The parent company of the Churchill Downs racetrack, recorded net revenues for the third quarter totalling $125.6m, an increase of 3.6 percent, compared with $121.2m for the same period last year.
Net earnings for the quarter were $7.9m, compared with $7.1m in 2001.
Diluted earnings per share totalled $0.59, compared with $0.54 for the third quarter of 2001.
The news will be greeted by the firm which recently unveiled ambitious plans for a $121m revamp of its flagship course.
Thomas H. Meeker, CDI's president and chief executive officer, credited the solid quarter, that included earnings within the range previously estimated by the company, to positive performances at most of the company's operating units, cost controls and a sound cash management strategy.
"As has been our experience for 2002, on-track revenues for the third quarter were flat for most of our racetracks. We were able to substantially offset this impact through the continued strong performance of our simulcast operations and a diligent approach to managing costs. We also benefited from a significant drop in interest expense as a result of lower interest rates and continued debt reduction through our positive cash flow and balance sheet management," he said.
Meeker added: "Looking ahead, we are confident that our fourth quarter will generate earnings consistent with our full-year estimate of $1.77 to $1.80 per diluted share. That confidence in earnings - and in our business in general - was validated by our board of directors' recent approval of the $121m 'Master Plan' to modernise Churchill Downs racetrack.
"The Master Plan to renovate our flagship facility and preserve its signature event, the Kentucky Derby, represents an unprecedented investment in our future and an unparalleled commitment to our business model. We believe this initiative will have a positive impact on our Company following its planned completion in 2006."
