And They're Off! Churchill Downs Soaring On Strong Earnings, Kentucky Derby (CHDN)

Churchill Downs, Inc. CHDN shares are soaring today, gaining more than 5% on news that the Kentucky Derby was the 4th most watched race in 21 years, as well as reporting earnings last night after the bell. The Kentucky Derby had 14.5 million viewers on NBC, the fourth highest it's been in 21 years. The company reported a loss of 19 cents per share on $131.6 million, compared to last year, when it reported a loss of 60 cents on $85.2 million in revenues. Revenues grew 54% year-over-year. Louisville-based Churchill said the revenue growth was due to acquisitions in the gaming and online business segments, which included the additions of online wagering site Youbet.com and Harlow's Casino Resort & Hotel. CDI Chairman-Elect and Chief Executive Officer Robert Evans said the Company's recent acquisitions are delivering expected results. "Our Gaming segment had a solid first quarter, with Harlow's, the Calder Casino and Fair Grounds' slots and video poker operations producing higher net revenues over the same period in 2010," Evans said. "Our Online business results reflect the combination of our TwinSpires.com and Youbet.com betting platforms, which were fully integrated under the TwinSpires.com brand in November 2010. "CDI's net cash from operating activities during the first quarter improved to $60.5 million from $21.3 million reported during the same period last year. The improvement was due primarily to EBITDA growth, tax refunds and lower estimated tax payments for the current year related to our 2010 acquisitions, and the growth and timing of certain Kentucky Derby-related collections. We are using cash flow from operations to pay down our long-term debt, which decreased by $42.2 million since the end of 2010." Evans continued, "We are extremely pleased with the results of this year's Kentucky Derby weekend, during which we set a new record for on-track Derby Day attendance -- 164,858 -- breaking the long-standing record of 163,628 that was set in 1974 for the centennial Derby celebration. We also saw increases over 2010 levels in on-track and all-sources wagering on both Derby and Oaks days and grew revenues from sponsorships and admissions year over year. Based on our preliminary estimates, these increases will help contribute to an additional $5 million to $6 million of Derby-related EBITDA in 2011. We believe these results demonstrate there is still demand for competitive, high-quality racing entertainment, and that is the very essence of Kentucky Derby weekend." "Kentucky Derby weekend also enjoyed expanded national television coverage on NBC Universal cable channel VERSUS, which carried an hour-long Oaks program on May 6 as well as five hours of Derby Day undercard coverage on May 7. NBC brought the Derby home to millions of viewers from 4-7 p.m. EDT, and VERSUS provided summary and analysis of the Derby race, won by Team Valor's Animal Kingdom, during a new 30-minute recap show from 7-7:30 p.m. We look forward to discussing the economics of Derby week in greater detail when we announce second-quarter results."