Churchill Downs Inc (CHDN) 2025 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Churchill Downs Incorporated 2025 first quarter earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.

女士們、先生們，大家好，歡迎參加丘吉爾唐斯公司 2025 年第一季財報電話會議。（操作員指示）提醒一下，本次電話會議正在錄音。

I would now like to introduce your host for today's conference, Mr. Sam Ullrich, Vice President, Investor Relations.

現在我想介紹今天會議的主持人、投資者關係副總裁 Sam Ullrich 先生。

Thank you, Andrew. Good morning and welcome to our first quarter 2025 earnings conference call. After the company's prepared remarks, we will open the call for your questions. The company's 2025 first quarter business results were released yesterday afternoon.

謝謝你，安德魯。早上好，歡迎參加我們的 2025 年第一季財報電話會議。公司準備好的發言結束後，我們將開始回答大家的提問。該公司2025年第一季經營業績於昨日下午發布。

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.

本新聞稿公佈了本次電話會議中要展示的期間業績和其他財務及統計信息，包括 G 條例要求的信息，其副本可在公司網站 churchilldownsincorporated.com 的“新聞”部分以及網站的“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.

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。

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.

所有前瞻性陳述都應與我們收益報告中的警示性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. During this call, we 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.

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。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-Q 表格可在我們的網站 churchilldownsincorporated.com 上查閱。

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·卡斯坦延先生。

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，包括我們的總裁兼首席營運官比爾·馬德 (Bill Mudd)； Marcia Dall，我們的首席財務官；以及我們的總法律顧問布拉德·布萊克威爾 (Brad Blackwell)。

I will share an update 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.

我將分享我們公司成長計畫的最新情況，包括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 Marcia 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，我們將回答你們的提問。

We delivered record first quarter net revenue of $643 million and record first quarter Adjusted EBITDA of $245 million. These results reflect strong performance given: One, the first quarter last year was also a record; two, the material weather events that impacted many of our properties during this quarter; three, the increasingly uncertain economic environment driven by the tariffs and trade war disputes; and four, one less day this quarter compared to last year because 2024 was a leap year.

我們第一季的淨收入達到創紀錄的 6.43 億美元，第一季調整後 EBITDA 達到創紀錄的 2.45 億美元。這些結果體現了強勁的表現：第一，去年第一季也創下了紀錄；二是本季重大天氣事件影響了我們的許多財產；三、關稅和貿易戰爭端導致經濟環境不確定性加劇；第四，由於 2024 年是閏年，本季比去年少一天。

This quarter, we successfully opened our Owensboro HRM venue on time and below budget. This is our seventh Kentucky HRM facility and is located just east of Owensboro, the fourth largest city in the state. It has 600 HRMs, a retail sports book, simulcast wagering, and several food and beverage offerings.

本季度，我們按時且在預算內成功開設了歐文斯伯勒 HRM 場館。這是我們在肯塔基州的第七個人力資源管理機構，位於該州第四大城市歐文斯伯勒以東。它擁有 600 個 HRM、零售體育博彩、同步投注以及多種食品和飲料供應。

We are pleased with the first couple of months of performance from this property, and it is on track to deliver a great return for our shareholders. Churchill is an exceptional company that continues to deliver growth and with a pipeline to a great future.

我們對該物業頭幾個月的表現感到滿意，它有望為我們的股東帶來豐厚的回報。邱吉爾是一家卓越的公司，持續實現成長，並擁有通往美好未來的道路。

We have demonstrated we can nimbly apply our strategy in any economic environment to effectively manage our capital to create best in class value for our shareholders. Given this backdrop, let's talk about the strategic investments we are making in 2025 to drive long-term shareholder value.

我們已經證明，我們可以在任何經濟環境中靈活地運用我們的策略，有效地管理我們的資本，為我們的股東創造最佳價值。在這樣的背景下，讓我們來談談我們在 2025 年為推動長期股東價值而進行的策略投資。

First, regarding Churchill Down's Racetrack and the Kentucky Derby. We have completed the Starting Gate Pavilion and Courtyard project on time and on budget. Our guests at the 151st Kentucky Derby next week will be treated to 8,500 new reserved premium stadium and trackside box seats near the Kentucky Derby Starting Gate. We have also significantly improved the amenities and hospitality options in the areas adjacent to the Starting Gate Pavilion, which enhances the experience for our guests throughout the surrounding sections.

首先，關於丘吉爾唐斯賽馬場和肯塔基賽馬會。我們按時、按預算完成了起跑門亭和庭院專案。下週參加第 151 屆肯塔基德比賽馬會的嘉賓將可以享受位於肯塔基德比賽馬會起跑門附近的 8,500 個全新預留的高級體育場和賽道邊包廂座位。我們也大幅改善了起跑門亭附近區域的設施和接待選擇，增強了周邊區域客人的體驗。

On our last earnings call at the end of February, we announced a $900 million multi-year project at Churchill Downs Racetrack that included tearing down and rebuilding the Skye Terrace, building new permanent structures in the infield for premium ticket holders, and providing improved amenities for our general admissions guests.

在二月底舉行的上一次收益電話會議上，我們宣布了一項價值 9 億美元的丘吉爾唐斯賽馬場多年期項目，其中包括拆除和重建斯凱露台、在內場為高級門票持有者建造新的永久性建築，並為我們的普通入場客人提供更好的便利設施。

A lot has changed in the world in the past nine weeks since that earnings call, including increased general economic uncertainty and risk of significant inflation driven in part by the new tariffs that the US intends to charge on products from almost every country in the world. This has created unanticipated and currently unquantifiable expected cost increases in most materials.

自從那次財報電話會議以來的過去九周里，世界發生了許多變化，包括總體經濟不確定性增加以及通膨風險大幅上升，部分原因是美國打算對幾乎所有國家的產品徵收新關稅。這導致大多數材料的成本預期出現未預料到的、目前無法量化的增加。

Due to these factors, we've made the difficult decision to temporarily pause this multi-year effort in order to let things settle down so that we can better determine any permanent changes in the cost of this project and better evaluate any changes in the overall economic environment.

由於這些因素，我們做出了艱難的決定，暫時停止這項多年的努力，以便讓事情平靜下來，以便我們能夠更好地確定該項目成本的任何永久性變化，並更好地評估整體經濟環境的任何變化。

We remain completely committed to growing the Kentucky Derby through the prudent timing of capital investments over the long term. We take very seriously our reputation for delivering long-term best in class returns to our shareholders, and it was only after a careful evaluation of the current economic climate that we made this decision.

我們將繼續致力於透過長期審慎的資本投資來發展肯塔基賽馬會。我們非常重視為股東提供長期最佳回報的聲譽，並且只有在仔細評估當前經濟環境後才做出這項決定。

We will use the coming months to assess the evolving economic conditions as well as to evaluate any changes that we want to make to the timing and sequencing. This is an opportunity to revisit and to make sure we deliver products that best meet and exceed our customers' expectations as well as those of our shareholders.

我們將利用未來幾個月的時間來評估不斷變化的經濟狀況，並評估我們想要對時間和順序做出的任何改變。這是一個重新審視並確保我們提供的產品能夠最大程度地滿足並超越客戶和股東的期望的機會。

Over 151 years, the Kentucky Derby has become a testament to the enduring spirit of American sportsmanship, celebration, and the lasting power of our traditions. It's the definition of a long term asset, and it is one that has always demanded discipline as well as innovation.

151 年來，肯塔基賽馬會已成為美國體育精神、慶典精神和傳統持久力量的證明。這是長期資產的定義，它始終要求紀律和創新。

When the macro environment concerns are better understood, we will move forward with thoughtful decisions on how best to invest material amounts of capital in this iconic asset.

當對宏觀環境問題有了更好的理解後，我們將繼續深思熟慮地決定如何最好地向這一標誌性資產投資大量資本。

Last night, we announced two smaller projects at Churchill Downs Racetrack, the renovation of the Finish Line Suites and The Mansion. These two projects will cost approximately $25 million to $30 million in total and are expected to be completed in time for the 2026 Kentucky Derby. We believe that these two low-risk and easy to measure projects will generate strong shareholder returns. We have 15 Finish Line Suites on the fifth floor directly overlooking the finish line. These are reserved for approximately 600 guests and have traditionally been considered one of the most prominent and prestigious areas for sponsors and companies to entertain large groups.

