Churchill Downs Inc (CHDN) 2024 Q4 法說會逐字稿

Hello, and welcome to the Churchill Downs Inc. fourth quarter and full-year 2024 results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. It is now my pleasure to introduce VP of Investor Relations, Sam Ullrich.

您好，歡迎參加 Churchill Downs Inc. 2024 年第四季和全年業績電話會議。（操作員指示）請注意，今天的會議正在錄音。現在我很高興介紹投資人關係副總裁 Sam Ullrich。

Thank you, Andrew. Good morning, and welcome to our 2024 fourth-quarter earnings conference call. After the company's prepared remarks, we will open the call for your questions. The company's 2024 fourth-quarter business results were released yesterday afternoon. A copy of this release announcing 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。早安，歡迎參加我們 2024 年第四季財報電話會議。在公司發表完準備好的發言後，我們將開始回答大家的提問。該公司2024年第四季經營業績於昨天下午發布。本新聞稿的副本公佈了本次電話會議中將要展示的期間業績和其他財務及統計信息，包括 G 規則所要求的信息，可在公司網站的“新聞”部分（網址為 churchilldownsincorporated.com）以及網站的“投資者”部分找到。

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. All forward-looking statements should be considered in conjunction with the 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.

在我們開始之前，我想提醒您，我們今天所做的一些聲明可能包含前瞻性陳述。這些聲明涉及許多風險和不確定性，可能導致實際結果大不相同。所有前瞻性陳述應與我們收益報告中的警示聲明以及我們向美國證券交易委員會提交的文件中包含的風險因素（特別是最新的 10-Q 表和 10-K 表報告）一起考慮。

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.

我們所做的任何前瞻性陳述均基於今天的假設，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-K are available on our website at churchilldownsincorporated.com.

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 GAAP 與非 GAAP 指標的對帳。新聞稿和 10-K 表格可在我們的網站 churchilldownsincorporated.com 上找到。

And now I'll turn the call over to our Chief Executive Officer, Mr. Bill Carstanjen.

現在我將把電話轉給我們的執行長比爾·卡斯坦詹先生。

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.

謝謝，山姆。大家早安。今天和我在一起的還有我們團隊的幾位成員，包括我們的總裁兼營運長比爾‧馬德 (Bill Mudd)；我們的財務長 Marcia Dall；以及我們的總法律顧問布拉德·布萊克威爾 (Brad Blackwell)。

I will share some high-level thoughts on our growth plans for our company, including with respect to 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.

我將分享一些關於我們公司成長計畫的高層想法，包括關於肯塔基賽馬會以及我們在維吉尼亞州和肯塔基州的人力資源管理業務。然後，瑪西婭將介紹我們的財務表現以及我們的資本管理策略的最新情況。她講完後，我們將回答大家的提問。

2024 was another very strong year for Churchill Downs. We delivered all-time record net revenue and record adjusted EBITDA, up 11% and 13%, respectively, over the record results from 2023. All three of our business segments contributed to these excellent results, with each delivering record net revenue and record adjusted EBITDA.

2024 年對邱吉爾唐斯來說又是十分強勁的一年。我們實現了歷史最高的淨收入和調整後 EBITDA，分別比 2023 年的創紀錄業績成長 11% 和 13%。我們的三個業務部門都為這些優異的業績做出了貢獻，都實現了創紀錄的淨收入和調整後 EBITDA。

We accomplished several key strategic and operational objectives. We delivered the Paddock project, which exceeded everyone's expectations and drove the Kentucky Derby experience and financial results to a level few would have imagined just a handful of years ago. We opened our Terre Haute casino resort and the Rose gaming resort, two of our largest and most ambitious projects to date, which each have years of growth ahead.

我們完成了幾個關鍵的策略和營運目標。我們完成了 Paddock 項目，它超出了所有人的預期，並將肯塔基德比的體驗和財務業績提升到了幾年前很少有人能想像到的水平。我們開設了 Terre Haute 賭場度假村和 Rose 博彩度假村，這是我們迄今為止規模最大、最雄心勃勃的兩個項目，每個項目都將在未來幾年內實現成長。

We also launched, or continue to push forward several other key initiatives like our Owensboro property, which opened last week. All of this while remaining conservatively levered and poised to pursue new growth opportunities.

我們也啟動或繼續推進其他幾項重要舉措，例如上週開業的歐文斯伯勒酒店。所有這一切都是在保持保守的槓桿率並準備好尋求新的成長機會的同時進行的。

Our strategic choices and capital investments over recent years have positioned Churchill Downs to further develop our special asset, the Kentucky Derby, and to expand our unique portfolio of HRM and other assets to create long-term best-in-class shareholder value while maintaining one of the strongest balance sheets in the industry.

近年來，我們的策略選擇和資本投資使丘吉爾唐斯賽馬場能夠進一步發展我們的特殊資產——肯塔基賽馬會，並擴大我們獨特的人力資源管理和其他資產組合，以創造長期最佳的股東價值，同時保持行業內最強勁的資產負債表之一。

Now I will share an update on our growth plans for Churchill Downs Racetrack in the Kentucky Derby. It's important to note that the Derby is 150 years old and is the longest continuously held sporting event in the United States. Over the decades, it's become so much more than a horse race. The Kentucky Derby is a testament to the enduring spirit of American sportsmanship, celebration and the lasting power of our traditions.

現在，我將與大家分享我們在肯塔基賽馬會丘吉爾唐斯賽馬場的發展計劃的最新進展。值得注意的是，德比大賽已有 150 年歷史，是美國歷史最悠久的體育賽事。幾十年來，它已經不再只是一場賽馬比賽了。肯塔基德比證明了美國體育精神、慶祝精神和傳統的持久力量。

The event is inseparable from the place, Churchill Downs Racetrack, and our opportunity and challenge is to innovate and evolve a historic and unique venue to exceed the ever-changing expectations of our guests who seek to celebrate tradition while enjoying the very best of modern hospitality.

這項活動與邱吉爾唐斯賽馬場密不可分，我們的機會和挑戰是創新和發展一個歷史悠久、獨特的場地，以超越我們的客人不斷變化的期望，他們希望慶祝傳統，同時享受最好的現代化服務。

We have several guiding principles as we develop Churchill Downs Racetrack that we believe will continue to propel us forward over the next several years. First, create unique once-in-a-lifetime experiences for our guests at Churchill Downs. All that the Derby is starts with our guest enthusiasm and experience while at the track. That on-site energy is contagious and highly visible, and it truly defines the television experience for those around the world.

在開發丘吉爾唐斯賽馬場時，我們有幾個指導原則，我們相信這些原則將在未來幾年繼續推動我們前進。首先，為丘吉爾唐斯賽馬場的客人創造一生難得的獨特體驗。德比大賽的一切都始於我們賓客在賽道上的熱情和體驗。現場的活力極具感染力且顯而易見，它真正定義了世界各地觀眾的電視體驗。

Second, encourage and reward innovation within our team to create new experiences for our guests at all ticketing price points. Third, remain focused on our time-honored traditions through our celebration of the history of Churchill Downs and the Kentucky Derby. And fourth, minimize the construction impact from expansion and renovation projects on the current year's Derby to ensure that our guests can have their bucket list experience every year.

其次，鼓勵並獎勵我們團隊內部的創新，以各種票價為我們的客人創造新的體驗。第三，透過慶祝丘吉爾唐斯賽馬場和肯塔基賽馬會的歷史，繼續關注我們悠久的傳統。第四，盡量減少擴建和改造計畫對今年德比賽事的影響，確保我們的客人每年都能享受他們夢想中的體驗。

With these principles in mind, we are in the process of finalizing the Starting Gate Courtyard and Pavilion project for this year's Kentucky Derby 2025, and have also announced our next multiyear series of projects to expand the Kentucky Derby experience and to create step function growth.

本著這些原則，我們正在為 2025 年肯塔基德比敲定起跑門庭院和展館項目，同時也宣布了我們的下一個多年期系列項目，以擴大肯塔基德比體驗並創造階梯式增長。

Regarding the Starting Gate Courtyard and Pavilion project. This is on course to be completed on time and on budget at the end of April before Derby Week. As a reminder, we will convert 10,000 bleacher seats into a mix of approximately 8,500 reserved premium stadium and trackside box seats along the home stretch near the Kentucky Derby starting gate. We are also significantly improving the amenities and hospitality options in and around the Starting Gate Pavilion that will serve guests from other existing seating areas.

