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Published: 2021-04-20 16:29:19 ET
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CHURCHILL DOWNS INCORPORATED
Recast Segment Operating Results
(unaudited)
Three Months Ended Year Ended December 31,
(in millions)March 31, 2020June 30, 2020September 30, 2020December 31, 202020202019
Net revenue:
Live and Historical Racing$28.1 $23.3 $63.8 $54.4 $169.6 $276.7 
TwinSpires69.1 121.3127.197.0414.5 295.6 
Gaming145.9 37.3133.5118.6435.3 687.3 
All Other9.8 3.213.48.234.6 70.1 
Total net revenue252.9 185.1337.8278.21,054.0 1,329.7 
Operating expense:
Live and Historical Racing33.1 33.1 55.7 57.1 179.0 178.8 
TwinSpires50.8 74.7 84.0 66.3 275.8 207.9 
Gaming124.1 45.5 96.2 92.1 357.9 526.0 
All Other14.6 9.6 13.1 10.5 47.8 74.0 
Selling, general and administrative expense24.1 22.4 38.8 29.5 114.8 122.0 
Impairment of intangible assets17.5 — — — 17.5 — 
Transaction expense, net0.3 0.2 0.5 — 1.0 5.3 
Total operating expense264.5 185.5 288.3 255.5 993.8 1,114.0 
Operating (loss) income $(11.6)$(0.4)$49.5 $22.7 $60.2 $215.7 

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 EndedYear Ended December 31,
(in millions)March 31, 2020June 30, 2020September 30, 2020December 31, 202020202019
Net revenue from external customers:
Live and Historical Racing:
Churchill Downs Racetrack$1.9 $15.6 $34.9 $10.9 $63.3 $187.6 
Derby City Gaming21.6 7.7 25.9 24.3 79.5 86.6 
Oak Grove— — 2.4 14.2 16.6 — 
Turfway Park4.6 — 0.6 1.9 7.1 2.5 
Newport— — — 3.1 3.1 — 
Total Live and Historical Racing28.1 23.3 63.8 54.4 169.6 276.7 
TwinSpires:
Horse Racing66.6 119.9 124.0 92.7 403.2 289.9 
Sports and Casino2.5 1.4 3.1 4.3 11.3 5.7 
Total TwinSpires69.1 121.3 127.1 97.0 414.5 295.6 
Gaming:
Fair Grounds and VSI31.6 11.1 27.9 27.0 97.6 123.0 
Presque Isle27.0 1.9 27.5 16.7 73.1 137.5 
Calder21.8 5.7 6.5 17.8 51.8 99.8 
Oxford20.1 0.1 12.2 12.5 44.9 101.7 
Ocean Downs14.8 3.1 24.3 18.0 60.2 85.9 
Riverwalk12.0 7.4 15.2 11.7 46.3 56.1 
Harlow’s11.3 5.7 12.7 11.0 40.7 54.0 
Lady Luck Nemacolin7.3 2.3 7.2 3.9 20.7 29.3 
Total Gaming145.9 37.3 133.5 118.6 435.3 687.3 
All Other9.8 3.2 13.4 8.2 34.6 70.1 
Net revenue from external customers$252.9 $185.1 $337.8 $278.2 $1,054.0 $1,329.7 
(in millions)Three Months EndedYear Ended December 31,
Intercompany net revenue:March 31, 2020June 30, 2020September 30, 2020December 31, 202020202019
Live and Historical Racing$1.0 $7.0 $7.3 $3.9 $19.2 $15.5 
TwinSpires0.3 0.4 0.5 0.3 1.5 1.1 
Gaming1.5 — 0.2 0.8 2.5 2.4 
All Other2.4 2.8 3.8 2.8 11.8 11.3 
Eliminations(5.2)(10.2)(11.8)(7.8)(35.0)(30.3)
Intercompany net revenue$— $— $— $— $— $— 



