Churchill Downs (CHDN) Announces Dividend Increase, 3-for-1 Stock Split, and $300M Share Repurchase Program

Churchill Downs Incorporated (Nasdaq: CHDN) today announced that at its regularly scheduled meeting held on October 30, 2018, the Board of Directors approved a 7 percent increase to the Company’s annual dividend, a 3-for-1 stock split, and a new $300 million share repurchase program.

"Today's actions reflect our Board of Directors' confidence in CDI’s long-term performance and ability to deliver growth and returns to our investors," said Bill Carstanjen, CEO of CDI. “Our share price has increased considerably as we have expanded our business and we believe a stock split will increase liquidity and make equity ownership in CDI more accessible.”

Annual Dividend Increase

CDI’s Board of Directors approved an annual cash dividend of $1.63 per outstanding share, a 7 percent increase over the prior year, on CDI’s common stock, payable on January 4, 2019 to shareholders of record on December 7, 2018. This marks the eighth consecutive year that the Company has increased the dividend.

3-for-1 Stock Split

CDI’s Board of Directors also approved a 3-for-1 split of the Company’s common stock. The stock split will be effectuated by distributing to each shareholder two additional shares for every outstanding share held as of January 11, 2019. The Company expects the additional shares to be distributed on January 25, 2019, and the stock to begin trading at the split-adjusted price starting on January 28, 2019.

$300 Million Share Repurchase Program

CDI’s Board of Directors approved a new share repurchase program of up to $300 million. The new program replaces the prior $250 million program that was authorized in April 2017 and had an unused amount of $78.3 million. The new authorized amount includes and is not in addition to the unused amount remaining under the prior authorization. Repurchases may be made at management's discretion from time to time on the open market (either with or without a 10b5-1 plan) or through privately negotiated transactions. The repurchase program has no time limit and may be suspended or discontinued at any time.

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