關於起跑門庭院及亭子專案。該項目預計將於 4 月底德比周之前按時、按預算完成。提醒一下，我們將把位於肯塔基德比賽馬起跑門附近的最後衝刺階段的 10,000 個露天看台座位改造成約 8,500 個預留高級體育場和賽道邊包廂座位。我們也將大幅改善起跑門亭內外的便利設施和接待選擇，為來自其他現有座位區的賓客提供服務。

Yesterday, of course, was a day of huge news. We announced a series of transformational projects that are collectively the largest expansion and renovation undertaken in the 150-year history of our company. This will materially reinvent three key areas of Churchill Downs Racetrack. The changes can be grouped into three projects: the Sky Terrace renovation and expansion, the conservatory, and the infield general admission project. I'll provide a brief overview of each.

當然，昨天是重大新聞的一天。我們宣布了一系列轉型項目，這些項目是該公司 150 年歷史上最大的擴建和改造項目。這將從根本上重塑邱吉爾唐斯賽馬場的三個關鍵區域。這些變更可分為三個項目：天空露台的翻新和擴建、溫室和內場普通入場工程。我會對每一個進行簡要的概述。

First, the Sky Terrace. This project is focused on the section of Churchill Downs Racetrack starting just past the finish line where the main front size structure containing seating areas like the Turf Club and Millionaire's Row ends and runs through to the First Term Club. We will replace 11,500 existing seats consisting of uncovered box seats and dated dining areas with 13,300 seats, providing a variety of premium hospitality experiences.

首先，天空露台。該計畫主要集中在丘吉爾唐斯賽馬場的一段，這段路從終點線開始，到包含賽馬俱樂部和百萬富翁排等座位區的主要前部結構結束並一直延伸到第一學期俱樂部。我們將用 13,300 個座位取代現有的 11,500 個無遮擋包廂座位和陳舊的用餐區，提供各種優質的接待體驗。

We will demolish the existing Skyterra structure, which dates to the 1960s, and replace it with a new five-story building that will meaningfully increase the number of premium seats and experience packages at various price points, both inside the new structure and in the outdoor areas in front of the building and adjacent to the track. We anticipate that some sections of the new st Sky Terrace building and surrounding areas will be open in time for the 2027 Derby and that the remaining areas will be finished for the 2028 Derby.

我們將拆除現有的可追溯到 20 世紀 60 年代的 Skyterra 建築，並用一座新的五層建築取而代之，這將顯著增加新建築內部以及建築前面和賽道附近的室外區域的各種價位的優質座位和體驗套餐的數量。我們預計，新天空露台大樓的部分區域和周邊區域將在 2027 年德比大賽前開放，其餘區域將在 2028 年德比大賽前完工。

In the interim, guests who sit in the existing Skye Terrace sections will be relocated to premium temporary seating structures for the 2026 Derby and to a more limited extent, the 2027 Derby. There is no impact on customers for this year's Derby.

在此期間，坐在現有 Skye Terrace 座位上的客人將被轉移到 2026 年德比馬賽的高級臨時座位上，而 2027 年德比馬賽的座位則會有所限制。今年的德比對顧客沒有影響。

The conservatory project will replace the temporary suites in the infield, which line the home stretch of the racetrack. We historically built temporary seating every year that we sold at lower price premium seats. Our plans are to replace the 2,100 temporary seats with new permanent structures, providing over 7,000 premium experiences for our guests, including 36 suites. These new venues will line the racetrack directly opposite to front-side hospitality areas. This project will be completed in three phases.

該溫室計畫將取代賽馬場最後衝刺處的內場臨時建築。我們過去每年都會建造臨時座位，然後以較低的價格出售高級座位。我們計劃用新的永久性建築取代 2,100 個臨時座位，為我們的客人提供超過 7,000 種優質體驗，其中包括 36 間套房。這些新場地將位於賽道正對面，與前方接待區相交。該項目將分三期完成。

Phase 1 includes a new Pagoda Club and Terrace along the first of several structures we call conservatories. The Pagoda Club and Terrace will offer luxury hospitality similar to the PadoClub and Club SI in the area immediately surrounding and overlooking the Kentucky Derby winner circle. This new concept will bring our customers an opportunity to participate in and experience a magical moment as the Kentucky Derby winner receives the garland of roses.

第一階段包括在我們稱為溫室的幾座建築中的第一座建築旁邊建造一個新的寶塔俱樂部和露台。Pagoda Club and Terrace 將提供與位於肯塔基德比冠軍圈周圍和俯瞰區域的 PadoClub 和 Club SI 類似的豪華接待服務。這個新概念將為我們的客戶帶來參與和體驗肯塔基德比冠軍獲得玫瑰花環的神奇時刻的機會。

The first conservatory will add nine permanent suites, each with a private viewing terrace overlooking the track as well as access to a shared lawn that will allow these guests to watch the races from right up on the rail of the turf course. There will also be separately sold dining on the rooftop of the conservatory. In addition, Phase 1 will add a large circular lounge on the inside of the first turn that will provide a unique hospitality experience and vantage point as the horses thunder around the first turn. We anticipate that Phase 1 will be done in time for the 2026 Derby.

第一間溫室將增加九個永久套房，每個套房都設有俯瞰賽道的私人觀景露台，並可進入共用草坪，讓客人可以從草坪賽道的欄桿上觀看比賽。溫室屋頂上也將單獨販售餐飲。此外，第一階段將在第一個彎道的內側增加一個大型圓形休息室，當馬匹在第一個彎道周圍奔騰時，它將提供獨特的接待體驗和有利位置。我們預計第一階段將在 2026 年德比大賽前完成。

Phases 2 and 3 will involve further construction of conservatory structures further down the home stretch towards the starting gate to provide additional premium reserve ticket options. Phase 2 will be completed by the 2027 Derby, and Phase 3 will be completed by the 2028 Kentucky Derby.

第 2 和第 3 階段將涉及在靠近起跑門的最後衝刺階段進一步建造溫室結構，以提供額外的高級預訂門票選擇。第 2 階段將於 2027 年肯塔基德比大賽前完成，第 3 階段將於 2028 年肯塔基德比大賽前完成。

The infield general emission project will introduce three new permanent buildings in the infield that will provide guests with enhanced amenities. This project will improve the overall experience for all general admissions guests and also create a series of upgraded ticketing opportunities with additional entertainment and rooftop viewing access. The first building will be completed in time for the 2026 Derby, the second one for the 2027 Derby, and the third one for the 2028 Derby.

內場通用排放項目將在內場引入三座新的永久性建築，為客人提供增強的便利設施。該項目將改善所有普通入場遊客的整體體驗，並創造一系列升級的售票機會，包括額外的娛樂活動和屋頂觀景通道。第一棟建築將在 2026 年德比大賽前竣工，第二棟建築將在 2027 年德比大賽前竣工，第三座建築將在 2028 年德比大賽前竣工。

We will be undertaking several infrastructure improvements to support these three transformational projects over the same time frame. As I mentioned on our last earnings call, we will be building a new tunnel to the infield to provide an extraordinary immersive experience for our premium guests to enjoy while traversing back and forth between the front side of the racetrack and their premium infield seating.

我們將在同一時間內進行多項基礎設施改善以支援這三個轉型項目。正如我在上次財報電話會議上提到的，我們將建造一條通往內場的新隧道，為我們的高級客人提供非凡的沉浸式體驗，讓他們可以往返於賽道前側和高級內場座位之間。

We anticipate having all three projects as well as the necessary infrastructure improvements completed by Derby 154 in May 2028. When finished, we will have materially and directly improved the Derby experience for approximately 20% of our current guests while adding premium reserve tickets representing an additional 10% to our current inventory.

我們預計德比 154 的所有三個項目以及必要的基礎設施改進將於 2028 年 5 月完成。項目完成後，我們將為大約 20％ 的現有客人提供實質性和直接的德比體驗，同時增加高級預訂門票，占我們現有庫存的額外 10％。

These projects enable us to continue to better segment and improve our guest experiences and to add a very manageable number of additional premium reserve tickets to optimize our revenue growth over the next several years.

這些項目使我們能夠繼續更好地細分和改善我們的客戶體驗，並增加非常可控數量的額外高級預訂門票，以優化我們未來幾年的收入成長。

We think every single guest will feel the energy and excitement created from these innovative and transformational improvements to Churchill Downs. We have a track record of prudently investing capital in the Kentucky Derby to grow our iconic asset and to create significant long-term shareholder value. We believe these investments will lay the foundation for growth over the next decade.

