Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss your leverage tolerance for the next 6 to 8 quarters, especially in light of potential new opportunities?
A: William C. Carstanjen (CEO & Director): Our target leverage range is 3 to 4x, but we are willing to exceed this for worthwhile opportunities. We've consistently managed our leverage with this flexible approach.
Q: How should we adjust our expectations for this year's Derby compared to last year?
A: William C. Carstanjen (CEO & Director): We will provide a specific range post-Derby to clarify expectations. Generally, each year builds positively on the last, and detailed specifics will be available after the event.
Q: With the strong start at Terre Haute, what are the expectations for its ramp-up to meet ROI targets?
A: William C. Carstanjen (CEO & Director): Properties typically take three years to mature fully. Terre Haute has started strong, and we expect it to continue performing well without a long wait for significant returns.
Q: Can you provide an update on the Exacta impact, particularly on Live and Historical Racing margins?
A: William C. Carstanjen (CEO & Director): Exacta is enhancing our property operations and margins. We're still exploring how to fully leverage Exacta's capabilities, and there are opportunities for growth in new jurisdictions and possibly internationally.
Q: What are your plans for the additional HRM machines in Virginia?
A: William C. Carstanjen (CEO & Director): We have more opportunities than available machines and expect to deploy the remaining 500-plus machines in 2025. We are finalizing decisions on their optimal placement.
Q: How is Derby City Downtown performing, and are there any operational challenges?
A: William C. Carstanjen (CEO & Director): It started modestly as expected, given its reliance on tourism and downtown traffic. The performance is ramping up with the seasons, and it aligns with our three-year maturity model for new properties.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.