Churchill Downs Inc (CHDN) 2024 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Churchill Downs Incorporated 2024 third-quarter earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Sam Ullrich, Vice President, Investor Relations.

女士們先生們，美好的一天，歡迎參加 Churchill Downs Incorporated 2024 年第三季收益電話會議。（操作員說明）謹此提醒，本次電話會議正在錄音。現在我想介紹一下今天會議的主持人，投資者關係副總裁 Sam Ullrich 先生。

Thank you, Andrew. Good morning, and welcome to our third-quarter 2024 earnings conference call. After the company's prepared remarks, we will open the call for your questions. The company's 2024 third-quarter business results were released yesterday afternoon. A copy of this release announcing the results and other financial and statistical information about the period to be presented in this conference call, including information required by Regulation G, is available at the section of the company's website titled News located at churchilldownsincorporated.com, as well as in the website's Investors section.

謝謝你，安德魯。早上好，歡迎參加我們的 2024 年第三季財報電話會議。在公司準備好發言後，我們將開始電話詢問您的問題。該公司昨天下午發布了2024年第三季營運業績。本新聞稿的副本宣布了本次電話會議期間的結果和其他財務和統計信息，包括 G 條例要求的信息，可在公司網站的“新聞”部分獲取，網址為 Churchilldownsincorporated.com，網址為：以及網站的投資者部分。

Before we get started, I would like to remind you that some of the statements that we make today may include forward-looking statements. These statements involve a number of risks and uncertainties that could cause actual results to differ materially.

在我們開始之前，我想提醒您，我們今天發表的一些聲明可能包含前瞻性聲明。這些陳述涉及許多風險和不確定性，可能導致實際結果有重大差異。

All forward-looking statements should be considered in conjunction with cautionary statements in our earnings release and the risk factors included in our filings with the SEC, specifically the most recent reports on Form 10-Q and Form 10-K. Any forward looking statements that we make are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events.

所有前瞻性陳述應與我們的收益發布中的警示性陳述以及我們向 SEC 提交的文件中包含的風險因素（特別是 10-Q 表格和 10-K 表格的最新報告）一起考慮。我們所做的任何前瞻性陳述均基於截至目前的假設，我們不承擔因新資訊或未來事件而更新這些陳述的義務。

During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in yesterday's earnings press release. The press release and Form 10-Q are available on our website at churchilldownsincorporated.com. And now, I'll turn the call over to our Chief Executive Officer, Mr. Bill Carstanjen.

在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。昨天的收益新聞稿中包含了公認會計原則與非公認會計原則衡量標準的調節。新聞稿和 10-Q 表格可在我們的網站 Churchilldownsincorporated.com 上取得。現在，我將把電話轉給我們的執行長 Bill Carstanjen 先生。

Thanks, Sam. Good morning, everyone. With me today are several members of our team, including Bill Mudd, our President and Chief Operating Officer; Marcia Dall, our Chief Financial Officer; and Brad Blackwell, our General Counsel. I will share some high-level thoughts on our growth plans for the Kentucky Derby and our HRM businesses in Virginia and Kentucky. And then Marcia will provide insight into our financial results, as well as an update on our capital management strategy. After she finishes, we will take your questions.

謝謝，山姆。大家早安。今天與我在一起的有我們團隊的幾位成員，包括我們的總裁兼營運長 Bill Mudd； Marcia Dall，我們的財務長；和我們的總法律顧問布拉德·布萊克威爾（Brad Blackwell）。我將分享一些關於肯塔基賽馬會成長計劃以及維吉尼亞州和肯塔基州人力資源管理業務的一些高層想法。然後瑪西婭將提供我們財務業績的見解以及我們資本管理策略的最新資訊。她講完後，我們將回答您的問題。

We delivered all-time record net revenue, an all-time record adjusted EBITDA in the third quarter. We also delivered record third-quarter revenue and adjusted EBITDA across both our live and historical racing segment, and our gaming segment, as well as record adjusted EBITDA for our TwinSpires segment. Our strategic choices and capital investments continue to drive best-in-class growth, and we look forward to our future with confidence and focus.

我們第三季的淨收入和調整後 EBITDA 創歷史新高。我們的現場和歷史賽車細分市場、遊戲細分市場以及我們的 TwinSpires 細分市場的調整後 EBITDA 也創下了創紀錄的第三季收入和調整後 EBITDA。我們的策略選擇和資本投資繼續推動一流的成長，我們滿懷信心和專注地展望未來。

Speaking of the future, let's start with our growth plans for the Kentucky Derby. We have made significant progress on the Starting Gate Pavilion project at Churchill Downs Racetrack that we announced on our earnings call last quarter. This project will transform the seating area in front of the starting gate suites from 10,000 bleacher seats to a combination of approximately 8,500 premium stadium and trackside box seats.

談到未來，讓我們從肯塔基德比的發展計劃開始。我們在上個季度的財報電話會議上宣布，丘吉爾唐斯賽馬場的起跑門亭計畫取得了重大進展。該項目將把起跑門套房前的座位區從 10,000 個露天看台座位改造為包含約 8,500 個高級體育場和賽場包廂座位的組合。

We will also significantly improve the amenities for these guests, as well as for an additional 2,800 people seated in existing surrounding sections who will be able to access the hospitality options of the newly renovated section. We are on track to complete this project, on budget and on time for next year's Kentucky Derby.

我們也將大幅改善這些客人的設施，以及現有周邊區域的另外 2,800 人，他們將能夠享受新裝修區域的接待選擇。我們預計將按預算按時完成該項目，並為明年的肯塔基賽馬會做好準備。

We are also planning to complete over the next three to four years a series of renovation and development projects that will provide new and extraordinary experiences in the sections, starting approximately 180 feet past the finish line through to the First Turn Club. The scope of this project covers approximately 500 feet of racetrack frontage, starting with the Skye Terrace structure, which we will take down and replace with a new building, and extending through the box seats adjacent to the First Turn club.

我們還計劃在未來三到四年內完成一系列改造和開發項目，這些項目將為各個路段提供全新的非凡體驗，從距離終點線約 180 英尺開始，一直到 First Turn Club。該項目的範圍涵蓋約 500 英尺的賽道正面，從 Skye Terrace 結構開始，我們將拆除該結構並用新建築取代，並延伸到 First Turn 俱樂部附近的包廂座位。

To put this further in perspective, the First Turn Club has approximately 300,000 feet of track frontage. These projects will replace over 10,000 existing seats that currently consist of uncovered box seats and dated dining areas with approximately 16,000 seats representing a variety of premium hospitality experiences. This is a considerable undertaking and will meaningfully increase the number of reserve seats and experiential options at various price points on the front side of the racetrack.

更進一步來看，First Turn Club 擁有約 30 萬英尺的賽道臨街面。這些項目將取代現有的 10,000 多個座位，這些座位目前由無蓋包廂座位和過時的用餐區組成，其中約 16,000 個座位代表著各種優質的酒店體驗。這是一項艱鉅的任務，將有意義地增加賽道前側不同價位的預留座位和體驗選項的數量。

We are also designing a series of new infield experiences that will impart convert the current temporary infield structures where we seat approximately 800 guests to permanent premium structures, providing hospitality for approximately 7,000. Accomplishing this requires a new ingress and egress option for our guests to reach the infield. Hence, we are exploring a novel additional tunnel between the front side and infield that will be part of the overall experience as guests arrive to a reimagined Oaks and Derby infield.

我們還設計了一系列新的內場體驗，將目前可容納約 800 位客人的臨時內場結構轉變為永久高級結構，為約 7,000 人提供接待服務。要實現這一目標，需要為我們的客人提供新的入口和出口選項才能到達內場。因此，我們正在探索前側和內場之間的一條新穎的額外隧道，當客人到達重新設計的奧克斯和德比內場時，這將成為整體體驗的一部分。

The Finish Line/First Turn projects on the one hand and the infield projects on the other will be worked on simultaneously in stages with some areas ready for the Kentucky Derby in 2026 and the remaining areas opening for Derby in 2027 and 2028. There's a lot of careful planning underway as, collectively, these projects will, by far, the largest expansion we have done to date, and we'll increase our premiums seated inventory by approximately 20%.

