Shares of Canterbury Park Holding Corporation (CPHC) have declined 2.8% since reporting results for the second quarter of 2025. This compares unfavorably with the S&P 500 index’s 0.8% growth over the same time frame. Over the past month, the CPHC stock has fallen 5.6%, while the S&P 500 has advanced 2.3%.The company reported second-quarter 2025 net revenues of $15.7 million, a 3.3% decrease from $16.2 million in the year-ago period. Net loss came in at $327,000, reversing from net income of $338,000 last ye ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File Number: 001-37858 CANTERBURY PARK HOLDING CORPORATION (Exact Name of Registrant as Specified in Its Charter) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____ TO _____. (State or Other J ...

Core Viewpoint - Canterbury Park Holding Corporation (CPHC) experienced a decline in financial performance for Q1 2025, with total net revenues falling by 6.8% year-over-year, primarily due to decreased Casino revenues and increased competition in the market [2][4][7]. Financial Performance - Total net revenues for Q1 2025 were $13.1 million, down from $14.1 million in Q1 2024, reflecting broad-based softness across key business segments [2]. - Casino revenues, the main income driver, decreased by 8.6% to $9.2 million [2]. - Pari-mutuel revenues fell by 8.2% to $1.08 million, while food and beverage revenues decreased by 5.9% to $1.62 million [3]. - Other revenues increased by 9.3% to $1.25 million, driven by higher admission revenues from large-scale special events [3]. Profitability Metrics - Net income turned to a loss of $299,000, or 6 cents per diluted share, compared to a profit of $998,000, or 20 cents per diluted share, in the prior-year period [4]. - Adjusted EBITDA fell by 39.6% to $1.94 million from $3.21 million a year earlier [4]. - EBITDA, excluding interest, tax, depreciation, and amortization, dropped sharply to $8,000 from over $1.76 million in the prior-year quarter, indicating significant margin pressure [5]. Operating Expenses - Operating expenses increased by 1.3% year-over-year to $12.5 million, driven by higher payroll expenses and increased property taxes and marketing expenses [6]. - Cost pressures were exacerbated by annual wage increases and state-mandated minimum wage hikes [6]. Management Insights - CEO Randy Sampson noted increased competition in the Casino segment as a primary factor for revenue decline and emphasized the need for a stronger marketing strategy [7]. - The company is investing in long-term projects, including the Canterbury Commons development, which is expected to drive future economic value [8]. Revenue Influences - The decline in Casino revenues was attributed to reduced wagering activity and a lower average collection rate due to competitive pressures [9]. - Pari-mutuel revenues were impacted by fewer race days at other tracks, affecting simulcast betting volume [10]. Future Outlook - Management expressed confidence in future performance driven by event-driven revenue expansion, operational efficiencies, and ongoing real estate development [12]. - The company anticipates benefits from tax increment financing receivables and the completion of its barn relocation initiative by mid-2025 [12]. Development Initiatives - The Canterbury Commons real estate development is progressing, with Phase II of the Triple Crown Residences 95% leased and new commercial spaces opening [13][14]. - A new 16,000-square-foot entertainment venue is set to open in June 2025, and additional development land has been unlocked for future projects [15].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) The unaudited condensed consolidated financial statements for Canterbury Park Holding Corporation as of March 31, 2025, and for the three months then ended, include balance sheets, statements of operations, statements of stockholders' equity, statements of cash flows, and accompanying notes providing detailed explanations of accounting policies and financial items [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $112.4 million from $109.9 million at year-end 2024, driven by increases in restricted cash and TIF receivable, while total liabilities also rose to $28.6 million from $25.8 million, primarily due to higher current liabilities, and stockholders' equity slightly decreased to $83.7 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $26,564 | $24,413 | | **Total Long-term Assets** | $85,795 | $85,510 | | **Total Assets** | **$112,358** | **$109,923** | | **Total Current Liabilities** | $12,462 | $10,674 | | **Total Long-term Liabilities** | $16,148 | $15,160 | | **Total Liabilities** | **$28,610** | **$25,834** | | **Total Stockholders' Equity** | **$83,748** | **$84,089** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the first quarter of 2025, the company reported a net loss of $299,210, a significant downturn from a net income of $998,154 in the same period of 2024, driven by a 6.8% decrease in total net revenues to $13.1 million and a substantial increase in net other loss, primarily from equity investment losses, resulting in a diluted loss per share of ($0.06) compared to earnings of $0.20 in Q1 2024 Q1 2025 vs Q1 2024 Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Casino Revenue | $9,192 | $10,056 | | Pari-mutuel Revenue | $1,078 | $1,174 | | **Total Net Revenues** | **$13,142** | **$14,098** | | Total Operating Expenses | $12,492 | $12,336 | | **Income from Operations** | **$650** | **$1,762** | | Loss from equity investment | ($1,573) | ($852) | | **Net (Loss) Income** | **($299)** | **$998** | | **Diluted (Loss) Earnings Per Share** | **($0.06)** | **$0.20** | - The company declared a cash dividend of **$0.07** per share in both Q1 2025 and Q1 2024[9](index=9&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased from $84.1 million at the end of 2024 to $83.7 million at March 31, 2025, primarily due to a net loss of $299,210 and dividends declared of $359,851, partially offset by stock-based compensation and 401(k) stock match contributions Changes in Stockholders' Equity (Q1 2025) | Item | Amount | | :--- | :--- | | Balance at Dec 31, 2024 | $84,088,674 | | Net loss | ($299,210) | | Dividend declared | ($359,851) | | Stock-based compensation & other | $318,727 | | **Balance at Mar 31, 2025** | **$83,748,340** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash provided by operating activities was $3.4 million, a significant improvement from $1.6 million in Q1 2024, mainly due to non-cash adjustments like loss from equity investment, while net cash used in investing activities was $0.9 million, primarily for additions to property and equipment, and net cash used in financing activities was $0.4 million, largely for dividend payments, resulting in the company's total cash, cash equivalents, and restricted cash increasing by $2.1 million during the quarter Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,374 | $1,616 | | Net cash used in investing activities | ($891) | ($2,707) | | Net cash used in financing activities | ($430) | ($470) | | **Net increase (decrease) in cash** | **$2,054** | **($1,561)** | | **Cash at end of period** | **$15,741** | **$24,281** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures supporting the financial statements, covering the company's business overview and revenue sources (Note 1), stock-based compensation plans (Note 2), credit agreements (Note 4), segment performance (Note 5), significant commitments including indemnity agreements and purse guarantees (Note 6), and extensive details on real estate development joint ventures and the associated TIF receivable (Note 7) - The company's three largest revenue sources are Casino operations, pari-mutuel operations, and food and beverage sales, and it is also developing underutilized land through a project known as Canterbury Commons™[14](index=14&type=chunk) - The company has four reportable operating segments: horse racing, Casino, food and beverage, and development[40](index=40&type=chunk) - The company has entered into multiple joint ventures for real estate development, including Doran Canterbury I & II, Canterbury DBSV, and Trackside Investments, which are accounted for using the equity method[50](index=50&type=chunk)[54](index=54&type=chunk)[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 6.8% decrease in Q1 2025 revenue to lower Casino and pari-mutuel revenues, with Casino revenue falling 8.6% due to increased competition and a lower collection rate in table games, while operating expenses saw a slight increase of 1.3%, and a significant net loss was recorded, driven by a $1.13 million other loss primarily from equity investment losses in the Doran Canterbury II joint venture, though the company maintains sufficient liquidity through cash flow and its credit facility to fund operations and planned capital projects - Total net revenues for Q1 2025 decreased by **6.8%** to **$13.1 million** compared to Q1 2024, primarily due to an **8.6%** drop in Casino revenue and an **8.2%** decrease in pari-mutuel revenue[82](index=82&type=chunk)[84](index=84&type=chunk)[86](index=86&type=chunk) - The decrease in Casino revenue was attributed to increased competition and a lower average collection rate in table games[84](index=84&type=chunk) - The company recorded a net loss of **$299,000** in Q1 2025, compared to a net income of **$998,000** in Q1 2024, largely due to increased losses from its Doran Canterbury II joint venture equity investment[93](index=93&type=chunk)[95](index=95&type=chunk) EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **NET (LOSS) INCOME** | **($299)** | **$998** | | EBITDA | $8 | $1,761 | | **ADJUSTED EBITDA** | **$1,939** | **$3,213** | [Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable for the reporting period - The company has indicated that there are no quantitative and qualitative disclosures about market risk to report for this period[118](index=118&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, with no significant changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls - The Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures are effective as of the end of the period[119](index=119&type=chunk) - No significant changes in internal control over financial reporting occurred during the fiscal quarter ended March 31, 2025[121](index=121&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) This section is not applicable, indicating no material legal proceedings to report for the period - The company reports no material legal proceedings[123](index=123&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors were reported since the last Annual Report on Form 10-K[124](index=124&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company repurchased a total of 3,234 shares of its stock at an average price of $19.71 per share, with these repurchases made in connection with the payment of taxes upon the issuance of deferred stock awards to employees Share Repurchases in Q1 2025 | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January 1-31, 2025 | - | $ - | | February 1-28, 2025 | 1,212 | $ 20.80 | | March 1-31, 2025 | 2,022 | $ 19.05 | | **Total** | **3,234** | **$ 19.71** | [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the first quarter of 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[128](index=128&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications (31.1, 31.2, 32), the press release for Q1 2025 results (99.1), and financial statements formatted in Inline XBRL (101) - Exhibits filed include Sarbanes-Oxley certifications, the Q1 2025 earnings press release, and XBRL data files[132](index=132&type=chunk)

Financial Performance - Canterbury Park Holding Corporation reported net revenues of $13.1 million for Q1 2025, a decrease of 6.8% from $14.1 million in Q1 2024 [3][12] - The company recorded a net loss of $299,000 in Q1 2025, compared to a net income of $998,000 in Q1 2024, reflecting a 130.0% decline [3][17] - Adjusted EBITDA for the first quarter was $1.9 million, down 39.6% from $3.2 million in the same period last year, resulting in an adjusted EBITDA margin of 14.8% [3][4][17] Revenue Breakdown - Casino revenues decreased by 8.6% to $9.2 million, Pari-mutuel revenues fell by 8.2% to $1.1 million, and Food and Beverage revenues declined by 5.9% to $1.6 million [12][24] - Other revenues increased by 9.3% to $1.2 million, primarily driven by strong event admission revenues [12] Operating Expenses - Operating expenses rose by 1.3% to $12.5 million in Q1 2025, compared to $12.3 million in Q1 2024, mainly due to increased salaries, property taxes, and marketing costs [13] Strategic Initiatives - The company is refocusing and expanding its marketing programs to attract new customers and retain existing high-value guests, with a new Vice President of Marketing and Entertainment joining the team [5] - Canterbury Park is enhancing its event strategy, with several record attendance events already held in 2025 and more planned for the year [5][9] Real Estate Development - Canterbury Commons is being developed as a long-term economic driver, with nearly 1,000 residential units and various amenities already in place or under construction [6] - The company is exploring additional trackside development opportunities, including office, retail, hotel, and restaurant spaces [11] Financial Position - The company has no debt and holds cash and short-term investments valued at approximately $15 million, or $3.04 per share, along with over $19 million in tax increment financing receivable [8] - The total value of cash, tax increment financing receivable, and real estate joint ventures is estimated at $10 per share [8]

Core Insights - Canterbury Park Holding Corporation (CPHC) experienced a 6.9% decline in share price following the release of its fourth-quarter 2024 results, compared to a 2.3% decline in the S&P 500 index during the same period [1] Financial Performance - In Q4 2024, CPHC reported a diluted loss per share of $0.25, down from earnings of $0.27 in the same quarter of the previous year [2] - Net revenues for Q4 2024 were $11.98 million, a decrease of 4.4% from $12.53 million in Q4 2023 [2] - Adjusted EBITDA fell 34.9% year over year to $1.34 million from $2.05 million [2] - For the full year 2024, net revenues were nearly flat at $61.56 million compared to $61.44 million in 2023, but net income plummeted 80% to $2.11 million from $10.56 million [3] - Diluted EPS for the year declined to $0.42 from $2.13, while adjusted EBITDA decreased by 2% to $10.23 million from $10.45 million [3] Business Segments - Casino revenues, the largest segment, declined 4.9% year over year to $8.99 million in Q4 2024, attributed to increased market competition [4] - Pari-mutuel revenues fell 9.5% year over year to $1.13 million due to a lower simulcasting handle [4] - Food & Beverage and Other revenue categories saw modest increases of 1.7% and 2%, respectively [4] Operating Expenses - Operating expenses rose slightly to $12.08 million from $11.94 million in the prior-year period, driven by higher salaries and benefits and increased depreciation expenses [5] - These increases were partially offset by lower advertising and marketing expenses [5] Equity Investments - CPHC recorded a loss from equity investment of $2.1 million in Q4 2024, compared to a gain of $0.939 million in the prior-year quarter [6] Management Strategy - Management acknowledged the seasonally slow nature of Q4 and highlighted efforts to mitigate competitive pressures in casino operations [7] - CEO Randy Sampson outlined initiatives to enhance guest service and expand marketing efforts to attract new patrons [7] - The company introduced table game offerings and emphasized growth in its non-gaming entertainment business, which had a record number of events in 2024 [7] - Cost-control strategies were stressed to drive operating efficiencies while