Churchill quarterly profit dips

Churchill Downs Inc., the owner of four large racetracks in the United States, had net income of $818,000 in the third quarter of 2007, a sharp decline from the company's third-quarter profit of $8.7 million in 2006, according to financial documents released by the company Thursday.

Revenue in the quarter was $103.9 million, compared with $97 million in the third quarter last year. Churchill officials attributed the growth in revenue to stronger operating results at Arlington Park and the revenue provided by three account-wagering operations and a racing data provider the company purchased in the second quarter of this year.

Earnings before interest, taxes, depreciation, and amortization at Arlington was up from $4.1 million to $8.5 million compared with the third quarter last year, according to the statements. The same figure was down, however, at Calder Race Course, from $8 million last year to $4.9 million. Churchill Downs went from a loss of $2.6 million last year to a loss of $4 million, and the company's Louisiana operations, including Fair Grounds Race Course, went from a positive figure of $1.2 million to a loss of $330,000.

Revenue from "other investments" in the quarter, which includes the acquisitions of the second quarter, was $9.9 million. The financial statements did not provide net profits or net losses for its racetracks or the new businesses.

Total operating expenses in the quarter rose from $82.8 million to $86.3 million. Selling, general, and administrative expenses rose from $10.8 million to $13 million.