Nasdaq:CPHC
Canterbury Park Holding Corporation Reports 2020 Fourth Quarter Results
SHAKOPEE, Minn., March 24, 2021 (GLOBE NEWSWIRE) — Canterbury Park Holding Corporation (“Canterbury” or the “Company”) (NASDAQ: CPHC), today reported financial results for the fourth quarter and full year ended December 31, 2020. The 2020 fourth quarter results reflect the ongoing impact of the COVID-19 pandemic, including the state-mandated closure of Canterbury Park from November 21, 2020 through the end of the year. Canterbury Park re-opened on January 11, 2021 with a capacity limitation of 150 guests which was subsequently increased on February 13, 2021 to 250 guests per designated area.
($ in thousands, except per share data and percentages)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2020 | 2019 | (Decrease) | 2020 | 2019 | (Decrease) | |||||||||||||
| Net revenues | $6,123 | $12,602 | (51.4 | %) | $33,140 | $59,227 | (44.0 | %) | ||||||||||
| Net income(1) | 139 | 553 | (74.9 | %) | 1,062 | 2,718 | (60.9 | %) | ||||||||||
| Adjusted EBITDA(2) | ($27 | ) | $1,718 | (101.5 | %) | $806 | $6,366 | (87.3 | %) | |||||||||
| Basic EPS | $0.03 | $0.12 | (56.0 | %) | $0.23 | $0.59 | (61.0 | %) | ||||||||||
| Diluted EPS | $0.03 | $0.12 | (56.0 | %) | $0.23 | $0.59 | (61.0 | %) | ||||||||||
(1) Net income for the twelve month period ended December 31, 2020 includes a benefit of a $2.4 million gain related to transfers of land to the Doran Canterbury II and Canterbury DBSV joint ventures.
(2) Adjusted EBITDA, a non-GAAP measure, excludes certain items from net income, a GAAP measure. Non-GAAP financial measures are not intended to be considered in isolation from, a substitute for, or superior to GAAP results. Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release.
Management Commentary
“While our operations for the majority of 2020 were impacted by two temporary closures as well as significant capacity limitations during the periods we were open, we successfully managed the business to ensure we have the liquidity and financial flexibility to position the Company for long-term health and growth. Despite the pandemic, we also made progress throughout 2020 on further monetizing our real estate assets through the continuing development of Canterbury Commons,” said Randy Sampson, President and Chief Executive Officer of Canterbury. “Overall, Canterbury Park was closed for over forty days in the 2020 fourth quarter and for approximately four and a half months in 2020. Importantly, despite the impact of the pandemic on fourth quarter 2020 revenue, we demonstrated our ability to achieve meaningful margin improvement when we were open, even with significant restrictions which limited us to having no more than 250 guests per designated area at any one time. This was evidenced by a year-over-year increase in income from operations for October despite a 13% decline in revenue for that month.
“With the recent capacity increase to 250 guests per designated area and rising vaccination rates in Minnesota, we have seen improvements in business volumes. Table drop in our Card Casino for the last week of February 2021 was higher than for any full week in October or November 2020. We are also seeing the return of many of our most valuable guests for the first time since the onset of the pandemic. We expect the continued return of these guests to Canterbury Park and the potential for further easing of capacity restrictions will allow us to regain the momentum we demonstrated in January and February 2020 when we had record operating performance. Furthermore, we expect our more streamlined operating structure will generate higher margins and greater proportionate cash flow compared to prior periods as revenue performance improves. We are also looking forward to the return of live racing at Canterbury Park on May 18 as we begin a 65-day race meet, which will be twelve more days than in 2020.
“The continued development of Canterbury Commons throughout the pandemic demonstrates our successful execution of a significant growth opportunity that we expect will establish a new long-term stream of cash flow and create value for shareholders. In addition to the development projects that have been completed or are currently underway, we continue to make progress on agreements to monetize additional excess real estate for potential new entertainment, retail and commercial projects. It is truly exciting to see the first residents now living at Canterbury Commons, bringing to fruition our vision, and we look forward to the continued establishment of a new population center that will bring additional energy and benefits to our Card Casino, racing and hospitality operations.”
