Churchill Downs reports Q3 results

8 Nov 2006

LOUISVILLE, Kentucky -- (PRESS RELEASE) -- Churchill Downs Incorporated (NASDAQ: CHDN) today reported results for the third quarter and nine months ended Sept. 30, 2006.

Net revenues from continuing operations for the third quarter were $106.4 million, an increase of 4.6 percent over net revenues from continuing operations of $101.7 million one year earlier. Net earnings from continuing operations for the third quarter were $2.7 million, or $0.20 per diluted share, down 15.6 percent from net earnings from continuing operations of $3.2 million, or $0.23 per diluted share, during the same period in 2005. Results from the third quarter and first nine months of 2006 are outlined in the accompanying tables.

Net revenues from continuing operations for the first nine months of 2006 were $324.7 million, up 3.0 percent from $315.1 million during the first nine months of 2005. Net earnings from continuing operations for the nine months ended Sept. 30, 2006, were $26.9 million, or $1.97 per diluted share, up 56.4 percent from $17.2 million, or $1.27 per diluted share, a year earlier.

During the quarter, CDI completed the sale of Ellis Park, a racetrack in Henderson, Ky., to a company owned by Kentucky businessman Ron Geary. Results from Ellis Park are treated as discontinued operations and detailed as such in the accompanying tables.

Robert L. Evans, who assumed his new role as CDI's president and chief executive officer on Aug. 14, credited the year-over-year growth in net revenues to the strong performance posted by the Company's Louisiana Operations. "We remain encouraged by the solid results delivered by our video poker and simulcast-wagering operations in Louisiana, which continue to outperform their pre-Hurricane Katrina business levels," said Evans. "Repairs to Fair Grounds Race Course are nearing completion, and we look forward to bringing live horse racing back to the New Orleans community when the historic track reopens on Thanksgiving Day.

"All of our operating units showed improvement in the quarter with the exception of Arlington Park, where a high level of on-track horse injuries and the related publicity appeared to depress field sizes, attendance and, in turn, wagering. Multiple independent examinations of the Arlington Park dirt track revealed no causal factors. We are evaluating numerous, significant changes in our racing program and cost structure at Arlington Park to be implemented in time for our 2007 meet.

"In the three months since joining CDI, I have worked with the management team to identify a path for growth for the Company that will involve re-engaging existing customers - and recruiting new fans - by leveraging technological innovations now available to us. In addition, we will pursue alternative gaming opportunities in Louisiana, where we have been authorized to establish a slot machine gaming facility at Fair Grounds, and in other states where such approvals must still be secured. In the coming months, I look forward to briefing investors and other interested parties on the new strategies we intend to pursue."

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	Churchill Downs reports Q3 results 8 Nov 2006 LOUISVILLE, Kentucky -- (PRESS RELEASE) -- Churchill Downs Incorporated (NASDAQ: CHDN) today reported results for the third quarter and nine months ended Sept. 30, 2006. Net revenues from continuing operations for the third quarter were $106.4 million, an increase of 4.6 percent over net revenues from continuing operations of $101.7 million one year earlier. Net earnings from continuing operations for the third quarter were $2.7 million, or $0.20 per diluted share, down 15.6 percent from net earnings from continuing operations of $3.2 million, or $0.23 per diluted share, during the same period in 2005. Results from the third quarter and first nine months of 2006 are outlined in the accompanying tables. Net revenues from continuing operations for the first nine months of 2006 were $324.7 million, up 3.0 percent from $315.1 million during the first nine months of 2005. Net earnings from continuing operations for the nine months ended Sept. 30, 2006, were $26.9 million, or $1.97 per diluted share, up 56.4 percent from $17.2 million, or $1.27 per diluted share, a year earlier. During the quarter, CDI completed the sale of Ellis Park, a racetrack in Henderson, Ky., to a company owned by Kentucky businessman Ron Geary. Results from Ellis Park are treated as discontinued operations and detailed as such in the accompanying tables. Robert L. Evans, who assumed his new role as CDI's president and chief executive officer on Aug. 14, credited the year-over-year growth in net revenues to the strong performance posted by the Company's Louisiana Operations. "We remain encouraged by the solid results delivered by our video poker and simulcast-wagering operations in Louisiana, which continue to outperform their pre-Hurricane Katrina business levels," said Evans. "Repairs to Fair Grounds Race Course are nearing completion, and we look forward to bringing live horse racing back to the New Orleans community when the historic track reopens on Thanksgiving Day. "All of our operating units showed improvement in the quarter with the exception of Arlington Park, where a high level of on-track horse injuries and the related publicity appeared to depress field sizes, attendance and, in turn, wagering. Multiple independent examinations of the Arlington Park dirt track revealed no causal factors. We are evaluating numerous, significant changes in our racing program and cost structure at Arlington Park to be implemented in time for our 2007 meet. "In the three months since joining CDI, I have worked with the management team to identify a path for growth for the Company that will involve re-engaging existing customers - and recruiting new fans - by leveraging technological innovations now available to us. In addition, we will pursue alternative gaming opportunities in Louisiana, where we have been authorized to establish a slot machine gaming facility at Fair Grounds, and in other states where such approvals must still be secured. In the coming months, I look forward to briefing investors and other interested parties on the new strategies we intend to pursue."