終點線/首彎項目和內場項目將分階段同時進行，部分區域為 2026 年肯塔基德比做好準備，其餘區域將於 2027 年和 2028 年為德比開放。目前正在進行大量仔細的規劃，因為總的來說，這些項目將是我們迄今為止所做的最大的擴張，我們將把我們的保費座位庫存增加約 20%。

We will provide a more detailed update on these multiyear development plans at our next earnings call in February of 2025. Our commitment to investing in our flagship asset reflects our belief in our ability to generate consistent adjusted EBITDA growth with nominal levels of risk for years to come.

我們將在 2025 年 2 月的下一次財報電話會議上提供有關這些多年發展計劃的更詳細的最新資訊。我們對投資旗艦資產的承諾反映了我們對未來幾年在名目風險水準下實現持續調整後 EBITDA 成長的信心。

Next, regarding our HRM expansion, first, Virginia. We opened our new HRM property in Dumfries with 1,650 machines called The Rose on October 21 for a VIP event, and then executed our official soft opening yesterday. We are planning to have the grand opening with appropriate festivities and more extensive marketing on November 7.

接下來，關於我們的人力資源管理擴張，首先是維吉尼亞州。我們於 10 月 21 日在鄧弗里斯開設了名為 The Rose 的新 HRM 設施，舉辦 VIP 活動，配備 1,650 台機器，然後在昨天正式試營運。我們計劃於 11 月 7 日舉行盛大的開幕儀式，並舉行適當的慶祝活動和更廣泛的營銷活動。

We decided to proceed with the soft opening for a couple of weeks after the VIP event to give the team time to assimilate properly given the size of the property and the importance of establishing the right customer experience. Given the volume of customers we saw at the VIP event and at the soft opening yesterday, we certainly have taken the right approach. We look forward to ramping the crowds and accelerating the marketing as we approach the grand opening date. We are excited to see The Rose go live and are immensely proud of our team for their efforts to get us open.

考慮到飯店的規模以及建立正確的客戶體驗的重要性，我們決定在 VIP 活動結束後進行幾週的試營業，以便讓團隊有時間適當地適應。鑑於我們在 VIP 活動和昨天試營運時看到的客戶數量，我們當然採取了正確的方法。隨著盛大開幕日期的臨近，我們期待增加人流並加速行銷。我們很高興看到 The Rose 上線，並對我們的團隊為我們開業所做的努力感到非常自豪。

As we discussed in the July earnings call, we filed a building permit application in Northwestern Henrico County, Virginia, which is just north of Richmond, to open a new upscale HRM entertainment venue called the [Roshire] Gaming Parlor. We plan to convert a former furniture store into a new facility that will feature 175 games and have other gaming-related amenities. The permitting process as far along and we will begin construction when it is complete. We will update you on our next earnings call.

正如我們在7 月的財報電話會議中所討論的那樣，我們在弗吉尼亞州亨利科縣西北部（位於里士滿北部）提交了建築許可證申請，以開設一個名為[Roshire] Gaming Parlor 的新高檔HRM 娛樂場所。我們計劃將一家前家具店改造成一個新設施，該設施將提供 175 款遊戲以及其他與遊戲相關的設施。許可程序正在進行中，我們將在完成後開始施工。我們將在下次財報電話會議上向您通報最新情況。

We are also expanding the number of HRMs that we have in our Richmond venue. During the third quarter, we added approximately 100 games and we anticipate adding an additional 400 before the end of 2025. We will be renovating an unused section of our building to enable this expansion. Separately, we will also shift some of our existing HRMs between locations to optimize the overall performance of all of our Virginia properties.

我們也擴大了里士滿場地的人力資源管理人員數量。第三季度，我們增加了大約 100 款遊戲，預計在 2025 年底之前再增加 400 款遊戲。我們將翻新大樓中未使用的部分，以實現此次擴建。另外，我們還將在不同地點之間轉移一些現有的人力資源管理系統，以優化我們所有維吉尼亞酒店的整體績效。

By the end of 2025, after we have completed this expansion, we will have 5,000 HRMs deployed, the maximum permitted under the law in Virginia, up from approximately 4,450 machines that we have deployed today after the opening of The Rose this week. Virginia has been a great investment and business environment for us and we look forward to expanding our footprint and partnership with the Commonwealth. Our HRM opportunities are inextricably tied to our Colonial Downs Racetrack and our franchise as the exclusive operator of thoroughbred racing in the Commonwealth.

到 2025 年底，完成此次擴建後，我們將部署 5,000 台 HRM，這是維吉尼亞州法律允許的最大數量，而本週 The Rose 開業後我們今天部署了約 4,450 台機器。維吉尼亞州對我們來說是一個良好的投資和商業環境，我們期待擴大我們的足跡和與英聯邦的合作夥伴關係。我們的人力資源管理機會與我們的殖民地唐斯賽馬場以及我們作為英聯邦純種賽馬獨家運營商的特許經營權密不可分。

In 2025, we will introduce a significant Kentucky Derby qualifying race, which will be a first in the history of racing in Virginia. The winner of this race is virtually assured a slot in the starting gate for the Kentucky Derby in 2025. Many in the Commonwealth are very excited to see this new race and also to see the increase in the number of race days from 27 this year, to 44 in 2025, and 50 in 2026. We believe we are meeting or exceeding the expectations of the Commonwealth and, in turn, Virginia has been a great place for us to grow.

2025 年，我們將舉辦一場重要的肯塔基德比資格賽，這將是維吉尼亞賽車史上的第一次。這場比賽的獲勝者幾乎可以確保獲得 2025 年肯塔基德比的首發資格。英聯邦許多人都非常興奮地看到這項新賽事，也看到比賽日數從今年的 27 天增加到 2025 年的 44 天，到 2026 年增加到 50 天。我們相信我們正在達到或超越英聯邦的期望，反過來，維吉尼亞州也成為我們成長的好地方。

In Kentucky, we are on track to open our new Owensboro HRM venue in the first quarter of 2025, on time and on budget. It is located next to Highway 60, just east of Owensboro, the fourth largest city in Kentucky. This venue will initially open with 600 HRM machines, along with a center bar, sports bar, and other amenities, and will celebrate Kentucky's rich Bourbon heritage.

在肯塔基州，我們預計在 2025 年第一季按時、按預算開設新的歐文斯伯勒 HRM 場地。它位於60號高速公路旁，位於肯塔基州第四大城市歐文斯伯勒以東。該場館最初開業時將配備 600 台 HRM 機器，以及中心酒吧、運動酒吧和其他設施，並將慶祝肯塔基州豐富的波本威士忌傳統。

We also announced last evening that we will be developing a new HRM entertainment venue in Calvert City. This new facility is the extension property permitted by our Oak Grove HRM license. Calvert City is a great location for our eighth HRM venue in Kentucky with a population of 300,000 within a 60 minute drive and a location near the meeting of two interstates that will allow easy access for customers from several surrounding cities and Southwestern Kentucky. We are confident that this will be a great addition to our portfolio of HRM assets.

昨晚我們也宣布，我們將在卡爾弗特市開發一個新的 HRM 娛樂場所。這個新設施是我們 Oak Grove HRM 許可證允許的擴建財產。卡爾弗特市是我們在肯塔基州設立的第八家HRM 中心的絕佳地點，該市擁有300,000 人口，駕車60 分鐘內即可到達，而且靠近兩條州際公路的交匯處，可以方便來自周邊幾個城市和肯塔基州西南部的客戶前往。我們相信，這將成為我們人力資源管理資產組合的重要補充。

We anticipate spending $40 million to $50 million to build a property that will include capacity for 250 machines along with other amenities. We plan to open in early 2026. HRMs and Exacta's HRM technology are our key strategic focus over the next 5 to 10 years for our company. These high-growth, high-margin investments provide an excellent return on our shareholders' capital.

我們預計將花費 4000 萬至 5000 萬美元建造一座可容納 250 台機器以及其他設施的物業。我們計劃於 2026 年初開業。HRM 和 Exacta 的 HRM 技術是我們公司未來 5 到 10 年的關鍵策略重點。這些高成長、高利潤的投資為我們的股東資本提供了豐厚的回報。

In summary, third quarter was another strong quarter for us with record financial results. We believe there are many growth opportunities for us to pursue in the coming years, whether it be further investment in our flagship asset, the Kentucky Derby; new investments utilizing our capabilities around HRMs; or growth in ancillary or adjacent businesses aligned with our long-term strategic plans. We have an excellent pipeline of additional opportunities that we are evaluating to position our company for future growth.

