Churchill Downs Incorporated (CHDN) SEC Filings & Earnings Calls

Increased leverage from new $500M term loan; interest rate floating (SOFR+175bps) exposes to rate risk.

“New $500M TLB at SOFR+175bps; total debt increased.”

Increased competition in Central Virginia venues impacted results.

“partially offset by a $4 million net decrease from our Central Virginia venues primarily from increased competition” · word for word

Planned closure of temporary Casino Salem venue during construction.

“planned closure of our temporary Casino Salem venue during the construction of the Rockingham Grand Casino venue” · word for word

No assurance that any transaction will occur; process may be lengthy.

“The Company can provide no assurances that its exploration of strategic alternatives will result in the Company pursuing a transaction or that any transaction, if pursued, will be completed on defined terms or at all” · word for word

Presque Isle asset impairment risk

“Future regulatory changes and increased competition could have a negative impact on the estimates and assumptions utilized in our asset impairment assessments. These potential impacts could increase the risk of a future impairment of assets at Presque Isle.” · word for word

Debt maturity refinancing risk

“The Company is exploring options to fund upcoming senior note maturities through a combination of cash on hand, cash generated from operations, available capacity under its revolving credit facility, and raising funds via debt markets. Our ability to raise debt and the terms under which we would fund the obligations are subject to our ability to access the d” · word for word

Gaming segment revenue declined due to cessation of HRM operations in Louisiana and competitive pressure in Central Virginia.

“Gaming revenue decreased $5 million due to cessation of HRM operations in Louisiana and competitive pressure.”

Gaming Segment Decline

“Gaming Segment: Adjusted EBITDA was $483.0 million, down $23.9 million or 4.7% from fiscal year 2024.” · word for word

Net Income Decline

“Net income was $383.0 million, down $43.8 million or 10.3%” · word for word

Louisiana HRM Regulatory Risk

“The Louisiana Supreme Court issued an opinion on March 21, 2025 affirming the ruling of the District Court, which stated the 2021 HHR Act is unconstitutional... the Company discontinued its HRM operations in Louisiana and moved the HRMs in the Louisiana OTBs to other HRM venues, primarily located in Virginia.” · word for word

iGaming Competition Risk

“If iGaming is authorized and becomes operational in any of the states where we have brick-and-mortar casinos or HRM venues, it could have an adverse impact on our business.” · word for word

Horse Racing Industry Decline

“In 2025, approximately 29,000 thoroughbred horse races were conducted in the U.S., which was down 4.7% compared to 2024.” · word for word

Cybersecurity Risk

“We regularly identify, defend against, and recover from cybersecurity incidents, and have suffered cyber-attacks in the past.” · word for word

Labor Market Competition

“We continue to experience a competitive labor market. Employee turnover, changes in the availability of our workers, or labor shortages in our supply chain could result in increased costs and impact our ability to fully staff our operations.” · word for word

Net income decline despite revenue growth indicates cost pressure.

“Net income down 28% to $51.3M; net leverage 4.1x.”