Financial Performance - Total net revenues for 2024 were $61,562,000, an increase of $125,000, or 0.2%, compared to 2023[162]. - Adjusted EBITDA for 2024 was $10,233,612, a decrease of $212,000, 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 $2,113,000 for 2024, a decrease of 80% compared to $10,563,000 in 2023[180]. - Other net loss for 2024 was $3,396,000, a decrease of $6,875,000 from other income of $3,479,000 in 2023[178]. - Cash provided by operating activities for 2024 was $6,488,000, down from $11,537,000 in 2023[192][193]. - The Company recorded a provision for income taxes of $924,000 for 2024, down from $4,417,000 in 2023[179]. Revenue Breakdown - Total Casino revenue decreased by $1,006,000, 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, or 0.3%, compared to 2023, mainly due to a decrease in simulcast handle[166]. - Food and beverage revenues increased by $139,000, or 1.8%, to $7,968,000 in 2024, driven by increased catering operations[167]. - Other revenues increased by $1,020,000, or 18.3%, to $6,593,000 in 2024, attributed to admission revenue increases from new events[169]. Operating Expenses - Total operating expenses increased by $436,000, or 0.8%, to $56,862,000 in 2024, with operating expenses as a percentage of net revenues rising to 92.4%[170]. - Total purse expense increased by $308,000, or 4.1%, in 2024, primarily due to expenses related to recruiting and participation incentives[171]. - Depreciation and amortization increased by $476,000, or 15.1%, in 2024, due to larger fixed assets being placed into service[174]. Cash Flow and Investments - Net cash used in investing activities for 2024 was $17,349,000, 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, a decrease of $12,155,000 from $25,842,000 in 2023[197]. Assets and Liabilities - The TIF receivable as of December 31, 2024, was approximately $18,898,000, consisting of $15,551,000 principal and $3,347,000 interest[182]. - The player pool liability was $542,000 and $1,055,000 at December 31, 2024 and 2023, respectively, indicating a decrease of approximately 48.7% year-over-year[203]. - The outstanding chip liability was $447,000 and $558,000 at December 31, 2024 and 2023, respectively, indicating a decrease of approximately 19.9%[207]. - Accrued jackpot funds decreased from $172,000 in 2023 to $88,000 in 2024, showing a decline of about 48.8%[206]. - The poker promotional pool liability rose from $339,000 in 2023 to $364,000 in 2024, reflecting an increase of approximately 7.4%[204]. - Purse funds related to thoroughbred races increased from $7,133,000 in 2023 to $8,288,000 in 2024, marking a rise of about 16.2%[208]. Future Obligations and Concerns - The Company expects to spend approximately $2,500,000 for the remaining costs of the barn relocation and redevelopment plan[198]. - The Company has guaranteed purses for the 2025 live racing season totaling $2,000,000, which may be repaid through reimbursement in subsequent racing years[188][199]. - Future minimum purchase obligations under a totalizator agreement are set at $166,400 per year[209]. - The Company is obligated to construct public infrastructure improvements within the TIF District, with reimbursement from the City of Shakopee based on future tax increment revenue[210]. - The Company has experienced a decrease in revenue and profitability from live racing, which is a significant concern for future performance[212]. - The Company faces competition from other racing and gaming operations, which could materially affect its operations[212]. Other Notable Events - The company recorded a gain on transfer of land of $1,732,000 in 2024, resulting from transferring approximately 3.5 acres of land[176]. - The Company had a net loss on disposal of assets of $49,000 for 2024, compared to a net loss of $157,000 in 2023[177].
Canterbury Park (CPHC) - 2024 Q4 - Annual Report