Canterbury Park (CPHC) - 2024 Q1 - Quarterly Report

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$590,000, or 5.0%, in Q1 2024, with salaries and benefits rising by $277,000, or 4.7$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$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]