Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We believe this will improve our topline and our margins |
| We delivered record net revenue of nearly $2.5 billion and record adjusted EBITDA of over $1 billion |
| Regarding our equity investments, both Rivers Des Plaines and Miami Valley Gaming delivered record revenue and record adjusted EBITDA in 2023 |
| We grew our company substantially, accomplished a number of key strategic and operational objectives, and positioned the company for exceptional growth in 2024 and beyond |
| Rivers Des Plaines performed well despite competitive challenges in the Chicago market and MVG delivered high single-digit growth and adjusted EBITDA despite a challenging economic environment |
| Despite the challenging start to the year, we are pleased with the results we have seen so far in February and we remain optimistic for these properties for the balance of the year |
| In May, we held a very successful Kentucky Derby, setting once again records for virtually every material metric |
| In the fourth quarter, Exacta contributed nearly $9 million of adjusted EBITDA to the TwinSpire segment, and more than $5 million of improved economics for our Virginia HRM properties |
| Overall, we are very pleased with the results that our team delivered in 2023 |
| But I do think we drove margin improvement and we’re going to keep working as hard as we can on the things that we control to keep doing that and hopefully we can |
| The second category, I would say, with respect for our own company, is our ability to better control the process to improve and develop the product, to work with more manufacturers, to control or push towards a faster development that we think is more favorable in the long-term for us |
| In the meantime, we’ve been really pleased with our Exacta team because they have been doing a really good job of building their relationship and their customer book with the other operators that are dispersed throughout the state |
| So when we do our projects now, the Owensboro thing that we talked about, mentioned in our prepared remarks, I feel very, very good about that |
| We have a strong initial pipeline of growth opportunities beyond the ones we have announced |
| The rows -- completing the rows, I feel very, very good about that |
| Nice results |
| This is a testament to our team’s experience and ability to deliver highly impactful capital projects that drive increases in the profitability of the Kentucky Derby |
| Overall, we remain pleased with the strong margins this business generates despite facing industry headwinds in 2023 |
| In closing, as Bill said, 2023 was a tremendous year for our company with record financial results, and we expect 2024 and beyond will be even better given our unique portfolio of assets and our new projects coming online that will generate a significant amount of adjusted EBITDA and free cash flow |
| First, we benefited from the final stages of the exit from online Sports and Casino business, and the pivot into the B2B for online wagering on horse racing |
| I feel very good about our team that’s going to be on the field there and it’ll just be a ramp-up period where we get to know the different customers |
| The addition of the first turn experience and increases in ticketing, sponsorships and pari-mutual wagering provided a significant lift to our financial results while maintaining the consistently superior margins that Churchill Downs Racetrack has generated over the years |
| So we couldn’t be happier about where we are with respect to customer interest at all price points, whether you’re talking about the infield or our most expensive tickets, we are in very, very good shape |
| Churchill Downs Racetrack also delivered record adjusted EBITDA as a result of a very successful Derby Week |
| As our performance over time has demonstrated, our disciplined approach to our HRM investments has led to an excellent return on capital and we will remain disciplined as we look to expand further in each of our key markets |
| So we feel very, very positive about that |
| We also generated record adjusted EBITDA from our Kentucky HRM properties, driven by the strong performance of our Derby City Gaming and Oak Grove properties, and the first full year of operations at Turfway Park |
| We are extremely pleased with this acquisition and our new team |
| So we’re optimistic about the market |
| And our experience so far with our 150-unit facility has been pretty remarkable |
| Statement |
|---|
| The roadway has taken longer than expected because of some construction challenges and a very wet winter weather environment |
| We lost somewhere around 1,700 races in 2023, and in the first quarter, we’ve also seen a decline in races, and those have been weather, other things outside of anybody’s particular control |
| Our 2023 same-store wholly-owned casino margins, excluding insurance proceeds, were down 1.6 points compared to 2022 |
| You’ve called out a couple of the unusual items over the past couple of years with the COVID pull-forward, the wildfires, loss of races at the track |
| Some of that given -- was given back a little bit as we emerged from COVID and then along with that has been this series of unfortunate events with wildfires in Canada and severe weather and rainstorm |
| And there were a significant number of race day cancellations and shifts in race schedules in 2023, which impacted retail wagering |
| The thing I’ve been most thoughtful about there is just the unusual occurrence in 2023 of lost races as opposed to other things that might’ve affected the business |
| As Bill mentioned, many of our regional gaming properties were impacted in January by inclement weather, which combined with a strong start to the year in 2023, will likely cause a difficult comparison for first quarter 2024 from a revenue and margin perspective |
| So for us it’s the challenge of being comfortable in the site and getting all the approvals necessary in order to move forward |
| Bill Carstanjen Our big challenge in Virginia is the 5,000 machines |
| I know there were a lot of theories in previous earnings calls where you’d asked about how is sports wagering impacting it? How is the business holding up in the face of that? What I’d say is, the biggest thing I look at and the biggest thing I’m worried about is just consistency of content |
| So, I think, Marcia and her comments and definitely the way that Bill Mudd and I think about it is we’ve had some noise going on here |
| So fire away |
| That theory will have to be proven over time |
| It’s a question of the boots on the ground to have them turned off and removed |
| Can you maybe just frame that out or what is this new growth level look like in the coming years? Bill Carstanjen The last couple of years have been so lumpy |
| The fact that it’s been slower getting to the finish line of announcing a complete project plan doesn’t change our interest in the market |
| So it’s been pretty lumpy and harder to quantify, especially when added to the operational efficiencies we’re clearly demonstrating in Virginia |
| So, yeah, I would have liked that to have moved faster than it has, but it hasn’t shaken our interest or our confidence in the market |
| Could you just talk a little bit about, right now, I mean, we see some extreme productivity coming out of that, a very limited, I think, account of machines up there |
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