昨晚，我們宣布了丘吉爾唐斯賽馬場的兩個小型項目，即終點線套房和大廈的翻新。這兩個項目總成本約為 2500 萬至 3000 萬美元，預計將於 2026 年肯塔基賽馬會前完工。我們相信這兩個低風險且易於衡量的項目將為股東帶來豐厚的回報。我們在五樓設有 15 間終點線套房，可直接俯瞰終點線。這些區域可容納約 600 位賓客，傳統上被認為是贊助商和公司招待大型團體的最著名和最負盛名的區域之一。

We will update the finishes and other amenities while also increasing the capacity to a total of 750 guests. At the same time, we will renovate the Trophy Room which sits behind the Finish Line Suites and seats over 300, many of whom are additional guests of the Finish Line Suite holders. The improvements to both these areas will create a larger, fully integrated hospitality experience with more energy, better flow, and superior amenities.

我們將更新裝修和其他設施，同時將容量增加到總共 750 位客人。同時，我們將翻新位於終點線套房後面的獎盃室，該室可容納 300 多人，其中許多人是終點線套房持有者的額外客人。這兩個區域的改進將創造更大、更全面、更活力、更順暢、更優質的飯店體驗。

Turning to The Mansion, this is one of our most exclusive areas. It is located on the sixth floor and provides stunning views of the finish line and the racetrack as a whole. We will introduce updated finishes and amenities along with other enhancements.

說到 The Mansion，這是我們最獨特的區域之一。它位於六樓，可以欣賞到終點線和整個賽道的壯麗景色。我們將推出更新的裝修和設施以及其他改進。

We believe that both projects will deliver long-term superior returns for our shareholders. Strategic investments have driven the Kentucky Derby experience and financial results to a level few would have imagined just a handful of years ago. We set records last year in all of our key financial metrics and grew the Adjusted EBITDA for the event by $30 million compared to the prior year. We expect this year's Kentucky Derby to be comparable to last year's, delivering one of the best results in the history of our company across our key financial metrics.

我們相信這兩個項目都將為我們的股東帶來長期豐厚的回報。策略性投資使肯塔基德比的體驗和財務表現達到了幾年前很少有人能想像的水平。去年，我們所有關鍵財務指標都創下了紀錄，與前一年相比，該活動的調整後 EBITDA 增長了 3000 萬美元。我們預計今年的肯塔基賽馬會將與去年的比賽相當，並在關鍵財務指標方面取得公司歷史上最好的成績之一。

Next, regarding our HRM progress. Our track record has demonstrated that we are disciplined in our approach to HRM investments. This has led to excellent returns on capital from our HRM venues and the related technology. We will continue to explore further development in each of our key markets. In Virginia, as expected, we have seen good progress during the first quarter from The Rose. As a reminder, the potential customer base around The Rose is nearly 4 times larger than our other largest HRM properties in Virginia and Kentucky.

接下來，關於我們的人力資源管理進度。我們的業績記錄表明，我們在人力資源管理投資方面採取了嚴謹的態度。這使得我們的人力資源管理場所和相關技術獲得了豐厚的資本回報。我們將繼續探索在各個主要市場的進一步發展。在維吉尼亞州，正如預期的那樣，我們看到 The Rose 在第一季取得了良好的進展。提醒一下，The Rose 周圍的潛在客戶群比我們在維吉尼亞州和肯塔基州的其他最大 HRM 物業大近 4 倍。

HRM facilities in new markets like Northern Virginia take time to attract, develop, and retain customers. We saw meaningful sequential growth in the gross gaming revenues each month of the first quarter, as well as outstanding improvement in rated player metrics. This is the result of the ongoing marketing as we build our customer database. We are pleased with the progress to date. We hope to continue to demonstrate improvement as this new facility is miles away from approaching maturity.

北維吉尼亞等新興市場的人力資源管理機構需要時間來吸引、發展和留住客戶。我們看到第一季每個月的博彩總收入都出現了顯著的連續成長，同時評級玩家指標也得到了顯著改善。這是我們在建立客戶資料庫的過程中不斷行銷的結果。我們對迄今為止的進展感到滿意。我們希望繼續展示改進，因為這個新設施距離成熟還有很長的路要走。

We've also made significant progress in the expansion project at our Richmond HRM venue. In 2024, it was our largest contributor of Adjusted EBITDA in Virginia and the second most profitable HRM property in our portfolio after Derby City Gaming. We've added approximately 100 HRMs so far and we'll have an additional 400 games operational before Memorial Day weekend. This project is ahead of schedule and on budget.

我們在里士滿 HRM 場館的擴建計畫中也取得了重大進展。2024 年，它是我們在維吉尼亞州調整後 EBITDA 的最大貢獻者，也是我們投資組合中僅次於 Derby City Gaming 的第二大盈利能力較強的 HRM 資產。到目前為止，我們已經增加了大約 100 個 HRM，並且我們將在陣亡將士紀念日週末之前再投入 400 場比賽。該項目提前完成並且符合預算。

Next, we are building the Roseshire Gaming Parlor in Henrico County with 175 HRMs and other guest amenities. We made great progress during the first quarter. We now expect to open early in the fourth quarter of this year. This project is ahead of schedule and on budget.

接下來，我們正在亨利科縣建造 Roseshire 遊戲廳，配備 175 個 HRM 和其他客用設施。我們在第一季取得了巨大進展。我們現在預計將於今年第四季初開業。該項目提前完成並且符合預算。

In Kentucky, we began work on the Marshall Yards HRM venue in Calvert City in late January. This will be our eighth HRM venue in the Commonwealth. We are on budget and on track to open during the first quarter of 2026.

在肯塔基州，我們於一月底開始在卡爾弗城的 Marshall Yards HRM 場館開展工作。這將是我們在英聯邦的第八個 HRM 場地。我們的預算已到位，預計將於 2026 年第一季開幕。

You will note a common theme as we discuss these brick and mortar construction projects. We have a firm grip on the schedules and budgets. This has been an important ingredient of our success over time in generating shareholder returns, and even in these more volatile economic conditions, we are committed and confident we will adhere to our principles of discipline, planning and meeting expectations.

當我們討論這些實體建築專案時，您會注意到一個共同的主題。我們嚴格控制時間表和預算。這是我們長期以來成功創造股東回報的重要因素，即使在這些更動盪的經濟條件下，我們也承諾並有信心堅持我們的紀律、計劃和滿足預期的原則。

Turning to Exacta, the acquisition of the Exacta technology has improved the performance of our Virginia and Kentucky HRM venues by enabling us to better optimize the gaming floors and reduce the technology fees charged to our venues.

談到 Exacta，收購 Exacta 技術使我們能夠更好地優化遊戲場地並降低向我們的場館收取的技術費用，從而提高了我們弗吉尼亞州和肯塔基州 HRM 場館的業績。

On the B2B front, the Exacta team has continued to make strides, growing the portfolio of third party HRM operations in Kentucky, Wyoming, and New Hampshire. For example, we now provide our technology to 11 of the 12 HRM venues that are operational in New Hampshire.

在 B2B 方面，Exacta 團隊繼續取得進展，擴大了肯塔基州、懷俄明州和新罕布夏州的第三方人力資源管理業務組合。例如，我們現在為新罕布夏州運營的 12 個 HRM 場館中的 11 個提供我們的技術。

We look forward to growing this business as these properties expand and through growth in new jurisdictions that may adopt this form of wagering in the future. As we mentioned during our February call, we are making progress on the development of HRM-based electronic cable games. We currently plan to implement electronic table games prior to the end of 2025 in certain of our existing HRM locations to support the growth of our properties.

隨著這些資產的擴張以及未來可能採用這種投注形式的新司法管轄區的擴張，我們期待這項業務的成長。正如我們在二月電話會議上提到的那樣，我們在基於 HRM 的電子有線遊戲的開發方面取得了進展。我們目前計劃在 2025 年底之前在某些現有的 HRM 地點實施電子桌面遊戲，以支援我們物業的成長。

Regarding our preparation for the upcoming 151st Kentucky Derby, on May 3, a week from this Saturday. We expect this will be another extraordinary experience for our guests. The buzz and energy seems greater every year, and this year promises to deliver once again. As I commented a few minutes ago, we anticipate results that are comparable to last year's extraordinary Kentucky Derby 150. We have an exciting week of racing and festivities planned and look forward to hosting many of you in person.

關於我們為即將於 5 月 3 日（即本週六一周後）舉行的第 151 屆肯塔基德比做準備。我們期待這將會給我們的客人帶來另一個非凡的體驗。每年的熱鬧和活力似乎都更加強烈，今年也有望再次達到這樣的成果。正如我幾分鐘前評論的那樣，我們預計結果將與去年非凡的肯塔基德比 150 相當。我們計劃了一周激動人心的比賽和慶祝活動，並期待親自接待你們。

If you cannot join us at the track, please be sure to watch the NBC broadcast, which begins at noon Eastern time on USA Network, and then moves to NBC starting at 2:30. We will provide a press release with our preliminary results after the race like we do every year.

