Strategic Sale of Regional Gaming Properties to Focus on Core Businesses
The company plans to sell nine of its wholly-owned regional gaming properties to reduce leverage and reinvest in high-return assets. Proceeds will target a net leverage ratio of 3.0x or less, fund selective reinvestment in Churchill Downs Racetrack and historical racing projects, and support share repurchases. The company operates across three segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming. Live and Historical Racing includes Churchill Downs Racetrack, home of the Kentucky Derby, and historical racing machine (HRM) venues in Kentucky, Virginia, and New Hampshire. The company owns eight HRM venues in Kentucky with approximately 5,330 machines and eight in Virginia with approximately 4,715 machines, with a new casino under construction in New Hampshire. The Wagering Services and Solutions segment includes TwinSpires, a leading online horse racing wagering platform, and Exacta, which provides HRM technology. The Gaming segment includes ten wholly-owned properties and two equity investments. The company reported $3.0 billion in revenue and $1.2 billion in Adjusted EBITDA over the trailing twelve months, with segment contributions of 50% from Live and Historical Racing, 18% from Wagering Services and Solutions, and 35% from Gaming. The company maintains a disciplined capital strategy, including annual dividends with 15 consecutive years of increases and share repurchases, and expects high returns on ongoing capital investments.
Churchill Downs Incorporated
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