Mr. Sampson concluded, “For the majority of 2020 and since the beginning of 2021, we have prioritized providing a safe and exciting entertainment experience for our guests and team members while taking the necessary steps to manage costs to preserve cash. These actions, combined with the recent expansion and extension of our revolving credit line to $10 million with a new maturity date of January 31, 2024 as well as $2.5 million in cash we expect to receive from the anticipated near-term closing of previously announced land sale agreements, position Canterbury with the balance sheet and financial flexibility to both support our current operations and to execute on organic growth initiatives and potential acquisitions. With the development of Canterbury Commons well underway, we are increasingly focused on the evaluation of new growth opportunities that would leverage our pari-mutuel, gaming and real estate experience and create new value for our shareholders. In the interim, we look forward to a return to a more normalized operating environment and regaining our operating momentum at Canterbury Park, while continuing to make progress in unlocking the value inherent in our Canterbury Commons development initiative. We greatly appreciate the patience and support of our team members, guests and shareholders during the period of uncertainty caused by the COVID-19 pandemic, and we look forward to Canterbury Park’s bright future.”
Canterbury Commons Development Update
Despite Canterbury Park’s temporary closure from November 21, 2020 through the end of the year, development work on Canterbury CommonsTM continued throughout the entirety of the 2020 fourth quarter. Recent progress includes the completion of all 321 units in the first phase of the upscale Triple Crown Residences at Canterbury Park, with approximately half of these units leased and the balance now released and available for occupancy. Ground work on the second phase of the Triple Crown Residences began in October 2020, paving the way for the expected construction of roughly 300 additional apartments beginning in the summer of 2021.
Later this month, the Company expects to close on the sale of approximately 7.8 acres of land to Pulte Homes of Minnesota for the development of 63 new row homes and townhome residences at Canterbury Commons, representing approximately 70% of the total acreage Canterbury has agreed to sell to Pulte Homes. Closing of the additional land sale to Pulte Homes is subject to the satisfaction of certain conditions, and the Company expects this sale to close in 2022. Also later this month, Canterbury expects to close on the sale of approximately 2.2 acres of land to Lifestyle Communities for the development of a new cooperative community featuring a 56-unit, four-story building with over 5,000 square feet of amenity spaces. Development by Pulte Homes is expected to begin in the second quarter of 2021 and Lifestyle Communities is expected to begin construction in the fourth quarter of 2021, subject to marketing and pre-sale activity. Total cash proceeds expected to be received by Canterbury later this month for these land sale agreements is approximately $2.5 million.
Development of a new 28,000 square foot office building by Greystone Construction (“Greystone”) on the southwest portion of the Canterbury Commons site continues on schedule with completion expected in July 2021. The joint venture between Canterbury Park and Greystone also continues to make progress on securing additional partners for the balance of the 13-acre site for potential uses such as hospitality, dining, residential, commercial and service-oriented retail.
Road work on Unbridled Avenue on the north side of Canterbury Park is now substantially complete, providing a dramatic new entrance from Canterbury Road that significantly improves access to Canterbury Park and Canterbury Commons.
In addition to the approximately 50 acres under development or under contract, the Company continues to make progress with developer and partner selection for the remaining approximately 90 acres of the Canterbury Commons development. While most of the development that is currently underway is residential, the primary focus for future projects will be on entertainment, office, retail, hotel and restaurant uses. Canterbury expects to make additional announcements of new partners for this phase in the future.
Summary of 2020 Fourth Quarter Operating Results
The 2020 fourth quarter results and year over year comparisons detailed below reflect the impact of the COVID-19 pandemic, which included a state-mandated limit on capacity of no more than 250 guests per designated area at any one time for the period between October 1, 2020 and November 20, 2020 and the temporary closure of all operations (except for development work on Canterbury Commons) from November 21, 2020 through the end of the year.
Net revenues for the three months ended December 31, 2020 decreased 51.4% to $6.1 million, compared to $12.6 million for the same period in 2019.
Operating expenses for the three months ended December 31, 2020 were $6.7 million, a decrease of $5.0 million, or 42.5%, compared to operating expenses of $11.7 million for the same period in 2019. This year-over-year decrease in operating expenses reflects reductions in all of the Company’s operating expenses, primarily due to its temporary shutdown of operations starting November 21, 2020 as well as active efforts to reduce expenses in order to preserve cash.
The Company recorded a loss from equity investment of $817,000 for the three months ended December 31, 2020, primarily related to its share of non-cash expenses of depreciation, amortization and interest expense from the Triple Crown Residences, which opened in June of 2020.
The Company recorded an income tax benefit of $1.3 million for the three months ended December 31, 2020, primarily as a result of provisions in the CARES Act which allowed Canterbury to carry back its net operating loss to a year with a higher corporate tax rate. The Company recorded income tax expense of $449,000 for the three months ended December 31, 2019.
