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CHURCHILL DOWNS INCORPORATED Churchill Downs Incorporated Reports 2021 First Quarter Results April 21 , 2021 LOUISVILLE , Ky . , April 21 , 2021 ( GLOBE NEWSWIRE ) -- Churchill Downs Incorporated ( Nasdaq : CHDN ) ( the " Company " , " we " , " us " , " our " ) today reported business results for the first quarter ended March 31 , 2021 . First Quarter 2021 Highlights • Net revenue of $ 324.3 million , up 28 % over the prior year quarter • Net income ( a ) of $ 36.1 million compared to net loss of $ 23.4 million in the prior year quarter . o Adjusted net income ( a ) of $ 34.6 million , compared to $ 2.0 million in the prior year quarter Adjusted EBITDA of $ 110.6 million , up 100 % compared to $ 55.3 million in the prior year quarter • Derby City Gaming delivered record net revenue of $ 32.9 million , up 52 % over the prior year quarter • Our TwinSpires Horse Racing business delivered record first quarter net revenue of $ 93.1 million , up 39 % over the prior year quarter • Our TwinSpires Sports and Casino business launched sports betting and iGaming operations in Michigan on January 22 , 2021 and sports betting operations in Tennessee on March 18 , 2021 • Our Gaming Segment delivered record Adjusted EBITDA of $ 82.4 million , up 72 % over the prior year quarter • In February 2021 , Kentucky passed legislation that clarifies the legality of historical racing machines • On February 1 , 2021 , we purchased one million shares of CHDN stock from The Duchossois Group for $ 193.94 per share ( $ 193.9 million total ) in a privately negotiated transaction ( a ) Reflects amounts attributable to Churchill Downs Incorporated . CONSOLIDATED RESULTS ( in millions , except per share data ) Net revenue Net income ( loss ) ( a ) Diluted EPS ( a ) Adjusted net income ( a ) ( b ) Adjusted diluted EPS ( a ) ( b ) Adjusted EBITDA ( b ) ( a ) Reflects amounts attributable to Churchill Downs Incorporated . 69 69 First Quarter 2021 2020 EA $ 324.3 $ 252.9 $ 36.1 $ ( 23.4 ) $ 0.91 $ ( 0.59 ) $ 34.6 $ 2.0 $ 0.87 $ 0.05 $ 110.6 $ 55.3 ( b ) These are non - GAAP measures . See explanation of non - GAAP measures below . First Quarter 2021 Results The Company's first quarter of 2021 net income attributable to Churchill Downs Incorporated was $ 36.1 million compared to net loss attributable to Churchill Downs Incorporated of $ 23.4 million in the prior year quarter . The Company's first quarter of 2021 net income from continuing operations was $ 36.1 million compared to net loss from continuing operations of $ 22.6 million in the prior year quarter . We do not have any noncontrolling interest as of the first quarter of 2021 compared to a net loss attributable to our noncontrolling interest of $ 0.1 million in the prior year quarter . The following items impacted the comparability of the Company's first quarter net income from continuing operations : • $ 14.0 million after - tax expense decrease related to our equity portion of the non - cash change in fair value of Rivers Casino Des Plaines ( " Rivers Des Plaines " ) interest rate swaps ; • $ 12.0 million non - cash after - tax impact related to our intangible asset impairment from the first quarter of 2020 that did not recur in the first quarter of 2021 ; and • $ 1.0 million after - tax expense decrease related to lower transaction , pre - opening and other expenses . • Partially offset by a $ 0.9 million after - tax increase in Rivers Des Plaines ' legal reserves and transaction costs . Excluding these items , first quarter 2021 net income from continuing operations increased $ 32.6 million primarily due to the following : • $ 33.4 million after - tax increase driven by the results of our operations and equity income from our unconsolidated affiliates .