總而言之，第三季度是我們又一個強勁的季度，財務表現創歷史新高。我們相信，未來幾年我們有許多成長機會可以追求，無論是對我們的旗艦資產肯塔基德比的進一步投資，還是對我們的旗艦資產肯塔基德比賽的進一步投資；利用我們在人力資源管理方面的能力進行新投資；或與我們的長期策略計劃一致的輔助或相鄰業務的成長。我們擁有大量的額外機會，我們正在評估這些機會，以幫助我們公司實現未來的成長。

We also have one of the best balance sheets in the industry with great, great assets that we believe will continue to drive adjusted EBITDA and free cash flow. We remain committed to delivering superior returns for our shareholders with consistent execution of our growth strategies over the long term. These are exciting times for our team. With that, I'll turn the call over to Marcia and then we will take your questions. Marcia.

我們也擁有業內最好的資產負債表之一，擁有大量的資產，我們相信這些資產將繼續推動調整後的 EBITDA 和自由現金流。我們仍然致力於透過長期持續執行我們的成長策略，為股東提供卓越的回報。對我們的團隊來說，這是一個令人興奮的時刻。這樣，我會將電話轉給瑪西婭，然後我們將回答您的問題。瑪西亞.

Thanks, Bill, and good morning, everyone. I'll start with a few insights on our financial results and then provide an update on capital management. First, regarding third-quarter financial results, as Bill shared, we delivered record net revenue and record adjusted EBITDA in the third quarter. We also delivered record third-quarter revenue and adjusted EBITDA for both our live and historical racing and our gaming segments, and record third-quarter adjusted EBITDA for TwinSpires segment.

謝謝比爾，大家早安。我將從對我們財務表現的一些見解開始，然後提供有關資本管理的最新資訊。首先，關於第三季度的財務業績，正如比爾分享的那樣，我們在第三季度實現了創紀錄的淨收入和創紀錄的調整後 EBITDA。我們的現場和歷史賽車以及遊戲部門的第三季收入和調整後 EBITDA 也創下了紀錄，TwinSpires 部門的第三季調整後 EBITDA 也創下了紀錄。

Our diversified portfolio of businesses generated 10% growth in revenue and 8% growth in adjusted EBITDA on a quarter-over-quarter basis. Please keep in mind that we achieved this level of growth off a very strong third quarter last year and our live and historical racing segment, our Virginia HRM properties were the primary driver of adjusted EBITDA growth on a quarter-over-quarter basis. Our Virginia HRM properties increased adjusted EBITDA by $15 million or 40% compared to the prior year quarter.

我們多元化的業務組合使營收季增 10%，調整後 EBITDA 較上季成長 8%。請記住，我們在去年非常強勁的第三季度實現了這一增長水平，我們的現場和歷史賽車部門、我們的弗吉尼亞 HRM 資產是調整後 EBITDA 季度環比增長的主要驅動力。與去年同期相比，我們的維吉尼亞州人力資源管理資產調整後 EBITDA 增加了 1,500 萬美元，即 40%。

As a reminder, we completed the Exacta transaction on August 22 last year. As a result, our Virginia HRM properties for life, $3.9 million of incremental savings from lower Exacta fees in the third quarter of this year compared to the prior year quarter. Please keep in mind that we will continue to benefit from the exact transaction as we add 1,650 additional HRM with the opening of those as we add HRM's in Richmond area over the next year.

提醒一下，我們在去年 8 月 22 日完成了 Exacta 交易。因此，與去年同期相比，今年第三季 Exacta 費用降低，使我們的維吉尼亞州人力資源管理終生節省了 390 萬美元。請記住，我們將繼續從確切的交易中受益，因為隨著明年我們在里士滿地區增加人力資源管理，我們將增加 1,650 個額外的人力資源管理。

We also benefited in Q3 from ongoing upgrades to the game titles and floor layouts hit our existing Virginia Asian companies. These properties, excluding racing, generated a combined margin of over 54% during the quarter, up over six points compared to the prior year quarter. I Kentucky HM properties performed well overall in third quarter despite a strong third quarter comp last year for Derby City Gaming growth continued to grow to market penetration with strong margins. Turfway Park and Newport also grew nicely during the third quarter with improving margins regarding our Derby City Gaming downtown Leeville property.

我們在第三季也受惠於我們現有的維吉尼亞亞洲公司對遊戲名稱和樓層佈局的持續升級。這些資產（不包括賽車）在本季的綜合利潤率超過 54%，比去年同期成長了 6 個百分點以上。儘管德比城博彩公司去年第三季業績強勁，但肯塔基州 HM 房地產在第三季度總體表現良好，並繼續以強勁的利潤率擴大市場滲透率。Turfway Park 和 Newport 在第三季也取得了良好的成長，我們的 Derby City Gaming 市中心 Leeville 房地產的利潤率有所提高。

We will have our one-year anniversary for this property in December. We remain committed to growing this great entertainment venue in the heart of downtown Leeville, and the team has worked diligently to reduce costs to improve its profitability over the next year for the timeline support for this property sales.

我們將於 12 月慶祝該房產一周年紀念日。我們仍然致力於在利維爾市中心發展這個偉大的娛樂場所，團隊一直在努力降低成本，以提高明年的盈利能力，為該房地產銷售提供時間表支持。

Turning to our TwinSpires segment, Exacta business contributed meaningful adjusted EBITDA to our TwinSpires segment again this quarter, contributing more than $10 million of adjusted EBITDA. The TwinSpires horseracing business generated lower handle primarily from less content access while still delivering very strong margins in the third quarter. And last regarding our Gaming segment, a carryout property performed extremely well since stepping on April . As expected and communicated on our last quarter's earnings call. The margin for Terahertz as normalize in the third quarter based on the long-term expected gaming tax train.

談到我們的 TwinSpires 部門，Exacta 業務本季再次為我們的 TwinSpires 部門貢獻了有意義的調整後 EBITDA，貢獻了超過 1000 萬美元的調整後 EBITDA。TwinSpires 賽馬業務的處理量下降主要是由於內容訪問量減少，但第三季的利潤率仍然非常高。最後關於我們的遊戲部門，自 4 月踏入以來，結轉財產表現非常好。正如我們在上個季度的財報電話會議上所預期和傳達的那樣。根據長期預期的博彩稅系列，太赫茲的利潤率將在第三季正常化。

Regarding the performance of the balance of our regional gaming properties. First, it is important to note that we had one less weekend day in the third quarter this year compared to the prior year quarter. Second, the regional gaming consumer behavior remains consistent with recent leasing quarters. We still see strength at most of our regional gaming properties in rated play. In contrast, most of our regional gaming properties are showing lower unrated play.

關於我們區域博彩資產的平衡表現。首先，值得注意的是，與去年同期相比，今年第三季的周末減少了一個。其次，區域遊戲消費者行為與最近幾個租賃季度保持一致。我們仍然看到我們大多數區域遊戲資產在額定遊戲方面的實力。相較之下，我們大多數區域性遊戲資產的未評級遊戲表現較低。

And lastly, we did see some increased competition around a few of our properties during the quarter. third-quarter same-store wholly-owned regional gaming margins. Excluding the prior year nonrecurring business interruption payments were lower by 1.5 points compared to the same period in 2023 because of regional gaming, consumer softness and increased competition.

最後，我們確實看到本季度我們的一些物業的競爭加劇。第三季同店全資區域博彩利潤率。排除去年的非經常性業務中斷費用，與 2023 年同期相比下降了 1.5 個百分點，原因是區域博彩、消費者疲軟和競爭加劇。

Turning to capital management, we generated a record $591 million or $7.93 per share and free cash flow during the first nine months of the year. This is up nearly $145 million or 32% over the first nine months of 2023, primarily from the strong cash flow generated from our businesses. Regarding maintenance capital, we spent 50 million in the first nine months to the year and continue to expect to spend between 90 and 105 million in total for the year. Regarding project capital, we spent $368 million through the first nine months of the year and continue to expect to spend between 450 and $550 million for the year.