我們相信每位客人都會感受到在丘吉爾唐斯賽馬場這些創新和變革性改進所帶來的活力和興奮。我們一直謹慎地向肯塔基賽馬會投資，以增加我們的標誌性資產並創造重大的長期股東價值。我們相信這些投資將為未來十年的成長奠定基礎。

Next, regarding our HRM activities in Virginia. The opportunity to deploy HRMs in Virginia came with our acquisition of Colonial Downs Racetrack in late 2022, part of our acquisition of P2E. We have enjoyed rapid growth in our Virginia operations. In 2024, our HRM venues contributed 20% of our nearly $1.2 billion of adjusted EBITDA, and that is with our Rose Gaming Resort opening deep in the fourth quarter.

接下來，關於我們在維吉尼亞州的人力資源管理活動。我們在 2022 年底收購了 Colonial Downs Racetrack（收購 P2E 的一部分），從而獲得了在維吉尼亞州部署 HRM 的機會。我們的維吉尼亞州業務實現了快速成長。2024 年，我們的 HRM 場館貢獻了我們近 12 億美元調整後 EBITDA 的 20%，而這正是我們的 Rose Gaming Resort 在第四季度開業之際。

In 2025, the investment in growth will continue. We are expanding our Richmond venue. We have added approximately 100 HRM so far and plan to add an additional 400 incremental games by the end of the second quarter. We also are building the Rose Shire Gaming Parlor in Henrico County, with 175 HRMs and other guest amenities. We expect to open this entertainment venue during the fourth quarter of this year.

2025年，對成長的投資仍將持續。我們正在擴建里士滿場館。到目前為止，我們已經增加了大約 100 個 HRM，並計劃在第二季末再增加 400 個增量遊戲。我們也在亨利科縣建造 Rose Shire 遊戲廳，其中設有 175 個 HRM 和其他客用設施。我們預計今年第四季開設該娛樂場所。

As you know, we opened the Rose in Northern Virginia in November of last year. We now have 1,800 HRMs in the market. We estimate that the potential customer base around the Rose is very significant and nearly four times larger than several of our other key HRM properties in Virginia and Kentucky. We love our location and this market.

如您所知，我們於去年 11 月在北維吉尼亞州開設了 Rose 酒店。目前，我們在市場上擁有 1,800 名 HRM。我們估計，Rose 週邊的潛在客戶群非常龐大，幾乎是我們在維吉尼亞州和肯塔基州的其他幾家主要 HRM 酒店的四倍。我們熱愛我們的位置和這個市場。

As we learn from the development of Derby City Gaming, which we opened in September 2018, and from our other HRM facilities we've built over the last decade, it takes some time in new markets, especially in large media markets, to educate players on what historical horse racing machines are, and how comparable they are to the gaming experience offered by Class III machines. HRM facilities in new markets like Northern Virginia, take time to attract, develop and retain customers.

我們從 2018 年 9 月開業的德比城遊戲中心 (Derby City Gaming) 的發展以及過去十年來我們建造的其他 HRM 設施中了解到，在新市場，特別是在大型媒體市場，需要一些時間來教育玩家了解歷史賽馬機器是什麼，以及它們與 III 類機器提供的遊戲體驗有何可比性。北維吉尼亞等新興市場的人力資源管理設施需要時間來吸引、發展和留住客戶。

As we've just opened, we are investing significantly in our marketing across Northern Virginia. As we build our customer database over the next 12 months, we believe we will see a meaningful and sustained increase in our performance.

由於我們剛開業，我們正在對北維吉尼亞州的營銷進行大量投資。隨著我們在未來 12 個月內建立客戶資料庫，我們相信我們的業績將實現有意義且持續的提升。

I've been pleased with how our team has come out of the gate as we faced a delayed opening of the property that resulted in us not being able to do much preopening marketing followed by the actual opening right in the throes of the fall federal elections, which put us into an expensive and very distracted media market. We are now seeing progress every week. The Rose is going to be a fantastic property.

我對我們團隊的開局感到很滿意，因為我們面臨著酒店開業延遲的問題，這導致我們無法做太多的開業前營銷，而實際開業又恰逢秋季聯邦選舉，這讓我們陷入了昂貴且注意力分散的媒體市場。我們現在每週都看到進展。The Rose 將會成為絕佳的房產。

In Kentucky, we opened our new Owensboro HRM venue last week on February 12, on time and below budget. It is located next to Highway 60 just the east of Owensboro. We are extremely pleased with the early performance of this property and look forward to its continued growth over the coming year.

在肯塔基州，我們於上週 2 月 12 日開設了新的歐文斯伯勒 HRM 場館，一切按時且低於預算進行。它位於歐文斯伯勒東邊 60 號高速公路旁。我們對該物業的早期表現感到非常滿意，並期待其在未來一年繼續增長。

In January, we began work on the Marshall Yards HRM venue in Calvert City, Kentucky. This will be our eighth HRM venue in the Commonwealth. Its name is inspired by the railroad industry in the areas around Calvert City. Our location sits at the intersection of the two major highways that run through the region. We are on budget and on track to open this facility during the first quarter of 2026.

一月份，我們開始在肯塔基州卡爾弗城的 Marshall Yards HRM 場館開展工作。這將是我們在英聯邦的第八個人力資源管理會場。其名字的靈感來自卡爾弗城週邊地區的鐵路工業。我們位於貫穿該地區的兩條主要高速公路的交匯處。我們的預算和計劃都按計劃於 2026 年第一季開放該設施。

In summary, 2024 was a great year for us with record financial results. We are confident that we will deliver strong growth in the coming years from our investments, including in our flagship asset, the Kentucky Derby, and from our HRM opportunities in places like Virginia and Kentucky.

總而言之，2024 年對我們來說是偉大的一年，財務表現創下了歷史新高。我們相信，未來幾年我們的投資將實現強勁成長，包括我們的旗艦資產肯塔基賽馬會以及我們在維吉尼亞州和肯塔基州等地的人力資源管理機會。

We will also pursue disciplined growth with ancillary or adjacent opportunities aligned with our long-term strategic plans. We have one of the best balance sheets in the industry with strong assets that we believe will continue to drive adjusted EBITDA and free cash flow. We remain committed to delivering excellent total shareholder return with consistent execution over the long term.

我們還將利用與我們的長期策略計劃一致的輔助或相鄰機會，追求有紀律的成長。我們的資產負債表是業內最好的之一，擁有強大的資產，我們相信這將繼續推動調整後的 EBITDA 和自由現金流。我們始終致力於長期堅持執行，為股東帶來優異的總回報。

Finally, the 151st Kentucky Derby is in 72 days, and we plan an exciting week of racing and festivities for our guests. The addition of the new Paddock area last year and the new Starting Gate Pavilion area this year as well as all the investments in premium seating we've made in the recent past, has generated a lot of excitement and demand for Derby tickets.

最後，第 151 屆肯塔基德比將在 72 天后舉行，我們為賓客計劃了一周激動人心的賽事和慶祝活動。去年增加了新的圍場區域，今年增加了新的起跑門亭區域，以及我們最近對高級座位所做的所有投資，都為德比門票帶來了極大的興奮和需求。

We are pacing ahead of Derby ticket revenue for the 151st Derby compared to last year's 150th Derby. If you have not purchased your tickets yet, I would encourage you to do so as we anticipate being fully sold out.

與去年的第 150 屆德比相比，我們在第 151 屆德比的門票收入方面處於領先地位。如果您尚未購買門票，我建議您立即購買，因為我們預計門票將全部售出。

With that, I'll turn the call over to Marcia, and then we will take your questions. Marcia?

說完這些，我將把電話轉給瑪西婭，然後我們會回答你們的問題。瑪西婭？

Thanks, Bill, and good morning, everyone. As Bill shared, 2024 was another record year for our company. Excluding 2020, our team has delivered eight years in a row of record revenue and record adjusted EBITDA from continuing operations and successfully integrating our strategic acquisitions. Our diversified portfolio of businesses, highlighted by a record Kentucky Derby week generated 11% growth in net revenue and 13% growth in adjusted EBITDA for 2024.

謝謝，比爾，大家早安。正如比爾所說，2024 年是我們公司又創紀錄的一年。除 2020 年外，我們的團隊已連續八年透過持續經營和成功整合策略收購實現了創紀錄的收入和調整後 EBITDA。我們多元化的業務組合，以創紀錄的肯塔基德比周為亮點，實現了 2024 年淨收入增長 11%，調整後 EBITDA 增長 13%。

We also delivered record fourth-quarter net revenue and record fourth-quarter adjusted EBITDA for the overall company and across all three of our operating segments.