The Company recorded net income of $139,000, or diluted earnings per share of $0.03, for the three months ended December 31, 2020. Net income and diluted earnings per share for the three months ended December 31, 2019 were $553,000 and $0.12, respectively.
Adjusted EBITDA, a non-GAAP measure, declined 101.5% to a loss of $27,000 in the 2020 fourth quarter compared to 2019 fourth quarter adjusted EBITDA of $1.7 million.
Summary of 2020 Year-to-Date Operating Results
The 2020 full year results and year over year comparisons detailed below reflect the impact of the COVID-19 pandemic, which included a temporary suspension of operations from March 16, 2020 through June 9, 2020 and from November 21, 2020 through the end of the year (except for development work on Canterbury Commons), as well as significant state-mandated capacity limitations during the periods Canterbury Park operated in 2020.
Net revenues for the twelve months ended December 31, 2020 decreased 44.0% to $33.1 million, compared to $59.2 million for the same period in 2019. The year-over-year decrease in net revenues reflects declines across all of the Company’s horse racing, Card Casino, and food and beverage operations.
Operating expenses for the twelve months ended December 31, 2020 were $34.9 million, a decrease of $20.7 million, or 37.3%, compared to operating expenses of $55.6 million for the same period in 2019.
During 2020, the Company recorded a $2.4 million gain related to the transfers of land to the Doran Canterbury II and Canterbury DBSV joint ventures.
The Company recorded net income of $1.1 million, or diluted earnings per share of $0.23, for the twelve months ended December 31, 2020. Net income and diluted earnings per share for the twelve months ended December 31, 2019 were $2.7 million and $0.59, respectively.
Adjusted EBITDA, a non-GAAP measure, for the twelve months ended December 31, 2020 was $806,000 compared to $6.4 million in the same period in 2019.
Additional Financial Information
Further financial information for the fourth quarter and full year ended December 31, 2020 is presented in the accompanying tables at the end of this press release. Additional information will be provided in the Company’s Annual Report on Form 10-K that will be filed with the Securities and Exchange Commission on or about March 24, 2021.
Use of Non-GAAP Financial Measures
To supplement our financial statements, we also provide investors with information about our EBITDA and Adjusted EBITDA, each of which is a non-GAAP measure, which excludes certain items from net income a GAAP measure. We define EBITDA as earnings before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as earnings before interest income, income tax expense (benefit), depreciation and amortization, as well as excluding gain on insurance recoveries, gain on transfer of land, gain on sale of assets, loss from disposal of assets, depreciation and amortization related to equity investments, and interest expense related to equity investments. Neither EBITDA nor adjusted EBITDA is a measure of performance calculated in accordance with generally accepted accounting principles (“GAAP”), and should not be considered an alternative to, or more meaningful than, net income as an indicator of our operating performance. We have presented EBITDA as a supplemental disclosure because it is a widely used measure of performance and basis for valuation of companies in our industry. Other companies that provide EBITDA information may calculate EBITDA differently than we do. We have presented Adjusted EBITDA as a supplemental disclosure because it enables investors to understand our results excluding the effect of these items.
About Canterbury Park
Canterbury Park Holding Corporation (Nasdaq: CPHC) owns and operates Canterbury Park Racetrack and Card Casino in Shakopee, Minnesota, the only thoroughbred and quarter horse racing facility in the State. The Company generally offers live racing from May to December. The Card Casino hosts card games 24 hours a day, seven days a week, dealing both poker and table games. The Company also conducts year-round wagering on simulcast horse racing and hosts a variety of other entertainment and special events at its Shakopee facility. The Company is also pursuing a strategy to enhance shareholder value by the ongoing development of a total of approximately 140 acres of underutilized land surrounding the Racetrack in a project known as Canterbury Commons™. The Company is pursuing several mixed-use development opportunities for the remaining underutilized land, directly and through joint ventures. For more information about the Company, please visit www.canterburypark.com.
