Churchill Downs Q2 Profit Beats View, Nears Management Deal With Saratoga

(RTTNews) - Churchill Downs Inc. (CHDN) reported net earnings for the second quarter of $57.33 million or $3.21 per share, up from $50.30 million or $2.81 per share for the year-ago quarter. On average, six analysts polled by Thomson Reuters expected the company to earn $3.19 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter grew 7 percent to $303.7 million from $283.6 million in the prior-year quarter. Street had a consensus revenue estimate of $309.48 million for the quarter.

In a separate statement, Churchill Downs and racing and gaming company Saratoga Harness Racing Inc. or SHRI said they have executed a binding term sheet and are close to finalizing a five-year management deal.

Under the deal, Churchill Downs or CDI will manage Saratoga Casino and Raceway in Saratoga Springs, New York and Saratoga Casino Black Hawk in Black Hawk, Colorado. Once finalized, the management contract will become effective as soon as CDI obtains necessary licenses and approvals in New York and Colorado.

In the event CDI and SHRI become successful in their joint bid to build Capital View Casino & Resort, a proposed resort casino in East Greenbush, New York, CDI will also manage that facility.

The two companies also signed a binding term sheet and have started talks on a stock purchase agreement in which CDI will buy 25 percent of economic and voting interests of SHRI.