我們還為整個公司以及所有三個營運部門實現了創紀錄的第四季度淨收入和第四季度調整後 EBITDA。

Today, I'll start with a few insights on these financial results and provide some initial thoughts on 2025. I will then provide an update on capital management. First, regarding 2024 financial results. The growth of our assets in Virginia, including the opening of the Rose Gaming Resort in the fourth quarter, clearly created step function growth in our financials. Our Virginia HRM venues generated 20% of our nearly $1.2 billion of adjusted EBITDA in 2024.

今天，我將首先對這些財務結果發表一些見解，並對 2025 年提出一些初步想法。然後我將提供有關資本管理的最新情況。首先，關於2024年的財務表現。我們在維吉尼亞州的資產成長，包括第四季度玫瑰遊戲度假村的開業，明顯推動了我們財務狀況的階梯式成長。我們位於維吉尼亞州的 HRM 場館在 2024 年創造了近 12 億美元調整後 EBITDA 的 20%。

As Bill discussed, it is still early days for the Rose gaming resort in Virginia. This is a great property and a great location with tremendous demographics and the leadership team committed to successfully growing this asset to deliver strong long-term shareholder returns. We also generated record adjusted EBITDA from our combined Kentucky HRM properties driven by the strong performance of our Derby City Gaming, Turfway and Oak Grove properties.

正如比爾所說，維吉尼亞州玫瑰遊戲度假村的發展還處於早期階段。這是一項出色的資產，地理位置優越，擁有眾多人口統計數據，領導團隊致力於成功發展這項資產，為股東帶來強勁的長期回報。由於 Derby City Gaming、Turfway 和 Oak Grove 資產的強勁表現，我們也從合併後的肯塔基 HRM 資產中創造了創紀錄的調整後 EBITDA。

Churchill Downs Racetrack also delivered record adjusted EBITDA as a result of another very successful Derby Week while celebrating our 150th anniversary. The addition of the Paddock experience and increases in ticketing, sponsorships, and para-mutual wagering provided a significant lift to our financial results while maintaining the consistently high margins the Churchill Downs Racetrack has generated over the years.

在慶祝我們 150 週年之際，丘吉爾唐斯賽馬場也因又一次非常成功的德比周而創造了創紀錄的調整後 EBITDA。圍場體驗的增加以及票務、贊助和輔助投注的增加為我們的財務業績提供了顯著的提升，同時保持了丘吉爾唐斯賽馬場多年來持續的高利潤率。

We expect Churchill Downs Racetrack to once again deliver strong growth in adjusted EBITDA in 2025, given the addition of Starting Gate Pavilion and Courtyard project and other economics associated with the 151st Kentucky Derby.

我們預計，考慮到起跑門亭和庭院項目的增加以及與第 151 屆肯塔基德比相關的其他經濟效益，丘吉爾唐斯賽馬場將在 2025 年再次實現調整後 EBITDA 的強勁增長。

We have changed the name of our TwinSpires segment to Wagering Services and Solutions to better reflect the growth of our varied commercial offerings. Within this segment, we grew adjusted EBITDA by nearly $34 million compared to the prior year, primarily from our Exacta business. We continue to realize the benefits of our strategy to vertically integrate Exacta and its HRM system technology that we acquired in August of 2023.

我們已將 TwinSpires 部門的名稱更改為博彩服務和解決方案，以更好地反映我們多樣化商業產品的成長。在此部門中，我們的調整後 EBITDA 與上年相比成長了近 3,400 萬美元，這主要得益於我們的 Exacta 業務。我們持續實現垂直整合 Exacta 及其我們於 2023 年 8 月收購的 HRM 系統技術的策略所帶來的好處。

Although we benefited from the pivot into B2B for online wagering on horse racing, the TwinSpires horse racing business generated lower handle primarily from less content and due to rate day cancellations and shifts in rate schedules. Overall, we remain pleased with the strong margins this business generates despite facing industry headwinds in 2024.

儘管我們從轉向 B2B 線上賽馬投注中受益，但 TwinSpires 賽馬業務的銷售額卻較低，這主要是由於內容較少以及費率日取消和費率表變動。總體而言，儘管 2024 年面臨行業逆風，但我們仍然對該業務產生的強勁利潤率感到滿意。

And last, regarding our Gaming segment, overall adjusted EBITDA grew 4%, primarily driven by the strong performance of our new Terre Haute property that opened on April 5. Our existing regional gaming properties held up relatively well in 2024, despite consumer softness and increased competition across the industry.

最後，關於我們的遊戲部門，整體調整後的 EBITDA 成長了 4%，這主要得益於 4 月 5 日開業的 Terre Haute 新酒店的強勁表現。儘管消費者消費疲軟且整個產業競爭加劇，我們現有的區域博彩資產在 2024 年仍保持相對良好的表現。

Our 2024 same-store wholly-owned casino margins, excluding insurance proceeds and racing, were down 1.4 points compared to 2023, primarily driven by our properties in Maine, Maryland, and Pennsylvania.

我們 2024 年的同店全資賭場利潤率（不包括保險收益和賽馬）與 2023 年相比下降了 1.4 個百分點，這主要受到我們在緬因州、馬裡蘭州和賓夕法尼亞州的物業的影響。

Regional gaming consumer behavior in fourth quarter remained consistent with recent quarters. We see strength at the higher end with rate of play and weakness at the lower end and with unrated play across our properties.

第四季區域遊戲消費者行為與最近幾季保持一致。我們看到，在我們的所有資產中，較高端的資產具有較高的遊戲速度，而較低端的資產則具有較弱的、未評級的遊戲速度。

Overall, we are very pleased with the results that our team delivered in 2024. As Bill discussed, we will enjoy the 151st Kentucky Derby in May, and we will continue expanding the Kentucky Derby and layering on a series of new properties that collectively will fuel our growth in 2025 and beyond.

整體而言，我們對團隊在 2024 年所取得的成績感到非常滿意。正如比爾所說，我們將在 5 月舉辦第 151 屆肯塔基德比，我們將繼續擴大肯塔基德比的規模，並添加一系列新元素，共同推動我們在 2025 年及以後的成長。

Turning to capital management. We generated $688 million or $9.22 per share of free cash flow in 2024, up nearly 33% per share over the prior year. The primary driver of this increase was from the strong cash flow generated from our businesses.

轉向資本管理。我們在 2024 年創造了 6.88 億美元或每股 9.22 美元的自由現金流，比前一年每股成長近 33%。這項成長的主要驅動力來自於我們業務產生的強勁現金流。

Regarding maintenance capital, we spent $84 million in 2024, and expect to spend between $100 million and $110 million in 2025. The increase in maintenance capital for 2025 is driven primarily by incremental HRM slot capital in Kentucky and Virginia and maintenance projects at Churchill Downs Racetrack.

至於維護資本，我們在 2024 年花費了 8,400 萬美元，預計 2025 年將花費 1 億至 1.1 億美元。2025 年維護資本的增加主要得益於肯塔基州和維吉尼亞州的增量 HRM 時段資本以及丘吉爾唐斯賽馬場的維護項目。

Regarding project capital, we spent $463 million in 2024, and expect to spend between $350 million and $400 million in 2025. This updated 2025 project capital forecast includes the expected cash outlay in 2025 for the recently announced multiyear Kentucky Derby projects. The total project capital for these projects is expected to be spent over the next four years as each phase of the project is completed.

至於專案資本，我們在 2024 年花費了 4.63 億美元，預計 2025 年將花費 3.5 億至 4 億美元。此更新的 2025 年專案資本預測包括最近宣布的多年期肯塔基德比專案的 2025 年預期現金支出。隨著專案每個階段的完成，這些專案的總專案資本預計將在未來四年內花費。

As a reminder, this 2025 project capital forecast also includes finalization of the Starting Gate Pavilion and Courtyard at Churchill Downs Racetrack, the Owensboro HRM venue that we recently opened in Western Kentucky, the expansion of our Richmond HRM venue in Central Virginia, the ongoing construction of the Marshall Yards HRM venue in Southwestern Kentucky, the (technical difficulty) HRM venue in Central Virginia as well as some other smaller capital projects for our other properties.

