Loading...
01/10 16:01
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights record revenue and EBITDA, strong financial performance in Virginia, and increased dividends, indicating robust financial health. The Q&A reveals optimism about Virginia's growth and successful HRM deployments, despite some vague responses. The dividend increase and strong cash flow further bolster positive sentiment. Overall, the company's achievements and strategic plans suggest a likely stock price increase in the short term.
Net Revenue Record net revenue in Q3 2024, up 10% year-over-year, driven by strong performance in Live and Historical Racing and Gaming segments.
Adjusted EBITDA Record adjusted EBITDA in Q3 2024, up 8% year-over-year, primarily due to growth in Virginia HRM properties which increased adjusted EBITDA by $15 million or 40% compared to the prior year.
Virginia HRM Properties Adjusted EBITDA Increased by $15 million or 40% year-over-year, benefiting from lower Exacta fees and ongoing upgrades to game titles and floor layouts.
Combined Margin for Virginia HRM Properties Over 54% during the quarter, up over 6 points compared to the prior year quarter.
Free Cash Flow Generated a record $591 million or $7.93 per share in the first nine months of 2024, up nearly $145 million or 32% over the same period in 2023.
Maintenance Capital Expenditure Spent $50 million in the first nine months of 2024, expecting total maintenance capital spending between $90 million and $105 million for the year.
Project Capital Expenditure Spent $368 million through the first nine months of 2024, expecting total project capital spending between $450 million and $550 million for the year.
Dividend Increase Board approved a 7% increase in the dividend, marking the 14th consecutive year of increased dividends per share.
Bank Covenant Net Leverage At the end of Q3 2024, net leverage was 4.0 times, expected to remain at this level through year-end 2024.
New HRM Property Opening: Opened new HRM property in Dumfries, Virginia with 1,650 machines on October 21, 2024, with a grand opening planned for November 7, 2024.
Expansion of HRM Machines: Added approximately 100 HRM machines in Richmond, with plans to add an additional 400 by the end of 2025.
New HRM Venue in Kentucky: On track to open a new HRM venue in Owensboro, Kentucky in Q1 2025 with 600 machines.
New HRM Venue Development: Announced development of a new HRM venue in Calvert City, Kentucky, with an investment of $40 million to $50 million.
Kentucky Derby Growth Plans: Significant progress on the Starting Gate Pavilion project, transforming seating and amenities for the Kentucky Derby.
Virginia Racing Expansion: Introduction of a significant Kentucky Derby qualifying race in Virginia in 2025, increasing race days from 27 to 44 in 2025 and 50 in 2026.
Record Financial Performance: Achieved all-time record net revenue and adjusted EBITDA in Q3 2024.
Operational Efficiency in Virginia: Virginia HRM properties increased adjusted EBITDA by $15 million or 40% compared to the prior year quarter.
Long-term Growth Strategy: Focus on HRMs and Exacta's HRM technology as key strategic priorities for the next 5 to 10 years.
M&A Strategy: Looking for businesses that can improve operations and drive long-term growth, with a promising M&A pipeline.
Regulatory Issues: The company is facing challenges with illegal grey games in Virginia, which could impact the market dynamics and competition.
Supply Chain Challenges: The company is undergoing significant construction projects, such as the Starting Gate Pavilion and HRM expansions, which may face delays or cost overruns.
Competitive Pressures: Increased competition in regional gaming properties is affecting margins, particularly in the context of the Derby City Gaming property.
Economic Factors: The post-COVID recovery in downtown Louisville has been slower than expected, impacting the performance of the Derby City downtown property.
Operational Risks: The company is managing a large number of new HRM machines and properties, which requires careful operational planning and execution to ensure customer satisfaction and profitability.
Kentucky Derby Growth Plans: Significant progress on the Starting Gate Pavilion project, transforming seating from 10,000 bleacher seats to approximately 8,500 premium seats, on track for completion by next year's Kentucky Derby.
HRM Expansion in Virginia: Opened new HRM property in Dumfries with 1,650 machines, planning grand opening on November 7, 2024. Additional HRM expansion in Richmond and Henrico County with plans to reach 5,000 HRMs by end of 2025.
New HRM Venues in Kentucky: On track to open Owensboro HRM venue in Q1 2025 and developing a new HRM venue in Calvert City, with expected capital expenditure of $40 million to $50 million.
Long-term Strategic Focus: HRMs and Exacta's HRM technology are key strategic focuses for the next 5-10 years, providing high growth and high margin investments.
2025 Project Capital: Expected project capital for 2025 to be between $250 million and $325 million.
Free Cash Flow: Generated record $591 million in free cash flow during the first nine months of 2024, up 32% from the previous year.
Dividend Increase: Board approved a 7% increase in dividends, marking the 14th consecutive year of increased dividends.
Net Leverage Expectations: Expect bank covenant net leverage to remain at 4.0 times through year-end 2024, declining in 2025 as investments deliver adjusted EBITDA and free cash flow.
Dividend Increase: The Board of Directors approved a 7% increase in the dividend, which will be paid out on January 3, 2025, to shareholders of record on December 5, 2024. This marks the 14th consecutive year of increased dividends per share.
Free Cash Flow: Generated a record $591 million or $7.93 per share of free cash flow during the first nine months of the year, up nearly $145 million or 32% over the first nine months of 2023.
Capital Expenditure: Expect to spend between $450 million and $550 million for project capital for the year, with a projected capital expenditure for 2025 between $250 million and $325 million.
Shareholder Return Commitment: The company remains committed to delivering superior returns for shareholders through consistent execution of growth strategies.
The earnings call highlights strong financial performance, especially in revenue growth and margins. The Q&A reveals optimism in strategic projects and M&A activity, despite some uncertainties in ETGs and illegal machines. The 7% dividend increase and tax benefits further enhance sentiment. Overall, positive elements outweigh concerns, suggesting a stock price rise.
The earnings call highlights strong financial performance with significant free cash flow and a robust share repurchase program. Despite some challenges, such as decreased EBITDA in certain segments, management's optimistic guidance, strategic investments, and growth potential in key markets like Kentucky and Virginia positively impact sentiment. The Q&A section reinforces this with positive expectations for pricing, market expansion, and strategic initiatives. Overall, the company's proactive strategies and shareholder-friendly actions suggest a positive stock price movement in the short term.
The earnings call reflects strong financial performance with record EBITDA and significant shareholder returns through dividends and share repurchases. Despite some challenges, such as weather impacts and macroeconomic uncertainties, the company maintains growth in key areas and offers optimistic guidance for future events like the Derby. The Q&A reveals some hesitancy in lower-tier markets but overall strong demand and growth opportunities. The combination of strong financial metrics, optimistic future outlook, and shareholder-friendly actions suggests a positive sentiment, likely leading to a stock price increase.
The earnings call highlights record revenue and EBITDA, strong financial performance in Virginia, and increased dividends, indicating robust financial health. The Q&A reveals optimism about Virginia's growth and successful HRM deployments, despite some vague responses. The dividend increase and strong cash flow further bolster positive sentiment. Overall, the company's achievements and strategic plans suggest a likely stock price increase in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
