Mystik Dan Wins the Historic 150th Running of the Kentucky Derby Presented by Woodford Reserve

New All-Time Handle Record Set for the Kentucky Derby Race, Kentucky Derby Day Program, and Kentucky Derby Week Races

LOUISVILLE, KY., (May 04, 2024) – Churchill Downs Incorporated (Nasdaq: CHDN) (the “Company”, “CDI”) announced today that a jubilant crowd of nearly 157,000 Derby fans gathered at Churchill Downs Racetrack (“Churchill Downs”) to celebrate and witness Mystik Dan claim the Garland of Roses at the 150^th running of the Kentucky Derby presented by Woodford Reserve at 18-1 odds under mostly cloudy skies. Wagering from all sources was the highest all-time on the Kentucky Derby race, the Kentucky Derby Day program, and Kentucky Derby Week races.

Mystik Dan, owned by 4 G Racing, LLC (Brent Gasaway), Lance Gasaway, Daniel Hamby, III, and Valley View Farm, LLC (Scott Hamby), trained by Kenneth McPeek, bred in Kentucky by Lance Gasaway, Daniel Hamby, and 4 G Racing, LLC, and ridden by Brian Hernandez Jr., rallied from off the pace to win by a nose in a photo finish. Mystik Dan covered the mile and a quarter in 2:03.34 over a fast track. This marks an extraordinary weekend of racing for trainer Kenneth McPeek and jockey Brian Hernandez Jr. who scored victories in both the Kentucky Oaks and Kentucky Derby.

Wagering from all sources on the Kentucky Derby Day program set a new record of $320.5 million, beating last year’s record of $288.7 million. All-sources wagering on the Kentucky Derby race was a new record of $210.7 million, beating the previous record of $188.7 million set in 2023. All-sources handle for Derby Week rose to a new record of $446.6 million, beating last year’s record of $412.0 million.

TwinSpires, the official betting partner of the Kentucky Derby, handled a new record of $92.1 million in wagering on Churchill Downs races for the Kentucky Derby Day program, compared to last year’s record of $75.5, including all settled future wagers and affiliate wagering. TwinSpires’ handle on the Kentucky Derby race was a new record of $60.9 million, beating last year’s record of $48.9 million, including all settled future wagers and affiliate wagering.

The Kentucky Derby race continued to attract global attention with two starters from Japan with Forever Young finishing third and T O Password finishing fifth. Forever Young was the winner of the UAE Derby in Dubai and T O Password qualified through the Japan Road to the Derby. All-sources wagering from Japan on the Kentucky Derby race was a new record of $10.1 million, beating the previous record of $8.3 million in 2022.

CDI debuted the all-new Paddock with two new luxury reserved seating areas – The Woodford Reserve Paddock Club and Sports Illustrated’s Club SI. These luxury reserved seating areas offer customers an opportunity to view horses as they are saddled in the paddock and experience the thrill of the races from the rail of the racetrack.

“The Kentucky Derby is a testament to the enduring spirit of sportsmanship, unity and the power of tradition. We were honored to debut our transformational new Paddock as we celebrated this milestone 150^th Run for the Roses. The new Paddock has fundamentally enhanced the experience of all of our guests as they pass through our front gates and is a stepping stone to the next chapter of this time-honored event,” said Bill Carstanjen, CEO of CDI. “We expect the Kentucky Derby Week Adjusted EBITDA to reflect a new record with $26 to $28 million of growth over the prior record set last year. As we reflect on 150 years of our storied past, we remain committed to innovating new experiences for Derby fans.”

Use of Non-GAAP Measures

In addition to the results provided in accordance with GAAP, the Company also uses non-GAAP measures, including adjusted net income, adjusted diluted EPS, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA.

The Company uses non-GAAP measures as a key performance measure of the results of operations for purposes of evaluating performance internally. These measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of the Company by excluding certain items that may not be indicative of the Company’s core business or operating results. The Company believes the use of these measures enables management and investors to evaluate and compare, from period to period, the Company’s operating performance in a meaningful and consistent manner. The non-GAAP measures are a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP, and should not be considered as an alternative to, or more meaningful than, net income or diluted EPS (as determined in accordance with GAAP) as a measure of our operating results.

We use Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.

Adjusted net income and adjusted diluted EPS exclude discontinued operations net income or loss; net income or loss attributable to noncontrolling interest; changes in fair value for interest rate swaps related to Rivers Des Plaines; Rivers Des Plaines’ legal reserves and transaction costs; transaction expense, which includes acquisition and disposition related charges, as well as legal, accounting, and other deal-related expense; pre-opening expense; and certain other gains, charges, recoveries, and expenses.

Adjusted EBITDA includes our portion of EBITDA from our equity investments.

Adjusted EBITDA excludes:

• Transaction expense, net which includes:
  • Acquisition, disposition, and property sale related charges;
  • Other transaction expense, including legal, accounting, and other deal-related expense;
• Stock-based compensation expense;
• Asset impairments;
• Gain on property sales;
• Legal reserves;
• Pre-opening expense; and
• Other charges, recoveries, and expenses.