提醒一下，此 2025 年專案資本預測還包括完成丘吉爾唐斯賽馬場的起跑門亭和庭院、我們最近在肯塔基州西部開設的歐文斯伯勒 HRM 場地、弗吉尼亞州中部里士滿 HRM 場地的擴建、正在肯塔基州西南部 Marshall Yards HRM 場地的建設、弗吉尼亞州中部的（技術難度）其他一些場地的建築。

Regarding share repurchases and dividends, we repurchased over 160,000 shares in the fourth quarter under our share repurchase program. We returned over $218 million to our shareholders in 2024 between strategic share repurchases and ongoing dividends.

關於股票回購和股息，我們根據股票回購計畫在第四季度回購了超過 16 萬股。2024 年，我們透過策略性股票回購和持續股利向股東返還了超過 2.18 億美元。

At the end of December 2024, our bank covenant net leverage was 4.0 times. Based on our capital investments and the timing of the opening of our new facilities, we expect our bank covenant net leverage to decrease below the 4 times range over the coming year. We then expect our bank covenant net leverage to decline in 2026, as our investments in the Derby and our HM venues in Kentucky and Virginia continue to ramp.

截至2024年12月底，我們的銀行契約淨槓桿比率為4.0倍。根據我們的資本投資和新設施開業的時間，我們預計未來一年銀行契約淨槓桿率將降至 4 倍以下。我們預計，隨著我們對德比大賽以及位於肯塔基州和維吉尼亞州的 HM 場館的投資持續增加，我們的銀行契約淨槓桿率將在 2026 年下降。

In closing, as Bill said, 2024 was a tremendous year for our company with record financial results, and we expect 2025 and beyond will be even better given our unique portfolio of assets and our new projects coming online that will generate a significant amount of adjusted EBITDA and strong free cash flow.

最後，正如比爾所說，2024 年對我們公司來說是豐收的一年，取得了創紀錄的財務業績，我們預計 2025 年及以後將會更好，因為我們擁有獨特的資產組合和上線的新項目將產生大量的調整後 EBITDA 和強勁的自由現金流。

As always, we remain committed to creating long-term shareholder value.

一如既往，我們致力於創造長期股東價值。

With that, I'll turn the call back over to Bill so that he can open the call for questions. Bill?

說完這些，我將把電話轉回給比爾，以便他可以開始回答問題。帳單？

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

謝謝你，瑪西婭。好的，大家。我們已準備好回答您的問題。

(Operator Instructions) Barry Jonas, Truist Securities.

（操作員指示） Barry Jonas，Truist Securities。

I was -- wanted to get your thoughts on how we should be thinking about the uplift or the ROI you expect to see from the announced Survey projects? And should we be modeling any construction disruptions in the interim? Thanks.

我是想聽聽您對我們應該如何看待已宣布的調查項目所帶來的提升或投資回報率的看法？我們是否應該對這期間出現的任何施工中斷進行建模？謝謝。

Thanks, Barry. Good morning. So one of our core principles is to accomplish our major construction projects year-to-year with respect to the Derby without disrupting the bucket list experience that everybody who comes to Derby expects to get every year. So we think we can manage very effectively to limit or eliminate any material disruption to folks. So we're very confident about doing that. And that goes into how we plan these projects and sequence the different pieces of the construction.

謝謝，巴里。早安.因此，我們的核心原則之一是逐年完成德比的重大建設項目，同時又不破壞每年來德比的每個人所期望獲得的願望清單體驗。因此我們認為我們可以非常有效地限製或消除對人們的任何重大干擾。所以我們對此非常有信心。這也涉及到我們如何規劃這些項目以及對施工的各個部分進行排序。

With respect to these projects, we believe this is our signature asset, our key asset and is a part of generating long-term shareholder return, superior shareholder return, and value for our company. So these, in our opinion, are always the best projects, among the best projects that we can do, and they always pay off and meet our hurdles.

對於這些項目，我們相信這是我們的標誌性資產、我們的關鍵資產，也是為我們公司創造長期股東回報、卓越股東回報和價值的一部分。因此，在我們看來，這些始終是最好的項目，是我們所能做的最好的項目之一，而且它們總是帶來回報並克服我們的困難。

So you've seen our track record with respect to these in the past. We've been doing major projects like this, not of this -- quite of the scale, but of this ilk over the last number of years, and it's now just time to take it to a much higher level because I'm confident in our team and their ability to execute these.

所以您已經看到了我們過去在這方面的記錄。過去幾年來，我們一直在做類似這樣的大型項目，雖然規模不大，但都是這種類型，現在是時候將其提升到更高的水平了，因為我對我們的團隊和他們執行這些項目的能力充滿信心。

Dan Politzer, Wells Fargo.

富國銀行的 Dan Politzer。

This is Zachary Silverberg on for Dan. How do you think about the roses trajectory and ramp? And can you talk us through the puts and takes to the first few months? And how do you envision the property ramping over the next 3, 6, or 12 months? Thank you.

扎卡里·西爾弗伯格 (Zachary Silverberg) 代替丹報道。您如何看待玫瑰的軌跡和坡道？能和我們談談頭幾個月的情況嗎？您預計未來 3 個月、6 個月或 12 個月房地產市場將如何發展？謝謝。

Good morning, Zach. In sum, I'd say, I feel really great about the Rose. This is not our first rodeo. We've built a handful of these projects, a number of these projects and the Rose is a perfect location in a fantastic market. So very excited about that. So as I mentioned in my remarks, I've had the privilege of being a part of this team, and we've opened Class III casinos, we've opened HRMs, we've opened VLT facilities. We've had the privilege of working across a lot of different game types and different projects.

早上好，扎克。總而言之，我想說，我對 Rose 的感覺非常好。這不是我們第一次參加牛仔競技表演。我們已經建造了一些這樣的項目，其中許多項目，而 Rose 位於一個絕佳的市場，地理位置優越。我對此感到非常興奮。正如我在演講中提到的，我很榮幸成為這個團隊的一員，我們開設了三級賭場、開設了 HRM、開設了 VLT 設施。我們有幸參與許多不同類型的遊戲和不同的專案。

HRMs is a fantastic project. It is comparable to Class III. It's getting better all the time. It's been a thrill to watch that project developed. So high degree of confidence as the market gets educated. This is not a market that has a lot of gaming. People have to leave this market to get to gaming.

HRM 是一個很棒的專案。其與 III 級相當。情況一直在不斷好轉。看到該項目的發展真令人興奮。隨著市場逐漸接受教育，信心程度也隨之升高。這不是一個擁有很多遊戲的市場。人們必須離開這個市場才能進入遊戲領域。

So a lot of confidence as we educate this market, as we introduce ourselves to this market and as we get trial in this market, that people will like the product, that they'll like the location and that you'll start to see a ramp commensurate with the demographics, including population size and wealth.

因此，當我們教育這個市場、當我們將自己介紹給這個市場並在這個市場進行試驗時，我們充滿信心，人們會喜歡這個產品，會喜歡這個位置，並且你會開始看到與人口統計數據（包括人口規模和財富）相稱的增長。

So the hardest part about anything when you do a large construction project like this is always the quarter-to-quarter timing of it. Always feel good about how this looks after a year, how this looks after two years, how this looks after three years, but trying to measure how this looks after one month or how this looks after two months, that's always much harder to do. It can be impacted by weather, which we saw here. We actually opened up the facility right in the middle of the federal election cycle, which was an incredibly distracting time for everybody in that market.

因此，當你進行像這樣的大型建築項目時，最困難的部分始終是其季度時間表。總是對一年後的情況、兩年後的情況、三年後的情況感到滿意，但試圖衡量一個月後的情況或兩個月後的情況，這總是很難做到。它可能受到天氣的影響，正如我們在這裡看到的。實際上，我們是在聯邦選舉週期中期開放該設施的，這對於該市場中的每個人來說都是一個極其令人分心的時期。

So all kinds of little things like that can influence numbers week-to-week or month-to-month, but over the long term are just simply noise. So I would say, Zach, that be patient and watch this property perform because it's going to be there for us, and we don't see anything to the contrary. It all looks like it's strong and it's starting to ramp appropriately. Just give it some time over the next 12 months to demonstrate that.

因此，諸如此類的小事可能會對每週或每月的數字產生影響，但從長遠來看，它們只是噪音而已。所以我想說，扎克，請耐心等待並觀察該房產的表現，因為它將為我們服務，並且我們沒有看到任何相反的情況。一切看起來都很強勁，並且正開始適當地上升。只需在接下來的 12 個月內花一些時間來證明這一點。

David Katz, Jefferies.

