Home Services Sector News Highlights of Hot Stock: Churchill Downs Incorporated (NASDAQ: CHDN)

Highlights of Hot Stock: Churchill Downs Incorporated (NASDAQ: CHDN)


On Friday 19 October, Churchill Downs Incorporated (NASDAQ: CHDN) shares price traded between $272.05 and $281.67 during the last trading session above/below with -2.41% at $273.06. The shares recorded a trading volume 98,472 million shares as compared to its average volume of 71,936 shares. The company has 13.24M shares outstanding and market value of 3.615B. Over the one year trading period, the stock has a peak price of $314.60 and its down is recorded at $204.25. The short ratio in the stock is 10.36 and the short float is around of 7.84%.

Churchill Downs Incorporated (CHDN) recently stated business results for the second quarter ended June 30, 2018.

Second Quarter 2018 Highlights

  • Net revenue of $379.4M, 12% raise over the previous year
  • Net income of $103.1M contrast to $78.3M in the previous year
    • Adjusted net income of $105.2M contrast to $73.3M in the previous year
  • Diluted earnings per share (“EPS”) of $7.55 contrast to $4.81 in the previous year
    • Adjusted diluted EPS of $7.71 contrast to $4.50 in the previous year
  • Adjusted EBITDA of $174.5M, 13% raise over the previous year

On January 9, 2018, the Company closed the sale of its mobile gaming subsidiary, Big Fish Games Inc. (“Big Fish Games”), to Aristocrat Technologies, Inc. for aggregate consideration of about $990M in cash (“Big Fish Transaction”). For purposes of our consolidated financial statements and information included in this release prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), the Big Fish Games section is classified as held for sale and discontinued operations. Therefore, Big Fish Games is excluded from GAAP net revenue, operating income and adjusted EBITDA. Net income and diluted EPS include the results from Big Fish Games’ discontinued operations. For purposes of our condensed consolidated statements of cash flows, the Company has included the results of Big Fish Games. See explanation of Non-GAAP measures below.

Net revenue and adjusted EBITDA will be discussed in more detail below by Operating Section.

The Company’s second quarter 2018 net income raised $24.8M, or 32%, to $103.1M contrast to $78.3M for the previous year.  Income from continuing operations, net of tax was $103.2M for the second quarter 2018, contrast to $72.7M for the previous year.

The $30.5M raise in income from continuing operations, net of tax was Because of:

  • $13.7M raise in operating income primarily driven by our Racing, TwinSpires and Casino sections;
  • $14.2M decrease in our income tax provision primarily Because of the reduction in the federal statutory corporate tax rate from 35% to 21% as a result of the Tax Cuts and Jobs Act;
  • $1.9M decrease in net interest expense associated with lower outstanding debt balances; and
  • $1.1M raise in equity income of our casino equity investments.
  • Partially offset by a $0.4M decrease from other sources.


We use adjusted EBITDA to evaluate section performance, develop strategy and allocate resources.  We utilize the adjusted EBITDA metric because we believe the inclusion or exclusion of certain recurring items is necessary to provide a more accurate measure of our core operating results and enables management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner.  Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP.  Our calculation of adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.

Adjusted EBITDA raised $6.4M primarily driven by:

  • $4.3M raise from our wholly-owned Casino properties, including a $1.5M raise at Calder, a $1.3M raise at Riverwalk, a $0.9M raise at our Louisiana properties, and a $0.6M raise at Oxford, all of which were primarily driven by the raises in net revenue; and
  • $2.1M raise in our Casino equity investments, driven by solid performance at Ocean Downs and Miami Valley Gaming.


CHDN quick ratio for most recent quarter was 1.30 while current ratio for time period was 1.30. In most recent quarter, LT Debt/Equity ratio was listed at 1.95 and Total Debt/Equity ratio was noted at 1.95. Churchill Downs Incorporated operates as a racing, gaming, and online entertainment company in the United States. It operates through Racing, Casinos, TwinSpires, and Other Investments sections.



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