Nasdaq:CPHC
Canterbury Park Holding Corporation Reports 2021 Second Quarter Results
SHAKOPEE, Minn., Aug. 09, 2021 (GLOBE NEWSWIRE) — Canterbury Park Holding Corporation (“Canterbury” or the “Company”) (NASDAQ: CPHC), today reported financial results for the second quarter and six months ended June 30, 2021.
($ in thousands, except per share data and percentages)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2021 | 2020 | Increase(3) | 2021 | 2020 | Increase(3) | ||||||
| Net revenues(1) | $15,872 | $2,768 | 473.4% | $25,097 | $13,717 | 83.0% | |||||
| Net income (loss) (1) | $1,869 | ($1,181) | NM | $2,421 | ($926) | NM | |||||
| Adjusted EBITDA(1) (2) | 3,514 | (1,775) | 298.0% | 4,936 | (916) | 638.8% | |||||
| Basic EPS | $0.39 | ($0.25) | NM | $0.51 | ($0.20) | NM | |||||
| Diluted EPS | $0.39 | ($0.25) | NM | $0.51 | ($0.20) | NM | |||||
(1) Net revenues and net income for the six month period ended June 30, 2021 include $515,000 in grant funds received as a result of the Minnesota COVID-19 relief package that was passed and signed into law in December 2020.
(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.
(3) Amounts referred to as “NM” are defined as not meaningful.
Financial results for the three and six months ended June 30, 2020 reflect the impact of the onset of the COVID-19 pandemic and closure of the Card Casino, simulcast, and special events operations at Canterbury Park from March 16, 2020 to June 9, 2020, after which the Company reopened in a limited capacity. Results for the six months ended June 30, 2021 include the impact of the state-mandated closure of Canterbury Park which ended January 10, 2021 and capacity restrictions from January 11, 2021 to May 28, 2021. Canterbury Park re-opened on January 11, 2021 with a capacity limitation of 150 guests per designated area; this was subsequently increased on February 13, 2021 to 250 guests per designated area. All capacity restrictions were removed on May 28, 2021, and we began operating under pre-pandemic guidelines.
Management Commentary
“Canterbury Park’s strong operating momentum continued in the second quarter of 2021, as income from operations (excluding one-time gains) increased 157% over the comparable 2019 non-COVID impacted period and, despite lower revenue, we generated record quarterly adjusted EBITDA of $3.5 million,” said Randy Sampson, President and Chief Executive Officer of Canterbury. “This strong performance reflects improved guest visitation as capacity restrictions were lifted which helped drive consistent monthly increases in our higher-margin Card Casino revenues throughout the quarter. The second quarter also benefited from healthy contributions from our racing operations, including the continuation of the strong out-of-state handle increases we achieved in 2020 with our shift to featuring more mid-week racing.
“Importantly, the many operating changes we have effected since the beginning of the pandemic are delivering higher margins and cash flow as reflected by the quarterly record for adjusted EBITDA as a percentage of revenue of 22% in the 2021 second quarter. Our ability to operate in a significantly more efficient manner is also evidenced by the improvement in this metric as compared to 10% achieved in the non-COVID impacted 2019 second quarter period. We are achieving improved operating expense management and efficiencies across our operations including labor management, purchasing, pricing, and marketing, and we are highly focused on maintaining this operating discipline to drive increased profitability as our revenues return to pre-COVID levels.
“Canterbury is leveraging our margin enhancement initiatives with operating strategies focused on profitable revenue growth. These strategies include a focus on higher value Card Casino players, new targeted social media advertising, and ongoing refinements to our marketing programs aimed at deepening the market penetration of our Card Casino. We’re also maintaining the increased spacing for our guests in the Card Casino, which players appreciate and which we believe is contributing to higher theoretical win per player. In addition, we are aggressively courting racing fans in our market by highlighting Canterbury as a horseplayer-friendly racetrack that features high quality racing and entertaining promotions. We are also bringing back special event days that our fans love and drive large family day crowds. Finally, we believe our capable food and beverage and events team, as well as our focus on expanding catering opportunities for events of all sizes and our commitment to launch new event experiences, offers significant growth opportunities for our hospitality operations. However, like most hospitality businesses, we face the challenge of hiring and maintaining adequate staffing at both manager and front-line levels of the Company. We continue to be creative in finding ways to fill our staffing shortages to maintain our customer service standards and allow us to execute on our growth initiatives.
“Progress on the development of Canterbury Commons™ continued throughout the 2021 second quarter and to-date in the third quarter. The number of people living and/or working full time at Canterbury Commons is growing every day. Following our initial focus on residential and office development, we are now seeing an uptick in business development discussions for new retail and hospitality development, particularly for restaurant and hotel venues. We are pleased with both the pace of development for existing projects and with our ongoing discussions around new potential developments and remain highly confident in our ability to achieve our vision of establishing a population, business, and entertainment center at Canterbury. We believe this development will benefit our Card Casino, racing operations, and event facilities and create new value for our shareholders.