CHURCHILL DOWNS INCORPORATED
Recast Adjusted EBITDA by Segment
(unaudited)
Year Ended December 31, 2020
(in millions)Live and Historical RacingTwinSpiresGamingAll OtherEliminationsTotal
Net revenue$188.8 $416.0 $437.8 $46.4 $(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)(13.0)(75.9)(17.4)— (138.8)
Content expense(1.5)(202.7)(3.5)(3.7)33.0 (178.4)
Selling, general and administrative expense(8.7)(8.8)(25.4)(43.9)1.5 (85.3)
Other operating expense(36.8)(37.1)(59.7)(12.3)0.3 (145.6)
Other income0.1 0.1 78.9 — — 79.1 
Adjusted EBITDA$39.1 $112.9 $173.1 $(38.6)$— $286.5 

Year Ended December 31, 2019
(in millions)Live and Historical RacingTwinSpiresGamingAll OtherEliminationsTotal
Net revenue$292.2 $296.7 $689.7 $81.4 $(30.3)$1,329.7 
Taxes and purses(68.7)(16.2)(269.4)(15.4)— (369.7)
Marketing and advertising(7.1)(12.3)(21.4)(1.3)0.4 (41.7)
Salaries and benefits(32.8)(11.4)(103.3)(23.7)— (171.2)
Content expense(2.6)(152.2)(5.3)(7.9)28.6 (139.4)
Selling, general and administrative expense(8.3)(7.1)(29.1)(46.7)1.0 (90.2)
Other operating expense(37.3)(28.2)(83.6)(18.3)0.3 (167.1)
Other income0.2 — 100.3 0.5 — 101.0 
Adjusted EBITDA$135.6 $69.3 $277.9 $(31.4)$— $451.4 



CHURCHILL DOWNS INCORPORATED
Recast Adjusted EBITDA by Segment
(unaudited)
Three Months Ended March 31, 2020
(in millions)Live and Historical RacingTwinSpiresGamingAll OtherEliminationsTotal
Net revenue$29.1 $69.4 $147.4 $12.2 $(5.2)$252.9 
Taxes and purses(9.5)(4.3)(58.7)(3.2)— (75.7)
Marketing and advertising(1.2)(3.5)(5.3)(0.1)0.2 (9.9)
Salaries and benefits(7.2)(3.5)(29.5)(5.1)— (45.3)
Content expense(0.7)(32.6)(1.0)(1.3)4.7 (30.9)
Selling, general and administrative expense(1.7)(1.4)(6.7)(8.7)0.2 (18.3)
Other operating expense(7.8)(8.1)(19.5)(3.4)0.1 (38.7)
Other income— — 21.2 — — 21.2 
Adjusted EBITDA$1.0 $16.0 $47.9 $(9.6)$— $55.3 

Three Months Ended June 30, 2020
(in millions)Live and Historical RacingTwinSpiresGamingAll OtherEliminationsTotal
Net revenue$30.3 $121.7 $37.3 $6.0 $(10.2)$185.1 
Taxes and purses(14.0)(6.7)(14.3)(1.6)— (36.6)
Marketing and advertising(0.3)(2.9)(0.4)— — (3.6)
Salaries and benefits(5.3)(3.0)(9.0)(3.0)— (20.3)
Content expense(0.1)(59.1)(0.4)(0.1)9.7 (50.0)
Selling, general and administrative expense(1.2)(1.7)(3.9)(9.0)0.5 (15.3)
Other operating expense(5.8)(9.7)(11.0)(2.9)— (29.4)
Other income— 0.1 (0.1)0.2 — 0.2 
Adjusted EBITDA$3.6 $38.7 $(1.8)$(10.4)$— $30.1 



CHURCHILL DOWNS INCORPORATED
Recast Adjusted EBITDA by Segment
(unaudited)
Three Months Ended September 30, 2020
(in millions)Live and Historical RacingTwinSpiresGamingAll OtherEliminationsTotal
Net revenue$71.1 $127.6 $133.7 $17.2 $(11.8)$337.8 
Taxes and purses(20.4)(8.2)(51.5)(1.0)— (81.1)
Marketing and advertising(2.7)(6.9)(0.6)(0.1)— (10.3)
Salaries and benefits(8.8)(3.1)(19.1)(5.2)— (36.2)
Content expense(0.2)(62.7)(1.2)(0.9)11.2 (53.8)
Selling, general and administrative expense(2.8)(3.9)(8.2)(14.8)0.5 (29.2)
Other operating expense(12.1)(10.2)(14.3)(4.3)0.1 (40.8)
Other income— — 35.9 (0.4)— 35.5 
Adjusted EBITDA$24.1 $32.6 $74.7 $(9.5)$— $121.9 

