Canterbury Park (CPHC) - 2024 Q2 - Quarterly Report

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$29,641,000 for the same period in 2023[64] - Total Casino revenue decreased by $539,000, or 5.2$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$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$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$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$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$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]