“The operating and cost control initiatives we’ve implemented since March 2020 that have resulted in significant operating efficiencies combined with organic growth opportunities in our Card Casino and racetrack operations positions Canterbury to benefit from enhanced margins and cash flow as our operations continue to return to normalized levels. In addition, we have the financial flexibility to pursue strategic growth and diversification transactions where we can leverage our operating expertise. Finally, we are continuing with our efforts to unlock Canterbury Commons’ value for the benefit of our shareholders. Our ability to manage through the challenges of the pandemic and emerge as a stronger company with an extremely bright future is due to our talented and dedicated team members who continue to demonstrate to our guests daily our unwavering commitment to provide exceptional entertainment and customer service. I could not be more excited about our future or prouder of the entire Canterbury team.”
Canterbury Commons Development Update
Canterbury Commons development work continued during the 2021 second quarter. Leasing continues for the Phase 1 development of the upscale Triple Crown Residences at Canterbury Park, and Canterbury Park and Doran Properties Group expect early stages of the construction of the project’s second phase of roughly 300 additional apartments will begin in the fall of 2021 with the main construction project starting in the spring of 2022.
Development of a new 28,000 square foot office building by Greystone Construction (“Greystone”) was completed in July and approximately 85% of the building is leased, including the portion of the building now occupied by Greystone as its new corporate headquarters. Canterbury Park and Greystone, via their joint venture, continue 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. At present, 50% of the site is either under contract or completed with recent contracts for two commercial sites. A purchase agreement has been signed on 1.67 acres for commercial use with a developer and entitlements are underway on a 156-unit, age-restricted multifamily project.
As previously reported, in April 2021, the Company closed on the sale of approximately eight acres of land to Pulte Homes of Minnesota for the development of 63 new row homes and townhome residences, and on two 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. The sale of the remaining approximately three acres to Pulte Homes is expected to close in 2022, subject to the satisfaction of certain conditions. Total consideration received by the Company for these land sale agreements was approximately $2,500,000.
Developer and partner selection for the remaining approximately 90 acres of Canterbury Commons continues. The primary focus for future projects will be on entertainment, office, retail, hotel, and restaurant uses. Canterbury expects to make additional new partner announcements in the future.
Summary of 2021 Second Quarter Operating Results
The operating results for the three-month period ended June 30, 2020 presented below reflect the impact of the suspension of operations at Canterbury through June 9, 2020. Live racing, simulcast wagering, and limited food and beverage operations reopened on June 10, 2020 with capacity constraints, followed by the resumption with capacity restraints of table games operations on June 15, 2020. There were no temporary shutdowns during the 2021 second quarter, but capacity was restricted in the 2021 second quarter until May 28, 2021.
Net revenues for the three months ended June 30, 2021 increased 473.4% to $15.9 million, compared to $2.8 million for the same period in 2020. This year-over-year increase in net revenues reflects an increase in all of the Company’s areas of operating revenue in second quarter of 2021 as compared to second quarter 2020, primarily as a result of a return to normalized operations and full capacity in the second quarter 2021 as compared to the prior year temporary suspension of operations through June 9, 2020, which was followed by the resumption of operations over the balance of the second quarter 2020 on a very limited basis.
Operating expenses for the three months ended June 30, 2021 were $13.0 million, an increase of $8.0 million, or 156.4%, compared to operating expenses of $5.1 million for the same period in 2020. This year-over-year increase in operating expenses reflects an increase in all of the Company’s operating expenses in the second quarter 2021 as compared to the second quarter 2020, primarily as a result of a return to normalized operations in the second quarter 2021 as compared to the prior year temporary suspension of operations through June 9, 2020.
During the 2021 second quarter, the Company recorded a $264,000 gain related to the sale of approximately 9.7 acres of land adjacent to the racetrack to Pulte Homes of Minnesota and Lifestyle Communities for $2,500,000.
The Company recorded a loss from equity investment of $641,000 for the three months ended June 30, 2021, primarily related to its share of depreciation, amortization, and interest expense from the Doran Canterbury joint ventures that are developing the Triple Crown Residences, which opened its initial phase in June 2020. The Company recorded a loss from equity investment of $150,000 for the three months ended June 30, 2020, also primarily related to its share of depreciation, amortization, and interest expense from the Doran Canterbury joint ventures.
The Company recorded income tax expense of $758,000 for the three months ended June 30, 2021. The Company recorded an income tax benefit of $1.1 million for the three months ended June 30, 2020.
The Company recorded net income of $1.9 million, or diluted earnings per share of $0.39, for the three months ended June 30, 2021. The Company recorded a net loss and diluted loss per share for the three months ended June 30, 2020 of $(1.2) million and $(0.25), respectively.
Adjusted EBITDA, a non-GAAP measure, was a quarterly record $3.5 million in the 2021 second quarter compared to an adjusted EBITDA loss of $(1.8) million for the same period in 2020.