如果您無法與我們一起在賽道上觀看比賽，請務必觀看 NBC 的轉播，該轉播於美國東部時間中午在美國電視網開始，然後從 2:30 開始轉到 NBC。和每年一樣，我們將在比賽結束後發布初步結果的新聞稿。

In summary, the first quarter was another strong one for us with record financial results. Yes, a lot has changed in the last nine weeks since our last earnings call. What has not changed is our leadership team's demonstrated track record of managing, adapting, and pivoting during various economic cycles.

總而言之，第一季對我們來說又是一個強勁的季度，財務表現創下了歷史新高。是的，自從我們上次財報電話會議以來的九週內發生了很多變化。不變的是我們的領導團隊在各個經濟週期中管理、適應和調整的良好記錄。

This discipline has positioned our company for strong growth for years to come with our pipeline of investments in the Kentucky Derby, HRM, and other gaming venues, the B2B and B2C expansion of our TwinSpires and Exacta businesses, and accretive acquisitions.

這項紀律使我們的公司在未來幾年保持強勁成長，包括對肯塔基賽馬會、HRM 和其他遊戲場所的投資、TwinSpires 和 Exacta 業務的 B2B 和 B2C 擴展以及增值收購。

Our strategic choices and capital investments over recent years, along with our strong balance sheet and diversified portfolio of assets have positioned us well to navigate these evolving times. We remain committed to delivering excellent total shareholder return with consistent execution over the long term.

我們近年來的策略選擇和資本投資，以及我們強勁的資產負債表和多元化的資產組合，使我們能夠很好地應對這些不斷變化的時代。我們始終致力於透過長期的持續執行，為股東帶來優異的總回報。

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，然後我們會回答您的問題。瑪西婭？

Thanks, Bill and good morning, everyone. I'll start with a few insights into our financial results and then provide an update on capital management.

謝謝，比爾，大家早安。我將首先介紹我們的財務業績，然後提供有關資本管理的最新資訊。

First, regarding first quarter financial results, as Bill shared, we delivered record first quarter revenue and Adjusted EBITDA. We also delivered record first quarter net revenue across all of our reporting segments and record first quarter Adjusted EBITDA for our Live and Historical Racing segment and for our Wagering Services and Solutions segment.

首先，關於第一季的財務業績，正如比爾所說，我們實現了創紀錄的第一季營收和調整後 EBITDA。我們所有報告分部的第一季淨收入均創歷史新高，現場和歷史賽馬分部以及投注服務和解決方案分部的第一季度調整後 EBITDA 也創歷史新高。

We are pleased with the first quarter performance from our businesses in the Live and Historical Racing segment. This segment delivered record first quarter revenue and Adjusted EBITDA. The Live and Historical Racing segment increased revenue by nearly $28 million or 11% compared to the prior year quarter, primarily due to the opening of the Rose Gaming Resort in November 2024 and Owensboro Racing and Gaming in February 2025.

我們對現場和歷史賽車業務第一季的表現感到滿意。該部門第一季的收入和調整後息稅折舊攤提前利潤均創歷史新高。現場和歷史賽馬部門的收入與去年同期相比增加了近 2800 萬美元，增幅為 11%，這主要歸功於 2024 年 11 月玫瑰博彩度假村 (Rose Gaming Resort) 和 2025 年 2 月歐文斯伯勒賽馬和博彩度假村 (Owensboro Racing and Gaming) 的開業。

Our HRM properties in Kentucky performed extremely well during the first quarter. Our Kentucky HRM properties increased Adjusted EBITDA by $3.1 million or 6%, compared to the prior year quarter, despite the weather events our HRM venues experienced and the impact of one less day in the quarter due to the 2024 leap year, as well as the impact from the ongoing economic uncertainty that escalated in the first quarter. We've benefited from strong performance from our new Owensboro HRM venue and from our Oak Grove, Turfway Park and Newport, Kentucky HRM venues. The Virginia HRM properties contribution to Adjusted EBITDA decreased by $2.0million or 3% compared to the prior year quarter.

我們位於肯塔基州的人力資源管理資產在第一季表現非常出色。儘管我們的 HRM 場所遭遇了天氣事件，並且由於 2024 年閏年導致本季度營業時間減少一天，以及第一季度持續的經濟不確定性加劇，我們的肯塔基州 HRM 物業的調整後 EBITDA 與去年同期相比仍增加了 310 萬美元，即 6%。我們受益於新的歐文斯伯勒 HRM 場館以及 Oak Grove、Turfway Park 和肯塔基州紐波特 HRM 場館的強勁表現。與去年同期相比，維吉尼亞 HRM 物業對調整後 EBITDA 的貢獻減少了 200 萬美元，即 3%。

Our Northern Virginia HRM venues collectively contributed nearly $10 million of Adjusted EBITDA during the first quarter, up nearly $4 million from the prior year quarter. The Rose had a meaningful sequential increase in the GGR per machine per day for each month of the first quarter from our continued progress in marketing the property to educate and attract guests.

我們位於北維吉尼亞州的 HRM 場所在第一季共貢獻了近 1,000 萬美元的調整後 EBITDA，比去年同期增加了近 400 萬美元。由於我們持續推進酒店行銷以教育和吸引客人，The Rose 賭場第一季每個月的每台機器每天的博彩總收入都實現了有意義的連續增長。

All of our other HRM properties in Virginia collectively had a nearly $6 million or 13% decrease in Adjusted EBITDA during the first quarter compared to the prior year quarter. Approximately one-third of the decrease was driven by the impact of weather and one less day in the quarter due to leap year in the prior year. Another one-third of the decrease was driven by a higher handle tax rate for the quarter compared to the prior year and a slight impact from running three days of racing in the quarter. The higher handle tax rate was the result of the increase in the number of HRMs we have in the Commonwealth of Virginia compared to the prior year quarter due to the opening of The Rose.

與去年同期相比，我們位於維吉尼亞州的所有其他 HRM 物業第一季的調整後 EBITDA 總計下降了近 600 萬美元，即 13%。約三分之一的降幅是由於天氣影響以及由於上一年閏年導致本季減少一天。另外三分之一的下降是由於本季的處理稅率與上年相比有所提高，以及本季舉辦三天賽馬比賽的輕微影響。更高的處理稅率是由於 The Rose 的開業導致弗吉尼亞聯邦的 HRM 數量與去年同期相比有所增加。

The final one-third of the decline was driven by consumer softness and the impact of competition near some of our HRM venues that reduced the level of our unrated play. Overall, it is important to note that despite the decline in Adjusted EBITDA, we still generated a combined 52% margin during the quarter for our same store of Virginia HRM properties.

最後三分之一的下降是由於消費者的疲軟以及我們一些 HRM 場館附近的競爭的影響，這降低了我們未評級比賽的水平。總體而言，值得注意的是，儘管調整後的 EBITDA 有所下降，但本季我們同一家維吉尼亞 HRM 門市的綜合利潤率仍達到 52%。

In our Waging Services and Solutions segment, Adjusted EBITDA grew by nearly $2 million or 4% compared to the prior year quarter. The Exacta business contributed nearly $4 million of increased Adjusted EBITDA from both third party customers and growth from our Virginia HRM properties. Our TwinSpires Horse Racing business saw an increase in revenue and a modest decline in Adjusted EBITDA in the first quarter, primarily due to incremental legal expenses related to our legal team's successful outcome regarding TwinSpires’ right to accept horse racing wagers in the state of Michigan.

在我們的薪資服務和解決方案部門，調整後的 EBITDA 與去年同期相比成長了近 200 萬美元，即 4%。Exacta 業務貢獻了近 400 萬美元的調整後 EBITDA，這些貢獻來自第三方客戶和我們維吉尼亞州 HRM 資產的成長。我們的 TwinSpires 賽馬業務在第一季收入有所增加，調整後 EBITDA 則略有下降，這主要是由於我們的法律團隊成功獲得 TwinSpires 在密西根州接受賽馬投注的權利，導致法律費用增加。

And last, regarding our gaming business, our wholly owned regional gaming properties performed relatively well in the first quarter given the regional gaming softness, increased competition, one less thing in the first quarter this year due to the 2024 leap year, and the impact of weather and competition at certain of our properties. Regional gaming consumer behavior and first quarter remain consistent with recent quarters. We see strength at the higher end and with rated play and weakness at the lower end and with unrated play across our properties.

