CDI releases third quarter results

Despite growth in TwinSpires.com revenue and handle, third-quarter Online

Business EBITDA declined $0.8 million, or 8 percent, primarily due to $1.0

million of expenditures related to the launch of the Company's new real money

gaming site, Luckity.com, and the continuation of spending on the development of

an exchange wagering platform; increased losses of $0.4 million from our equity

investment in horseracing television network HRTV; and severance and other

non-recurring costs of $0.6 million.

Racing Operations revenues decreased 6 percent, or $3.9 million, due to three

fewer racing days at Churchill Downs Racetrack and weather-related cancellations

at Calder Race Course. Racing Operations EBITDA decreased $19.5 million, due to

the impact of recognizing $19.3 million from the Illinois Horse Racing Equity

Trust Fund along with recognition of insurance proceeds net of losses of $0.6

million during 2011's third quarter. Partially offsetting these prior year items

were EBITDA improvements as operating efficiencies from cost control measures

more than offset the fewer live race days and weather-related cancellations.

Gaming revenues decreased $2.4 million, or 5 percent, during the quarter

largely due to continued competition in the South Florida market and the closure

of the Company's casino and video poker operations in New Orleans for five days

in September as the result of Hurricane Isaac. Gaming EBITDA decreased $1.1

million driven primarily by revenue losses at Calder Casino.

CDI Chairman and Chief Executive Officer Robert L. Evans said the Company

made a lot of progress building its portfolio of growth opportunities in the

third quarter and in the few weeks since.

"We hope to see the revenue and EBITDA growth impact of these new

opportunities starting in the fourth quarter of this year, and into 2013 and

2014, including our decision to proceed with construction of our joint venture

casino project near Lebanon, Ohio; the completion of the acquisition of

Riverwalk Casino Hotel; the launch of the real-money gaming site, Luckity.com;

and significant progress on the $15 million renovation and rebuilding of

Harlow's following the 2011 Mississippi River flood which we expect to complete

by year-end," Evans said.

"We are also pleased with the construction progress at Churchill Downs

Racetrack including the new ultra-luxury area known as The Mansion, which is 93

percent sold or committed under three- to seven-year contracts, and the new

Paddock Plaza area that will add over 200 upper-price-range seats to our

inventory for various big events next year including the Kentucky Derby, the

Kentucky Oaks and our night racing and other events," Evans concluded.

A conference call regarding this news release is scheduled for Tuesday at 9

a.m. (EST). Investors and other interested parties may listen to the

teleconference by accessing the online, real-time webcast and broadcast of the

call at

www.churchilldownsincorporated.com or

www.earnings.com, or by

dialing (877) 372-0878 and entering the pass code 59454442 at least 10 minutes

before the appointed time. International callers should dial (253) 237-1169. A

copy of the Company's news release announcing quarterly results and relevant

financial and statistical information about the period will be accessible at the

CDI website.

In addition to the results provided in accordance with U.S. Generally

Accepted Accounting Principles ("GAAP"), the Company has provided a non-GAAP

measurement, which presents a financial measure of earnings before interest,

taxes, depreciation and amortization ("EBITDA"). Churchill Downs Incorporated

uses EBITDA as a key performance measure of results of operations for purposes

of evaluating performance internally. The Company believes the use of this

measure enables management and investors to evaluate and compare, from period to

period, the Company's operating performance in a meaningful and consistent

manner. This non-GAAP measurement is not intended to replace the presentation of

the Company's financial results in accordance with GAAP.

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