Church Downs Stock Price, News & Analysis

Churchill Downs Incorporated (CHDN) has signed a Purchase and Sale Agreement with the Chicago Bears to sell its 326-acre Arlington Heights property for $197.2 million. The sale is expected to close in late 2022 or early 2023, contingent on specific closing conditions. The company plans to utilize the proceeds to acquire or invest in qualifying replacement property as per Internal Revenue Code §1031. This strategic move signals CDI's commitment to optimizing its real estate portfolio to enhance shareholder value.

Churchill Downs Incorporated (CHDN) announced the proposal for the Queen of Terre Haute Casino Resort in Vigo County, Indiana, alongside an application for an open casino license. The resort is expected to include 1,000 slot machines, 50 table games, a luxury hotel, and a sportsbook. An economic impact study from Purdue University estimates the project will yield $190 million annually, creating 1,000 construction jobs and 500 permanent jobs. The company aims to demonstrate the proposal's benefits to local stakeholders and the Indiana Gaming Commission.

Churchill Downs Incorporated (CHDN) announced the closure of its Louisiana operations, including the Fair Grounds Race Course & Slots and 15 Off-Track Betting facilities, due to Hurricane Ida. The company is assessing the damages and planning for reopening while providing ongoing pay and benefits to affected employees. CDI has property insurance, including business interruption coverage, subject to deductibles. The impact of this disruption on financial performance remains to be seen as further evaluations continue.

Churchill Downs reported a record net revenue of $515.1 million for Q2 2021, up from $185.1 million year-over-year. The net income reached $108.3 million, a significant recovery from a $118.8 million loss in the prior year. Adjusted EBITDA also soared to $233.3 million compared to $30.1 million in Q2 2020. Key growth drivers included the successful running of the 147th Kentucky Oaks and Derby and record performances from various gaming properties. However, increased marketing expenses for sports and casino affected adjusted EBITDA from those segments.

Churchill Downs Incorporated (CHDN) has announced significant multi-year capital investments to enhance guest experiences at the Kentucky Derby through three major projects. The Homestretch Club, costing $45 million, will provide 3,250 all-inclusive seats, set to open in May 2022. The Turn 1 Experience, a $90 million upgrade, aims to enhance seating capacity to 7,100 by 2023. Additionally, a redesign of the Paddock Area aims to improve guest flow and experience by 2024. These investments build on a $10 million turf course upgrade, ensuring Churchill Downs remains a premier racing destination.

Churchill Downs Incorporated (CHDN) has announced a $76 million expansion at Derby City Gaming in Louisville, Kentucky. The project will add 135,000 sq. ft. of new space, including 200 new gaming positions, and can ultimately accommodate up to 400 new gaming positions. Features will include a VIP gaming space, a new sports bar, and an upscale-casual restaurant. A adjoining hotel with 123 rooms is also planned, set to enhance guest experiences. Construction is expected to start in early 2022 and create around 400 construction jobs and 60 permanent jobs.

Churchill Downs Incorporated (CHDN) will release its second quarter 2021 financial results on July 28, 2021, after market close. A conference call to discuss the results is scheduled for July 29, 2021, at 9 a.m. ET. Investors can access the live webcast or listen via telephone by calling the provided numbers. A replay of the call will be available online shortly after the event. The Company is recognized for its industry-leading racing, online wagering, and gaming entertainment services, anchored by the Kentucky Derby, along with various gaming venues and online platforms.

Churchill Downs Incorporated (CHDN) has appointed Jason Sauer as Senior Vice President of Corporate Development, effective immediately. Sauer, who joined the company in 2014, will collaborate with senior management on strategic growth initiatives. CEO Bill Carstanjen praised Sauer's expertise in M&A and complex commercial deals. Previously, Sauer worked as legal counsel at Humana and as an attorney specializing in corporate transactions. He holds degrees from Harvard and the University of Kentucky.

The Chicago Bears have entered a multi-year exclusive partnership with Rush Street Interactive, Inc. (RSI) and Rivers Casino, marking the Bears' first such deal in the Sportsbook and Casino sectors. BetRivers will become the Bears' Official Sportsbook Partner, while Rivers Casino will be the Official Casino Partner. The partnership includes significant in-stadium presence, digital assets, and exclusive promotions for BetRivers players. This agreement is seen as a milestone for both the Bears and RSI, aiming to enhance fan engagement and customer experience.