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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from ______ to ______ Commission File Number: 001-37858 CANTERBURY PARK HOLDING CORPORATION (Exact Name of Registrant as Specified in its Charter) Minnesota 47-5349765 ...

Chips, Cash and Dice VITALII BORKOVSKYI Canterbury Park Holding Corporation (NASDAQ:CPHC) has begun monetizing the valuable real estate surrounding their race track & casino with significant land sales and equity investments in related partnerships. The stock price is at $21.52 per share which reveals a current market cap of $105 million. Investors can purchase this business for approximately $1 per share considering the sum of cash, real estate equity investments & receivable notes and land imbedded with ...

SECURITIES AND EXCHANGE COMMISSION | --- | --- | --- | |----------------------------------------------------------|-------------------------------------------------------|-------------------------------------------| | (Exact Name \nMinnesota | of Registrant as Specified in \n | Its Charter) \n47-5349765 | | (State or Other Jurisdiction | of | (I.R.S. Employer | | Incorporation or Organization) | | Identification No.) | | | 1100 Canterbury Road | | | | Shakopee, MN 55379 | | | | (Address of principal executi ...