Good day, ladies and gentlemen and welcome to the Churchill Downs’ Incorporated, Year-end Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session with instructions will be given at the time. (Operator Instructions) I would now like to turn the call over to Ms. Courtney Norris, Director of Corporate Communications. Please go ahead.

Thank you operator. Good morning and welcome to the Churchill Downs Incorporated conference call to review the company’s business results for the fourth quarter and full-year ended December 31, 2013. The company’s fourth quarter business results were released yesterday afternoon in a news release that has been covered by the financial media. A copy of this release announcing results and any other financial and statistical information about the period to be presented in this conference call, including any information required by Regulation G, is available at the section of the company’s website titled News located at churchilldownsincorporated.com as well as in the website’s Inventors section. Let me also note that a news release was issued advising of the accessibility of this conference call on a listen-only basis via phone and over the Internet. As we begin, let me express that some statements made during this call will be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, expectations or beliefs about future events or results, or otherwise are not statements of historical facts. The actual performance of the company may differ materially from what is projected in such forward-looking statements. Investors should refer to statements included in reports filed by the company with the Securities and Exchange Commission for a discussion of additional information concerning factors that could cause our actual results of operations to differ materially from the forward-looking statements made in this call. The information being provided today is of this date only and Churchill Downs Incorporated expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements to reflect any changes and expectations. I will now turn the call over to our Chairman and CEO, Mr. Bob Evans.

Thanks, Courtney. Good morning everyone. Thanks for joining us. With me today are Alan Tse, our General Counsel; Bill Carstanjen our President and COO; and Bill Mudd our CFO. I am going to turn this over to Bill Mudd. He is going to make a few prepared comments and then we will come back to take your questions, Bill?

Thanks Bob. Good morning everyone. After I will make a few comments about our fourth quarter and full-year results, we will be happy to answer any questions. We made a few changes to our press release to make it easier to understand the operational drivers of our financial results of our segment, hope you like the new format. Overall, it was a good year with record net revenues of $779 million, up 7% over 2012 and a relatively tough fourth quarter with net revenues up 3%. For the year, our gaming business revenues increased 33% reflecting revenues generated by Oxford which was acquired in July of 2013 and Riverwalk which was acquired in October 2012. Our Calder Casino revenues increased 1% during the year on the closure of Internet cafes and direct marketing efforts partially offset by new competition. Our Louisiana operations were roughly even with 2012, with gains in the first half of the year, but lost in a very soft fourth quarter. Our Fair Grounds Slots business also had significant road construction disruption on Gentilly Avenue for an extended period of time which impacted our customers’ ability to access the facility. Our Harlow’s property revenues were down $4.2 million or 7% despite new amenities coming online in early January, we believe these losses are primarily from continued economic weakness in the region, due to improvements at a competitors and limited incremental revenue associated with free play offers. For the fourth quarter our gaming business revenues increased by 25% as incremental revenues from Riverwalk and Oxford acquisitions were partially offset by weakness in our Louisiana operations in Harlow’s Casino. Our Fair Grounds Slots revenue declined 10% and our video poker operations declined 5% in the quarter against a very tough prior year comparable. Last year we reported fourth-quarter revenue…

Thanks Bill. That was one of the longer ones that we’ve done. We’ve spent some time as Bill mentioned on our press release and in our prepared comments here trying to make better disclosure of the information that we think is of interest the if you’ve got any thoughts or questions or suggestions let us know and we’ll try to improve it further as we go forward. With that we’ll take some questions. Destiny (Ph) if you could open up the line for questions please.

(Operator Instructions) Our first question comes from the line of Cameron McKnight of Wells Fargo. Your line is open.

Questions for Bill or Bob, TV and radio deals are roughly 11% or so of total revenues and you’ve announced that you’ve renegotiated the NBC deal. Could you give us some more color around the renegotiation given that we’ve seen a lot of sports media rights being renewed at in crisis of anything from 30% to 200%? And as a follow up do you plan on renewing any of your sponsorship deals early?

Well, on the first point I can’t really disclose the details of our arrangement with NBC but I can share sort of two thoughts with you one though as you know the market for sports media rights is extremely strong right now and this new deal reflects those market forces, exactly how I don’t want to disclose. And secondly the improved economics kick in with this year 2014 Oaks and Derby and we’ll then increase further in future year, that’s as far as I really want to go disclosing any of the details on that on. In terms of sponsorships, I’m now aware of any of that we renewed early but we have picked up a significant and still unmanned and unannounced sponsor for this Oaks and Derby in 2014 and will get back to you later.

