UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____ TO _____. 1100 Canterbury Road Shakopee, MN 55379 (Address of principal executive offices and zip code) Registrant's telephone number, including area c ...

SHAKOPEE, Minn., May 08, 2025 (GLOBE NEWSWIRE) -- Canterbury Park Holding Corporation (“Canterbury” or the “Company”) (Nasdaq: CPHC), today reported financial results for the first quarter ended March 31, 2025. ($ in thousands, except per share data and percentages) Three Months Ended March 31, 2025 2024 Change Net revenues$13,142 $14,098 (6.8)%<td style="vertical-align: middle; text-align: left; padding-left: 30.0px; vertical-align: bottom ...

Shares of Canterbury Park Holding Corporation (CPHC) have slipped 6.9% since reporting results for the fourth quarter of 2024. This compares to the S&P 500 index’s 2.3% decline over the same time frame. Over the past month, the stock has lost 8.5% compared with the S&P 500’s 8.4% fall.Revenue & Earnings Decline Y/Y in Q4Canterbury Park reported a fourth-quarter 2024 diluted loss per share of 25 cents against earnings of 27 cents in the prior-year quarter.CPHC reported net revenues of $11.98 million, a 4.4% ...

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]

Core Insights - Canterbury Park Holding Corporation (CPHC) reported mixed financial results for Q2 2024, with a significant decline in earnings per share but stable core operations [1][3][10] - The company is focusing on optimizing business segments, managing expenses, and advancing real estate development projects despite a challenging environment [1][10] Q2 Results - Earnings per diluted share for Q2 2024 were 7 cents, a 93.5% decline from $1.07 in the same quarter last year [3] - Total revenues for the quarter were $16.2 million, a slight decrease of 0.9% from $16.3 million in Q2 2023 [3] Revenue Performance by Segment - Casino revenues, the largest contributor, fell by 5.2% to $9.8 million from $10.4 million in Q2 2023, primarily due to lower table games drop [5] - Pari-mutuel revenues increased by 5.2% year over year to $2.6 million, supported by additional live race days and higher out-of-state handle [6] - Food & Beverage segment revenues rose by 3.6% to $2.1 million, attributed to enhanced catering operations and higher admissions from large-scale events [7] - Other revenue, including income from events, grew by 13.6% to $1.7 million, driven by increased utilization of the event center [8] Expense Management - Operating expenses decreased by 1.3% to $15.1 million from $15.3 million in the prior year, mainly due to lower advertising and marketing expenses [9] - Savings in expenses helped mitigate the impact of lower revenues on profitability [9] Net Income and Adjusted EBITDA - Net income for Q2 2024 dropped 93.6% to $0.34 million from $5.3 million in Q2 2023, largely due to the absence of a $6.5 million gain on land sale from the previous year [10] - Adjusted EBITDA increased slightly by 1% to $2.4 million from $2.38 million, indicating consistent operational efficiency [10][11] Cash and Debt Position - The company's balance sheet remains strong with nearly $24 million in unrestricted cash and short-term investments [12] - Canterbury Park has funded growth initiatives without incurring debt, maintaining financial flexibility while returning capital to shareholders [12] Real Estate Development - Significant progress is being made in real estate projects, including the Canterbury Commons and the Swervo Development Corporation's amphitheater, expected to open in Summer 2025 [13] - Construction of a new 10,000-square-foot commercial building is nearing completion, and a second commercial office building is also in progress [13] - The company is relocating and redeveloping its barns, with completion expected by early 2025, indicating strong demand in the housing market [14] - These developments align with the long-term vision of transforming Canterbury Commons into a regional destination, potentially driving new revenue sources [15]