Three Months Ended December 31, 2020
(in millions)Live and Historical RacingTwinSpiresGamingAll OtherEliminationsTotal
Net revenue$58.3 $97.3 $119.4 $11.0 $(7.8)$278.2 
Taxes and purses(20.2)(5.9)(47.1)(1.7)— (74.9)
Marketing and advertising(2.0)(3.2)(1.2)— — (6.4)
Salaries and benefits(11.2)(3.4)(18.3)(4.1)— (37.0)
Content expense(0.5)(48.3)(0.9)(1.4)7.4 (43.7)
Selling, general and administrative expense(3.0)(1.8)(6.6)(11.4)0.3 (22.5)
Other operating expense(11.1)(9.1)(14.9)(1.7)0.1 (36.7)
Other income0.1 — 21.9 0.2 — 22.2 
Adjusted EBITDA$10.4 $25.6 $52.3 $(9.1)$— $79.2 




CHURCHILL DOWNS INCORPORATED
Reconciliation of Comprehensive (Loss) Income to Adjusted EBITDA
(unaudited)
Three Months EndedYear Ended December 31,
March 31, 2020June 30, 2020September 30, 2020December 31, 202020202019
(in millions)
Comprehensive (loss) income $(23.4)$(118.8)$43.2 $17.1 $(81.9)$137.5 
Net income (loss) and comprehensive income (loss) attributable to CDI
Net loss attributable to noncontrolling interest0.1 — 0.1 — 0.2 0.3 
Net (loss) income before noncontrolling interest(23.5)(118.8)43.1 17.1 (82.1)137.2 
Loss (income) from discontinued operations, net of tax0.9 95.2 — (0.7)95.4 2.4 
(Loss) income from continuing operations, net of tax(22.6)(23.6)43.1 16.4 13.3 139.6 
Additions:
Depreciation and amortization22.0 22.1 22.4 26.4 92.9 96.4 
Interest expense19.3 20.3 19.7 20.7 80.0 70.9 
Income tax (benefit) provision(11.6)(7.9)13.9 0.3 (5.3)56.8 
EBITDA$7.1 $10.9 $99.1 $63.8 $180.9 363.7 
Adjustments to EBITDA:
Selling, general and administrative:
Stock-based compensation expense$4.3 $6.1 $6.9 $6.4 $23.7 23.8 
Legal reserves— — — — — 3.6 
Other charges— (0.1)0.8 0.1 0.8 0.4 
Pre-opening expense and other expense1.7 1.9 6.2 1.4 11.2 5.1 
Other income, expense:
Interest, depreciation and amortization expense related to equity investments9.5 9.8 9.9 9.3 38.5 32.6 
Changes in fair value of Rivers Des Plaines' interest rate swaps14.9 1.3 (1.5)(1.8)12.9 12.4 
Rivers Des Plaines' legal reserves and transaction costs— — — — — 4.7 
Other— — — — — (0.2)
Transaction expense, net0.3 0.2 0.5 — 1.0 5.3 
Impairment of tangible and other intangible assets17.5 — — — 17.5 — 
Total adjustments to EBITDA48.2 19.2 22.8 15.4 105.6 87.7 
Adjusted EBITDA$55.3 $30.1 $121.9 $79.2 $286.5 $451.4 
Adjusted EBITDA by segment:
Live and Historical Racing$1.0 $3.6 $24.1 $10.4 $39.1 $135.6 
TwinSpires16.0 38.7 32.6 25.6 112.9 69.3 
Gaming47.9 (1.8)74.7 52.3 173.1 277.9 
Total segment Adjusted EBITDA64.9 40.5 131.4 88.3 325.1 482.8 
All Other(9.6)(10.4)(9.5)(9.1)(38.6)(31.4)
Total Adjusted EBITDA$55.3 $30.1 $121.9 $79.2 $286.5 $451.4