傑富瑞（Jefferies）的戴維·卡茨（David Katz）。

I wanted to, in part, follow that up and maybe go just a little farther. I think in the past, Bill and Marcia, we've talked about, in the casino/HRM world, we think about five-year paybacks as a target. And so a two-part question. We're still -- it sounds like, and I don't want to put words in -- But the Rose is within that kind of framework of a five-year payback is a reasonable way for us to think about it?

在某種程度上，我希望能夠繼續跟進，甚至更進一步。我想，比爾和瑪西婭過去曾討論過，在賭場/人力資源管理領域，我們將五年回報作為目標。這個問題由兩個部分組成。我們仍然 - 聽起來，我不想多說什麼 - 但 Rose 是否在那種五年回報的框架內，是我們思考這個問題的合理方式？

And then second, when we look at Kentucky, should we potentially be looking at those investments in total right, outside of Churchill Downs Racetrack, but looking at the various HRM facilities, and just piling those up and piling up the capital to put in there, where are we in terms of getting to that five-year payback and if it still applies there? Thanks.

其次，當我們看肯塔基州時，我們是否應該考慮丘吉爾唐斯賽馬場之外的整體投資，但要看各種人力資源管理設施，並將它們堆積起來並積累資本投入其中，我們在五年回報方面處於什麼位置，以及它是否仍然適用於那裡？謝謝。

Thanks, David. Let me unpack that and make sure I cover all those points that you mentioned. So first, it is the case that, over time, we've been pretty clear that when it comes to gaming assets, brick-and-mortar assets, we target a five-year payback, a five times payback. I'd say with HRMs, we've generally beaten that. So -- not in every case, but we've also had some very strong positive examples.

謝謝，大衛。讓我來解釋一下這個問題，並確保我涵蓋了您提到的所有要點。首先，隨著時間的推移，我們已經非常清楚，當涉及到遊戲資產、實體資產時，我們的目標是五年回報，五倍回報。我想說，透過人力資源管理，我們通常可以克服這個困難。所以——雖然不是在所有情況下，但我們也有一些非常強大的正面例子。

So with HRMs, in the markets we're in, we've seen competitive moats and strong ecosystems where we thought we could really go hard and really get a return even quicker than five years. But generally, when we look at managing our capital and comparing our different opportunities to place capital across our different assets when it comes to HRMs and gaming in general (technical difficulty), and we've been successful in doing that.

因此，對於人力資源管理，在我們所處的市場中，我們看到了競爭的護城河和強大的生態系統，我們認為我們可以努力工作，並在五年內獲得回報。但一般來說，當我們考慮管理我們的資本並比較我們在人力資源管理和一般遊戲（技術難度）方面將資本投入不同資產的不同機會時，我們已經成功地做到了這一點。

When it comes to the Rose, certainly, there weren't any different targets applied when we conceived and executed on the Rose. And as I said, I feel really good about that. That's -- you don't measure these projects in one month or two months and three months, you manage them over one year, three year, five year and beyond. And you can see from some of our assets in Kentucky that we still see -- we can still see growth, organic growth beyond that. So the Rose is just in the beginning of that journey.

說到玫瑰，當然，當我們構思和執行玫瑰時，並沒有應用任何不同的目標。正如我所說，我對此感覺非常好。也就是說——你不是以一個月、兩個月或三個月來衡量這些項目，而是以一年、三年、五年甚至更長時間來管理。從我們在肯塔基州的一些資產中您可以看到，我們仍然可以看到成長，超越這一增長的有機增長。玫瑰的旅程才剛開始。

And when you compare to Kentucky, we manage each of those facilities individually. They each have different markets. There are markets that have similarities across Kentucky, but also we do look at the whole ecosystem of Kentucky as a whole because of our relationship with the racing industry and the legislature in Kentucky, and how they envision and view racing and gaming as part of a single positive ecosystem for the state.

與肯塔基州相比，我們對每個設施都進行單獨管理。它們各自有不同的市場。肯塔基州各地的市場都有相似之處，但我們也會關注整個肯塔基州的生態系統，因為我們與賽馬業和肯塔基州立法機構有關係，而且他們設想並認為賽馬和博彩是該州單一積極生態系統的一部分。

So we look at it both ways. We want to maximize the performance of each individual facility, but we also recognize the support each of those facilities gives the related racetrack as part of the larger ecosystem of Kentucky racing. And I think I covered your major points there, David, if I missed one, remind me.

因此我們從兩個角度來看這個問題。我們希望最大限度地提高每個設施的性能，但我們也認識到每個設施作為肯塔基賽馬生態系統的一部分為相關賽道提供的支援。大衛，我想我已經涵蓋了你的要點，如果我錯過了什麼，請提醒我。

Chad Beynon, Macquarie.

麥格理的查德貝農 (Chad Beynon)。

So I wanted to go back to the Derby project. I feel like every year, at this point, you and the team are mentioning that pacing is ahead of the prior year period. So I don't think there's been a demand issue for some time, but just wanted to get a better sense of what gives you the confidence that there will be demand for these premium seats?

所以我想回到Derby專案。我覺得每年的這個時候，您和團隊都會提到節奏比前一年還要快。因此，我認為一段時間內不存在需求問題，但只是想更好地了解是什麼讓您有信心這些高級座位會有需求？

Are you seeing high return guests for those higher-end offerings? Or do you think there's a piece of the market in the United States or international that hasn't experienced this, and following these additions, maybe there's additional marketing and items to get people to experience this?

您是否發現這些高階產品的回頭客較多？或者您認為美國或國際市場上還有一部分尚未經歷過這種情況，而在增加這些功能之後，也許會有額外的營銷和項目來讓人們體驗這種情況？

Thanks, Chad. Good morning. So the way I look at this is we're really the beneficiary of two trends that are going in the right direction. First, more holistically, there is clearly a recognized and understood shift in consumer behavior where they, in general, particularly in the United States, but even to a large extent, internationally, want to attend experiential events.

謝謝，乍得。早安.因此，我的看法是，我們實際上是兩個朝著正確方向發展的趨勢的受益者。首先，更全面地來看，消費者行為顯然已經被認可和理解，總體而言，尤其是在美國，但在很大程度上，在國際上，消費者都希望參與體驗式活動。

They want to have big experience, bucket list experiences, and that's helpful to events like ours because we are in a unique American traditional special happening. And so we can take advantage. We're a beneficiary of this larger trend towards special concerts and special big events and travel, et cetera, and that's a growing healthy space globally.

他們希望擁有豐富的體驗、夢想成真經歷，這對我們這樣的活動很有幫助，因為我們正處於一個獨特的美國傳統特殊活動中。這樣我們就可以利用它。我們是特別音樂會、特別大型活動、旅行等大趨勢的受益者，這是全球日益健康的領域。

More specifically, with respect to us, all those things you mentioned are true. We do have a high return quotient to our our customer base. We have a lot of our seats that are tied up in personal seat licenses. We have lots of demand and waiting list for different sections and different hospitality experiences and all of that is good. But we also want to grow our customer base. And that's why we think about the different roads to the Kentucky derby, whether it be the Japanese road, the European, the Middle Eastern road, we're working hard on international and that's all about the future.

更具體地說，對我們來說，您提到的所有事情都是正確的。我們確實為我們的客戶群帶來了高回報率。我們的許多座位都與個人座位許可證綁定。我們對不同部分和不同的接待體驗有大量的需求和等候名單，這一切都很好。但我們也希望擴大我們的客戶群。這就是為什麼我們考慮通往肯塔基德比的不同之路，無論是日本之路、歐洲之路、中東之路，我們都在努力走向國際，這一切都是為了未來。

We don't have to do that, to sell tickets now. But we want to do projects, like the ones we announced today. We want to do expansion and growth projects for the Kentucky Derby for generations to come. In order to do that, we want to reach further up field and build new pockets of customers. That's healthy for our events. That's part of how we think about what we're doing, and we hope and expect that's a big part of our future.

現在我們不需要這麼做來出售門票。但我們想做一些項目，就像我們今天宣布的那些。我們希望為肯塔基賽馬會的子孫後代開展擴張和發展計畫。為了實現這一目標，我們希望進一步拓展業務範圍並開拓新的客戶群。這對我們的活動來說是有益的。這是我們對自己所做之事的看法的一部分，我們希望並期待這成為我們未來的重要組成部分。

So whether it's developing new markets in the United States or pushing deeper into the Northeast or to the West Coast, we do all those things. We have a process and a team and a methodology for doing that or whether we push further internationally, you're going to see us aggressively try to grow new customers and it's incumbent on our team to create the hospitality experiences to absorb those new customers when we find them.