Okay great thanks and then just to follow-up. Given the recent debt raise, several investors are asking about the potential acquisition strategy and use of proceeds, could you give us some just general thoughts on what you’re seeing out there in terms of landscape for acquisition?

Nothing has really changed. We are still looking for attractive regional gaming properties. Our selection criteria hasn’t changed, if we could do the same deal as we’ve previously done again over the next year or so, we’d be happy to do them assuming the valuation with the same. So we’re still out there looking at everything. I think we see the entire deal flow and if we find an attractive property to right valuation, we’ve got the financial resources to act.

Thank you. Our next question comes from the line of Amit Kapoor of Gabelli & Company. Your line is open. Amit Kapoor - Gabelli & Company: Could you provide us with an update on Illinois specifically the Senate deal that might see some light this year business sessions in house? And then any updates on Kentucky would be great? Thank you.

Hi Amit, it’s Bill Carstanjen. It’s always mistake it’s not a handicap, how a legislature will behave over a session but I would say both in the case with Kentucky and Illinois, we’re getting now towards the crunch time of the session. So I think as we try to read our cards as we head into this portion of both legislative sessions, we have some talk to be optimistic but as always as case our issues are wrapped up with other issues that are going on in the legislature that can affect us in ways that that are hard to predict right now. So out team is fully engaged, heavily engaged, optimistic and working hard in both those jurisdiction and that’s probably the best I could say about where we’re right now. Amit Kapoor - Gabelli & Company: Thank you. And as it’s the collation in Kentucky, is that gaining greater traction from the advantage frontiers? Do you think that’s taking place?

Amit, this is Bob. I would say that’s been a very pleasant area of success. The folks are leading that are doing a terrific job. It has over 71,000 followers on Facebook and just in the last couple of weeks it was directed in the orders 6000 emails and 1700 phone calls to Kentucky legislators. I think that’s been a very effective tool for us and the one that really coordinate or communicate the key issue in Kentucky at least which is the expanded gaming is something that good for all of Kentucky, not just the horseracing industry. I think that point has been made and has been driven home and the support we’ve got around in Kentucky when I think validates that. Amit Kapoor - Gabelli & Company: Thank you. And just on a separate note, can you talk about potential positive implications of the new video board in terms visitation, visibility and just attraction you expect on the tract from this new addition? Thanks that’s all.

Well, we’re pretty excited about this addition. It will be the first race tract anywhere that’s done anything similar to this; it will also be the largest 4K resolution video board anywhere in the world as far as we know. We’ve been working pretty diligently on the programming for the four initial points of use which will be our opening night that’s the Saturday before the Kentucky Derby we can which is one willing to do with the new video board which is we didn’t actually name at this and this become known as the big board. It also be used the rest of Oaks and Derby week and obviously on Oaks and Derby days themselves. And it will be used in a more traditional way thereafter. We’ve engaged in outside company. They’re helping us with programming. We have hours of programming here to provide and we work pretty diligently on the effort to attract sponsors. We’ve got one so far and we probably will end up with the couple of others. My guess is it will be 2015 before we see a real pick up and sponsorship because, but I want about sponsors as they want see what they’re buying before they buy it. And at the moment, the video board consists of four or three 70 foot high metal towers. The board itself won’t be installed for about another month. So it’s kind of hard to show with people at this point, you can sort of point this and instruction and say that’s where it’s going to be. But I think once people see and how big it is, what impacted it on the last crow, I think that will be a lot of general interest in it’s going forward.

Our next question comes from the line of Justin Sebastiano of Brean Capital; your line is open.

As far as the renewal with MBC, did this happen sooner than expected, and if so what made you pull a trigger now?

I do know that we have specific expectation or goal to get it done in 2014. It was just an opportunity that presented itself. We had a great relationship with MBC. There was sort of a lot of open communication that’s going on between us. And the opportunity just presented itself so we decided to go ahead and act on it, and like a good thing to do.

Okay and as far as Illinois expansion, it seems like the gaining factor for the governor was pension reforms; seems like that has been cleared away. Are there any other issues that are in front of him or anything else he is reading now that would perhaps be a roadblock to the gaming expansion in Illinois?