Revenue Performance - Total net revenues for Q2 2024 were $16,202,000, a decrease of $139,000, or 0.9%, compared to Q2 2023 revenues of $16,342,000[64] - Total net revenues for the first half of 2024 were $30,300,000, an increase of $659,000, or 2.2%, compared to $29,641,000 for the same period in 2023[64] - Total Casino revenue decreased by $539,000, or 5.2%, for Q2 2024 compared to Q2 2023, and decreased by $197,000, or 1.0%, for the first half of 2024 compared to the same period in 2023[65] - Total pari-mutuel revenue increased by $128,000, or 5.2%, for Q2 2024 compared to Q2 2023, and increased by $168,000, or 4.7%, for the first half of 2024 compared to the same period in 2023[65] - Food and beverage revenue increased by $73,000, or 3.6%, for Q2 2024 and by $330,000, or 9.4%, for the first half of 2024 compared to the same periods in 2023[67] - Other revenue increased by $199,000, or 13.6%, for Q2 2024 and by $357,000, or 14.6%, for the first half of 2024 compared to the same periods in 2023[68] Net Income and Earnings - Net income for Q2 2024 was $338,000, or $0.07 per share, compared to $5,293,000, or $1.08 per share, for Q2 2023[74] - Net income for the first half of 2024 was $1,336,000, or $0.27 per share, compared to $8,063,000, or $1.64 per share, for the same period in 2023[74] - For the three months ended June 30, 2024, net income was $338,286, a decrease from $5,292,525 in the same period of 2023[75] Operating Expenses and EBITDA - Total operating expenses decreased by $199,000, or 1.3%, for Q2 2024 but increased by $391,000, or 1.4%, for the first half of 2024 compared to the same periods in 2023[69] - Adjusted EBITDA for the three months ended June 30, 2024, was $2,407,249, an increase of $23,000 or 1.0% compared to $2,384,455 in 2023[75] - Adjusted EBITDA as a percentage of net revenue for the three months ended June 30, 2024, was 14.9%, compared to 14.6% for the same period in 2023[75] Cash Flow and Investments - Net cash provided by operating activities for the six months ended June 30, 2024, was $7,010,000, down from $10,800,000 in 2023[79][80] - Net cash used in investing activities for the six months ended June 30, 2024, was $6,689,000, primarily due to additions to land, buildings, and equipment of $5,810,000[81] - The Company's cash, cash equivalents, and restricted cash balance at June 30, 2024, was $25,466,000, a slight decrease from $25,842,000 as of December 31, 2023[78] - The Company declared a cash dividend of $0.07 per share payable during the three months ended June 30, 2024[82] - As of June 30, 2024, the outstanding balance on the line of credit was $0, with no borrowings during the quarter[77] Future Plans and Estimates - The Company is currently undertaking a three-phase barn relocation and redevelopment plan totaling approximately $15 million over two years, with phases one and two completed[78] - The TIF receivable on the balance sheet as of June 30, 2024, was approximately $14,721,000, requiring significant management estimates regarding collectability[86] Tax and Market Risk - The effective tax rate for Q2 2024 was 29.6%, compared to 28.7% for Q2 2023, primarily due to unfavorable discrete items[73] - No applicable market risk disclosures were provided in the report[94]

Core Insights - Canterbury Park is focusing on the Canterbury Commons development to create a "Live, Work, Stay, and Play" hub, which includes residential, commercial, and entertainment spaces, such as a new amphitheater expected in 2025 [1] - The company reported a 64% year-over-year decline in net income in Q1 2024, attributed to rising operational costs and regulatory challenges, particularly with new gaming terminals [2] - Revenue increased by 6% year-over-year to $14.1 million in Q1 2024, driven by diverse operations in casinos and food services, alongside a 14% rise in adjusted EBITDA to $3.2 million [3] - Canterbury Park's unique position as the only thoroughbred and quarter horse racing facility in Minnesota provides a competitive advantage, supported by a diversified revenue model and a strong balance sheet with $25.2 million in cash and no debt [4] Competitive Landscape - The company faces intense competition from nearby facilities like Mystic Lake Casino and Running Aces Harness Park, which challenges its market share and profitability [2][7] - Continuous innovation in gaming offerings and real estate investments is essential for Canterbury Park to maintain customer loyalty and counter competitive pressures [8] Financial Performance - Canterbury Park's stock has been underperforming compared to the S&P 500 over the past six months, despite outperforming its subindustry [10] - The company has a modest market capitalization of $114.2 million, indicating potential growth opportunities in a competitive market [9]