Cautionary Statement
From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, we may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans. These statements are typically preceded by the words “believes,” “expects,” “anticipates,” “intends” or similar expressions. For these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties which could affect our actual results and cause actual results to differ materially from those indicated in the forward-looking statements. We report these risks and uncertainties in our Annual Report on Form 10-K filed with the SEC and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. They include, but are not limited to: the effect that the COVID-19 coronavirus pandemic and resulting precautionary measures may have on us as an entertainment venue or on the economy generally, including the fact that we temporarily suspended all card casino, simulcast, and special events operations during portions of 2020 and may be required to do so again in 2021, that we were required to limit visitors and engage in new cleaning protocols, social distancing measures and other changes to our racetrack and card casino operations to comply with state law and health protocols, reductions in the number of visitors due to their COVID-19 concerns, and that we operated a reduced schedule consisting of a 53-day live race meet in 2020; material fluctuations in attendance at the Racetrack; material changes in the level of wagering by patrons; any decline in interest in the unbanked card games offered in the Card Casino; competition from other venues offering unbanked card games or other forms of wagering; competition from other sports and entertainment options; increases in compensation and employee benefit costs; increases in the percentage of revenues allocated for purse fund payments; higher than expected expense related to new marketing initiatives; the impact of wagering products and technologies introduced by competitors; the general health of the gaming sector; legislative and regulatory decisions and changes; our ability to successfully develop our real estate, including the effect of competition on our real estate development operations and our reliance on our current and future development partners; temporary disruptions or changes in access to our facilities caused by ongoing infrastructure improvements; and other factors that are beyond our ability to control or predict.
| Investor Contacts: | |
| Randy Dehmer | Richard Land, Jim Leahy |
| Vice President and Chief Financial Officer | JCIR |
| Canterbury Park Holding Corporation | 212-835-8500 or [email protected] |
| 952-233-4828 or [email protected] |
– Financial tables follow –
CANTERBURY PARK HOLDING CORPORATION’S
SUMMARY OF OPERATING RESULTS
| Three months ended | Twelve months ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Net Operating Revenues | $6,123,444 | $12,602,241 | $33,140,272 | $59,226,857 | |||||||||||
| Operating Expenses | (6,742,892 | ) | (11,721,832 | ) | (34,881,989 | ) | (55,591,093 | ) | |||||||
| Gain on Transfer of Land | 92,056 | – | 2,367,514 | – | |||||||||||
| (Loss) Income from Operations | (527,392 | ) | 880,409 | 625,797 | 3,635,764 | ||||||||||
| Other Operating (Loss) Income, net | (654,937 | ) | 122,150 | (814,628 | ) | 326,773 | |||||||||
| Income Tax Benefit (Expense) | 1,321,343 | (449,098 | ) | 1,250,845 | (1,244,263 | ) | |||||||||
| Net Income | $138,978 | $553,460 | $1,062,014 | $2,718,274 | |||||||||||
| Basic Net Income Per Common Share | $0.03 | $0.12 | $0.23 | $0.59 | |||||||||||
| Diluted Net Income Per Common Share | $0.03 | $0.12 | $0.23 | $0.59 | |||||||||||
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
| Three months ended | Twelve months ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| NET INCOME | $138,978 | $553,460 | $1,062,014 | $2,718,274 | ||||||||||||
| Interest income, net | (161,971 | ) | (122,150 | ) | (663,571 | ) | (326,773 | ) | ||||||||
| Income tax (benefit) expense | (1,321,343 | ) | 449,098 | (1,250,845 | ) | 1,244,263 | ||||||||||
| Depreciation | 683,018 | 692,661 | 2,748,514 | 2,679,728 | ||||||||||||
| EBITDA | (661,318 | ) | 1,573,069 | 1,896,112 | 6,315,492 | |||||||||||
| Gain on insurance recoveries | — | — | — | (198,874 | ) | |||||||||||
| Gain on transfer of land | (92,056 | ) | — | (2,367,514 | ) | — | ||||||||||
| Gain on sale of assets | — | (2,698 | ) | — | (12,141 | ) | ||||||||||
| Loss on disposal of assets | — | 147,316 | 13,407 | 261,728 | ||||||||||||
| Depreciation and amortization related to equity investments | 464,979 | — | 918,571 | — | ||||||||||||
| Interest expense related to equity investments | 261,827 | — | 345,379 | — | ||||||||||||
| ADJUSTED EBITDA | $(26,568 | ) | $1,717,687 | $805,955 | $6,366,205 | |||||||||||
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SHAKOPEE, Minn., June 13, 2025 (GLOBE NEWSWIRE) — Canterbury Park Holding Corporation (“Canterbury” or the “Company”) (NASDAQ: CPHC), today announced that the Company’s Board of Directors, pursuant to its dividend policy, approved a quarterly cash dividend of $0.07 per share that will be paid on July 14, 2025 to stockholders of record on June 30, 2025. At this quarterly rate, the annual dividend is equivalent to $0.28 per common share.