maintaining cash flow generation [8] Capital Expenditure Outlook - CPHC expects capital expenditure to decline year over year in 2025 and 2026, following the completion of its tax increment financing infrastructure and barn redevelopment projects [8] Real Estate Developments - The Canterbury Commons mixed-use real estate project continues to expand, featuring nearly 1,000 residential units, multiple restaurants, breweries, entertainment venues, and 57,000 square feet of office space [9] - Recent updates include an 87% leasing rate for Phase II of The Doran Group's Triple Crown Residences and the completion of repairs for Phase I [10] - 80% of the 147-unit senior housing complex, The Omry at Canterbury, has been leased [10] Additional Developments - CPHC continues to advocate for potential economic benefits if online sports betting is approved in Minnesota, supported by a strong balance sheet with over $15 million in unrestricted cash and short-term investments [12] - The company is unlocking value from its real estate holdings through new partnerships and ongoing discussions with potential developers for the remaining 50 acres of Canterbury Commons [13]

Financial Performance - Total net revenues for 2024 were $61,562,000, an increase of $125,000, or 0.2%, compared to 2023[162]. - Adjusted EBITDA for 2024 was $10,233,612, a decrease of $212,000, or 2.0%, compared to 2023, with Adjusted EBITDA as a percentage of net revenue at 16.6%[160]. - The Company recorded a net income of $2,113,000 for 2024, a decrease of 80% compared to $10,563,000 in 2023[180]. - Other net loss for 2024 was $3,396,000, a decrease of $6,875,000 from other income of $3,479,000 in 2023[178]. - Cash provided by operating activities for 2024 was $6,488,000, down from $11,537,000 in 2023[192][193]. - The Company recorded a provision for income taxes of $924,000 for 2024, down from $4,417,000 in 2023[179]. Revenue Breakdown - Total Casino revenue decreased by $1,006,000, or 2.5%, in 2024, primarily due to a decrease in drop and a lower average collection revenue rate in table games[164]. - Total pari-mutuel revenue for 2024 decreased by $28,000, or 0.3%, compared to 2023, mainly due to a decrease in simulcast handle[166]. - Food and beverage revenues increased by $139,000, or 1.8%, to $7,968,000 in 2024, driven by increased catering operations[167]. - Other revenues increased by $1,020,000, or 18.3%, to $6,593,000 in 2024, attributed to admission revenue increases from new events[169]. Operating Expenses - Total operating expenses increased by $436,000, or 0.8%, to $56,862,000 in 2024, with operating expenses as a percentage of net revenues rising to 92.4%[170]. - Total purse expense increased by $308,000, or 4.1%, in 2024, primarily due to expenses related to recruiting and participation incentives[171]. - Depreciation and amortization increased by $476,000, or 15.1%, in 2024, due to larger fixed assets being placed into service[174]. Cash Flow and Investments - Net cash used in investing activities for 2024 was $17,349,000, primarily for additions to land, buildings, and equipment[194]. - As of December 31, 2024, the Company had cash, cash equivalents, and restricted cash of $13,687,000, a decrease of $12,155,000 from $25,842,000 in 2023[197]. Assets and Liabilities - The TIF receivable as of December 31, 2024, was approximately $18,898,000, consisting of $15,551,000 principal and $3,347,000 interest[182]. - The player pool liability was $542,000 and $1,055,000 at December 31, 2024 and 2023, respectively, indicating a decrease of approximately 48.7% year-over-year[203]. - The outstanding chip liability was $447,000 and $558,000 at December 31, 2024 and 2023, respectively, indicating a decrease of approximately 19.9%[207]. - Accrued jackpot funds decreased from $172,000 in 2023 to $88,000 in 2024, showing a decline of about 48.8%[206]. - The poker promotional pool liability rose from $339,000 in 2023 to $364,000 in 2024, reflecting an increase of approximately 7.4%[204]. - Purse funds related to thoroughbred races increased from $7,133,000 in 2023 to $8,288,000 in 2024, marking a rise of about 16.2%[208]. Future Obligations and Concerns - The Company expects to spend approximately $2,500,000 for the remaining costs of the barn relocation and redevelopment plan[198]. - The Company has guaranteed purses for the 2025 live racing season totaling $2,000,000, which may be repaid through reimbursement in subsequent racing years[188][199]. - Future minimum purchase obligations under a totalizator agreement are set at $166,400 per year[209]. - The Company is obligated to construct public infrastructure improvements within the TIF District, with reimbursement from the City of Shakopee based on future tax increment revenue[210]. - The Company has experienced a decrease in revenue and profitability from live racing, which is a significant concern for future performance[212]. - The Company faces competition from other racing and gaming operations, which could materially affect its operations[212]. Other Notable Events - The company recorded a gain on transfer of land of $1,732,000 in 2024, resulting from transferring approximately 3.5 acres of land[176]. - The Company had a net loss on disposal of assets of $49,000 for 2024, compared to a net loss of $157,000 in 2023[177].