最後，關於我們的博彩業務，考慮到區域博彩業疲軟、競爭加劇、今年第一季由於 2024 年閏年而減少一項，以及我們某些博彩業受到天氣和競爭的影響，我們全資擁有的區域博彩業在第一季度表現相對較好。區域遊戲消費者行為與第一季與最近幾季保持一致。我們看到，我們的資產在高端和評級遊戲中表現強勁，而在低端和未評級遊戲中表現疲軟。

Regarding our Terre Haute Casino Resort in Indiana, this property delivered nearly $12 million of Adjusted EBITDA in the first quarter. Our Terre Haute property continues to perform well with margins that are in the top quartile of performance for regional gaming properties.

關於我們位於印第安納州的 Terre Haute 賭場度假村，該物業在第一季度實現了近 1200 萬美元的調整後 EBITDA。我們的 Terre Haute 博彩物業繼續表現良好，利潤率在區域博彩物業中處於前四分之一。

Overall, our first quarter same store, wholly owned casino margins were down 2.1 points compared to the same period in 2024, primarily driven by our New York, Pennsylvania, and Maine properties.

總體而言，我們第一季的同店全資賭場利潤率與 2024 年同期相比下降了 2.1 個百分點，主要原因是我們的紐約、賓州和緬因州的賭場。

Turning to capital management, we generated $234 million or $3.15 per share of free cash flow in the first quarter, primarily from the strong cash flow generated from our businesses.

談到資本管理，我們在第一季產生了 2.34 億美元或每股 3.15 美元的自由現金流，主要來自我們業務產生的強勁現金流。

Regarding maintenance capital, we spent $13 million in the first quarter. Based on a review of our maintenance capital plans for the year, we have reduced our 2025 maintenance capital projection by $10 million to $90 million to $100 million.

至於維護資金，我們在第一季花了 1300 萬美元。根據對今年維護資本計畫的審查，我們將 2025 年維護資本預測減少了 1,000 萬美元，降至 9,000 萬美元至 1 億美元。

Regarding project capital, we spent $68 million in the first quarter. Based on the pausing of the multi-year project at Churchill Downs Racetrack, we've reduced our 2025 project capital forecast by $100 million to $110 million. We are now anticipating that our project capital for 2025 will be between $250 million and $290 million.

關於專案資本，我們在第一季花了6800萬美元。由於丘吉爾唐斯賽馬場多年計畫的暫停，我們將 2025 年計畫資本預測減少了 1 億美元，至 1.1 億美元。我們現在預計 2025 年的專案資本將在 2.5 億至 2.9 億美元之間。

Regarding share repurchases and dividends, in March, we announced that our board approved a new common stock repurchase program of up to $500 million. We repurchased nearly 800,000 shares in the first quarter under our share repurchase programs. Combined with the annual dividend we paid in January, we have returned nearly $120 million to our shareholders so far this year.

關於股票回購和股息，3 月份，我們宣布董事會批准了一項高達 5 億美元的新普通股回購計畫。我們根據股票回購計畫在第一季回購了近80萬股。加上我們一月份支付的年度股息，今年迄今我們已向股東返還近 1.2 億美元。

At the end of the first quarter, our bank covenant net leverage was 4.0 times. Based on our capital investments and anticipated share repurchases, we expect our bank covenant net leverage to remain in the 4 times range for the remainder of the year. We then expect our bank covenant net leverage to decline in 2026 to between 3.6 times and 3.8 times.

一季末，本行契約淨槓桿率為4.0倍。根據我們的資本投資和預期的股票回購，我們預計今年剩餘時間內銀行契約淨槓桿率將維持在 4 倍左右。我們預計，到 2026 年，銀行契約淨槓桿率將下降至 3.6 倍至 3.8 倍之間。

Overall, we are pleased with the record results that our team delivered in the first quarter. Our leadership team has a demonstrated track record of leading, managing, adapting, and pivoting during various economic cycles. We are well positioned to continue to grow through the remainder of 2025 and into 2026, fueled by the tangible pipeline of growth initiatives that Bill discussed.

總體而言，我們對團隊在第一季取得的創紀錄的業績感到滿意。我們的領導團隊在各種經濟週期中都有著優秀的領導、管理、適應和調整能力。在比爾討論的一系列切實的增長計劃的推動下，我們已做好準備，在 2025 年剩餘時間和 2026 年繼續保持增長。

This is truly a special time of the year for our company. We will continue our rich and spectacular traditions at this year's 151st Derby. I look forward to sharing this remarkable experience with many of you in person next week.

對我們公司來說，這確實是一年中一個特別的時刻。我們將在今年的第 151 屆德比大賽上延續我們豐富而精彩的傳統。我期待著下週與你們中的許多人親自分享這段非凡的經歷。

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，以便他可以開始提問。帳單？

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

謝謝你，瑪西婭。我們現在準備好回答您的問題。

(Operator Instructions)

（操作員指示）

Chad Beynon, Macquarie.

麥格理銀行的查德貝農 (Chad Beynon)。

Hi, good morning. Thanks for taking my question and all the prepared remarks. Well, Marcia, I just wanted to ask about the a little bit of the softness that you're seeing, I guess for the quarter and particularly in the last few weeks as we've heard from a lot of your peers, have you seen that accelerate in terms of the decline or with all the certainty that's been out there, has that been pretty consistent with that that low end player I guess when it's when it started to drop? Thank you.

嗨，早安。感謝您回答我的問題以及所有準備好的發言。好吧，瑪西婭，我只是想問一下您所看到的一些疲軟現象，我想就本季度而言，特別是過去幾週，正如我們從許多同行那裡聽到的那樣，您是否看到這種下滑趨勢在加速，或者可以肯定地說，這是否與低端播放器開始下滑時的情況相當一致？謝謝。

Sure. Thanks, Chad. So I think what we see across the board is some hesitancy with just the volatility in the macroeconomic environment and the uncertainty over tariffs and things like that. So certainly, it's most evident in our lower tiered or unrated play, and that's the segment of play in our casinos over which we have the least amount of control.

當然。謝謝，乍得。因此，我認為，我們普遍看到的是，由於宏觀經濟環境的波動以及關稅等因素的不確定性，人們存在一些猶豫。因此，當然，這在我們較低或未評級的遊戲中表現得最為明顯，而這也是我們賭場中控制力最少的遊戲部分。

Of course, as you get into the upper tiers, we can -- we have a relationship with those people and we have a very much a 360 degree view of their behavior, so we're able to communicate with them and we're able to incent them to come. So we have a better opportunity to manage that, but certainly for us consistent. So far it's been consistent over the last number of quarters.

當然，當你進入上層時，我們可以——我們與這些人建立了關係，我們對他們的行為有非常全方位的了解，所以我們能夠與他們溝通，我們能夠激勵他們前來。因此，我們有更好的機會來實現這一點，但對我們來說肯定是一致的。到目前為止，過去幾個季度的情況一直保持一致。

But I think the theme that we think we see out there is it's just some hesitancy in the overall market. It's not that we know or have information that they have less money in their wallets. We don't know that for sure, but perhaps just some hesitancy that we're managing through. And of course we're best able to manage that with the customers who are in our database because we can incent them in and communicate with them.

但我認為我們看到的主題是整個市場存在一些猶豫。我們並不知道或掌握有關他們錢包裡的錢變少的信息。我們對此並不十分確定，但也許只是我們正在克服的一些猶豫。當然，我們最擅長管理的是資料庫中的客戶，因為我們可以激勵他們並與他們溝通。

Thank you.

謝謝。

Barry Jonas, Truist.

巴里·喬納斯，Truist。

Hey guys, good morning, appreciate the commentary on Derby 151 and expectations for this year to look like last year. Can you maybe, talk a little bit about how you see that compositionally? I just want to be clear with the recent macro noise, are you seeing any impact on international visitation? Thanks.

嘿，大家早上好，感謝您對 Derby 151 的評論以及今年與去年相似的期望。您能否從構圖角度稍微談談您對此的看法？我只是想弄清楚最近的宏觀噪音，您是否看到對國際訪問有任何影響？謝謝。

Sure. Thanks for the question, Barry. I'll take those in reverse. No, we're not seeing any material change in international visitation. It's hard to roll that up right at the moment, but I suspect it might even be better, but it certainly isn't worse as far as we're aware of right now.

當然。謝謝你的提問，巴里。我將反過來做這些。不，我們沒有看到國際遊客數量有任何實質的變化。目前很難得出結論，但我認為情況可能會更好，但就我們目前所知，情況肯定不會更糟。

So in general with the Derby, the Derby is a very strong event that continues to grow and is getting stronger year to year in general. We had a significant uptake last year with Derby 150, as I commented in my remarks. That was a big step up in in all of our financial metrics, and I'm pleased that this year we're going to be comparable to that and I think our growth trajectory will continue from there.