在資本管理方面，今年前 9 個月我們創造了創紀錄的 5.91 億美元（即每股 7.93 美元）和自由現金流。與 2023 年前 9 個月相比，這一數字增加了近 1.45 億美元，即 32%，這主要歸功於我們業務產生的強勁現金流。關於維護資本，我們在今年前 9 個月花費了 5,000 萬美元，並繼續預計今年的支出總額將在 9,000 至 1.05 億美元之間。關於專案資本，今年前 9 個月我們花了 3.68 億美元，預計今年將花費 450 至 5.5 億美元。

Based on the project capital for the Churchill Downs starting date, pavilion and Courtyard and our HIM expansion projects in Virginia and Kentucky . We expect our 2025 project capital to be between 250 and $325 million. Regarding our dividend, our Board of Directors approved a 7% increase in our dividend, which will be paid out on January third, 2025 to shareholders of record on December 5, 2024. This is the 14th consecutive year of increased dividends per share for our company.

基於 Churchill Downs 的項目啟動日期、展館和庭院以及我們在弗吉尼亞州和肯塔基州的 HIM 擴建項目。我們預計 2025 年的專案資本將在 250 至 3.25 億美元之間。關於我們的股息，我們的董事會批准將股息增加 7%，並將於 2025 年 1 月 3 日向 2024 年 12 月 5 日登記在冊的股東支付。這是我們公司連續第 14 年增加每股股利。

At the end of Q3, our bank covenant net leverage was 4.0 times, and we expect it to remain at this level through year end 2024. We then expect our bank covenant net leverage to decline relatively quickly in 2025 as our investments in Indiana, Virginia and Kentucky. We continue to deliver meaningful adjusted EBITDA and free cash flow.

截至第三季末，我們的銀行契約淨槓桿率為 4.0 倍，我們預計到 2024 年底將維持在這一水平。然後，隨著我們在印第安納州、維吉尼亞州和肯塔基州的投資，我們預計 2025 年我們的銀行契約淨槓桿率將相對快速地下降。我們繼續提供有意義的調整後 EBITDA 和自由現金流。

Overall, we are very pleased with the record results. We are well positioned to grow over the long term, fueled by our tangible pipeline of growth initiatives and supported by our strong balance sheet. With that, I'll turn the call back over to Bill so he can open the call for questions. Bill.

總的來說，我們對創紀錄的結果感到非常滿意。在我們切實的成長計畫的推動和強大的資產負債表的支持下，我們處於長期成長的有利位置。這樣，我會將電話轉回給比爾，以便他可以開始提問。帳單。

Thank you, Marcia. We're ready to take your questions now.

謝謝你，瑪西婭。我們現在準備好回答您的問題。

(Operator Instructions) David Katz, Jefferies.

（操作員說明）David Katz，Jefferies。

Hi, good morning, everyone. Thanks for all the detail. So I would like to just talk about Virginia so far, right, that there's sort of a lot going on in their bill. If you could just talk about how you feel about your progress there. Any time? No surprises, good or not. We are on any change and what you think the opportunity could be out there over time. On any of that around Virginia, which appears to be going quite well so far sites.

嗨，大家早安。感謝您提供所有詳細資訊。所以我想談談到目前為止弗吉尼亞州的情況，他們的法案中有很多內容。如果你能談談你對你在那裡取得的進展的感受。任何時間？沒有什麼意外，無論好壞。我們正在關注任何變化以及您認為隨著時間的推移可能出現的機會。在維吉尼亞州周圍的任何一個地方，到目前為止似乎進展順利。

Sure. Good morning, David. So a big component of the P2E acquisition that we closed at the end of 2022 was the promise of Virginia. When we acquired P2E there were about 2,300 HRMs or so deployed. We knew there was authorization to go to 5,000, and we've been executing on that. So obviously, that the biggest component of that execution was was the construction of a very complex property in done freeze, which we've now completed and opened, and we'll be ramping over over the next several quarters, and it will probably ramp over the next few years. So now now I think is good as it's been to this point. Now we're going to really see we're going to see the fruits of our labor around done for use and deployment of the other machines that were allowed to deploy in the jurisdiction.

當然。早安，大衛。因此，我們在 2022 年底完成的 P2E 收購的一個重要組成部分是維吉尼亞州的承諾。當我們收購 P2E 時，部署了大約 2,300 個 HRM。我們知道已授權將人數增加到 5,000 人，並且我們一直在執行該計劃。顯然，該執行的最大組成部分是在完成凍結中建造一個非常複雜的財產，我們現在已經完成並開放了該財產，我們將在接下來的幾個季度內逐步推進，並且可能會逐步推進在接下來的幾年裡。所以現在我認為到目前為止都很好。現在我們將真正看到我們將看到我們的勞動成果用於使用和部署允許在管轄範圍內部署的其他機器。

So it's going very well. Obviously you can see that in our numbers, we thought that though we could make improvements to operating processes, we thought we could improve game layouts and games selection. And we also thought we could deploy the rest of the machines in a way consistent with some of the properties we built around the country. So, um, so that's well underway, very optimistic, very proud of that team, very proud of their capabilities are thrilled to open in the Washington, D.C., Northern Virginia metropolitan area.

所以一切進展順利。顯然你可以在我們的數據中看到，我們認為雖然我們可以改進操作流程，但我們認為我們可以改進遊戲佈局和遊戲選擇。我們也認為我們可以以與我們在全國各地建造的一些房產一致的方式部署其餘的機器。所以，嗯，一切進展順利，非常樂觀，為團隊感到非常自豪，為他們的能力感到自豪，很高興在華盛頓特區、北維吉尼亞大都會區開業。

We've seen good good success with the with the process by the state to curb the deployment of illegal great games. That's something that I've seen progress on their clearly, legal, the Attorney General other state law enforcement agencies. These and figures have commented on that and given direction on that, and that's a battle that will continue. There still are great games deployed there that keep popping up. But though we're very pleased and confident that the law enforcement authorities are are hard at work to enforce enforce the law. And that's a benefit to not only that the safety of the consumer and the integrity and reliability of gaming in the jurisdiction. But it helps all the legal properties that are in the state that the that play by the rules and follow all the processes that are set by the state. So a big thumbs up for Virginia optimistic encouraged. And I want to get in there get the work done on on building the market around Dumfries.

我們已經看到國家在遏制非法大型遊戲的部署方面取得了巨大成功。我在司法部長和其他州執法機構中看到了明顯的、合法的進展。這些人和數字對此發表了評論並給出了方向，這是一場將持續下去的戰鬥。那裡仍然有不斷湧現的優秀遊戲。但儘管如此，我們還是非常高興並相信執法部門正在努力執法。這不僅有利於消費者的安全，也有利於轄區內博彩業的完整性和可靠性。但這有助於該州的所有合法財產遵守規則並遵循該州制定的所有流程。因此，維吉尼亞樂觀的態度受到了極大的鼓勵。我想參與其中，完成圍繞鄧弗里斯建立市場的工作。

Barry Jonas, Truist Securities.

巴里·喬納斯 (Barry Jonas)，Truist 證券公司。

Hey, good morning, guys. I wanted to ask about your M&A strategy. Can you talk about the parameters you're most interested in as there are things out there for sale that check those boxes? Thanks.

嘿，早上好，夥計們。我想問一下你們的併購策略。您能談談您最感興趣的參數嗎，因為有一些待售的東西可以滿足這些要求？謝謝。

Good morning, Barry. So M&A has been a big part of the growth we've delivered as a company over over the last number of years. I think if you look at the last four deals we've done P2E Exacta. We always want to have a plan for how we can not only improve on the operations of assets we get, but also also grow into new markets. We're looking for businesses where we think we bring something to the table to improve those businesses to drive long-term growth for the company.

早上好，巴里。因此，併購一直是我們公司過去幾年成長的重要組成部分。我想，如果你看看過去的四筆交易，我們已經完成了 P2E Exacta。我們始終希望制定一個計劃，不僅能夠改善我們所獲得的資產的運營，而且還能開拓新市場。我們正在尋找我們認為可以帶來一些東西來改善這些業務以推動公司長期成長的業務。

So in general, we look for businesses where we where we thought there's a franchise that we think there's an ecosystem where our collection of skills and other assets can can add to the mix and deliver growth. We're not a synergy play type shop in general. We know, while we're happy to take advantages of synergies, generally were more focused on true organic growth that we can drive with with our collection of skills added to our whatever we pursue.

