Churchill Downs, Incorporated · NASDAQ:CHDN
Churchill Downs — Brean Murray, Carret & Co. Small Cap Institutional Investor Conference 2006
17 slides from Churchill Downs's conference presentation, Jun 28, 2006
Slide 1: Brean Murray, Carret & Co. Small Cap Institutional Investor Conference 2006
Brean Murray, Carret & Co. Small Small Cap Cap Institutional Institutional Investor Investor Conference Conference 2006 2006 Churchill Churchill Downs Downs Incorporated Incorporated (NASDAQ: (NASDAQ: CHDN) CHDN) Michael Michael E. E. Miller Miller Executive Executive Vice Vice President President a
Slide 2: Safe Harbor
Safe Harbor Some statements made in this presentation will be forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, expectations or beliefs about future events or results, or otherwise are no
Slide 3: Presentation Overview
Churchill Downs Incorporated (CDI) Presentation Overview •Our brands and properties •Key facts about the pari-mutuel industry •CDI: Horse racing’s industry leader •Our growth strategy •Key metrics •Key takeaways
Slide 4: Our Brands and Properties
Churchill Downs Incorporated (CDI) Our Brands and Properties •Six racetracks in five states -Florida, -Florida, Illinois, Illinois, Indiana, Indiana, Kentucky, Kentucky, Louisiana Louisiana -Year-round -Year-round racing racing •Twin Spires mark --Kentucky Kentucky Derby Derby -Churchill -Churchill
Slide 5: Our Brands and Properties: Simulcast Network
Churchill Downs Incorporated (CDI) Our Brands and Properties •Churchill Downs Simulcast Network Market share for CDI tracks -11.5 -11.5 percent percent of of U.S. U.S. racing racing (6000 (6000 races) races) -15.5 -15.5 percent percent of of U.S. U.S. wagering wagering
Slide 6: Facts About the Pari-Mutuel Industry
Churchill Downs Incorporated (CDI) Key Facts About the Pari-Mutuel Industry •Controlled by “Big Three” (CDI, MEC, NYRA) •Revenue base shifting to “off-track” sources •Currently improving technology backbone (tote) •Additional consolidation needed
Slide 7: CDI: Horse Racing's Industry Leader
Churchill Downs Incorporated (CDI) CDI: Horse Racing’s Industry Leader •Dominant brands in horse racing •Proven management team with operations expertise and record of success -Our -Our greatest greatest asset asset == our our team team members members -Continual -Continual learning/development lear
Slide 8: CDI: Horse Racing's Industry Leader
Churchill Downs Incorporated (CDI) CDI: Horse Racing’s Industry Leader •Proven M&A capabilities •History of innovation •Strong balance sheet
Slide 9: Our Growth Strategy
Churchill Downs Incorporated (CDI) Our Growth Strategy •Develop existing racetrack/simulcast-wagering properties •Content and brand development •Alternative and internet gaming -Casino-style Casino-style gaming gaming at at racetracks racetracks -Rationalize -Rationalize advance-depositing advance-d
Slide 10: Growth Categories
Churchill Downs Incorporated (CDI) Growth Categories Category 1 Category 2 Category 3 Develop Existing Content and Brand Alternative and Properties Development Internet Gaming •Capital investments •Churchill Downs •Casino-style gaming at (Churchill Downs Racetrack Simulcast Network racetracks Renova
Slide 11: Metrics – Revenues
Churchill Downs Incorporated (CDI) Key Metrics – Revenues* 2004 2004 2003 2003 Kentucky Kentucky Operations Operations (CDRT (CDRT & & Ellis Ellis Park) Park) $87.3 $87.3 $84.0 $84.0 Arlington Arlington Park Park 79.6 79.6 78.3 78.3 Calder Calder Race Race Course Course 79.5 79.5 78.5 78.5 Hoosier H
Slide 12: Metrics – EBITDA
Churchill Downs Incorporated (CDI) Key Metrics – EBITDA* 2004 2004 2003 2003 Kentucky Kentucky Operations Operations (CDRT (CDRT & & Ellis Ellis Park) Park) $12.2 $12.2 $18.1 $18.1 Arlington Arlington Park Park 11.0 11.0 8.7 8.7 Calder Calder Race Race Course Course 9.5 9.5 14.3 14.3 Hoosier Hoosier
Slide 13: Metrics – Balance Sheet
Churchill Downs Incorporated (CDI) Key Metrics – Balance Sheet* Sept. Sept. 30, 30, 2005 2005 Current Current assets assets $$ 93,966 93,966 Plant Plant and and equipment, equipment, net net 348,790 348,790 Other Other assets assets 14,095 14,095 Current Current liabilities liabilities 138,427 138,4
Slide 14: Metrics – Ownership/Trading
Churchill Downs Incorporated (CDI) Key Metrics – Ownership/Trading •13.0 million TSO, 7.2 million float •45 percent held by insiders •27 percent held by institutions •26,000 average daily trading volume
Slide 15: Metrics – Ownership/Trading
Churchill Downs Incorporated (CDI) Key Metrics – Ownership/Trading •11.3 short ratio (as (as of of Jan. Jan. 15, 15, 2005) 2005) •500+ million market cap •EV/Revenue = .97 •EV/EBITDA = 8.79
Slide 16: Takeaways
Churchill Downs Incorporated (CDI) Key Takeaways •Horse racing remains competitive •CHDN shares fairly valued based on performance •CDI well positioned for growth -Strong -Strong balance balance sheet sheet with with access access to to capital capital -Best-known -Best-known brands brands in in rac
Slide 17: Questions?
Churchill Downs Incorporated (CDI) Questions?
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