Canterbury Park (CPHC) - 2025 Q3 - Quarterly Report

Revenue Performance - Total net revenues for Q3 2025 were $18,315,000, a decrease of $969,000, or 5.0%, compared to $19,284,000 in Q3 2024[80] - Total Casino revenue decreased by $954,000, or 9.7%, for Q3 2025, and by $2,174,000, or 7.3%, for the nine months ended September 30, 2025, compared to the same periods in 2024[82] - Total pari-mutuel revenue decreased by $91,000, or 2.7%, for Q3 2025, and by $522,000, or 7.4%, for the nine months ended September 30, 2025, compared to the same periods in 2024[84] - Food and beverage revenue increased by $405,000, or 13.1%, for Q3 2025, and by $269,000, or 3.9%, for the nine months ended September 30, 2025, compared to the same periods in 2024[85] Income and Expenses - Net income for Q3 2025 was $487,000, or $0.10 per share, compared to net income of $2,022,000, or $0.40 per share, for Q3 2024[95][96] - Adjusted EBITDA decreased by $467,000, or 14.2%, for Q3 2025, and by $2,275,000, or 25.6%, for the nine months ended September 30, 2025, compared to the same periods in 2024[98] - Purse expense decreased by $444,000, or 15.9%, for Q3 2025, primarily due to decreased Casino and pari-mutuel revenues[88] - Advertising and marketing costs increased by $124,000, or 18.6%, for Q3 2025, due to new Casino promotions[91] - Other loss, net, for Q3 2025 was $408,000, an increase of $445,000 compared to a loss of $853,000 for Q3 2024[93] Tax and Cash Flow - The effective tax rate for Q3 2025 was 24.3%, compared to 27.6% for Q3 2024[94] - Net cash provided by operating activities for the nine months ended September 30, 2025 was $9,004,000, despite a net loss of $139,000[102] - The company declared a cash dividend of $0.07 per share payable during the three months ended September 30, 2025[106] Assets and Financing - As of September 30, 2025, the company's cash, cash equivalents, and restricted cash balance was $16,990,000, an increase of 24.4% from $13,687,000 as of December 31, 2024[101] - The company recorded a TIF receivable of approximately $20,161,000 as of September 30, 2025, which includes $16,141,000 of principal and $4,020,000 of interest[112] - Net cash used in investing activities for the nine months ended September 30, 2025 was $4,655,000, primarily due to additions to land, buildings, and equipment of $3,675,000[104] - The company has a revolving credit line of up to $10,000,000, which was reduced to $5,000,000 as of January 31, 2024[100] - The company anticipates that unrestricted funds, along with amounts available under its revolving line of credit, will be sufficient for ongoing liquidity and capital resource requirements for at least the next twelve months[101] - The company may require additional financing for significant real estate development or strategic growth, potentially through joint ventures, debt, or equity financing[101] Other Financial Considerations - The company experienced an increase in payable to horsepersons of $1,158,000 for the nine months ended September 30, 2025, primarily due to the timing of the live racing season[102] - The company expects to spend the remaining $1,452,000 in tax increment financing over the next six months for the completion of the private redevelopment plan[101]