.4
5.5
Gaming
2.0
—
0.3
0.7
3.0
2.5
All Other
1.6
2.4
2.5
1.4
7.9
7.8
Eliminations
(6.6)
(18.8)
(6.1)
(7.3)
(38.8)
(35.0)
Intercompany net revenue
$
—
$
—
$
—
$
—
$
—
$
—
CHURCHILL DOWNS INCORPORATED
Recast Adjusted EBITDA by Segment
(unaudited)
Year Ended December 31, 2021
(in millions)
Live and Historical Racing
TwinSpires
Gaming
All Other
Eliminations
Total
Net revenue
$
430.6
$
457.8
$
698.4
$
49.2
$
(38.8)
$
1,597.2
Taxes and purses
(126.3)
(30.7)
(264.4)
(13.1)
—
(434.5)
Marketing and advertising
(12.9)
(49.4)
(11.8)
(0.5)
0.1
(74.5)
Salaries and benefits
(48.4)
(27.0)
(87.1)
(7.8)
—
(170.3)
Content expense
(2.5)
(206.6)
(4.7)
(5.7)
36.9
(182.6)
Selling, general and administrative expense
(12.8)
(11.0)
(27.9)
(55.2)
1.5
(105.4)
Other operating expense
(53.0)
(50.4)
(72.3)
(10.0)
0.4
(185.3)
Other income
0.3
—
181.7
0.5
(0.1)
182.4
Adjusted EBITDA
$
175.0
$
82.7
$
411.9
$
(42.6)
$
—
$
627.0
Year Ended December 31, 2020
(in millions)
Live and Historical Racing
TwinSpires
Gaming
All Other
Eliminations
Total
Net revenue
$
188.8
$
435.6
$
437.8
$
26.8
$
(35.0)
$
1,054.0
Taxes and purses
(64.1)
(25.1)
(171.6)
(7.5)
—
(268.3)
Marketing and advertising
(6.2)
(16.5)
(7.5)
(0.2)
0.2
(30.2)
Salaries and benefits
(32.5)
(24.6)
(75.9)
(5.8)
—
(138.8)
Content expense
(1.5)
(202.7)
(3.5)
(3.7)
33.0
(178.4)
Selling, general and administrative expense
(8.7)
(10.4)
(25.4)
(42.3)
1.5
(85.3)
Other operating expense
(36.8)
(40.5)
(59.7)
(8.9)
0.3
(145.6)
Other income
0.1
0.1
78.9
—
—
79.1
Adjusted EBITDA
$
39.1
$
115.9
$
173.1
$
(41.6)
$
—
$
286.5
CHURCHILL DOWNS INCORPORATED
Recast Adjusted EBITDA by Segment
(unaudited)
Three Months Ended March 31, 2021
(in millions)
Live and Historical Racing
TwinSpires
Gaming
All Other
Eliminations
Total
Net revenue
$
64.7
$
105.0
$
154.0
$
7.2
$
(6.6)
$
324.3
Taxes and purses
(20.0)
(6.4)
(59.3)
(3.1)
—
(88.8)
Marketing and advertising
(2.1)
(8.5)
(1.4)
(0.1)
—
(12.1)
Salaries and benefits
(10.0)
(6.2)
(19.9)
(1.2)
—
(37.3)
Content expense
(0.6)
(46.5)
(1.0)
(1.3)
6.2
(43.2)
Selling, general and administrative expense
(3.0)
(2.6)
(6.0)
(12.6)
0.3
(23.9)
Other operating expense
(10.7)
(11.7)
(15.5)
(2.2)
0.1
(40.0)
Other income
—
—
31.5
0.1
—
31.6
Adjusted EBITDA
$
18.3
$
23.1
$
82.4
$
(13.2)
$
—
$
110.6
Three Months Ended June 30, 2021
(in millions)
Live and Historical Racing
TwinSpires
Gaming
All Other
Eliminations
Total
Net revenue
$
190.5
$
142.6
$
186.0
$
14.8
$
(18.8)
$
515.1
Taxes and purses
(50.8)
(8.3)
(70.0)
(3.9)
—
(133.0)
Marketing and advertising
(4.9)
(16.7)
(2.5)
—
—
(24.1)
Salaries and benefits
(15.3)
(6.8)
(20.6)
(2.3)
—
(45.0)
Content expense
(0.8)
(68.5)
(1.3)
(1.8)
18.4
(54.0)
Selling, general and administrative expense
(3.1)
(2.9)
(5.9)
(13.4)
0.4
(24.9)
Other operating expense
(17.3)
(14.8)
(17.7)
(2.9)
—
(52.7)
Other income
0.1
—
51.8
—
—
51.9
Adjusted EBITDA
$
98.4
$
24.6
$
119.8
$
(9.5)
$
—
$
233.3
