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]

Group 1 - Canterbury Park Holding Corporation announced a quarterly cash dividend of $0.07 per share, payable on July 12, 2024, to stockholders of record on June 28, 2024, resulting in an annual dividend of $0.28 per common share [4] - The company owns and operates Canterbury Park Racetrack and Casino in Shakopee, Minnesota, which is the only thoroughbred and quarter horse racing facility in the state [5] - Canterbury Park generally offers live racing from May to September and operates a casino that hosts card games 24/7, including poker and table games [5] Group 2 - The company is pursuing a strategy to enhance shareholder value through the development of approximately 140 acres of underutilized land surrounding the racetrack, originally designated for a project known as Canterbury Commons™ [5] - Canterbury Park is exploring several mixed-use development opportunities for the remaining underutilized land, both directly and through joint ventures [5]

Revenue Performance - Total net revenues for Q1 2024 were $14,098,000, an increase of $798,000, or 6.0%, compared to Q1 2023 revenues of $13,300,000[80] - Total Casino revenue increased by $342,000, or 3.5%, to $10,056,000 in Q1 2024, primarily due to decreased attendance in Q1 2023[82] - Food and beverage revenue rose by $257,000, or 17.5%, in Q1 2024, attributed to increased catering operations for large events[85] - Other revenue increased by $159,000, or 16.1%, in Q1 2024, mainly from space rental and corporate sponsorships[86] Operating Expenses - Total operating expenses increased by $590,000, or 5.0%, in Q1 2024, with salaries and benefits rising by $277,000, or 4.7%[87] Net Income - Net income for Q1 2024 was $998,000, or $0.20 per share, down from $2,771,000, or $0.57 per share in Q1 2023[92] - Adjusted EBITDA for Q1 2024 was $3,212,919, an increase of $395,000, or 14.0%, compared to Q1 2023[94] Cash Flow - Cash, cash equivalents, and restricted cash balance as of March 31, 2024, was $24,281,000, down from $25,842,000 at the end of 2023[97] - Net cash provided by operating activities for Q1 2024 was $1,616,000, influenced by net income and changes in working capital[98] - Net cash provided by operating activities for the three months ended March 31, 2023 was $5,822,000, driven by net income of $2,771,000 and a gain from equity investment of $1,859,000[99] - Net cash used in investing activities for the three months ended March 31, 2024 was $2,707,000, primarily due to additions to land, buildings, and equipment of $2,217,000[100] - Net cash used in financing activities for the three months ended March 31, 2024 was $470,000, with a cash dividend declared of $0.07 per share[101] TIF Receivable and Improvements - The Company recorded a TIF receivable of approximately $14,188,000 as of March 31, 2024, which includes $11,353,000 of principal and $2,835,000 of interest[108] - The total estimated cost of TIF eligible improvements to be borne by the Company was reduced by $5,744,000 to an amount not to exceed $17,592,881[111] - The Company expects to finance its improvements under the Redevelopment Agreement with current operating resources and existing credit facilities[110] Risks and Competition - The Company has experienced a decrease in revenue and profitability from live racing, which is a risk factor for future performance[112] - The Company may face significant competition from other racing and gaming operations, which could adversely affect operations[112] Accounting Estimates - The Company has made no changes to its critical accounting estimates during the quarter ended March 31, 2024[105] - Management believes the TIF receivable will be fully collectible with no allowance necessary for the three months ended March 31, 2024[109]

winhorse/E+ via Getty Images I am giving Canterbury Park Holding Corporation (NASDAQ:CPHC) a HOLD rating because I think that the stock is currently overvalued from a liquidation as well as from a discounted cash flow standpoint. Currently CPHC is not allowed to have slot machines in their casino as they have been exclusively licensed to Minnesota's Native American Tribes. Legislation has also been introduced to allow sports betting in Minnesota however, as the bill is written it would exclude any casin ...

SHAKOPEE, Minn., March 14, 2024 (GLOBE NEWSWIRE) -- Canterbury Park Holding Corporation ("Canterbury" or the "Company") (NASDAQ:CPHC), today announced that the Company's Board of Directors, pursuant to its dividend policy, approved a quarterly cash dividend of $0.07 per share that will be paid on April 12, 2024 to stockholders of record on March 29, 2024. At this quarterly rate, the annual dividend is equivalent to $0.28 per common share. About Canterbury Park Canterbury Park Holding Corporation (NASDAQ:CPH ...