Churchill income down

Churchill Downs Inc. had net income of $1.81 per share in the second quarter of 2005, down 12.9 percent from net income of $2.09 in the second quarter of 2004, according to financial statements released by the company late Tuesday.

Revenue in the quarter was $163.2 million, up 16.4 percent compared with revenue of $140.2 million last year. Churchill had revenue of $14.8 million in the quarter from Fair Grounds in New Orleans, a track that Churchill bought late last year.

Operating expenses increased $16.4 million, or 17.4 percent, to $110.4 million in the quarter, and administrative expenses increased $4.2 million, or 50 percent, to $12.5 million. Churchill said it had expenses of $1 million associated with a second-quarter effort to sell the company's Hollywood Park in California. In July, Churchill reached an agreement to sell Hollywood for $260 million.

In a statement, Churchill's chief executive, Tom Meeker, said that increased revenue from the Kentucky Derby and Kentucky Oaks at Churchill Downs this year made up for "soft business levels" at Churchill's other tracks. Revenue from Churchill's Kentucky operations was up $7.5 million, or 10.3 percent, to $80 million.

With the second-quarter results, Churchill has net income of 77 cents per share for the first six months of the year, compared with earnings of $1.20 a share in the first six months of last year.