CHURCHILL DOWNS INCORPORATED
Recast Adjusted EBITDA by Segment
(unaudited)
Three Months Ended September 30, 2021
(in millions)
Live and Historical Racing
TwinSpires
Gaming
All Other
Eliminations
Total
Net revenue
$
81.5
$
109.0
$
185.6
$
23.0
$
(6.1)
$
393.0
Taxes and purses
(24.6)
(8.0)
(71.8)
(4.9)
—
(109.3)
Marketing and advertising
(2.9)
(10.6)
(3.6)
(0.3)
—
(17.4)
Salaries and benefits
(10.9)
(7.0)
(22.5)
(3.1)
—
(43.5)
Content expense
(0.5)
(47.1)
(1.2)
(1.4)
5.6
(44.6)
Selling, general and administrative expense
(3.1)
(2.6)
(7.1)
(14.3)
0.4
(26.7)
Other operating expense
(11.8)
(11.6)
(19.7)
(3.5)
0.1
(46.5)
Other income
—
—
51.0
0.1
—
51.1
Adjusted EBITDA
$
27.7
$
22.1
$
110.7
$
(4.4)
$
—
$
156.1
Three Months Ended December 31, 2021
(in millions)
Live and Historical Racing
TwinSpires
Gaming
All Other
Eliminations
Total
Net revenue
$
93.9
$
101.2
$
172.8
$
4.2
$
(7.3)
$
364.8
Taxes and purses
(30.9)
(8.0)
(63.3)
(1.2)
—
(103.4)
Marketing and advertising
(3.0)
(13.6)
(4.3)
(0.1)
0.1
(20.9)
Salaries and benefits
(12.2)
(7.0)
(24.1)
(1.2)
—
(44.5)
Content expense
(0.6)
(44.5)
(1.2)
(1.2)
6.7
(40.8)
Selling, general and administrative expense
(3.6)
(2.9)
(8.9)
(14.9)
0.4
(29.9)
Other operating expense
(13.2)
(12.3)
(19.4)
(1.4)
0.2
(46.1)
Other income
0.2
—
47.4
0.3
(0.1)
47.8
Adjusted EBITDA
$
30.6
$
12.9
$
99.0
$
(15.5)
$
—
$
127.0
CHURCHILL DOWNS INCORPORATED
Reconciliation of Comprehensive (Loss) Income to Adjusted EBITDA
(unaudited)
Three Months Ended
Year Ended December 31,
March 31, 2021
June 30, 2021
September 30, 2021
December 31, 2021
2021
2020
(in millions)
Comprehensive income (loss)
$
36.1
$
108.3
$
61.4
$
43.3
$
249.1
$
(81.9)
Net income (loss) and comprehensive income (loss) attributable to CDI
Net loss attributable to noncontrolling interest
—
—
—
—
—
0.2
Net income (loss) before noncontrolling interest
36.1
108.3
61.4
43.3
249.1
(82.1)
Income (loss) from discontinued operations, net of tax
—
—
—
—
—
95.4
Income (loss) from continuing operations, net of tax
36.1
108.3
61.4
43.3
249.1
13.3
Additions:
Depreciation and amortization
26.0
26.0
25.9
25.3
103.2
92.9
Interest expense
19.4
22.0
21.7
21.6
84.7
80.0
Income tax provision (benefit)
16.2
41.6
26.3
10.4
94.5
(5.3)
EBITDA
$
97.7
$
197.9
$
135.3
$
100.6
$
531.5
$
180.9
Adjustments to EBITDA:
Selling, general and administrative:
Stock-based compensation expense
$
5.5
$
7.1
$
7.8
$
7.4
$
27.8
23.7
Other charges
—
0.2
—
—
0.2
0.8
Pre-opening expense and other expense
0.6
1.5
1.7
2.0
5.8
11.2
Other income, expense:
Interest, depreciation and amortization expense related to equity investments
9.6
10.5
10.7
10.7
41.5
38.5
Changes in fair value of Rivers Des Plaines' interest rate swaps
(4.2)
(1.8)
(2.0)
(4.9)
(12.9)
12.9
Rivers Des Plaines' legal reserves and transaction costs
1.3
6.7
0.6
1.3
9.9
—
Transaction expense, net
0.1
—
2.0
5.8
7.9
1.0
Impairment of tangible and other intangible assets