About Canterbury Park
Canterbury Park Holding Corporation (Nasdaq: CPHC) owns and operates Canterbury Park Racetrack and Casino in Shakopee, Minnesota, the only thoroughbred and quarter horse racing facility in the State. The Company generally offers live racing from May to September. The Casino hosts card games 24 hours a day, seven days a week, dealing both poker and table games. The Company also conducts year-round wagering on simulcast horse racing and hosts a variety of other entertainment and special events at its Shakopee facility. The Company is also pursuing a strategy to enhance shareholder value by the ongoing development of approximately 140 acres of underutilized land surrounding the Racetrack that was originally designated for a project known as Canterbury Commons™. The Company is pursuing several mixed-use development opportunities for the remaining underutilized land, directly and through joint ventures. For more information about the Company, please visit www.canterburypark.com.
Cautionary Statement
From time to time, in press releases and in other communications to shareholders or the investing public, Canterbury Park Holding Corporation may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans based on management’s beliefs and assumptions. These forward looking statements are typically preceded by the words such as “believes,” “expects,” “anticipates,” “intends” or similar expressions. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties, including those disclosed in our periodic filings with the Securities and Exchange Commission, which could cause actual performance, activities, future dividends or plans after the date the statements are made to differ significantly from those indicated in the forward-looking statements when made.
Investor Contacts:
Randy Dehmer
Senior Vice President and Chief Financial Officer
Canterbury Park Holding Corporation
952-233-4828 or [email protected]
Richard Land, Jim Leahy
JCIR
212-835-8500 or [email protected]
SHAKOPEE, Minn., May 08, 2025 (GLOBE NEWSWIRE) — Canterbury Park Holding Corporation (“Canterbury” or the “Company”) (Nasdaq: CPHC), today reported financial results for the first quarter ended March 31, 2025.
| ($ in thousands, except per share data and percentages) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | Change | |||||
| Net revenues | $13,142 | $14,098 | (6.8)% | ||||
| Net (loss) income | ($299 | ) | $998 | (130.0)% | |||
| Adjusted EBITDA (1) | $1,939 | $3,213 | (39.6)% | ||||
| Basic EPS | ($0.06 | ) | $0.20 | (130.0)% | |||
| Diluted EPS | ($0.06 | ) | $0.20 | (130.0)% | |||
(1) Adjusted EBITDA, a non-GAAP measure, excludes certain items from net income, a GAAP measure. Non-GAAP financial measures are not intended to be considered in isolation from, a substitute for, or superior to GAAP results. Definitions, disclosures, and reconciliations of non-GAAP financial information are included later in the release. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of net revenues.
Management Commentary
“Throughout the first quarter of 2025, we remained focused on strategies and actions to address increased competition in our Casino operations. First quarter revenues of $13.1 million and adjusted EBITDA of $1.9 million resulted in an adjusted EBITDA margin of 14.8%, which is consistent with our adjusted EBITDA margin for the trailing twelve months, reflecting our ability to deliver operating efficiencies that partially offset the competitive pressures,” said Randy Sampson, President and Chief Executive Officer of Canterbury Park.
“We are re-focusing and expanding our marketing programs to address the increased competition to our Casino operations. These programs target attracting and retaining new customers and increasing visitation from our existing high-value guests. We will soon welcome Jennifer Lauerman, our new Vice President of Marketing and Entertainment to lead our marketing, event and entertainment functions. Lauerman brings extensive experience and expertise in advertising, brand marketing, and event planning and production having served in a number of regional marketing and event positions including Vice President of Marketing for the Mall of America, one of the largest retail and entertainment venues in the country. By combining the marketing and entertainment functions under this senior executive, we will create operating efficiencies and further position Canterbury as the gaming entertainment venue offering the best service and value for players in the region. We also remain focused on further expanding our offerings of mid- and large-scale events as we continue to accelerate this momentum in 2025, with several record attendance events having already taken place year-to-date, and more new large-scale events planned for this year. These revenue optimization efforts are complemented by our ongoing focus on operating efficiencies, and we expect that collectively these strategies will result in solid annual cash flow this year that will increase in the future as we complete the barn relocation and other large capital improvement projects and begin to receive interest payments on our tax increment financing note.
“Canterbury Commons continues to strengthen its foundation to be a long-term driver of positive economics for the Company as it builds on its vision to be a premier regional destination to live, play, work and stay. We continue to explore additional trackside development opportunities that would add to the nearly 1,000 residential units, five restaurants and breweries, two music and entertainment venues, 57,000 square-feet of office space, and other distinct amenities already open or under construction.
