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Churchill improves net loss in first quarter

May 8, 2007

Churchill Downs Inc. lost $8.19-million in the first quarter of 2007, a 20.3% improvement from a net loss of $10.27-million in the same period of 2006.

This year’s figure includes $239,000 in profit from discontinued operations. The company typically posts a loss in the first quarter because most of its tracks have minimal or no live racing from January through March.

Fair Grounds, the company’s one racetrack that operates a live meet throughout the winter, contributed to the improved results. In the wake of Hurricane Katrina, Fair Grounds conducted just 12 live dates at an alternative site, Harrah’s Louisiana Downs, in the first quarter of 2006. The track carded 45 additional live dates in the first quarter of 2007.

Churchill said it also benefited from lower corporate expenses, the addition of eight days of dark day simulcasting at Arlington Park, and an adjustment in workers’ compensation insurance reserves.

Net revenue increased 23.6%, from $45.02-million to $55.63-million. This year’s revenue includes $7.84-million from discontinued operations. Churchill completed the sale on March 30 of its 62% ownership interest in Hoosier Park in Anderson, Indiana.