Financial Performance Summary - For the fourth quarter of 2024, net revenues were $12.0 million, a decrease of 4.4% from $12.5 million in the same period of 2023. Full-year net revenues were $61.6 million, slightly up by 0.2% from $61.4 million in 2023 [2][17] - The company reported a net loss of $1.2 million for Q4 2024, compared to a net income of $1.4 million in Q4 2023, marking a decline of 191.3%. For the full year, net income was $2.1 million, down 80.0% from $10.6 million in 2023 [2][21] - Adjusted EBITDA for Q4 2024 was $1.3 million, down 34.9% from $2.1 million in Q4 2023. For the full year, adjusted EBITDA was $10.2 million, a slight decrease of 2.0% from $10.4 million in 2023 [2][22] Revenue Breakdown - Casino revenues for Q4 2024 were $9.0 million, down 4.9% from $9.5 million in Q4 2023. Full-year casino revenues were $38.8 million, compared to $39.8 million in 2023 [30] - Pari-mutuel revenues decreased by 9.5% in Q4 2024 to $1.1 million, while full-year pari-mutuel revenues were $8.2 million, slightly down from $8.3 million in 2023 [12][17] - Food & Beverage revenues increased by 1.7% in Q4 2024 to $1.0 million, and full-year revenues rose to $8.0 million from $7.8 million in 2023. Other revenues also increased to $6.6 million from $5.6 million in 2023 [12][17] Operating Expenses and Investments - Operating expenses for Q4 2024 were $12.1 million, a slight increase from $11.9 million in Q4 2023. For the full year, operating expenses rose to $56.9 million from $56.4 million in 2023 [13][18] - The company recorded a loss from equity investment of $2.1 million in Q4 2024, compared to a gain of $939,000 in Q4 2023. For the full year, the loss from equity investment was $5.5 million, compared to a gain of $1.5 million in 2023 [14][20] Strategic Initiatives and Future Outlook - The company is focusing on enhancing guest service and expanding marketing efforts to attract new customers in response to increased competition in casino operations [6][7] - Canterbury Commons is being developed as a mixed-use destination, with nearly 1,000 residential units and various amenities, expected to create new long-term revenue sources [8][9] - The company is well-positioned for future growth with over $15 million in unrestricted cash and short-term investments, and plans to reduce capital expenditures in 2025 compared to 2024 [9][10]

Core Insights - Canterbury Park Holding Corporation (CPHC) is navigating challenges by improving operational efficiency and diversifying its offerings, despite headwinds in its traditional Casino and Pari-mutuel segments [1][2] - The company reported a significant increase in diluted earnings per share and net income, driven by special events and strategic pivots towards entertainment beyond gaming [3][8] Financial Performance - Q3 2024 diluted earnings per share reached 40 cents, a 73.9% increase from 23 cents in the prior-year quarter [3] - Net revenues were $19.28 million, a marginal increase of 0.1% from $19.27 million in the year-ago quarter [3] - Net income surged 77.9% to $2 million from $1.1 million in the prior-year quarter, influenced by a $1.7 million gain from land transfer [8] Segmental Performance - Casino segment revenues fell 3.4% to $9.88 million, attributed to lower table game drop rates [5] - Pari-mutuel revenues dropped 2.3% to $3.33 million due to one fewer live race day [6] - Food & Beverage segment revenues decreased 6.3% to $3.10 million, also impacted by the reduced race day schedule [6] - Other revenues grew 27.8% to $2.98 million, driven by increased admissions from special events [7] Profitability Metrics - Adjusted EBITDA was $3.3 million, up 2.8% from $3.2 million in the prior-year quarter, with a stable adjusted EBITDA margin of 17% [8] - Operating expenses declined to $17.4 million from $17.5 million in the year-ago quarter, aided by proactive cost-control measures [9] Cash and Debt Position - The company maintains nearly $22 million in unrestricted cash and short-term investments, enhancing its financial resilience [11] - A $1.4 million loss from equity investments was recorded, related to depreciation and interest expenses [11] Management Outlook - Management expressed optimism about achieving consistent annual cash flow and revenue growth from the Canterbury Commons development [12] - The Canterbury Commons project is expected to enhance the company's attractiveness as a regional destination [12] Other Developments - The Canterbury Commons project is progressing, with construction on a new music venue and restaurant expected to be completed in 2025 [13] - Key projects in commercial space leasing and residential occupancy are on track, with further upgrades to facilities planned for the 2025 racing season [13]

