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Canterbury Park (CPHC) Q2 Earnings & Revenues Decline Y/Y
CPHCCanterbury Park (CPHC) ZACKS·2024-08-09 17:40

Core Insights - Canterbury Park Holding Corporation (CPHC) reported mixed financial results for Q2 2024, with a significant decline in earnings per share but stable core operations [1][3][10] - The company is focusing on optimizing business segments, managing expenses, and advancing real estate development projects despite a challenging environment [1][10] Q2 Results - Earnings per diluted share for Q2 2024 were 7 cents, a 93.5% decline from 1.07inthesamequarterlastyear[3]−Totalrevenuesforthequarterwere1.07 in the same quarter last year [3] - Total revenues for the quarter were 16.2 million, a slight decrease of 0.9% from 16.3millioninQ22023[3]RevenuePerformancebySegment−Casinorevenues,thelargestcontributor,fellby5.216.3 million in Q2 2023 [3] Revenue Performance by Segment - Casino revenues, the largest contributor, fell by 5.2% to 9.8 million from 10.4millioninQ22023,primarilyduetolowertablegamesdrop[5]−Pari−mutuelrevenuesincreasedby5.210.4 million in Q2 2023, primarily due to lower table games drop [5] - Pari-mutuel revenues increased by 5.2% year over year to 2.6 million, supported by additional live race days and higher out-of-state handle [6] - Food & Beverage segment revenues rose by 3.6% to 2.1million,attributedtoenhancedcateringoperationsandhigheradmissionsfromlarge−scaleevents[7]−Otherrevenue,includingincomefromevents,grewby13.62.1 million, attributed to enhanced catering operations and higher admissions from large-scale events [7] - Other revenue, including income from events, grew by 13.6% to 1.7 million, driven by increased utilization of the event center [8] Expense Management - Operating expenses decreased by 1.3% to 15.1millionfrom15.1 million from 15.3 million in the prior year, mainly due to lower advertising and marketing expenses [9] - Savings in expenses helped mitigate the impact of lower revenues on profitability [9] Net Income and Adjusted EBITDA - Net income for Q2 2024 dropped 93.6% to 0.34millionfrom0.34 million from 5.3 million in Q2 2023, largely due to the absence of a 6.5milliongainonlandsalefromthepreviousyear[10]−AdjustedEBITDAincreasedslightlyby16.5 million gain on land sale from the previous year [10] - Adjusted EBITDA increased slightly by 1% to 2.4 million from 2.38million,indicatingconsistentoperationalefficiency[10][11]CashandDebtPosition−Thecompany′sbalancesheetremainsstrongwithnearly2.38 million, indicating consistent operational efficiency [10][11] Cash and Debt Position - The company's balance sheet remains strong with nearly 24 million in unrestricted cash and short-term investments [12] - Canterbury Park has funded growth initiatives without incurring debt, maintaining financial flexibility while returning capital to shareholders [12] Real Estate Development - Significant progress is being made in real estate projects, including the Canterbury Commons and the Swervo Development Corporation's amphitheater, expected to open in Summer 2025 [13] - Construction of a new 10,000-square-foot commercial building is nearing completion, and a second commercial office building is also in progress [13] - The company is relocating and redeveloping its barns, with completion expected by early 2025, indicating strong demand in the housing market [14] - These developments align with the long-term vision of transforming Canterbury Commons into a regional destination, potentially driving new revenue sources [15]