因此，總體而言，德比大賽是一項非常重要的賽事，並且總體上每年都在不斷發展壯大。正如我在發言中所說，去年德比 150 賽事取得了顯著的成績。這是我們所有財務指標的一大進步，我很高興今年我們將達到這一水平，我認為我們的成長軌跡將繼續保持下去。

In terms of the customers this year, I don't see any real concerns or weaknesses in the upper tier seats that we have, and I think it's pretty strong throughout. I would say over the last eight or nine weeks, I think in the in the lowest tier, which are not inexpensive tickets, call them $1,000-plus tickets. We've seen less demand for those that we've seen historically, but still strong demand, and I think when you see this Derby this year, it'll look like every other Derby, it'll be a packed house.

就今年的客戶而言，我沒有看到我們的上層席位有任何真正的擔憂或弱點，而且我認為整體情況相當強勁。我想說，在過去的八九周里，我認為最低級別的票價並不便宜，票價都在 1,000 美元以上。我們看到，與歷史上相比，人們對這些比賽的需求有所減少，但需求仍然強勁，而且我認為，當你看到今年的德比時，它看起來會像其他德比一樣，座無虛席。

Thank you.

謝謝。

David Katz, Jefferies.

傑富瑞的戴維·卡茨。

Hi, good morning. Thanks for taking my question. I wanted to just continue down that same avenue a bit. So if we start looking past this year's Derby and a little longer term and given the announcement about some of the capital plans being temporarily on hold, how can you help us think about the sort of progression of growth or earnings power for the Derby as we look out over the next few years? Obviously not looking for a firm guide, but some qualitative input on how we think it can grow and what the drivers of that are. And some macro assumption, I assume is required there.

嗨，早安。感謝您回答我的問題。我只是想繼續沿著同一條路走下去。因此，如果我們開始回顧今年的德比大賽並放眼更長遠的未來，考慮到一些資本計劃暫時擱置的公告，您如何幫助我們思考未來幾年德比大賽的增長或盈利能力的進展？顯然，我們並不是在尋求一個明確的指導，而是在尋求一些關於我們認為它如何發展以及其驅動因素的定性意見。我認為那裡需要一些宏觀假設。

Sure. That's a good question, David. Let me do the best I can to help you through it. So first, you'll see next year that the NBC contract kick in with those economics and also as I referenced a moment ago, seeing strong demand for Derby tickets, but not as much in the lower tier, especially with the new area that we've introduced, the Starting Gate Pavilion.

當然。這是個好問題，大衛。讓我盡力幫助你度過難關。首先，您將看到明年 NBC 合約將與這些經濟因素一起發揮作用，而且正如我剛才提到的那樣，德比門票的需求強勁，但在較低級別的門票需求並不大，尤其是我們推出的新區域起跑門展館。

And there I think what we've seen over the last number of years when we introduce a new area we've been able to go right to the price that we target as our long term price and then grow off that. I think when we look at this year, we weren't able to take that same kind of price that we've taken in previous year where we go right to our three year or at maturity type price for a new area. So I think as people experience the new section, I think you'll see more pricing power there.

我認為，正如我們在過去幾年中看到的那樣，當我們引入一個新領域時，我們能夠直接達到我們設定的長期價格，然後以此為基礎實現成長。我認為，當我們回顧今年時，我們無法採取與去年相同的價格，即直接採用新領域的三年期或成熟期價格。因此我認為，隨著人們體驗新的部分，你會看到更多的定價權。

And as we develop more experiences you'll see us be able to take more price. So part of our plan for the Derby, as it's always been, is to develop new areas, introduce people to those areas, and be able to yield price as they appreciate the value of the experience.

隨著我們經驗的積累，您會發現我們能夠提供更高的價格。因此，正如往常一樣，我們對德比的計劃的一部分是開發新的區域，向人們介紹這些區域，並在人們欣賞體驗的價值時提供價格。

That chain this year in 2025, in my opinion, took a little bit of a jolt because we didn't have the endless pool of demand that we've seen in prior years. So, I think this year we'll prove it with the new area and so when you get to 2026, I think you'll be able to see us take more price there and we'll continue that model.

在我看來，2025 年的這家連鎖店受到了一點衝擊，因為我們沒有前幾年看到的無限需求。所以，我認為今年我們會用新領域來證明這一點，所以到 2026 年，我想你會看到我們在那裡獲得更高的價格，我們將繼續這種模式。

We see growth in wagering. We see growth in sponsorships. We see smart growth in ticketing based on improving the experiences and yielding those experiences over time. So, nothing's changed. You'll see international improvement.

我們看到投注量在成長。我們看到贊助數量正在增加。我們看到，票務業務將隨著體驗的改善和隨著時間的推移而不斷增長。所以，什麼都沒有改變。你會看到國際上的進步。

Nothing's really changed in the formula. I think what we ran into over the last eight or nine weeks was hesitancy, and boy, oh boy, I'm proud of our team for how we've adjusted for that as we go into the 2026 Derby, we're prepared.

公式實際上沒有任何改變。我認為我們在過去八九週遇到的就是猶豫，天哪，我為我們的團隊感到驕傲，因為我們在參加 2026 年德比時已經做出了調整，我們已經做好了準備。

We understand this market and we'll be going into the market functioning with an understanding of -- there was a hit to the coffer of the American consumer, which I think a lot of businesses are seeing, most businesses are seeing, and we'll adjust and perform accordingly.

我們了解這個市場，我們將帶著這樣的理解進入市場——美國消費者的金庫受到了打擊，我認為很多企業都看到了這一點，大多數企業都看到了這一點，我們將進行相應的調整和運作。

Thank you.

謝謝。

Jordan Bender, Citizens.

喬丹·本德，公民。

Morning everyone. Bill, the implementation of the electronic table games isn't a surprise. But does seem fairly significant from a positive perspective with the wheels now in motion. Can you maybe just expand on the size and scope of rolling those out as well as are those going to be subject to a different tax rate, across your various jurisdictions?

大家早安。比爾，電子桌面遊戲的實施並不令人意外。但從正面的角度來看，隨著一切進展順利，這確實具有相當重要的意義。您能否擴大推行這些政策的規模和範圍，以及在不同的司法管轄區內，這些政策是否會適用不同的稅率？

And then I do just want to do one follow up here on the Derby. When you say comparable, are you relating that to revenue or EBITDA? Thank you.

然後我確實想對德比進行一次跟進。當您說可比時，您是指收入還是 EBITDA？謝謝。

Sure. So I'll take those in order. So increasingly the challenge around HRM table games is not a technological one. It's really a regulatory challenge and a taxation challenge. So I want to be candid but also cautious because those are the things we're solving for as we look at what jurisdictions we can roll these out in and how we do so.

當然。所以我會按順序進行。因此，人力資源管理桌上遊戲面臨的挑戰不再是技術挑戰。這確實是一個監管挑戰和稅收挑戰。因此，我希望坦率但謹慎，因為這些都是我們正在解決的問題，我們正在研究可以在哪些司法管轄區推行這些政策以及我們如何推行這些政策。

From a product perspective -- from a technology challenge perspective, we've done a pretty good job of working with key suppliers to handle those. So this will be a process that we take slowly and conservatively to help regulators.

從產品角度、從技術挑戰角度來看，我們在與主要供應商合作處理這些問題方面做得相當不錯。因此，我們將緩慢而保守地採取這一過程來幫助監管機構。

And our teams and our customers adapt to this new product. So I ask that there's patience on that. It's a real great development for us, it's part of the underlying growth that you have in HRMs, the continuous constant improvement in product and capability, but with that takes time to gain acceptance in the marketplace both from a regulatory perspective and from a customer perspective and with respect to issues like taxation, there are lots of reasons, as for variations in tax rates between table games and traditional slot light games, and that's something we have to take one at a time with legislators to make that case. Sorry, what was the other question again?

我們的團隊和客戶都適應了這個新產品。因此我請求大家對此保持耐心。對我們來說，這是一個真正偉大的發展，這是人力資源管理中潛在增長的一部分，是產品和能力的持續改進，但從監管角度和客戶角度來看，這需要時間才能獲得市場認可，至於稅收等問題，有很多原因，比如桌面遊戲和傳統老虎機遊戲之間的稅率差異，我們必須與立法者逐一討論這個問題，以證明這一點。抱歉，另一個問題是什麼？

Oh, Derby comparable, yeah, sorry -- yeah, when I speak of comparability, I speak of primarily Adjusted EBITDA, but I think pretty consistently across all the major metrics, but certainly Adjusted EBITDA, and I think you'll see some higher and some lower, but across all of them comparable and the most critical one, the ultimate one is the economic performance as a whole, which is Adjusted EBITDA. So that's what we're talking about.