Financial Performance - Total net revenues for Q3 2024 were $19,284,000, a slight increase of $16,000 or 0.1% compared to Q3 2023 revenues of $19,268,000[77] - Total net revenues for the nine months ended September 30, 2024 were $49,585,000, an increase of $675,000 or 1.4% compared to $48,910,000 for the same period in 2023[77] - Total Casino revenue decreased by $345,000 or 3.4% for Q3 2024 and by $542,000 or 1.8% for the nine months ended September 30, 2024 compared to the same periods in 2023[79] - Total pari-mutuel revenue decreased by $78,000 or 2.3% for Q3 2024 but increased by $90,000 or 1.3% for the nine months ended September 30, 2024 compared to the same periods in 2023[82] - Net income for Q3 2024 was $2,022,000 or $0.40 per share, compared to $1,136,000 or $0.23 per share for Q3 2023[95] - Net income for the nine months ended September 30, 2024 was $3,358,000 or $0.67 per share, compared to $9,199,000 or $1.87 per share for the same period in 2023[95] - Other revenue increased by $647,000 or 27.8% for Q3 2024 and by $1,005,000 or 21.1% for the nine months ended September 30, 2024 compared to the same periods in 2023[85] - Adjusted EBITDA increased by $89,000 (2.8%) and $506,000 (6.0%) for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, with Adjusted EBITDA as a percentage of net revenue at 17.0% and 18.0%[98] Operating Expenses and Cash Flow - Operating expenses decreased by $92,000 or 0.5% for Q3 2024 but increased by $300,000 or 0.7% for the nine months ended September 30, 2024 compared to the same periods in 2023[86] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $9,281,000, compared to $10,201,000 for the same period in 2023[103][104] - The Company's cash, cash equivalents, and restricted cash balance at September 30, 2024, was $22,427,000, down from $25,842,000 as of December 31, 2023[102] - Net cash used in investing activities for the nine months ended September 30, 2024, was $11,637,000, primarily due to additions to land, buildings, and equipment of $8,080,000[105] Tax and Gains - The effective tax rate for Q3 2024 was 27.6%, down from 31.9% in Q3 2023, primarily due to favorable discrete items[94] - The company recorded a gain on transfer of land of $1,732,000 during Q3 2024[92] Dividends and Redevelopment - The Company declared a cash dividend of $0.07 per share payable during the three months ended September 30, 2024[107] - The Company has completed phases one and two of a $15 million barn relocation and redevelopment plan, with approximately $5,000,000 remaining for phase three[102] Credit and Financing - As of September 30, 2024, the outstanding balance on the line of credit was $0, and the Company did not borrow on the revolving line of credit during the quarter[101] - The Company recorded a TIF receivable of approximately $16,969,000 as of September 30, 2024, which includes $13,793,000 of principal and $3,176,000 of interest[113] - The Company expects to finance improvements under the Redevelopment Agreement with current operating resources and existing credit facilities, potentially supplemented by third-party financing[115] Partnerships and Development Challenges - The company relies on partner Doran for the development and profitable operation of the Triple Crown Residences at Canterbury Park joint venture[122] - The company is dependent on partner Greystone Construction for a new development project[122] - The company may face challenges in executing its real estate development strategy[122] - The company is obligated to make improvements in the TIF district and will be reimbursed only to the extent of future tax revenue[122] Risks and Regulations - The company may be adversely affected by inflation and increases in the minimum wage mandated under Federal or Minnesota law[123] - The company's success may be impacted if it cannot attract, develop, and retain qualified personnel[123] - Future dividends are subject to Board of Director discretion and various risks and uncertainties[123] - The company's information technology systems are subject to cyber security risks, including misappropriation of customer information[124] - The company processes and stores personal information, which subjects it to governmental regulation and legal obligations related to privacy[124] - There are no applicable quantitative and qualitative disclosures about market risk[125]