因此，無論是在美國開發新市場還是深入東北部或西海岸，我們都會做這些事情。我們有一套流程、一個團隊和一套方法來做到這一點，無論我們是否進一步推進國際業務，您都會看到我們積極地嘗試發展新客戶，當我們找到新客戶時，我們的團隊有責任創造熱情好客的體驗來吸引他們。

We're not resting on our laurels thinking only about selling the seats we have. We're driving demand to drive ticket prices now, but also to drive confidence that future expansion projects are justified and will be supported by new customers that want to come. And so far, it's been very, very satisfying to see the team fire on all cylinders and to see evidence of an expansion in our international customers and expansion in our customers that come from outside of this region. It's been satisfying to see the team demonstrate improvement on those metrics.

我們不會滿足於現狀，只想著賣掉現有的席次。我們現在推動需求以推動票價，同時也推動信心，相信未來的擴建項目是合理的，並將得到新客戶的支持。到目前為止，看到團隊全力以赴，看到我們的國際客戶和來自該地區以外的客戶不斷擴大，我們感到非常非常滿意。看到球隊在這些指標上取得進步是令人滿意的。

Jordan Bender, Citizens.

喬丹·本德，公民。

A lot of good commentary on the direction of travel for growth capital in the coming years. A lot of this capital is focused in the growth in our areas of the business like your HRMs and the tracks, which begs the question, how do you view the regional gaming business in terms of future investment and really just how it fits into the total Churchill Downs' enterprise in the coming years? Thank you.

關於未來幾年成長資本的發展方向有很多很好的評論。這些資金很大一部分都集中在我們業務領域的成長上，例如您的人力資源管理和賽道，這就引出了一個問題，您如何看待區域博彩業務的未來投資，以及它在未來幾年與丘吉爾唐斯賽馬場整體業務的契合度究竟如何？謝謝。

Appreciate that question. I don't think of regional gaming as a single industry. In our county, we look at individual markets, we look at individual opportunities, and we assess them based on the dynamics and the trends we see for those properties. So I don't want to give a broad general answer. But I do think in the country, you see pockets of regional gaming where I think there's opportunities and you see pockets of the United States where it seems maturity has long since been established.

我很感謝你提出這個問題。我不認為區域博彩是單一的產業。在我們縣，我們關注單一市場，我們專注於單一機會，我們根據我們看到的這些房產的動態和趨勢對它們進行評估。所以我不想給一個廣泛的一般性答案。但我確實認為，在美國，你會看到一些區域性博彩業存在機遇，你會看到美國的一些地區博彩業似乎早已成熟。

So for our company, we're interested in growth. We're interested in building our company, growing our company, improving our margins, improving our adjusted EBITDA. So there is a focus and a bias in our company to pursue opportunities where long term, we expect to be able to generate growth. And that's an expectation for all the properties that are in our family and they get evaluated as such. And we look at that sort of thing constantly because we expect that contribution and that improvement constantly.

因此對於我們公司來說，我們感興趣的是成長。我們感興趣的是建造我們的公司、發展我們的公司、提高我們的利潤率、提高我們的調整後 EBITDA。因此，我們公司專注於並傾向於尋求能夠實現長期成長的機會。這是我們家族對所有財產的期望，它們都會得到相應的評估。我們不斷關注這類事情，因為我們不斷期待這種貢獻和進步。

Jeff Stantial, Stifel.

傑夫·斯坦蒂爾（Jeff Stantial），Stifel。

Last month, there were some reports out of California that suggested that the tracks there can make a push for expansion into historical horse racing. Bill, I'm curious just to get your thoughts on how viable you think this is legally? If you think you could help accelerate these efforts with your experience in the sector? And if it is ultimately approved, how you might look to participate there, whether through Exacta or M&A?

上個月，加州的一些報導稱，那裡的賽道可以推動擴展為歷史悠久的賽馬比賽。比爾，我很好奇，你認為這在法律上是否可行？您是否認為您可以利用自己在該領域的經驗來幫助加速這些努力？如果最終獲得批准，您將如何參與其中，是透過 Exacta 還是 M&A？

Yeah. Thanks, Jeff. So we don't have a racetrack in California, so we don't really participate in producing racing in California. However, one of the things about our company that's been a real plus -- and I think we earned it because we thought about it in advanced and pursued it carefully, is we got into providing HRM services.

是的。謝謝，傑夫。所以我們在加州沒有賽道，所以我們實際上並不參與在加州舉辦賽車比賽。然而，我們公司真正的優勢之一就是——我認為我們之所以獲得這個優勢是因為我們提前考慮過這個問題，並且認真追求它——我們開始提供人力資源管理服務。

So Exacta is a central determinant system. It is -- whether it be Exacta or one of the competitors, it is necessary. It is a component. It is a necessary requirement in order to conduct HRMs. And that, for us, is a nice business, a lucrative business. It not only serves our own sites, but also we have a B2B component where we provide those services to other third-party site operators.

所以 Exacta 是一個中心決定係統。是的——無論是 Exacta 還是其競爭對手之一，它都是必要的。它是一個組件。這是進行人力資源管理的必要要求。對我們來說，這是一筆不錯的生意，一筆有利可圖的生意。它不僅服務於我們自己的網站，而且我們還有一個 B2B 元件，可以透過它向其他第三方網站營運商提供這些服務。

So if there were opportunities in California, that's most likely how we would have the opportunity to participate. It would be through the provision of Exacta's products and services. As to what's going to happen in California, I don't know and probably shouldn't speak to that because I'm sure that's a question of the business community and the political community.

因此，如果加州有機會，我們就很有可能有機會參與。這將透過提供 Exacta 的產品和服務來實現。至於加州會發生什麼，我不知道，也許也不應該談論這個，因為我確信這是商界和政界的問題。

But if the racing community is so fortunate as to have the chance to implement HRMs, we look forward to helping them do so, and we certainly have the capabilities to do so. But whether it be in California or in other jurisdictions in the United States, I believe we're not done with the HRM rollout. I think there's a reasonable opportunity, a reasonable probability that we'll see other jurisdictions potentially show interest and legalize the product over the next handful of years.

但如果賽車界有幸有機會實施 HRM，我們期待幫助他們這樣做，當然我們有能力這樣做。但無論是在加州還是美國其他司法管轄區，我相信我們的人力資源管理推廣工作尚未完成。我認為，這是一個合理的機會，也很有可能在未來幾年內，我們將看到其他司法管轄區對該產品表現出興趣並將其合法化。

Joe Stauff, SIG.

喬·斯托夫（Joe Stauff），SIG。

Bill, was interested in maybe just reassessing where we're at in terms of both in Kentucky and Virginia, the gray market gaming enforcement? I guess, overall -- I guess the assumption is, in Kentucky, it's further along, maybe sixth inning of the ball game, maybe further, whereas in Virginia, it's earlier. I was wondering if you could possibly refresh us on where the enforcement and pushing out the gray markets are in those respective markets?

比爾，您是否想重新評估肯塔基州和維吉尼亞州灰色市場博彩執法的現狀？我想，總的來說——我想假設是，在肯塔基州，它可能會進一步發展，也許是比賽的第六局，也許更遠，而在維吉尼亞州，它可能會更早。我想知道您是否可以讓我們了解一下在各個相關市場中，執法部門如何打擊灰色市場？

Sure. Happy to do that, Joe. Thanks for the question. So gray games, I'm not sure I'd use the baseball analogy, although I like baseball analogies. But gray games is more of a whack-a-mole thing, that sort of the rogue operators that participate in gray games are constantly trying to come up with absurd tweaks to their games to argue that they've somehow gotten out of the clear illegal space into something that's more gray.

當然。很高興這麼做，喬。謝謝你的提問。所以灰色遊戲，我不確定我是否會使用棒球類比，儘管我喜歡棒球類比。但灰色遊戲更像是一種打地鼠遊戲，參與灰色遊戲的流氓運營商不斷試圖對他們的遊戲進行荒謬的調整，以辯稱他們已經以某種方式脫離了明顯的非法空間，進入了更灰色的空間。

The whole name gray games -- the whole nomenclature around gray games, I think, is often misunderstood. The most of the time these games aren't gray. They're black, they're illegal. So in the case of Kentucky and Virginia, there's been a lot of progress. We have a legislature and an executive branch in both states that's very supportive and -- of following the law and enforcing the law.

