Churchill Downs Incorporated Q2 2008 Earnings Call Transcript

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2008-08-29 11:29:13.0

Tags: Churchill Downs Inc.

Question-and-Answer Session

Operator

(Operator instructions) And our first question comes from the line of Steve Altebrando from Sidoti. Please proceed.

Steve Altebrando Sidoti & Co.

Hi, guys. How are you?

Bob Evans

Good, Steve.

Steve Altebrando Sidoti & Co.

Just a few questions. Do you have a rough budget on the Florida slots project?

Bob Evans

We have got a very detailed budget. But as we have been saying all along now, I don't really want to announce any of those plans publicly until after we get all of the required approvals from horsemen and breeders in Florida.

Steve Altebrando Sidoti & Co.

Okay. I apologize, I jumped on a little late, I apologize. I missed a couple of things. But, do you have the segment information by property? Or are you no longer providing that?

Bill Mudd

We're providing the revenues for each of the racetracks and then the EBITDA for total racing operations. And that’s consistent with the way we're running it internally. We are, as Bob mentioned in his closing remarks, we're working to be more efficient across all of our properties. And as part of that, it's leveraging some of those cost synergies across properties. So, while we can see the revenue at top line, we're not disclosing property level information because of some of those changes.

Steve Altebrando Sidoti & Co.

Do you have it available and you are just not disclosing it? Or is it just no longer accounted in that manner?

Bill Mudd

We still have it internally, but I think it's going to continue to gray over time because of things we're doing across properties. But we are not disclosing.

Steve Altebrando Sidoti & Co.

Okay. I would just say I mean for most investors' values industry based on properties and you are pretty much the only one now that’s not giving individual property-type results. I mean I just question why that is? I think it decreases the visibility a little bit into your earnings.

Bill Mudd

Okay. I understand your comment, and we’ll – we’d consider that, Steve. And the way we're managing it internally is the way that we're disclosing it externally. So–

Steve Altebrando Sidoti & Co.

Okay. In the Online segment, does that include HRTV?

Bill Mudd

Yes.

Steve Altebrando Sidoti & Co.

Okay. And then the last one. If you could talk a little – and I might have missed this part, too, but the New Orleans facility, how many slots you are going to open with? And I guess a little bit of color on how you think demand levels will be if you think there is demand for greater – the current 200-machine level or 250?

 

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