Summary of 2021 Year-to-Date Operating Results
Net revenues for the six months ended June 30, 2021 increased 83.0% to $25.1 million, compared to $13.7 million for the same period in 2020. This year-over-year increase in net revenues reflects an increase in all the Company’s areas of operating revenue as a result of a return to normalized operations and full capacity in the second quarter 2021 as compared to the temporary suspension of operations from March 16, 2020 through June 9, 2020.
Operating expenses for the six months ended June 30, 2021 were $21.0 million, an increase of $5.1 million, or 32.1%, compared to operating expenses of $15.9 million for the same period in 2020. This year-over-year increase in operating expenses reflects increases in a majority of the Company’s operating areas, primarily as a result of a return to normalized operations and full capacity in the second quarter 2021 as compared to the prior year temporary suspension of operations from March 16, 2020 through June 9, 2020.
The Company recorded a loss from equity investment of $1.3 million for the six months ended June 30, 2021. The Company recorded a loss from equity investment of $150,000 for the six months ended June 30, 2020. These losses from equity investments were primarily related to the Company’s share of depreciation, amortization, and interest expense from the Doran Canterbury joint ventures.
The Company recorded income tax expense of $1.0 million for the six months ended June 30, 2021. The Company recorded an income tax benefit of $1.1 million for the six months ended June 30, 2020.
The Company recorded net income of $2.4 million, or diluted earnings per share of $0.51 for the six months ended June 30, 2021. The Company recorded a net loss and diluted loss per share for the six months ended June 30, 2020 of $926,000 and $0.20, respectively.
Adjusted EBITDA was $4.9 million for the six months ended June 30, 2021 compared to an adjusted EBITDA loss of $916,000 for the same period in 2020.
Additional Financial Information
Further financial information for the second quarter ended June 30, 2021 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 August 10, 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 gains on sale of land, depreciation and amortization related to equity investments, grant money received from the Minnesota COVID-19 relief package, 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 September. 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 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 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 and reductions in the number of visitors due to their COVID-19 concerns; 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 dependence on the Cooperative Marketing Agreement with the Shakopee Mdewakanton Sioux Community for purse enhancement payments and marketing payments, which may not continue after 2022; 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
(UNAUDITED)
| Three months ended | Six months ended |
||||||||||||||
| June 30, | June 30, |
||||||||||||||
| 2021 | 2020 |
2021 |
2020 |
||||||||||||
| Net Operating Revenues | $15,871,818 | $2,767,855 | $25,097,360 | $13,716,814 | |||||||||||
| Operating Expenses | (13,042,932 | ) | (5,086,434 | ) | 20,996,363 | (15,893,698 | ) | ||||||||
| Gain on Sale of Land | 263,581 | – | 263,581 | – | |||||||||||
| Income (Loss) from Operations | 3,092,467 | (2,318,579 | ) | 4,364,578 | (2,176,884 | ) | |||||||||
| Other (Loss) Income, net | (465,786 | ) | 19,719 | (934,180 | ) | 183,409 | |||||||||
| Income Tax (Expense) Benefit | (757,597 | ) | 1,117,663 | (1,009,821 | ) | 1,067,499 | |||||||||
| Net Income (Loss) | $1,869,084 | ($1,181,197 | ) | $2,420,577 | ($925,976 | ) | |||||||||
| Basic Net Income (Loss) Per Common Share | $0.39 | ($0.25 | ) | $0.51 | ($0.20 | ) | |||||||||
| Diluted Net Income (Loss) Per Common Share | $0.39 | ($0.25 | ) | $0.51 | ($0.20 | ) | |||||||||
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
(UNAUDITED)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| NET INCOME (LOSS) | $ | 1,869,084 | $ | (1,181,197 | ) | $ | 2,420,577 | $ | (925,976 | ) | ||||||
| Interest income, net | (175,090 | ) | (169,358 | ) | (344,400 | ) | (333,048 | ) | ||||||||
| Income tax expense (benefit) | 757,597 | (1,117,663 | ) | 1,009,821 | (1,067,499 | ) | ||||||||||
| Depreciation | 694,168 | 693,640 | 1,383,753 | 1,410,493 | ||||||||||||
| EBITDA | 3,145,759 | (1,774,578 | ) | 4,469,751 | (916,030 | ) | ||||||||||
| Gain on sale of land | (263,581 | ) | — | (263,581 | ) | — | ||||||||||
| Depreciation and amortization related to equity investments | 393,673 | — | 787,347 | — | ||||||||||||
| Interest expense related to equity investments | 237,871 | — | 457,066 | — | ||||||||||||
| Other revenue, COVID-19 relief grants | — | — | (515,000 | ) | — | |||||||||||
| ADJUSTED EBITDA | $ | 3,513,723 | $ | (1,774,578 | ) | $ | 4,935,583 | $ | (916,030 | ) | ||||||
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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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