Churchill reports $12M loss

Churchill Downs Inc., the owner of six U.S. racetracks, including Hollywood Park and Arlington Park, had a net loss of $12 million in the first quarter of 2002, $1 million more than it lost in the same quarter last year.

Revenues in the quarter were $31 million, down 2 percent from revenues of $31.7 million in the first three months of 2001. The $12 million net loss translated into a loss of 92 cents per share, compared with a net loss of 84 cents a share in 2001.

Churchill does not generally show a profit in the first quarter of the year because of extremely limited live racing opportunities among its racetracks. This year, the company had only two days of live racing in the quarter, at Calder Race Course in south Florida.

Churchill blamed the increase in its net loss on higher insurance and lobbying expenses. In the quarter, Churchill spearheaded a massive lobbying effort to legalize video-gambling machines at Kentucky racetracks.