因此，總的來說，我們尋找的是那些我們認為有特許經營權的企業，我們認為有一個生態系統，我們的技能和其他資產可以在其中增加組合併帶來成長。一般來說，我們不是一家協同遊戲類型的商店。我們知道，雖然我們很高興利用協同效應，但通常更專注於真正的有機成長，我們可以透過將我們的技能集合添加到我們追求的任何目標中來推動這種成長。

So our pipeline. So I say all that to say that I think we probably have occasionally, hopefully pleasantly surprised at our investor base by doing deals at once they understood they realized made a lot of sense for us of both, but were creative, thoughtful shop.

所以我們的管道。所以我說這一切是為了說，我認為我們可能偶爾會對我們的投資者群體感到驚喜，因為一旦他們明白他們意識到對我們雙方都有意義，但又富有創意、深思熟慮的商店時，他們就會立即進行交易。

Our M&A team and our operations teams are very experienced. And we look at a lot of different things, some that are directly in our strike zone or or immediately adjacent to our strike zone. So I believe right now as it is a a nice environment for M&A. I think our pipeline feels good, feels promising. Doesn't mean we'll get things done. You can never tell that's not always in our control, but the type of things we look at the type of things that are important to us and that we get excited about. We think there are possibilities out there.

我們的併購團隊和營運團隊經驗豐富。我們會關注很多不同的事物，其中一些直接位於我們的打擊區或緊鄰我們的打擊區。所以我相信現在是併購的好環境。我認為我們的管道感覺很好，很有希望。並不意味著我們會把事情做好。你永遠無法判斷這並不總是在我們的掌控之中，而是我們所關注的事物類型對我們來說是重要的並且我們對此感到興奮。我們認為那裡有可能性。

And I think if you look at our track record, we're always very patient were always very thoughtful, were not on any kind of assembly line. We do deals when they make sense to do when we're fairly confident we can improve what we bought. So in general, that's how I describe how we look at opportunities.

我認為，如果你看看我們的記錄，我們總是非常耐心，總是非常周到，沒有在任何類型的裝配線上。當我們相當有信心能夠改進我們所購買的產品時，我們就會進行有意義的交易。總的來說，這就是我描述我們如何看待機會的方式。

Dan Politzer, Wells Fargo.

丹‧波利策，富國銀行。

Hey, good morning, everyone. So my question is on the project pipeline, right? You've announced Richmond out HRM facility, Calvert City. Can you talk about maybe how you gain comfort investing in these property expansions, given some of the challenges that you've experienced at Derby City downtown And along those lines in terms of Derby City downtown, is there our glide path or expectation on when the profitability could start coming in that? Thanks.

嘿，大家早安。所以我的問題是關於專案管道，對吧？您已宣布里士滿退出卡爾弗特市的人力資源管理機構。考慮到您在德比市中心經歷過的一些挑戰，您能否談談您如何在投資這些房地產擴張方面獲得安慰？獲利能力能否開始顯現？謝謝。

Sure. Good questions, Dan. So we have a lot of experience of building properties and dumb. I think it's fair to say they never go exactly as planned. Sometimes they're better and sometimes there are a little worse, but our experience with HRMs has been overwhelmingly positive. So if we talk first about within the realm of HRMs, if we talk first about Virginia, we know the Richmond market really well.

當然。好問題，丹。所以我們有很多建造屬性和愚蠢的經驗。我認為可以公平地說，他們從來沒有完全按照計劃進行。有時它們會更好，有時會更差，但我們在人力資源管理方面的經驗是非常積極的。因此，如果我們先談論人力資源管理領域，如果我們先談論維吉尼亞州，我們就非常了解里士滿市場。

So we're capacity constrained right now. So expansion within our facility, which is a converted conversion of some of the space we were using for storage into more floor space. Just makes sense, not a huge amount of risk there because we can see we can see our database and we can see our level of consumer activity. So we feel pretty confident.

所以我們現在的能力有限。因此，我們的設施內進行了擴建，即將我們用於儲存的一些空間轉換為更多的佔地面積。這是有道理的，那裡沒有很大的風險，因為我們可以看到我們可以看到我們的資料庫，我們可以看到我們的消費者活動水平。所以我們感到非常有信心。

And Hanrico is within the general market, it's north but it's still in the general area. So we feel pretty good about that market. In general, we can see from our database where people come from and and triangulate where it makes sense for us to put a facility.

Hanrico 位於一般市場內，位於北部，但仍在一般區域內。所以我們對這個市場感覺很好。一般來說，我們可以從我們的資料庫中了解人們來自哪裡，並三角測量對我們來說放置設施有意義的地方。

So Dumfries also we obviously feel really good about that given the well wealth profile and this year demographics and that MSA. So just a lot of confidence based on experience, not only generally across the country, but in those specific markets. And in those specific states, when it comes to Kentucky, we've had a lot of success, but one of the one, the slower property has been Derby City downtown.

因此，考慮到良好的財富狀況、今年的人口統計和 MSA，鄧弗里斯顯然對此感到非常滿意。因此，基於經驗的信心不僅在全國範圍內普遍存在，而且在那些特定市場中也是如此。在那些特定的州，當談到肯塔基州時，我們取得了許多成功，但其中之一，速度較慢的房產是德比市中心。

I feel pretty good about the trajectory that's going to beyond. But here's where we got surprised with the Derby City downtown. A lot of the thinking and planning around that occurred in the pre-COVID and COVID era. And level as a city has been slow to rebound from COVID. People didn't go back to work downtown at the same level that they were there prior to COVID, and that's created a little bit of headwinds for that property.

我對未來的發展軌跡感覺非常好。但這就是德比市中心讓我們感到驚訝的地方。許多思考和計畫都發生在新冠疫情之前和新冠疫情時代。作為一個城市，從新冠疫情中恢復的速度很慢。人們沒有像新冠疫情爆發之前那樣回到市中心工作，這給該物業帶來了一些阻力。

But Bill Mudd and the operating team have worked hard on on rightsizing the cost structure there. And we've seen some times properties ramp a little slower. And we know what we're doing. We understand the market and we'll just go to work. But there was a macro change in downtown livable, not necessarily movable as a whole, but there was a macro change in downtown loophole, and that was bodies downtown post COVID. And that's that's been a headwind that we've been working through.

但比爾·穆德和營運團隊一直在努力調整那裡的成本結構。我們有時會發現房地產成長速度會稍微慢一點。我們知道我們在做什麼。我們了解市場，我們就會去工作。但市中心的宜居性發生了宏觀變化，不一定是整體可移動的，但市中心的漏洞發生了宏觀變化，那就是新冠疫情后市中心的屍體。這就是我們一直在努力克服的逆風。

But I've seen property start slow and I've been with this team a long time and we have a playbook when that happens. We go after the cost structure, we manage the cost carefully and we slowly deliberately and consistently start working work in the the the database and the marketing to build sold. That property will not be in the short term in a place like we've seen with Derby City or like we've seen with Oak Grove or would like we've seen with numerous of our properties, but we'll get it in line. We'll get it will get it functioning pretty well and I don't think that's a long-term thing. That's I think you'll see immediate and consistent improvement quarter to quarter starting next quarter.

但我看到房地產起步緩慢，而且我在這個團隊工作了很長時間，當這種情況發生時，我們有一個劇本。我們追求成本結構，仔細管理成本，並緩慢且持續地開始資料庫和行銷工作以建立銷售。該房產短期內不會像我們在德比城看到的那樣，也不會像我們在奧克格羅夫看到的那樣，或者我們希望在我們的許多房產中看到的那樣，但我們會讓它保持一致。我們會讓它運作得很好，我不認為這是一個長期的事情。我認為從下個季度開始，您將看到逐季度的即時且持續的改進。

Chad Beynon, Macquarie.

查德貝農，麥格理。

Hi, good morning. Thanks for taking my question. Bill, last quarter, you teased us a little bit with some some of the potential growth drivers down the road with exact beyond the internal saves and the growth in the third party deals. Um, I think those were ETG opportunities and also international, anything to report or give us just a little bit more. I hope our clarity in terms of what the growth could be beyond '24, '25 and those in those areas? Thanks.

