Page 1

CHURCHILL DOWNS INCORPORATED Churchill Downs Incorporated Reports 2021 Third Quarter Results October 27 , 2021 LOUISVILLE , Ky . , Oct. 27 , 2021 ( GLOBE NEWSWIRE ) -- Churchill Downs Incorporated ( Nasdaq : CHDN ) ( the " Company " , " we " , " us " , " our " ) today reported business results for the third quarter ended September 30 , 2021 . Third Quarter 2021 Highlights • Record third quarter net revenue of $ 393.0 million compared to $ 337.8 million in the prior year quarter • Record third quarter net income ( a ) of $ 61.4 million compared to $ 43.2 million in the prior year quarter • Record third quarter Adjusted EBITDA ( b ) of $ 156.1 million compared to $ 121.9 million in the prior year quarter • TwinSpires Horse Racing delivered Adjusted EBITDA of $ 31.2 million in the third quarter of 2021 , up 56 % compared to the third quarter of 2019 o TwinSpires Horse Racing handle ( C ) was up 31 % in the third quarter of 2021 compared to the same quarter in 2019 • Our wholly - owned casino properties delivered 7.6 points of margin expansion in the third quarter of 2021 compared to the third quarter of 2019 • Announced agreement to sell our 326 - acre property in Arlington Heights , Illinois for $ 197.2 million to the Chicago Bears • Announced plans to open new 500 historical racing machine ( " HRM " ) , 43,000 - square - foot entertainment venue , Derby City Gaming Downtown , in Louisville , Kentucky • Board of Directors authorized a new $ 500 million stock repurchase plan and a $ 0.667 per share annual dividend payable on January 7 , 2022 to shareholders of record on December 3 , 2021 CONSOLIDATED RESULTS ( in millions , except per share data ) Net revenue Net income ( loss ) ( a ) Diluted EPS ( a ) Adjusted EBITDA ( b ) $ $ $ $ 2021 Third Quarter 393.0 61.4 1.57 156.1 $ $ $ $ 2020 337.8 43.2 1.08 121.9 ( a ) Reflects amounts attributable to Churchill Downs Incorporated . ( b ) These are non - GAAP measures . See explanation of non - GAAP measures below . ( c ) TwinSpires Horse Racing handle excludes handle generated by Velocity . Third Quarter 2021 Results The Company's third quarter of 2021 net income attributable to Churchill Downs Incorporated was $ 61.4 million compared to $ 43.2 million in the prior year quarter . The Company's third quarter of 2021 net income from continuing operations was $ 61.4 million compared to $ 43.1 million in the prior year quarter . The following items impacted the comparability of the Company's third quarter net income from continuing operations : • $ 3.2 million after - tax decrease in expenses related to lower transaction , pre - opening and other expenses ; and • $ 0.3 million after - tax benefit increase related to our equity portion of the non - cash change in fair value of Rivers Des Plaines ' interest rate swaps , • Partially offset by $ 0.4 million after - tax increase in Rivers Des Plaines ' legal reserves and transaction costs . Excluding these items , third quarter 2021 net income from continuing operations increased $ 15.2 million primarily due to the following : • $ 15.3 million after - tax increase driven by the results of our operations and equity income from our unconsolidated affiliates , • Partially offset by $ 0.1 million after - tax increase in interest expense associated with higher outstanding debt balances . Segment Results The summaries below present net revenue from external customers and intercompany revenue from each of our reportable segments :