哦，德比可比，是的，抱歉 - 是的，當我談到可比性時，我主要談論的是調整後的 EBITDA，但我認為所有主要指標都相當一致，但肯定是調整後的 EBITDA，我認為你會看到一些更高和一些更低，但所有這些都是可比的，而最關鍵的是，最終的是整體的經濟表現，即調整後的 EBITDA。這就是我們正在談論的。

Thank you.

謝謝。

Daniel Guglielmo, Capital One Securities.

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

Hi everyone, thank you for taking my question. I know you all are very tactical about the growth projects and plans. They're always presented in a very organized way and it shows how serious you all take it. With last night's announcement pausing much of the penciled spend for 2026 through 2028, can you just talk about any of the other growth opportunities you see at existing properties that maybe you're dusting off as this macro uncertainty plays out?

大家好，感謝你們回答我的問題。我知道你們對於成長項目和計劃都非常有策略。它們總是以一種非常有條理的方式呈現，這表明你們對此非常認真。由於昨晚的公告暫停了 2026 年至 2028 年的大部分預定支出，您能否談談在這種宏觀不確定性的影響下，您在現有物業中看到的任何其他增長機會，也許您正在重新考慮這些機會？

I -- would you mind repeating that question because for some reason, I lost a key phrase of it. Would you mind just stating that again?

我——你介意重複一下這個問題嗎？因為某種原因，我忘記了其中的一個關鍵字詞。您介意再說一次嗎？

Yeah, sorry about that. Now you guys are very tactical about the growth projects and plans and take it very serious. So with late last night's announcement causing much of the penciled spend for 2026 to 2028, can you just talk about any other growth opportunities you see at kind of other existing properties that maybe you're dusting off, as you kind of wait for the macro to play out.

是的，很抱歉。現在你們對於成長項目和計劃非常有策略性，而且非常認真地對待它。因此，鑑於昨晚深夜發布的公告導致 2026 年至 2028 年的大部分預計支出，您能否談談您在等待宏觀經濟發揮作用的同時，可能正在重啟的其他現有資產中看到的任何其他增長機會。

Yeah. So first, I just want to remind everybody that we're pausing the big project at Churchill Downs Racetrack. Whenever we make investments around Churchill, we are tethered to the fact that we hold this event every year on the first Saturday in May.

是的。首先，我想提醒大家，我們正在暫停丘吉爾唐斯賽馬場的大型項目。每當我們圍繞邱吉爾進行投資時，我們都會牢記這樣一個事實：我們每年五月的第一個星期六都會舉辦這項活動。

So we make these decisions for the year so you don't delay or pause it for a month. You need to delay and pause it for a year because every year you have to be ready for the next Kentucky Derby. So starting with the Derby, I'd say I just want to emphasize this is a pause. We want the macroeconomic environment to calm down a little bit because when it comes to cost on things like construction items a lot of those things either come from China or the price in the market for those items are influenced by the supply of those items that come from China.

因此，我們將在全年做出這些決定，以便您不會將其拖延或暫停一個月。你需要推遲並暫停一年，因為每年你都必須為下一屆肯塔基賽馬會做好準備。因此，從德比開始，我想強調的是，這是一個暫停。我們希望宏觀經濟環境能夠稍微平靜下來，因為當涉及建築項目等的成本時，許多這些東西要么來自中國，要么這些物品的市場價格受到來自中國的物品供應的影響。

So we need some of that to calm down before we can undertake something like a $900 million project. The project I'm convinced will still make great sense, but whenever we do a project, we do it from the perspective of trying to get it to a single variable equation as much as we can with that single variable being how many tickets are we going to sell and at what price point and over what period of time.

因此，我們需要先冷靜下來，然後才能開展 9 億美元的計畫。我確信這個項目仍然很有意義，但是每當我們做一個項目時，我們都會盡可能地從單變量方程的角度來做，這個單變量就是我們要賣出多少張票、以什麼價格、在什麼時間段內賣出。

We don't like to have the additional variable of what is this thing going to cost us to build that we like to manage and treat that as a as a certainty and not a variable. Right now, we can't do that on a major project because of the macroenvironment.

我們不喜歡有額外的變量，例如建造這個東西要花多少錢，我們喜歡管理它，把它當作一個確定性的事情，而不是一個變數。目前，由於宏觀環境的原因，我們還不能在重大專案上做到這一點。

So Churchill Downs, I expect, hey, we'll pause this year, wait for the macro stuff to settle down, and then it's full speed ahead with whatever relevant and smart changes makes sense based on events that we can't predict.

所以邱吉爾唐斯，我預計，嘿，我們今年會暫停一下，等待宏觀因素穩定下來，然後全速推進任何基於我們無法預測的事件的相關且明智的變化。

I think across the company, you're seeing organic growth in many of our Kentucky properties, it's a shame there's hesitancy with the consumer right now in general, but we're growing through that. I mean that's being absorbed and we're still growing in many of our properties, so Kentucky shows a lot of strength.

我認為在整個公司範圍內，你會看到我們在肯塔基州的許多物業都實現了有機增長，遺憾的是目前消費者普遍存在猶豫，但我們正在通過這種方式實現增長。我的意思是，這些都被吸收了，而且我們的許多資產仍在增長，因此肯塔基州顯示出了很大的實力。

The Rose has a lot of strength to come. We have the Richmond project, the Henrico project, the continued expansion of the Rose, plus we think we have our 5,000 unit limit which we're not at yet. We're at about 4,450 or so. We'll look to push to that 5,000 and then beyond if we have the support of the legislature.

玫瑰還有很大的發展空間。我們有里士滿計畫、亨利科計畫、羅斯的持續擴張，另外我們認為我們已經達到了 5,000 個單位的限制，但目前還沒有達到。我們大約有 4,450 人。如果我們得到立法機構的支持，我們將努力將這一數字提高到 5,000 甚至更高。

I think New Hampshire is still something we're looking very hard in and that we believe in. We just had a bunch of technical problems we need to solve, so I like that. So essentially there are lots of ways we will be growing this company. I think all three segments that we have will show growth, and we have plenty of opportunities there, and it's really just managing cost and keeping a close eye on our balance sheet and keeping a close eye on the macroenvironment to sequence what we want to do first.

我認為新罕布夏州仍然是我們正在努力關注並且相信的地方。我們只是遇到了一些需要解決的技術問題，所以我喜歡這樣。因此，從本質上來說，我們有很多方法可以發展這家公司。我認為我們所有的三個部門都將呈現成長，我們在那裡有很多機會，這實際上只是管理成本，密切關注我們的資產負債表，密切關注宏觀環境，以確定我們首先要做的事情的順序。

Because, while we all support and want to pursue maximum growth and generally do in an environment where there's uncertainty, particularly on cost side, we want to be smart about how we do it so that our balance sheet remains what we think it should be and what and what the market thinks we should be at too.

因為，雖然我們都支持並希望追求最大限度的成長，並且通常在存在不確定性的環境中這樣做，特別是在成本方面，但我們希望明智地做到這一點，以便我們的資產負債表保持我們認為應該的狀態以及市場認為我們應該處於的狀態。

Thank you.

謝謝。

Jeff Stantial, Stifel.

傑夫·斯坦蒂爾（Jeff Stantial），Stifel。

Hey, good morning, Bill, Marcia. Thanks for taking our questions. I wanted to ask on trends in in Virginia for your existing assets, so excluding Dumfries, now that you anniversary, the removal of the skill games and have a bit of a cleaner read on call it normalized growth.

嘿，早上好，比爾，瑪西婭。感謝您回答我們的問題。我想問一下弗吉尼亞州現有資產的趨勢，所以不包括鄧弗里斯，現在你們週年紀念日，取消技能遊戲，並且有一點更清晰的解讀，稱之為正常化增長。

I'm curious just how you think about the overall maturity of those assets or in other words one ending of the of the ramp cycle that you think you might be in, obviously it's an iterative process and even your more mature HRM facilities are still growing. But just curious how you think about the opportunity is still remaining to drive awareness and trailing for those assets. Thanks.

我很好奇您如何看待這些資產的整體成熟度，或者換句話說，您認為您可能處於的爬坡週期的一個末期，顯然這是一個迭代過程，甚至更成熟的 HRM 設施仍在增長。但我只是好奇您如何看待仍然有機會提高人們對這些資產的認識和追蹤。謝謝。

Yeah. I think it was a really, how do I feel about Virginia? I feel great about it. It's still very early in our history in Virginia and in the maturity of these assets in Virginia. So I feel great on Virginia. This was a noisy quarter. We had some severe weather events. We also have this tax fluctuation and then we have had also some softness which I hope you appreciate. I'm very candid about. I see that generally across the American economy. We'll handle it better than most.