嗨，早安。感謝您提出我的問題。比爾，上個季度，您用一些潛在的成長動力來取笑我們，這些成長動力完全超出了內部節省和第三方交易的成長。嗯，我認為這些是 ETG 的機會，也是國際性的，任何可以報告或給我們更多資訊的東西。我希望我們能夠清楚地了解 24 世紀、25 世紀以及這些領域之後的成長？謝謝。

Sure, Chad, happy to speak to that. So those plants chug along, we're deployed in multiple and a partnership with another company. I think there are other opportunities there. But at a company of our size and scale right now, that's not material sided side and not to comment directly on that during my my actual pro forma earnings comments, but that's underway, and that's part of that. That's part of the long-term growth strategy for Exacta.

當然，查德，很高興談論這一點。因此，這些工廠運作良好，我們部署了多個工廠，並與另一家公司建立了合作夥伴關係。我認為那裡還有其他機會。但對於我們目前規模和規模的公司來說，這不是實質的一面，在我的實際預期收益評論中不要直接對此發表評論，但這正在進行中，這是其中的一部分。這是 Exacta 長期成長策略的一部分。

And it feels good. It feels like there'll be opportunities not only internationally, but potentially in other jurisdictions within the United States. So I don't have any anything mature cereal to announce on this call, but it is something that our team works on and focuses on. And it's a part of the overall strategy for for that business over the next number of years. And we are seeing success we've already deployed overseas. And I think you'll see my other examples of deployment overseas and the relative near term.

而且感覺很好。感覺不僅在國際上會有機會，而且在美國其他司法管轄區也可能有機會。因此，我在這次電話會議上沒有任何成熟的穀物食品要宣布，但這是我們團隊正在研究和關注的事情。這是該業務未來幾年整體策略的一部分。我們已經在海外取得了成功。我想你會看到我在海外和相對近期部署的其他例子。

Thank you. And our next question comes from Shaun Kelley, Bank of America. Pardon me, Shaun, please check your mute button.

謝謝。我們的下一個問題來自美國銀行的肖恩凱利。對不起，肖恩，請檢查你的靜音按鈕。

Well, that was a pretty easy question. I was hoping for a tougher one. Do we want to come back to Shaun? We can go down the list and return to him if that makes sense.

嗯，這是一個很簡單的問題。我本來希望有一個更艱難的。我們想回到肖恩身邊嗎？如果有意義的話，我們可以沿著清單查看並返回給他。

Jeffrey Stantial, Stifel.

傑弗裡·斯坦蒂爾，斯蒂菲爾。

Good morning. Thanks for taking our question. And maybe following up on Dan's question from earlier and focusing on companies that really specifically more on the cadence of how you see that, that ramp-up progressing a bill, you're talking about it a bit before on this call and in prior calls as well, just variance and ramp time aiming for some of your other openings in Northern Kentucky group at more gradually than say for an opening like Terra Haute. Just yo where you just your thoughts on where you think don't freeze might might fall in this spectrum and given the project and the market characteristics here and maybe in that, just how we should think about Q4 typically even a full launch of the reading cutting will be until until early November. Thanks.

早安.感謝您提出我們的問題。也許跟進丹早些時候提出的問題，重點關注那些真正更具體地關注你如何看待這一點的公司，即加速推進一項法案，你在這次電話會議和之前的電話會議之前談論過它此外，與Terra Haute 這樣的空缺相比，北肯塔基集團的其他一些空缺職位的差異和斜坡時間會更加緩慢。只是你對你認為不凍結的地方的想法可能屬於這個範圍，考慮到這裡的項目和市場特徵，也許在那裡，我們應該如何考慮第四季度，甚至是全面啟動閱讀砍伐將持續到11月初。謝謝。

Yeah, I'll break that up into a couple of components. First of our employee base, there will be somewhere around 450 or so to to to start. And so that's a big property and that's a lot of new people in it in a new market for a facility of that size. So it's really important to us that the customers when they visit that facility for the first time for the first couple of times, they have a really great experience. Obviously, we want them to have a great experience.

是的，我會把它分成幾個部分。首先，我們的員工基礎大約有 450 人左右。所以這是一個很大的產業，對於這種規模的設施來說，在一個新的市場中有很多新人。因此，對我們來說非常重要的是，當客戶第一次造訪該設施時，他們會獲得非常好的體驗。顯然，我們希望他們擁有美好的體驗。

Every time they they come to visit and we will focus on that. But when they first home when they're when they're sampling this for the first time, mostly folks have been the other gaming properties, they have expectations that we need to meet and exceed those expectations. So ramping carefully to ensure that we give customers a great experience is really important. And this is a big property. There's a lot of operational procedures and processes going on here, and we want to make sure we get it right.

每次他們來訪，我們都會注意這一點。但是，當他們第一次回家時，當他們第一次嘗試這個時，大多數人都是其他遊戲公司，他們期望我們需要滿足並超越這些期望。因此，謹慎行事以確保為客戶提供良好的體驗非常重要。這是一筆大財產。這裡有許多操作程序和流程，我們希望確保正確無誤。

So in general, our experience has been bigger properties ramp a little bit slower than smaller properties. So now the lots of things kind of effect that there's not a lot of direct competition in the immediate area, this properties and some of the further areas of the MSA. there certainly are. So we'll have to see how that impacts how this opens up.

因此，總的來說，我們的經驗是，較大的房產比較小的房產增長得慢一些。因此，現在很多事情的影響是，在鄰近地區、該房產以及 MSA 的一些其他地區，沒有太多直接競爭。當然有。所以我們必須看看這會如何影響它的開放方式。

But first and foremost, the focus is on give these new customers, a great experience, listen to their feedback, train our team up to make them as good as they can be. And then we start mining our database, building it. And then mining at. So in general compared to a real small facility, this will ramp a little bit slowly, and I think we'll be looking at growth from this for a long time to come.

但首先也是最重要的是，重點是為這些新客戶提供良好的體驗，聽取他們的回饋，培訓我們的團隊，使他們盡其所能。然後我們開始挖掘我們的資料庫，建構它。然後挖礦。因此，總的來說，與真正的小型設施相比，這會緩慢一些，我認為我們將在未來很長一段時間內專注於由此帶來的成長。

So fourth quarter, I couldn't be more excited about this property lines in the quarter of 2024 successes defined on how we build this quarter to quarter over the next number of years. And that depends on consistency, focus on customer service and giving the consumer the best experience that we can. So so this is not a harbinger that I think we're going to start slow. That's a market was, I think, of for plus or 5 million people over the age of 21. This is a big market to introduce a facility like this. However, we are playing for the long term. And and that means delivering great experiences for these customers, all from a team member base that that is a real move that market.

因此，在第四季度，我對 2024 年季度的房地產產品線的成功感到非常興奮，這些成功定義了我們在未來幾年如何逐季建造。這取決於一致性、專注於客戶服務以及盡我們所能為消費者提供最佳體驗。因此，這並不是我認為我們會緩慢開始的預兆。我認為，這個市場是針對超過 500 萬 21 歲以上的人。引進這樣的設施是一個很大的市場。然而，我們是在長期發展。這意味著為這些客戶提供出色的體驗，所有這些都來自團隊成員，這是市場的真正舉措。

Joe Stauff, SIG.

喬·斯托夫，SIG。

Good morning, Bill, Marcia. I wanted to ask about the Virginia revenue growth that you experienced in the third quarter. We see big growth and and realize there are a number of layers to that. But I was wondering maybe if you could disaggregate that a bit now and tell us about say that the bigger layers and contributions of that growth in our largely trying to think about the sustainability of that growth rate specifically in Virginia going forward?

早安，比爾，瑪西亞。我想問一下你們第三季維吉尼亞州的營收成長情況。我們看到了巨大的成長，並意識到這有很多層次。但我想知道，也許你現在可以稍微分解一下，告訴我們，這種增長的更大層次和貢獻，在我們很大程度上試圖考慮這種增長率的可持續性，特別是在弗吉尼亞州未來的可持續性？

Sure. So it's fun to talk about Virginia's. It's fun to talk about a lot of the areas of our company, but for Virginia is a jurisdiction where a lot of things are going very well at the same time. And sometimes when you find that, it's hard to run single variable experience experiments. So here or are the things that are going very well. We believe our operating team and our processes based on our experiences across the rest of our company have really made a difference in Virginia.

