Financial Performance - Total net revenues for 2024 were 61,562,000,anincreaseof125,000, or 0.2%, compared to 2023[162]. - Adjusted EBITDA for 2024 was 10,233,612,adecreaseof212,000, 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 2,113,000for2024,adecreaseof8010,563,000 in 2023[180]. - Other net loss for 2024 was 3,396,000,adecreaseof6,875,000 from other income of 3,479,000in2023[178].−Cashprovidedbyoperatingactivitiesfor2024was6,488,000, down from 11,537,000in2023[192][193].−TheCompanyrecordedaprovisionforincometaxesof924,000 for 2024, down from 4,417,000in2023[179].RevenueBreakdown−TotalCasinorevenuedecreasedby1,006,000, 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,or0.3139,000, or 1.8%, to 7,968,000in2024,drivenbyincreasedcateringoperations[167].−Otherrevenuesincreasedby1,020,000, or 18.3%, to 6,593,000in2024,attributedtoadmissionrevenueincreasesfromnewevents[169].OperatingExpenses−Totaloperatingexpensesincreasedby436,000, or 0.8%, to 56,862,000in2024,withoperatingexpensesasapercentageofnetrevenuesrisingto92.4308,000, or 4.1%, in 2024, primarily due to expenses related to recruiting and participation incentives[171]. - Depreciation and amortization increased by 476,000,or15.117,349,000, 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,adecreaseof12,155,000 from 25,842,000in2023[197].AssetsandLiabilities−TheTIFreceivableasofDecember31,2024,wasapproximately18,898,000, consisting of 15,551,000principaland3,347,000 interest[182]. - The player pool liability was 542,000and1,055,000 at December 31, 2024 and 2023, respectively, indicating a decrease of approximately 48.7% year-over-year[203]. - The outstanding chip liability was 447,000and558,000 at December 31, 2024 and 2023, respectively, indicating a decrease of approximately 19.9%[207]. - Accrued jackpot funds decreased from 172,000in2023to88,000 in 2024, showing a decline of about 48.8%[206]. - The poker promotional pool liability rose from 339,000in2023to364,000 in 2024, reflecting an increase of approximately 7.4%[204]. - Purse funds related to thoroughbred races increased from 7,133,000in2023to8,288,000 in 2024, marking a rise of about 16.2%[208]. Future Obligations and Concerns - The Company expects to spend approximately 2,500,000fortheremainingcostsofthebarnrelocationandredevelopmentplan[198].−TheCompanyhasguaranteedpursesforthe2025liveracingseasontotaling2,000,000, which may be repaid through reimbursement in subsequent racing years[188][199]. - Future minimum purchase obligations under a totalizator agreement are set at 166,400peryear[209].−TheCompanyisobligatedtoconstructpublicinfrastructureimprovementswithintheTIFDistrict,withreimbursementfromtheCityofShakopeebasedonfuturetaxincrementrevenue[210].−TheCompanyhasexperiencedadecreaseinrevenueandprofitabilityfromliveracing,whichisasignificantconcernforfutureperformance[212].−TheCompanyfacescompetitionfromotherracingandgamingoperations,whichcouldmateriallyaffectitsoperations[212].OtherNotableEvents−Thecompanyrecordedagainontransferoflandof1,732,000 in 2024, resulting from transferring approximately 3.5 acres of land[176]. - The Company had a net loss on disposal of assets of 49,000for2024,comparedtoanetlossof157,000 in 2023[177].