是的。我認為這真的是，我對維吉尼亞有什麼感覺？我對此感覺很好。我們在維吉尼亞州的歷史以及維吉尼亞州的資產成熟度仍處於早期階段。所以我對維吉尼亞的感覺很好。這是一個喧鬧的季度。我們遭遇了一些惡劣天氣事件。我們的稅收也存在波動，但也有一些寬鬆的政策，希望您能理解。我非常坦誠。我普遍認為，美國經濟存在這樣的情況。我們會比大多數人處理得更好。

So we had some noise in Virginia, also some new competition that's been ramping up in the very south that affects our Vinton facility in particular. So we've had some noise in Virginia this quarter, but be patient on that. This is a great market and this is a great product that we have and a great development opportunity for our company.

因此，我們在維吉尼亞州遇到了一些麻煩，同時在最南部也出現了一些新的競爭，這尤其影響到我們的 Vinton 工廠。因此本季我們在維吉尼亞州聽到了一些動靜，但請耐心等待。這是一個巨大的市場，這是我們擁有的一個出色的產品，對我們公司來說也是一個很好的發展機會。

So I'm very bullish on Virginia and I think our team is doing an excellent job with respect to what is within their control and what's not in our control, we plan around to the best that we can, but lots of strength there. And I'm actually quite pleased with how that team performed and how those assets performed through that quarter.

因此，我對維吉尼亞非常看好，我認為我們的團隊在他們能控制的和我們無法控制的方面做得非常出色，我們盡最大努力製定計劃，但實力雄厚。事實上，我對該團隊的表現以及這些資產在該季度的表現感到非常滿意。

Thank you.

謝謝。

Joe Stauff, Susquehanna.

喬·斯托夫，薩斯奎漢納。

Thanks. Good morning, Bill, Marcia. Bill, I wanted to ask you we're always trying to kind of figure out different certainly parts of the consumer segment you talked about the lower end, but you did say on your best customers or not using those words, but your rated customers, it's easier to manage. Is there a way that I can ask with respect to is the higher end, say flattish and growing and say the more mid-grade sort of rated players, is that still growing? Can you give us some commentary on that?

謝謝。早安，比爾，瑪西亞。比爾，我想問你，我們一直在嘗試找出不同的消費者群體，當然你談到的是低端消費者，但你確實說過你的最佳客戶，或者不使用這些詞，但你的評級客戶，更容易管理。我可以問一下，關於高端球員，比如說持平和成長，以及中等的球員，是否仍在成長？您能對此發表一些評論嗎？

Sure. Happy to take a market like Northern Virginia with The Rose. Well, we opened that in early November of 2024, so we haven't had an opportunity yet to build out that market to identify those customers and get them into the database and get an extended period of time where we can evaluate their behavior and that's true of a lot of our markets, particularly on the HRM side. We haven't had them open for 5 or 10 years. We haven't had a chance to fully build out the data on each of these.

當然。很高興能用 The Rose 佔領北維吉尼亞這樣的市場。嗯，我們在 2024 年 11 月初開設了這個市場，所以我們還沒有機會建立這個市場來識別這些客戶並將他們放入資料庫並獲得一段較長的時間來評估他們的行為，我們的許多市場都是如此，特別是在人力資源管理方面。我們已經有五年或十年沒有開過它們了。我們還沒有機會全面收集每一項的數據。

On the customers in each of these facilities and so the more time we have to do that, the more we know whether they're at their ceiling or not and in general, we don't know that in general, these are not mature properties on the HRM side and we haven't had time to fully develop them so that's a great thing as a company because it's lots of growth to come.

對於每個設施中的客戶，我們花的時間越多，我們就越了解他們是否已經達到了極限，總的來說，我們不知道，這些在人力資源管理方面還不是成熟的資產，我們還沒有時間去充分開發它們，所以對於一家公司來說，這是一件好事，因為未來還有很大的成長空間。

And so generally I view that more as an opportunity than a hindrance, but certainly the more you can talk to your customers if there is an economic downturn or some hesitancy in the market, the better off that you are because you have tools that allows you to incent customers and keep them engaged and that's one of the values of the casino space in general or the gaming space in general for those that are in your player databases a lot about their behavior and their spend, their frequency, et cetera.

因此，總的來說，我認為這更多的是一個機會而不是障礙，但如果出現經濟衰退或市場猶豫不決，你與客戶溝通的次數越多，你的境況就越好，因為你擁有可以激勵客戶並讓他們保持參與的工具，而這正是賭場或遊戲領域的價值之一，因為你的玩家資料庫中有很多關於他們的行為、支出、頻率等的信息。

And what they respond to in terms of incentives to make extra trips or to invest more. So I think in general that's a better area for us to manage, but I would say also that -- yeah, I reached the C-suite, I was in the President and COO role back in 2009, and this business holds up well in in economic tumultuous times. We're not there yet, this doesn't look like 2009. This is not what it was like at that time. I went through those experiences with gaming assets.

以及他們對額外出行或更多投資的激勵措施的反應。因此我認為總體而言這是我們管理起來更好的一個領域，但我還要說的是——是的，我達到了高管級別，早在 2009 年我就擔任總裁兼首席營運官，而且這項業務在經濟動盪時期表現良好。我們還沒有到達那裡，這看起來不像 2009 年。這與當時的情況不同。我透過遊戲資產經歷了這些經驗。

So -- but we're prepared for that and we'll respond well to that and it starts with working with and in sending the customers that we know a lot about. So in our more mature properties we have a 360 degree view of them and we've known them for a long time.

所以 — — 但我們已經為此做好了準備，我們會對此做出良好的反應，首先要與我們非常了解的客戶合作並向他們發送訊息。因此，對於我們更成熟的資產，我們可以對它們進行 360 度全方位的觀察，並且我們已經了解它們很長時間了。

And in our less mature properties we have the data that we have. But I think The Rose is a nice example of one where we haven't had time to build that yet. We're in the process of doing that and the more time we have the better we'll continue to perform.

在我們不太成熟的資產中，我們擁有我們所擁有的數據。但我認為《玫瑰》是一個很好的例子，我們還沒有時間去建造它。我們正在這樣做，我們擁有的時間越多，我們的表現就會越好。

Ben Chaiken, Mizuho.

瑞穗的本‧查肯 (Ben Chaiken)。

Hey, thanks for taking my question. Apologies if I missed it. Would love to see how you're thinking about capital allocation and specifically buybacks, given you essentially just, freed up $900 million on the balance sheet. I guess, does that allow you to be more aggressive on repurchases essentially? Thanks.

嘿，謝謝你回答我的問題。如果我錯過了，請見諒。很想看看您是如何考慮資本配置和特別是回購的，因為您基本上剛剛在資產負債表上釋放了 9 億美元。我想，這是否從本質上讓你更積極地進行回購？謝謝。

Sure. I mean it can, every time it's always a question of where best to place our capital. Sometimes that stock buybacks always a component is healthy, but we always are deciding where best to place our capital where we think we can get the best return for our shareholders and certainly one tool of that is share buyback and we've been taking advantage of that. I wouldn't comment on whether we're going to change what we're doing on that front. We're evaluating the current market like everybody else.

當然。我的意思是可以，每次都是一個將我們的資本投入到最佳位置的問題。有時股票回購總是一個健康的組成部分，但我們總是在決定將資本投入到我們認為可以為股東帶來最佳回報的最佳地方，當然其中一個工具就是股票回購，我們一直在利用這一點。我不會評論我們是否會改變我們在這方面的做法。我們和其他人一樣正在評估當前的市場。

Maybe there's an opportunity relatively in the near future where asset values go down and we see something we like, there's lots of theoreticals of what we can do, but it's part of my job, Marcia's job, Bill Mudd's job, it's part of our jobs to decide where best to invest our company's capital, and this is an interesting time to make those decisions and some of the dynamics have changed, but I can't say I see a sea change right now that demands significantly different behavior.

也許在不久的將來會有一個機會，當資產價值下降時，我們會看到一些我們喜歡的東西，關於我們可以做什麼有很多理論，但這是我的工作的一部分，也是瑪西婭的工作，也是比爾·馬德的工作，也是我們工作的一部分，決定將公司資本投資於何處最好，這是一個做出這些決定的巨大時刻，一些動態行為已經發生了不同

We're early -- we're early, and we're not sure if this is a hiccup or something more permanent with our economy. Don't think it is, but we don't know for sure. So we'll just -- we'll keep our powder and use it as we see appropriately.