“While our growth and efficiency initiatives are focused on 2025 and beyond, our record of consistent annual cash flow generation, return of capital through our quarterly cash dividend and strong balance sheet are not fully recognized in our current valuation. We have no debt and the value of our cash, tax increment financing receivable and real estate joint ventures is $10 per share. This reflects more than $15 million, or approximately $3.04 per share, in cash and short-term investments, and over $19 million, or approximately $3.80 per share, in tax increment financing receivable on our balance sheet as of March 31, 2025. In addition, we have contributed a total of nearly $17 million, or approximately $3.16 per share, in land and cash to our real estate joint venture development projects. This $10.00 per share value does not include the roughly 50 acres of land held for future development, the value of which is not fully reflected on our balance sheet due to it being reported at cost basis.
“Overall, we are well-positioned to address the recent increased competition in the market as we begin to implement our new marketing initiatives and continue to build out our events strategy and calendar. Finally, we continue to successfully unlock the significant value of our real estate through the development of Canterbury Commons and remain focused on opportunities to create long-term value for our shareholders, including our significant efforts to ensure Canterbury will benefit economically if online sports betting is approved in Minnesota.”
Canterbury Commons Development Update
Swervo continues to make progress on the construction of its state-of-the-art amphitheater, which will be operated by Live Nation. The Company’s barn relocation and redevelopment plan is nearing completion with over 300 stalls completed and in operation, with the balance of the planned backside improvements on schedule for completion in the second quarter of 2025. Canterbury is also nearing completion of the road adjacent to the amphitheater which will unlock the development potential of roughly 25 acres of land in that portion of the site.
Residential and commercial construction updates related to joint ventures include:
- Phase II of The Doran Group’s upscale Triple Crown Residences at Canterbury Park has leased 95% of its available units. Following the completion of repairs and receipt of a certificate of occupancy in January 2025 on Phase I of the Triple Crown Residences, 22% of those units are now leased.
- 90% of the 147 units of senior market rate apartments at The Omry at Canterbury are leased.
- The pizza restaurant, fitness center and BBQ restaurant in the 10,000 square-foot commercial building within the Winners Circle development are all open.
- Construction of an additional 28,000 square-foot commercial office building within the Winners Circle development is ongoing. The primary user has 50% of the space under lease and discussions are ongoing with other potential tenants.
- The Company’s joint venture partner, Trackside Holdings, LLC, continues to make progress with construction of an approximately 16,000 square foot project on 3.5 acres of trackside land that will house a new music venue, restaurant and bar scheduled to open in June 2025.
Residential and commercial construction updates related to prior land sales include:
- Pulte Homes of Minnesota continues development on the 45-unit second phase of its row home and townhome residences.
Developer and partner selection for the remaining 50 acres of Canterbury Commons, including 25 acres that will become available for development following the completion of the new road noted above, continues. Additional uses could include office, retail, hotel and restaurants.
Summary of 2025 First Quarter Operating Results
Net revenues for the three months ended March 31, 2025, decreased 6.8% to $13.1 million, compared to $14.1 million in the same period last year. The year-over-year comparison reflects declines of 8.6%, 8.2% and 5.9% in Casino, Pari-mutuel and Food and Beverage revenues, respectively, partially offset by a 9.3% increase in Other revenues. The year-over-year decreases primarily reflect the previously noted competition that is impacting Casino revenues, fewer races nationally impacting Pari-mutuel revenues and lower spend in F&B operations, while the increase in Other revenues reflects strong event admission revenues in the first quarter.
Operating expenses for the three months ended March 31, 2025 were $12.5 million, an increase of $156,000, or 1.3%, compared to operating expenses of $12.3 million for the same period in 2024. The year-over-year increase in operating expenses was primarily driven by increased salaries and wages due to annual wage increases, increased other operating expenses due to increased property taxes, and higher advertising and marketing costs reflecting the implementation of the Company’s expanded and revamped marketing initiatives implemented in the 2025 first quarter. Depreciation expense also increased due to the completion of large capital improvement projects in 2024.
The Company recorded a net loss of $1.6 million and $852,000 from equity investments for the three months ended March 31, 2025 and 2024, respectively. The loss in both periods is primarily related to the Company’s share of depreciation, amortization and interest expense from the Doran Canterbury joint ventures. The increased loss for the three months ended March 31, 2025 is due to the Doran Canterbury II joint venture opening in 2024.
The Company recorded an income tax benefit of $181,000 and income tax expense of $450,000 for the three months ended March 31, 2025 and 2024, respectively. The income tax benefit for the three months ended March 31, 2025 compared to the income tax expense for the same period in 2024 is primarily due to a decrease in income before taxes from operations and a federal interest income tax refund received in the first quarter of 2025.