當然。所以談論弗吉尼亞州很有趣。談論我們公司的許多領域很有趣，但對於維吉尼亞州來說，很多事情同時進展順利。有時當你發現這一點時，很難進行單變量經驗實驗。所以這裡是一些進展順利的事情。我們相信，我們的營運團隊和基於公司其他部門經驗的流程確實為維吉尼亞州帶來了變化。

We think we are operating the properties better than they've ever been operated before. We think our work on game titles and gain mix and our and our analytics around what's performing where and potentially why have made a difference when we've responded to that data that we've mined. We think that the enforcement actions with respect to great games are a real tailwind that are that's driving performance. We also think the markets are mature yet and people are appreciating HRMs as a gaming option and becoming more familiar with it. And it's spreading deeper into potential customer segments.

我們認為我們對這些房產的運作比以往任何時候都更好。我們認為，當我們對挖掘的數據做出回應時，我們在遊戲標題和增益組合方面的工作以及我們對錶現、地點和潛在原因的分析產生了影響。我們認為，針對優秀遊戲的執法行動是真正的推動力，可以推動績效。我們也認為市場已經成熟，人們正在將人力資源管理作為遊戲選擇並變得更加熟悉。而且它正在更深入地滲透到潛在的客戶群中。

So those are all things that are going well. This is a market that's not mature yet. It is not a mature gaming market in any way. And we are learning. We are operating better. We are seeing a strengthening action from legislate or from a lot enforcement agencies on on working against illegal gaming gaming. All those things are part of the tailwind that's driving the significant performance improvement of Virginia as a whole. And I'm going to leave my answer at that because trended break all that down into specific percentages aren't experiments require experiments that you can't deal and the real world. These are just all positive factors that are making a difference as a whole.

所以這些都是進展順利的事情。這是一個還不成熟的市場。無論如何，這不是一個成熟的遊戲市場。我們正在學習。我們經營得更好了。我們看到立法機構或許多執法機構加強了打擊非法博彩的行動。所有這些都是推動維吉尼亞州整體業績顯著提高的順風車的一部分。我將保留我的答案，因為趨勢將所有這些分解為特定的百分比，而不是實驗需要你無法處理的實驗和現實世界。這些都是對整體產生影響的正面因素。

Shaun Kelley, Bank of America.

肖恩凱利，美國銀行。

Hi, everyone, we'll try this again. Can you hear me?

大家好，我們會再試一次。你聽得到我嗎？

We can hear you, Shaun. We're ready for you now. Glad we found out there.

我們聽得到你的聲音，肖恩。我們現在已經為您準備好了。很高興我們發現了那裡。

Thank you. I just wanted to ask a little bit about the comments on the race calendar for next year on obviously very encouraging that you can reciprocated at West Virginia and the ability to educate and continue to add to your point it out on the horse racing side. Can you just help us think through the financials application here in terms of an increasing rate calendar going to be something we need to factor in a little bit in terms of profitability? And on the flip side, is there an opportunity down the road as you kind of continue to partner with State of Virginia about what this might mean for the future? Thanks.

謝謝。我只是想問一些關於明年比賽日曆的評論，顯然非常令人鼓舞的是，您可以在西弗吉尼亞州得到回報，並且有能力在賽馬方面進行教育並繼續補充您的觀點。您能否幫助我們思考一下這裡的財務應用程序，即利率遞增日曆將成為我們需要在盈利能力方面考慮的因素？另一方面，隨著您繼續與維吉尼亞州合作，了解這對未來可能意味著什麼，未來是否有機會？謝謝。

Well, racing in Virginia was a big component of why the legislature wanted to introduce HRMs. Virginia is a jurisdiction that has a storied history with thoroughbred racing that that activity largely disappeared all the racetracks and closed and done, and they wanted that back. They wanted that, that agricultural component and that industry back in the state.

嗯，弗吉尼亞州的賽車是立法機構想要引入 HRM 的一個重要組成部分。維吉尼亞州是一個有著悠久純種賽馬歷史的司法管轄區，這項活動基本上消失了所有賽馬場並關閉並結束，他們希望恢復這項活動。他們希望農業部分和工業回到該州。

So building that is a part of what the Commonwealth wanted to see with the introduction of HRMs. And of course, it's a core component of our property and it goes back to one of our tenants of what we look for. We like the complexity of and ecosystem like this. We understand how all this fits together. We understand the racing, we believe in the racing and the racing have a couple of components. When you can introduce good content into the racing ecosystem. We have several ways to capture that.

因此，建立這一點是英聯邦希望透過引入人力資源管理來實現的目標的一部分。當然，它是我們房產的核心組成部分，它可以追溯到我們所尋找的租戶之一。我們喜歡這樣的複雜性和生態系統。我們了解這一切是如何結合在一起的。我們了解賽車，我們相信賽車，而且賽車有幾個組成部分。當你可以將好的內容引入賽車生態系統時。我們有多種方法來捕捉這一點。

We can capture that with on track activity. So sponsorships and other things, attendants wagering on track, but we can also capture it through a simulcasting and in particular, online wagering on horse racing, including our own TwinSpires. So I think as we introduce higher quality racing and better racing in Derby preparation that will improve the performance of racing.

我們可以透過正常活動來捕捉這一點。因此，贊助和其他事情，服務員在賽道上投注，但我們也可以通過同步直播，特別是賽馬在線投注，包括我們自己的 TwinSpires 來捕獲它。因此，我認為，當我們在德比準備中引入更高品質的比賽和更好的比賽時，這將提高比賽的表現。

But given we've also deployed 5,000 mission or will have deployed 5,000 machines relatively shortly in the jurisdiction, the impact of that in terms of materiality to the overall operations of Virginia is harder to to isolate and understand it now not a big economic driver in and of itself, given it sits as a part of HRMs. But but it's but it's a positive one.

但考慮到我們還部署了 5,000 個任務，或者將在管轄範圍內部署 5,000 台機器，因此就對弗吉尼亞州整體運營的重要性而言，很難隔離和理解它現在不是一個重大的經濟驅動因素。考慮到它是人力資源管理的一部分，它本身也是如此。但這是積極的。

And it's one that's we're going to focus on and it's critical to the overall ecosystem in relationship with the state. It's part of the prior to the promise we have with the state that we will build that industry because not only is it some improvement to our bottom line. It drives economic activities throughout the rural regions of the state and across the training community, the farms, the feed providers and all of the other parts of the ecosystem that drive benefit and perceived value to the state.

這是我們要關注的問題，它對於與國家相關的整個生態系統至關重要。這是我們向政府做出的承諾的一部分，即我們將建立該行業，因為這不僅對我們的利潤有所改善。它推動了整個州的農村地區以及整個培訓社區、農場、飼料供應商和生態系統的所有其他部分的經濟活動，為州帶來了利益和感知價值。

Daniel Guglielmo, Capital One Securities.

丹尼爾·古列爾莫，第一資本證券公司。

Hello, everyone, and thanks for taking my question. And I wanted to focus on the HR and consumer strength in Kentucky and Virginia. Why do you think the demand in those states has been able to hold up so well when compared to other regional gaming states? And how is that demand compared to what you expected when building the platform in Kentucky and underwriting P2E?

大家好，感謝您提出我的問題。我想重點關注肯塔基州和維吉尼亞州的人力資源和消費者實力。與其他地區博彩州相比，您認為為什麼這些州的需求能夠保持如此強勁的勢頭？與您在肯塔基州建立平台並承保 P2E 時的預期相比，這一需求如何？

Yes, that's a good question, Dan. Happy to talk to that. There are several factors that contribute to what you see clear performance across Virginia and Kentucky, start with the fact that it's not a mature product yet. It's not mature in the markets that it's opened in. And as a product itself, it's still improving. We are introducing more games, better variety, better math. We're driving awareness, market penetration. It's very high margin. So when you do these things, well, you capture a very high percentage of your bottom line.

是的，這是個好問題，丹。很高興談論這一點。有幾個因素導致了您在維吉尼亞州和肯塔基州看到的明顯表現，首先是它還不是一個成熟的產品。它所開拓的市場還不成熟。而作為產品本身，它仍在不斷改進。我們正在引入更多的遊戲、更好的多樣性、更好的數學。我們正在提高意識和市場滲透率。這是非常高的利潤。因此，當你做這些事情時，你就獲得了很高比例的利潤。

So it's different. It's a newer thing. It's a new thing and it just doesn't track because of that. And it has different attributes than, say, a traditional regional gaming. It just performs differently. And that's a fee function of all the factors I've just mentioned. They're all important and they all provide a tailwind that gives a different financial profile than you see another other spots in gaming right now. Thank you.

