Churchill Downs Incorporated (CDI) on Wednesday reported record revenue for the third quarter of $696 million, a year-over-year increase of $13 million, or 2%.
Adjusted EBITDA was also a record at $264 million, up $2 million or 1%, while net income also amounted to an all-time high of $80 million, up $42 million.
In an update, CDI confirmed it plans to relocate its historical racing machine (HRM) entertainment venue in Henry County, Virginia, after receiving approval for a special use permit from the Henry County Board of Zoning Appeals.
The proposed site is north of the U.S. 58 Bypass and east of Old Greensboro Road, near NASCAR’s Martinsville Speedway. Plans call for 150 HRMs, simulcast racing, and food and beverage options.
The facility will replace Rosie’s Game Room in Collinsville, which currently operates 37 HRMs. CDI said it is finalising the design and plans for the new venue.
CDI also announced plans to expand its Thoroughbred Championship Series with the New York Racing Association in 2027. The expanded series will feature two divisions, the Derby division and the Oaks division.
The expansion comes just two-and-a-half months after the Louisville-based company teamed up with NYRA to create the Thoroughbred Championship Series, a new six-race series for 3-year-old thoroughbreds set to begin in 2027.
Together, the two divisions will encompass 10 races offering more than $22 million in purses and prizes. All 10 races will be nationally televised on NBC or FOX networks.
Other quarterly highlights include the completed acquisition of 49% of United Tote Company from NYRA and the extension of NYRA’s tote services agreement with United Tote through 2035.
The company also entered into a new $500 million Term Loan B due 2033 and amended and extended its Revolver and Term Loan A facility at what it said were favorable rates.
The board declared a $0.469 per share dividend (+7%) to shareholders of record as of December 4, payable on January 5, and also approved a new $750 million share repurchase program. The new authorization includes and is not in addition to the $306 million previously remaining under the prior repurchase program authorization as of the close of trading on October 27.
“As we look ahead, our company’s strategy is focused on our three highly valuable platforms: Churchill Downs racetrack and the Kentucky Derby, our HRM (HHR) businesses, and our TwinSpires business,” CDI CEO Bill Carstanjen told investors. “Each combines strong cash generation, durable competitive advantages, and attractive opportunities for profitable growth.”
“These three cornerstones form the foundation of a more focused portfolio designed to compound shareholder value over the long term. Churchill Downs racetrack and the Kentucky Derby, increasingly all of Derby Week, is the crown jewel of our portfolio.“
CDI shares rose 43 cents, or 0.53%, to close at $81.95 on Wednesday. In after-hours trading at 4:45 p.m. EDT, the stock fell 65 cents, or 0.79%, to $81.30.