The Company recorded a net loss of $299,000 and a diluted loss per share of $0.06 for the three months ended March 31, 2025. The Company recorded net income of $1.0 million and diluted earnings per share of $0.20 for the three months ended March 31, 2024.
Adjusted EBITDA, a non-GAAP measure, was $1.9 million in the 2025 first quarter, compared to $3.2 million in the 2024 first quarter.
Additional Financial Information
Further financial information for the first quarter ended March 31, 2025, is presented in the accompanying tables at the end of this press release. Additional information will be provided in the Company’s Quarterly Report on Form 10-Q that will be filed with the Securities and Exchange Commission on or about May 9, 2025.
Use of Non-GAAP Financial Measures
To supplement our financial statements, we also provide investors with information about our EBITDA and Adjusted EBITDA, each of which is a non-GAAP measure, and which exclude certain items from net income, a GAAP measure. We define EBITDA as earnings before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as earnings before interest income (net of interest expense), income tax expense, depreciation and amortization, as well as excluding stock-based compensation (which includes our 401(k) match expense as this match occurs in Company stock), depreciation and amortization related to equity investments, and interest expense related to equity investments. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net revenues. Neither EBITDA, Adjusted EBITDA, or Adjusted EBITDA margin are measures of performance calculated in accordance with generally accepted accounting principles (“GAAP”), and should not be considered an alternative to, or more meaningful than, net income as an indicator of our operating performance. See the table below, which presents reconciliations of these measures to the GAAP equivalent financial measure, which is net income. We have presented EBITDA as a supplemental disclosure because we believe that, when considered with measures calculated in accordance with GAAP, EBITDA gives investors a more complete understanding of our operating results before the impact of investing and financing transactions and income taxes, and it is a widely used measure of performance and basis for valuation of companies in our industry. Other companies that provide EBITDA information may calculate EBITDA or Adjusted EBITDA differently than we do. We have presented Adjusted EBITDA as a supplemental disclosure because we believe it enables investors to understand and assess our core operating results excluding the effect of these items and is useful to investors in allowing greater transparency related to a significant measure used by management in its financial and operational decision-making. Adjusted EBITDA has economic substance because it is used by management as a performance measure to analyze the performance of our business and provides a perspective on the current effects of operating decisions.
About Canterbury Park
Canterbury Park Holding Corporation (Nasdaq: CPHC) owns and operates Canterbury Park Racetrack and Casino in Shakopee, Minnesota, the only thoroughbred and quarter horse racing facility in the State. The Company generally offers live racing from May to September. The Casino hosts card games 24 hours a day, seven days a week, dealing both poker and table games. The Company also conducts year-round wagering on simulcast horse racing and hosts a variety of other entertainment and special events at its Shakopee facility. The Company is also pursuing a strategy to enhance shareholder value by the ongoing development of approximately 140 acres of underutilized land surrounding the Racetrack that was originally designated for a project known as Canterbury Commons™. The Company is pursuing several mixed-use development opportunities for the remaining underutilized land, directly and through joint ventures. For more information about the Company, please visit www.canterburypark.com.
Cautionary Statement
From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, we may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans. These statements are typically preceded by the words “believes,” “expects,” “anticipates,” “intends” or similar expressions. For these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties which could affect our actual results and cause actual results to differ materially from those indicated in the forward-looking statements. We report these risks and uncertainties in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. They include, but are not limited to: we may not be successful in implementing our growth strategy; sensitivity to reductions in discretionary spending as a result of downturns in the economy and other factors; we have experienced a decrease in revenue and profitability from live racing; challenges in attracting a sufficient number of horses and trainers; a lack of confidence in core operations resulting in decreasing customer retention and engagement; personal injury litigation due to the inherently dangerous nature of horse racing; material fluctuations in attendance at the Racetrack; material changes in the level of wagering by patrons; any decline in interest in horse racing or the unbanked card games offered in the Casino; competition from other venues offering racing, unbanked card games or other forms of wagering; competition from other sports and entertainment options; increases in compensation and employee benefit costs; the impact of wagering products and technologies introduced by competitors; the general health of the gaming sector; legislative and regulatory decisions and changes; our ability to successfully develop our real estate, including the effect of competition on our real estate development operations and our reliance on our current and future development partners; our obligation to make improvements in the TIF district that will only be reimbursed to the extent of future tax revenue; temporary disruptions or changes in access to our facilities caused by ongoing infrastructure improvements; inclement weather and other conditions affecting the ability to conduct live racing; technology and/or key system failures; cybersecurity incidents; the general effects of inflation; our ability to attract and retain qualified personnel; dividends that may or may not be issued at the discretion of our Board of Directors; and other factors that are beyond our ability to control or predict.
