Churchill Downs, Incorporated · NASDAQ:CHDN
Churchill Downs — Non-Deal Roadshow (August 2010)
15 slides from Churchill Downs's roadshow presentation, Aug 24, 2010
Slide 1: Brean Murray Carret & Company California Road Show
Brean Murray Carret & Company California Road Show August 24-26, 2010 Bob Evans, President & CEO Bill Mudd, EVP & CFO Position: 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements In addition to historical facts or statements of current conditions, this document contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, expectations or be
Slide 3: Contents
Contents: I. Company Overview II. Financials i. Revenue & EBITDA ii. Cash Flow iii. Cash Allocation III. Gaming IV. Online V. Entertainment VI. Q&A Position: 3
Slide 4: Company Overview: Our Businesses
Company Overview Our Businesses Entertainment Gaming En s ab les a b le En Dr s ive i ve s Dr Racing Racing … the Kentucky Oaks Gaming … Calder Casino, Studz and Kentucky Derby and 386 Poker Club and Fair Grounds days of racing at our 4 tracks: Slots, which includes 1,863 slot Enables Drives Arlingt
Slide 5: Key Event Timeline
Key Event Timeline • Opened Calder Casino ($82 mil.) • Installed permanent lights at Churchill Downs ($4 mil.) • Most watched Derby in 21 years.. 16.5 million viewers, expanded to • Successfully passed referendum 3.5 hours of coverage to allow alternative gaming at our • Acquired Youbet.com ($132 mi
Slide 6: Financials - Revenue
Financials - Revenue Dollars in Millions Annual 1st Half +5% CAGR $431 $440 +9% Growth Diversification drives growth… $411 $275 Five year CAGR +5%, First half up $377 9% vs prior year $254 $356 Racing revenues down 6% thru first half on an 8% industry decline; - a) Kentucky Derby Week strength conti
Slide 7: Financials - EBITDA
Financials - EBITDA Dollars in Millions Well positioned for future growth… Annual 1st Half $17 1st half decline driven by investments to drive future growth … Youbet.com $19 transaction cost, Calder Casino pre- $1 opening costs, Entertainment Group start- $66 up investment $2 $63 $54 Total Racing/De
Slide 8: Financials – Cash Flow
Financials – Cash Flow Dollars/Shares in Millions (except CFOA/diluted common share) Cash provided by operating activities per diluted common share Annual 1st Half Very Strong Balance Sheet… $5.28 $0.74 -a) $5.06 $4.65 Very strong cash flow generation $4.84 $4.00 1st half 2010 dip driven by investme
Slide 9: Financials – Cash Allocation
Financials – Cash Allocation Dollars in Millions Additions to P&E, Dividends and Acquisition Expenditures 2007 to 1st Half 2010 Dividends $27, 7% Disciplined Cash Allocation.. Acquisitions (Online) “Special Projects” primarily driven by $119, 32% organic revenue generating - ATAB/BRIS $87 opportunit
Slide 10: Gaming
Gaming Fair Grounds Slots We know how to get good cash returns in gaming… Development Principles Built for the local market Experienced GMs (Harrah’s) Room to expand Layout focused on productivity Louisiana Gaming Operations $56 million invested - New 606 Slot Machine casino - $33 million - 809 Vide
Slide 11: Online
Online Our Online Business should continue to Online wagering growing despite industry declines…. grow with the acquisition of Youbet.com Dollars in Millions that was completed June 2, 2010…. $2,000 $16,000 Amount Wagered Online $14,321 $15,099 $12,315 $1,654 $1,600 $1,495 $1,381$1,412 $12,000 Indus
Slide 12: Online - Youbet.com Acquisition
Online - Youbet.com Acquisition Dollars in Millions The rate of growth of our Online Business EBITDA should Youbet.com Handle outpace the rate of growth in revenue … +10% Growth $480 $438 Acquisition Notes Online wagering channel is growing despite industry declines 2008 2009 Overlapping resources s
Slide 13: Entertainment
Entertainment Inaugural HullabaLOU Music Festival held at Churchill Downs Racetrack July 23 – 25th An artistic success … 3 day, 67 act music & arts festival targeted at 35-54 year old demographic (potential for lucrative sponsorships) 5 themed stages, music genre to match market research Nearly 79,0
Slide 14: Growth Summary
Growth Summary 2010 2011 & Beyond Racing / + Record Oaks Attendance/Handle New contracts for TV & Presenting Derby + Breeder’s Cup Sponsor + Night Racing Derby pricing and attendance On-Line + Channel shift / organic + Channel shift / organic + Youbet.com acquisition + Youbet.com carryover to full y
Slide 15: Summary
Summary Racing a small part of the business excluding the Kentucky Derby Proven growth through diversification strategy Strong balance sheet, back stopped with real assets Strong cash flow with access to capital for continued growth Disciplined capital allocation process Gaming positioned for growth