我們來得還早──我們還不確定這是我們經濟的暫時障礙還是更持久的現象。我認為不是，但我們也不確定。因此，我們只會保留我們的粉末並根據我們認為適當的方式使用它。

Shaun Kelley, Bank of America.

美國銀行的肖恩凱利 (Shaun Kelley)。

Hi, good morning everyone. Thank you for taking my question. Bill in the prepared remarks you talked a little bit about some changes you could make at the Derby for next year as you just kind of think about understanding the customer and what's kind of going on there a little bit in terms of that sounded a little maybe too late to make bigger pivots or changes this year.

大家早安。感謝您回答我的問題。比爾，在準備好的發言中，你談到了明年在德比大賽上可以做出的一些改變，因為你只是想了解客戶以及那裡正在發生的事情，這聽起來可能有點太晚了，無法在今年做出更大的轉變或改變。

I was just wondering if you could discuss a little bit more, kind of theoretically what some of those changes might look like. Is that just a difference in how you kind of tier products or pricing, is there some other element to that and does it even, filter into how you kind of allocate capital there? Thanks.

我只是想知道您是否可以從理論上進一步討論一下這些變化可能是什麼樣的。這是否只是產品分級或定價方式的差異，還有其他因素嗎？它是否會影響您如何分配資本？謝謝。

The Derby's 151 years old, so I don't ever think it makes sense to make major material changes without lots of data, but the thing about the Derby is we do have lots of data. So what we do every year after the Derby is we get together with Bill Mudd's team and we really go through what we think we learned and we adjust accordingly.

德比大賽已有 151 年歷史，所以我認為在沒有大量數據的情況下進行重大材料變更是沒有意義的，但關於德比大賽，我們確實擁有大量數據。因此，每年德比之後，我們都會與比爾·馬德的團隊聚在一起，認真分析我們所學到的知識，並做出相應的調整。

We constantly survey our customers. We look at not only their behavior but what they say about our hospitality, about our amenities, and we adjust from there. So I don't know that I think -- I don't think for a second there's been some sort of material sea change in what our customers are going to want or expect from us going forward with the Derby, but certainly we'll be monitoring that and we can adjust.

我們不斷地對我們的客戶進行調查。我們不僅關注他們的行為，也關注他們對我們的接待和設施的評價，並據此進行調整。所以我不知道我認為——我認為我們的客戶在德比大賽中對我們的要求或期望不會發生某種實質性的變化，但我們肯定會對此進行監控並進行調整。

One thing they told us over the last number of years that there was a segment that wanted even a higher hospitality experience that wanted even more stratification from other areas. So that's something we've responded to and worked hard to meet that's things like the Paddock Club and the SI Club and now the projects we're doing, refinishing the Finish Line Suites and updating The Mansion.

過去幾年他們告訴我們的一件事是，有一部分人想要獲得更高級的飯店體驗，希望與其他領域有更大的分層。因此，我們對此做出了回應，並努力滿足這些要求，例如圍場俱樂部和 SI 俱樂部，以及現在我們正在做的項目，重新裝修終點線套房和更新大廈。

Those are some of our highest and best customers, and they tell us they want more. They want higher end, they want an even greater high-end experience and so we respond to that. With respect to the group as a whole, the customer group as a whole, there's so many segments and so much stratification within that group, and we're trying to meet and address and evaluate all of that, and we've been pretty good at that. I think what I'll counsel the team for this year is let's just make sure that we aren't hearing trends versus, one year things versus long year trends.

這些都是我們最高級、最好的客戶，他們告訴我們他們想要更多。他們想要更高端的產品，他們想要更高端的體驗，所以我們對此做出了回應。就整個集團、整個客戶群體而言，該群體內部有如此多的細分和分層，我們正在努力滿足、解決和評估所有這些問題，並且我們在這方面做得相當不錯。我認為今年我要給團隊的建議是，確保我們聽到的不是一年趨勢與長期趨勢之間的對比。

I think this is an interesting year because there has been turmoil in the macroeconomic environment so we'll just evaluate all the data that comes in after this year's Derby and maybe it'll lead to further stratification on different segment classes and maybe it won't, but that's our job to evaluate what we think our customers want.

我認為這是有趣的一年，因為宏觀經濟環境一直動盪，所以我們將評估今年德比之後得到的所有數據，也許這會導致不同細分類別的進一步分層，也許不會，但評估我們認為客戶想要什麼是我們的工作。

Brandt Montour, Barclays.

巴克萊銀行的布蘭特‧蒙圖爾 (Brandt Montour)。

Good morning everybody. Thanks for taking my question, Bill and Marcia. I'll just stay on topic here. So on the Derby comparability this year versus last year, I'm just trying to kind of think about the puts and takes, you have the Starting Gate Pavilion you said you had strong pricing there that's a good guy you've got.

大家早安。感謝比爾和瑪西亞回答我的問題。我只是繼續討論這個話題。因此，對於今年與去年的德比大賽的可比性，我只是試著思考一下投入和產出，你有起跑門亭，你說你在那裡有很強的定價，那你找的是個好人。

Presumed momentum you'd think from the new, the Netflix series that just hit. But then of course, you're comping up against the big 150. How much of the -- how much of it is just general conservatism that you're trying to convey here, due to the macro hesitancy and how much of it is there some comparability issue with the 150 we should think about or anything else I'm missing in that equation?

您可能會認為，Netflix 剛上映的新影集將帶來強勁勢頭。但當然，你要跟 150 強競爭。您試圖在此傳達的這種觀點有多少是由於宏觀猶豫而產生的普遍保守主義，又有多少是我們應該考慮的與 150 之間的可比性問題，或者我在這個等式中遺漏了什麼？

What I'm trying to do is just be, which is be very candid. There have been some macroeconomic uncertainties in sort of the macro environment, and I don't want to get on a phone call and not tell you that those aren't there. Those are real. All businesses are looking at that and trying to evaluate how they might impact their business.

我嘗試做的就是保持坦誠。宏觀環境中存在一些宏觀經濟不確定性，我不想在打電話時不告訴你這些不確定性並不存在。這些都是真實的。所有企業都在關注這一點，並試圖評估其可能對其業務產生的影響。

From our perspective, I didn't see it have a particular long term impact on the Kentucky Derby. I don't suspect that it has, and I am not particularly concerned about it, but I don't want to get on the phone and not acknowledge this macro environment that's going on. So I think we've seen a trend over the last eight or nine weeks, which correlates perfectly with some of these trade war disputes and tariffs. We've seen a difference in the lower end ticket sales for Derby. That's a fact.

從我們的角度來看，我認為它不會對肯塔基賽馬造成特別長期的影響。我並不懷疑它已經發生了，我也不是特別擔心它，但我不想在打電話時不承認正在發生的宏觀環境。所以我認為我們在過去八到九週看到了一種趨勢，它與一些貿易戰爭端和關稅完全相關。我們發現德比的低端門票銷售情況有所不同。這是事實。

We've seen a difference, but the demand is so strong for the event that it's not going to show up when you see the crowds or anything like that. But there has been a change and I acknowledge that, but I don't think you'll see it affect our performance in any material way for the event.

我們已經看到了差異，但是對該活動的需求如此強烈，以至於當你看到人群或類似的東西時，它不會出現。但確實發生了變化，我承認這一點，但我認為你不會看到它對我們在活動中的表現產生任何實質的影響。

And as we build through it to the 2026 Derby, I feel great. I feel great about what comes for 2026, but I think it's important on calls like this and having been through 2009 and having been through COVID to just be very candid and to let you know that whatever we see out there, we adjust, we plan for, we work through and I think our results reflect that.

當我們為 2026 年德比做準備時，我感覺很棒。我對 2026 年的前景充滿信心，但我認為，在這樣的電話會議上，以及經歷過 2009 年和新冠疫情之後，重要的是要非常坦誠地告訴大家，無論我們看到什麼，我們都會進行調整，進行規劃，努力解決，我認為我們的結果反映了這一點。

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

謝謝。我目前沒有其他問題。因此，我現在將電話轉回給執行長 Bill Carstanjen，請他做最後發言。

Thank you. As always, we appreciate your interest in our company and your investment in our company, and we'll be good stewards of your capital and we look forward to a week from this Saturday for the 151st Derby, and we hope as many of you as possible join us in person or watch on TV and more good things to come. Thanks everybody.

謝謝。像往常一樣，我們感謝您對我們公司的關注和投資，我們將妥善管理您的資金，我們期待從本週六開始的第 151 屆德比大賽，我們希望盡可能多的人親自加入我們或在電視上觀看，並期待更多美好的事情即將到來。謝謝大家。

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。