It’s Bill Carstanjen to begin. With respect to the governor we are not aware of any new significant issues that are at the rear of the head, but that doesn’t mean that there won’t be some that we haven’t heard about all that just haven’t surfaced yet or that will come up later. I think one thing everybody will be watching during the remainder of the legislative cycle this time is just the Chicago Mayor Rahm Emanuel and his pension concerns for the City of Chicago. That might affect us in ways that are good and or bad, it remains to be seen.

Okay and as far as Kentucky, can you give us your thoughts or update on the instant racing, There is a recent development there. Can you maybe talk about that and also give us your thoughts on all those games that you would place at Churchill Downs.

The couple of ideas on responding to that question and if I don’t quite give what you’re after, just clarify further. There has been a legal process going on with respect to instant racing machines, or historical racing machines. They’re still winding their way through the court system, and there hasn’t been sort of a definitive ruling yet on legality, it has been pushed back down to the lower court to take another look at and review of whether these machines are a legal form of gambling in the State. So what we said, for our company is, we want all of the ambiguities resolved by the courts before we would even seriously look at it. But we have also said in the past, and we remain firmly of the belief based on what we have seen in the performance of these machines where they have been deployed down in the southern portion of the State and also at Ellis Park to the West. These machines may do okay in markets where there isn’t slot machine competition nearby. But we are very concerned and we remain concerned that in a competitive market like Louisville where Churchill Downs racetrack is located. These machines are likely to fare well compared to full casino offerings including slot machines like we see lining our borders around near the Louisville market. So we are following the issues pretty closely, but it is hard to imagine at this point based on what we’ve seen that these issues or these machines are a real interest to us.

Okay that did answer the question. Is there any, as far as timing as to when the lower court will render decision?

Not this far, as I’m aware.

Okay, and then just lastly, you mentioned that MVG, though the ramp up is slower than you would like, but last week it seems like you had pretty good wind for the unit. How far of your initial expectations did it perform and then how is it performing now compared to what you thought it would be before it opened?

It’s Bill Carstanjen to begin. We’re really excited to get this opened three months earlier than we originally planned and to get it opened up below our original expected budget. On the other hand it didn’t turn out to be a great thing to open it up in the middle of the weather cycle that we have been enduring. That affected us as we got it opened around little late December. Every week, it’s been on improving, Bill cited some of the factors, some of the data. Every week it’s getting significantly better. In terms of where it is now compared to our internal projections, I’m not sure we disclose those or do disclose those. But we are increasingly optimistic, week to week, and this isn’t an improvement cycle that’s tapered off yet. Every week it seems to be moving significantly better. Operator, any other questions?

We do have one more question from Steve Altebrando of Sidoti and Company, your line is open.

I think you’ve mentioned in the script, some free play promotions not being that effective; wondering if you since dialed back at all now?

Yes that’s correct, and it’s predominantly on our Mississippi properties Steve, and we have dialed those back pretty dramatically at the beginning of the year.

Okay and then in terms of again touching on the M&A environment, have you seen any change or multiples rising since the GLPI REIT has been out in the market.

I think there’s been a lot of discussion in the M&A circles about the REIT driving up evaluations. I don’t know that we’ve really seen that yet, that there’s been transaction, maybe two that’s been done out there, but there’s a lot of talk that over time they might drive up the acquisition prices, we’ll have to see, not so sure that, that’ll turn out to be the case but there isn’t really enough data yet to be particularly worried about that. We’re not particularly worried about it at the moment.

Okay and then, have you guys repurchased a share since the authorization has been in effect.

Not yet, Steve.

Okay, and then, just last question is, assuming Kentucky is not, legislation is not passed for gaming. Just wanted to get your, your kind of thoughts on capital deployment, obviously with the high yield note being in place, seems like you have very significant liquidity and pretty over capitalized at this point, just wanted to get your updated thoughts on capital allocation.

Yes, thanks Steve, we’re obviously pushing to get gaming in both Kentucky and Illinois and that’s our primary objective, if we don’t get those obviously we’re continuing to look for opportunities to grow the company via acquisition but we also have the ability to buy back shares and pay dividend, so, we look at all different ways to return capital to our shareholders.

Thank you. I’m showing no further questions at this time, I’d like it turn it back over to Mr. Bob Evans.

Okay thanks, good job, and thanks everyone for joining us, hopefully you found the time together productive, hopefully the weather improves dramatically over the next few weeks and months and we look forward to talking to you in another quarter, thanks again.