The forward-looking statements in this press release speak only as of the date of this press release. Except as required by law, Canterbury assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.
Investor Contacts
| Randy Dehmer | Richard Land, Jim Leahy | |
| Senior Vice President and Chief Financial Officer | JCIR | |
| Canterbury Park Holding Corporation | 212-835-8500 or [email protected] | |
| 952-233-4828 or [email protected] | ||
| – financial tables follow – | ||
| CANTERBURY PARK HOLDING CORPORATION’S SUMMARY OF OPERATING RESULTS (UNAUDITED) |
|||||||
| Three months ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| Operating Revenues: | |||||||
| Casino | $9,192,158 | $10,056,028 | |||||
| Pari-mutuel | 1,078,485 | 1,174,268 | |||||
| Food and Beverage | 1,624,753 | 1,727,149 | |||||
| Other | 1,246,236 | 1,140,544 | |||||
| Total Net Revenues | 13,141,632 | 14,097,989 | |||||
| Operating Expenses | 12,491,961 | 12,336,114 | |||||
| Income from Operations | 649,671 | 1,761,875 | |||||
| Other Loss, net | (1,129,881 | ) | (313,721 | ) | |||
| Income Tax Benefit (Expense) | 181,000 | (450,000 | ) | ||||
| Net (Loss) Income | ($299,210 | ) | $998,154 | ||||
| Basic (Loss) Earnings Per Share | ($0.06 | ) | $0.20 | ||||
| Diluted (Loss) Earnings Per Share | ($0.06 | ) | $0.20 | ||||
| RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) |
|||||||
| Three months ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| NET (LOSS) INCOME | ($299,210 | ) | $998,154 | ||||
| Interest income, net | (443,281 | ) | (538,527 | ) | |||
| Income tax (benefit) expense | (181,000 | ) | 450,000 | ||||
| Depreciation and amortization | 931,488 | 850,986 | |||||
| EBITDA | 7,997 | 1,760,613 | |||||
| Stock-based compensation | 382,457 | 346,466 | |||||
| Depreciation and amortization related to equity investments | 772,293 | 527,625 | |||||
| Interest expense related to equity investments | 776,535 | 578,315 | |||||
| ADJUSTED EBITDA | $1,939,282 | $3,213,019 | |||||
SHAKOPEE, Minn., March 13, 2025 (GLOBE NEWSWIRE) — Canterbury Park Holding Corporation (“Canterbury” or the “Company”) (NASDAQ: CPHC), today announced that the Company’s Board of Directors, pursuant to its dividend policy, approved a quarterly cash dividend of $0.07 per share that will be paid on April 14, 2025 to stockholders of record on March 31, 2025. At this quarterly rate, the annual dividend is equivalent to $0.28 per common share.
About Canterbury Park
Canterbury Park Holding Corporation (Nasdaq: CPHC) owns and operates Canterbury Park Racetrack and Casino in Shakopee, Minnesota, the only thoroughbred and quarter horse racing facility in the State. The Company generally offers live racing from May to September. The Casino hosts card games 24 hours a day, seven days a week, dealing both poker and table games. The Company also conducts year-round wagering on simulcast horse racing and hosts a variety of other entertainment and special events at its Shakopee facility. The Company is also pursuing a strategy to enhance shareholder value by the ongoing development of approximately 140 acres of underutilized land surrounding the Racetrack that was originally designated for a project known as Canterbury Commons™. The Company is pursuing several mixed-use development opportunities for the remaining underutilized land, directly and through joint ventures. For more information about the Company, please visit www.canterburypark.com.
Cautionary Statement
From time to time, in press releases and in other communications to shareholders or the investing public, Canterbury Park Holding Corporation may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans based on management’s beliefs and assumptions. These forward looking statements are typically preceded by the words such as “believes,” “expects,” “anticipates,” “intends” or similar expressions. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties, including those disclosed in our periodic filings with the Securities and Exchange Commission, which could cause actual performance, activities, future dividends or plans after the date the statements are made to differ significantly from those indicated in the forward-looking statements when made.
| Investor Contacts: | |
| Randy Dehmer | Richard Land, Jim Leahy |
| Senior Vice President and Chief Financial Officer | JCIR |
| Canterbury Park Holding Corporation | 212-835-8500 or [email protected] |
| 952-233-4828 or [email protected] |
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