所以這是不同的。這是一個較新的事情。這是一個新事物，因此無法追蹤。它具有與傳統區域遊戲不同的屬性。它只是表現不同。這是我剛才提到的所有因素的費用函數。它們都很重要，並且都提供了一種順風，提供了與您現在在遊戲中看到的其他地方不同的財務狀況。謝謝。

Jordan Bender, Citizens JMP.

喬丹·本德，公民 JMP。

Good morning. Thanks for taking my question. I wanted to touch on the balance sheet that we don't know that the size of that budget for the multiyear project at the track that you just announced deal, but does the balance sheet reaching the targeted range, opened up larger growth projects, there are opportunities that you might not have other otherwise down in recent years? Thank you.

早安.感謝您提出我的問題。我想談談資產負債表，我們不知道您剛剛宣布的交易軌道上的多年項目的預算規模，但資產負債表是否達到目標範圍，是否開啟了更大的增長項目？其他機會嗎？謝謝。

Well, our company's gotten bigger, we can dream bigger and we can execute on bigger projects. And that's been a thrill for those of us have been around for a long time myself, Bill Mudd, Marcia Dall, those of us have been around for a long time, are really pleased to see as we get biggert, that we have the capacity capability and experience across our team to go execute on bigger projects.

嗯，我們的公司變得更大了，我們可以夢想更大，我們可以執行更大的專案。對於我們這些已經存在很長時間的人來說，這真是令人興奮，比爾·穆德（Bill Mudd）、瑪西婭·達爾（Marcia Dall），我們這些已經存在很長時間了，很高興看到我們變得越來越大，我們有能力我們團隊的能力和經驗足以執行更大的專案。

So as we as we finalize work through buildout projections and cost for us, the Derby projects we talked about, we do sell with a lot of confidence over the last couple of years. We've been focused on don't freeze. We've been focused on getting Owensboro done, completing the Paddock renovation projects, aAll of these projects will now we're going to see those pay off, and we're going to see the cash flow come come off of those, and we expect to be able to delever relatively quickly.

因此，當我們透過擴建預測和成本最終確定我們所討論的德比項目的工作時，我們在過去幾年中確實充滿信心地進行銷售。我們一直專注於不要凍結。我們一直專注於完成歐文斯伯勒，完成圍場改造項目，所有這些項目現在我們將看到這些項目的回報，我們將看到現金流從這些項目中消失，我們預計能夠相對較快地去槓桿化。

And that just means we've got more firepower to go out and do great things. So we're busy figuring out how best to deploy that capital and as we've gotten to be a bigger company and I think a very well-run company of this capacity is important to us because we have a lot of ideas that we want to have the size to be able to go out and do. And of course, ultimately, this is a function of what return will provide to our shareholders. Total shareholder return is never a far way. It's always the immediate focus for us. And as we get bigger and stronger into bigger projects, that's not going to change its that return. We think we can generate. But now we've got the sizes were growing. We've got the size go out and do bigger projects.

這只意味著我們有更多的火力去做偉大的事。因此，我們正忙於弄清楚如何最好地部署這些資本，隨著我們已經成為一家更大的公司，我認為一家運作良好、具有這種能力的公司對我們很重要，因為我們有很多我們想要的想法有足夠的尺寸可以出去做。當然，最終，這取決於為股東提供的回報。股東總回報永遠不會遙遠。它始終是我們當前關注的焦點。隨著我們在更大的項目上變得越來越強大，這不會改變它的回報。我們認為我們可以產生。但現在我們的尺寸正在成長。我們有足夠的規模去做更大的專案。

Ben Chaiken, Mizuho.

本·柴肯，瑞穗。

Hey, how's it going? Thanks for taking my question. In Virginia, there's a lot of positive developments, which you thoughtfully walked us through: the race calendar, greenfield developments, and then overall relationship at the state. I think you suggested in some of your earlier comments expanding your footprint in Virginia over time. There's obviously a goal there is a goal and a limit of 5,000 machines within Virginina. Can you talk to us about the path, if any you see the potential expanding that number over time? And then I guess related, what's your existing footprint? Is that theoretically more capacity or do you would you want or require a new property? Thanks.

嘿，怎麼樣？感謝您提出我的問題。在維吉尼亞州，有許多積極的發展，您深思熟慮地向我們介紹了這些發展：比賽日曆、綠地發展，以及該州的整體關係。我認為您在之前的一些評論中建議隨著時間的推移擴大您在弗吉尼亞州的足跡。顯然有一個目標，並且弗吉尼亞州內的機器數量限制為 5,000 台。你能和我們談談這條路嗎？然後我想相關的是，您現有的足跡是什麼？理論上這是更多的容量還是您想要或需要新的房產？謝謝。

Well, without speaking out of turn, we think the Virginia model works extremely well and we think we are delivering for the Commonwealth well as for our shareholders. So we do think it's a model that works. And if the state has interest and willingness, we hope to talk to them about about more. We think from a rating perspective, we'd love to see more days run in Virginia overtime. And consequently, we'd like to see more HRMs deployed over time in order to support that.

好吧，雖然不按順序發言，但我們認為維吉尼亞模式運作得非常好，我們認為我們正在為聯邦和我們的股東做出貢獻。所以我們確實認為這是一個有效的模型。如果國家有興趣、有意願，我們希望與他們討論更多。我們認為從收視率的角度來看，我們希望看到維吉尼亞州有更多的加時賽。因此，我們希望看到隨著時間的推移部署更多的人力資源管理來支持這一點。

And so on that we serve at the discretion of the state, our franchises, a discretionary right given to us by the state, and we hope to talk to them about it. But right now, our focus is on delivering on the promises we've made them so far and delivering for the people of Virginia and for the state. And hopefully, if we prove the value of that model, they'll be willing listeners to the talking about, improving and doing more in the state. But it's hard to talk about things we don't control and I don't want to make promises we can keep.

等等，我們根據國家的自由裁量權服務，我們的特許經營權，國家賦予我們的自由裁量權，我們希望與他們談論這一點。但現在，我們的重點是兌現我們迄今為止所做的承諾，並為維吉尼亞州人民和州政府兌現承諾。希望如果我們證明該模式的價值，他們將願意傾聽在該州談論、改進和做更多事情。但很難談論我們無法控制的事情，我也不想做出我們可以兌現的承諾。

But we think Virginia is a shining example of how you make thoroughbred racing work in a jurisdiction in a way that is a win-win for the state for us as the operator and for all the subsegments of the thoroughbred industry, the farms, the trainers, the horse owners that people, they grow, the fee, the people that take care of the horses, it's a win-win for everybody connected to the industry.

但我們認為維吉尼亞州是一個光輝的例子，說明瞭如何讓純種馬賽馬在管轄範圍內以一種雙贏的方式開展工作，這對我們作為運營商以及純種馬產業、農場、馴馬師的所有細分領域來說都是雙贏的，馬主，人們，他們成長，費用，照顧馬匹的人，這對與該行業相關的每個人來說都是雙贏的。

Thank you. And I'm showing no further questions at this time. So with that, I'll hand the call back over to CEO Bill Carstanjen for any closing remarks.

謝謝。目前我不會再提出任何問題。因此，我會將電話轉回給執行長比爾‧卡斯坦延 (Bill Carstanjen)，讓其發表結束語。

Thank you. And for those of you on the call, and for those of you who are investors in our company, I want to thank you for your confidence that you've shown in us. And I want you to know that we take it very, very seriously.

謝謝。對於參加電話會議的各位以及我們公司的投資者，我要感謝你們對我們表現出的信心。我想讓你知道我們非常非常認真地對待它。

And this is an exciting time for our team because we think we have the support of our Board and the support of the investor community, and the opportunity to do great things. So we're going to do the best we can to drive returns for you, and we're excited to talk to you in February to share more of our progress in the interim. So thanks very much and talk to you all soon.

對於我們的團隊來說，這是一個令人興奮的時刻，因為我們認為我們得到了董事會和投資者社群的支持，並且有機會做偉大的事情。因此，我們將盡最大努力為您帶來回報，我們很高興在二月份與您交談，並分享我們在此期間的更多進展。非常感謝，很快就會與大家交談。

Ladies and gentlemen, thank you for participating. This does conclude today's program and you may now disconnect.

女士們、先生們，感謝您的參與。今天的節目到此結束，您現在可以斷開連線了。