我認為，「灰色遊戲」這個名稱——以及圍繞灰色遊戲的整個術語，經常被誤解。大多數時候這些遊戲都不是灰色的。他們是黑人，他們是非法的。就肯塔基州和維吉尼亞州而言，已經取得了很大進展。我們兩個州的立法機構和行政部門都非常支持遵守法律和執行法律。

So gray games are not legal in these jurisdictions, but there's legacy issues that the attorney generals and other law enforcement agencies continue to pursue. And we have this phenomena also of whack-a-mole where they pop up under some new paradigm. So I think we're going to see that continue, but there's been substantial progress that we're very pleased with.

因此，灰色遊戲在這些司法管轄區並不合法，但司法部長和其他執法機構仍在繼續追蹤一些遺留問題。我們也遇過這種打地鼠的現象，它們會在某些新的範式下出現。所以我認為我們會看到這種情況繼續下去，而且我們已經取得了實質性的進展，對此我們感到非常高興。

And I couldn't tell you what inning we're in. And if we were in the sixth inning now, we may have to go back to the third inning. But generally, progress is slow and steady and eliminating these machines. But I don't think there'll be a day where we get on this call and say, we don't lose $1 of revenue to gray games.

我無法告訴你我們處於哪一局。如果我們現在處於第六局，我們可能不得不回到第三局。但總的來說，進展是緩慢而穩定的，並且會淘汰這些機器。但我不認為有一天我們會接到這樣的電話，說我們不會因為灰色遊戲而損失一美元的收入。

I don't think we'll have a day like that because the nature of these operators that sort of bold-faced willingness to flaunt the law of these operators, I think they'll be a challenge for a while. But you've seen in the numbers in Virginia, substantial progress over 2024. I think you'll see more enforcement, continued enforcement, and probably a little bit further along in Kentucky.

我認為我們不會有那樣的一天，因為這些運營商的本質就是厚顏無恥地藐視法律，我認為他們會在一段時間內對我們構成挑戰。但從維吉尼亞州的數據可以看出，2024 年取得了實質進展。我認為你會看到肯塔基州的執法力度加大、執法持續加強，而且可能會取得進一步進展。

So both have headed in the right direction. I feel good about both, but I don't make any assumptions that we're through with that game.

因此，雙方都朝著正確的方向前進。我對兩者都感覺很好，但我並不認為我們已經完成了這場比賽。

Daniel Guglielmo, Capital One Securities.

丹尼爾·古列爾莫（Daniel Guglielmo），Capital One Securities。

We look at US hourly earnings data on a regular basis and saw a bit of a reacceleration in wage growth at the end of this year. This led to some investors asking about pricing power again. When thinking about your properties, are there certain levers you can pull to increase prices? Or how do you think about that in a potentially higher inflationary environment?

我們定期查看美國的時薪數據，發現今年底薪資成長略有加速。這導致部分投資人再次詢問定價權。當考慮您的房產時，您是否可以採取某些手段來提高價格？或者在通膨可能進一步加劇的環境下您如何看待這一點？

So Dan, good morning. Nice to have you on the call. You broke up for us just in the beginning. What data were you referencing? you just broke up (multiple speakers)

丹，早安。很高興您來接聽電話。你一開始就為我們分手了。您參考了哪些數據？你剛分手（多位發言者）

I'm sorry about that. Yeah. The US hourly earnings data saw a bit of a reacceleration in wage growth at the end of the year.

我很抱歉。是的。美國小時工資數據顯示，年底薪資成長略有加速。

So I'd say that, we watch that kind of data, inflation data, wage earning data. I can't say that of all the data points, all the trends going on, I can't say that we can isolate that and note any difference in any of the trends that are otherwise going on across our businesses, whether it be demonstrating pricing power for the Kentucky Derby or in wagering activities on TwinSpires, et cetera.

所以我想說，我們會關注這類數據，通膨數據，薪資收入數據。我不能說，在所有數據點、所有正在發生的趨勢中，我們可以將其分離出來，並注意到我們業務中正在發生的任何趨勢的差異，無論是展示肯塔基賽馬會的定價權，還是在 TwinSpires 上的投注活動，等等。

I can't say that there's enough of a trend with the data you cited that it's discernible in the overall trajectories of the businesses we're in. But we'll keep our eye on that. And we'll see if it's more noteworthy or demonstrable intelligence from that data going forward.

我不能說您引用的數據具有足夠的趨勢，以至於可以在我們所從事的業務的整體發展軌跡中辨別出來。但我們會密切關注此事。我們將從未來數據中看看它是否更值得注意或更具可證明性的情報。

Ben Chaiken, Mizuho.

瑞穗的本‧柴肯 (Ben Chaiken)。

You gave a lot of color on the Rose, which is extremely helpful. I wonder if we could just like dissect it, stepping back a little bit, specifically in Virginia. Presumably, there's some weather in January, you also had the election that you noted and the Rose opening. But maybe if we could think about like December, January to February, whatever trends you're seeing today, just get a sense of the underlying trends in Virginia without some of the moving parts or noise? Thanks.

你給了玫瑰許多色彩，這非常有幫助。我想知道我們是否可以對其進行剖析，稍微回顧一下，特別是在維吉尼亞州。據推測，一月份有一些天氣，也經歷了您所注意到的選舉和玫瑰的開幕。但是，如果我們可以思考一下 12 月、1 月到 2 月的情況，無論您今天看到的趨勢是什麼，只需了解一下弗吉尼亞州的潛在趨勢，而不受一些變動因素或噪音的影響？謝謝。

Yeah. Thanks for the question, Ben. Good morning. So things are moving in the right direction. This is not our first rodeo. We've opened a number of properties, a number of significant properties in our family over the years. So I sit here today very pleased. We have the right team. We have the right processes. I never think about this as a one-month thing or a one-week thing or a two-month thing. The trends are strong. You're going to see growth in that property for an extended period of time. You're going to see things improve.

是的。謝謝你的提問，本。早安.事情正在朝著正確的方向發展。這不是我們第一次參加牛仔競技表演。多年來，我們開設了許多地產，對我們家來說有許多重要的房地產。所以今天我坐在這裡感到非常高興。我們擁有合適的團隊。我們有正確的流程。我從來沒有想過這是一個月的事情，一週的事情，或是兩個月的事情。趨勢強勁。您將會發現該房產在較長一段時間內會有所增長。你會看到事情有所改善。

When you open up a property like this, you've got to get the people into your database, you've got to get to know them, you got to get to learn their -- what they respond to in terms of player incentives. You have just a bunch of work to do, and our team is doing the work. So all good. The trends are moving in the right direction, and I'm pleased. As I sit here today, I feel very good about what we're doing there, and I look forward to talking to you all about this next quarter.

當你開放這樣的產業時，你必須將人們納入你的資料庫，你必須了解他們，你必須了解他們──他們對玩家激勵的反應。您只需要做很多工作，我們的團隊正在完成這些工作。一切都很好。趨勢正朝著正確的方向發展，我很高興。今天我坐在這裡，對我們在那裡所做的事情感到非常滿意，並且我期待下個季度與大家討論這件事。

Thank you. I would now like to hand the call back over to President and CEO, Bill Carstanjen, for any closing remarks.

謝謝。現在，我想將電話轉回給總裁兼執行長比爾卡斯坦延 (Bill Carstanjen)，請他做最後發言。

Thank you. I thank all of you for your interest in our company for being shareholders in our company or for considering being shareholders in our company. We work very hard to do what's right by you to make the good decisions and the tough decisions that drive shareholder value.

謝謝。我感謝大家對我們公司的興趣，也感謝大家願意成為我們公司的股東，感謝大家願意考慮成為我們公司的股東。我們竭盡全力為您做正確的事情，做出能夠推動股東價值的正確決策和艱難決策。

So thank you for your time today. Thank you for your interest. I look forward to talking to you in eight or nine weeks right before the Derby 151. So take care, stay warm out there, and we'll talk soon. Thank you.

非常感謝您今天抽出時間。感謝您的關注。我期待在 151 德比賽事開始前的八到九週內與您進行交談。所以請多保重，注意保暖，我們很快就會再聊。謝謝。

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

女士們、先生們，感謝你們的參與。今天的節目到此結束，大家可以斷開連結了。