Canterbury Park Holding Corporation Reports 2024 Second Quarter Results
Canterbury Park Holding (Nasdaq: CPHC) reported its financial results for Q2 2024, showing a mixed performance. Net revenues slightly decreased by 0.9% year-over-year to $16.2 million, while net income dropped 93.6% to $338,000 due to the absence of a one-time land sale gain from the previous year.
Adjusted EBITDA climbed 1% to $2.4 million. Despite a 5.2% decline in Casino revenue, increases in Pari-mutuel, Food & Beverage, and Other revenues partially offset the losses. The company also recorded a loss of $1.2 million from equity investments.
For the six months ended June 30, 2024, net revenues increased by 2.2% to $30.3 million. Operating expenses rose by 1.4% to $27.4 million. Net income for this period fell 83.4% to $1.3 million. Canterbury's development projects, including Canterbury Commons, are making progress, with several new commercial and residential buildings scheduled to open soon.
Canterbury Park Holding (Nasdaq: CPHC) ha riportato i risultati finanziari per il secondo trimestre del 2024, mostrando una performance mista. I ricavi netti sono leggermente diminuiti dello 0,9% rispetto all'anno precedente, raggiungendo $16,2 milioni, mentre il reddito netto è calato del 93,6% a $338.000 a causa dell'assenza di un guadagno straordinario da vendita di terreni registrato l'anno scorso.
Il EBITDA rettificato è aumentato dell'1% a $2,4 milioni. Nonostante una diminuzione del 5,2% nei ricavi del Casinò, i rialzi nei ricavi da scommesse Pari-mutuel, cibo e bevande, e altre entrate hanno parzialmente compensato le perdite. L'azienda ha anche registrato una perdita di $1,2 milioni dagli investimenti azionari.
Per i sei mesi conclusi il 30 giugno 2024, i ricavi netti sono aumentati del 2,2% a $30,3 milioni. Le spese operative sono aumentate dell'1,4% a $27,4 milioni. Il reddito netto per questo periodo è sceso dell'83,4% a $1,3 milioni. I progetti di sviluppo di Canterbury, inclusi i Canterbury Commons, stanno facendo progressi, con diversi nuovi edifici commerciali e residenziali in programma per l'apertura a breve.
Canterbury Park Holding (Nasdaq: CPHC) informó sus resultados financieros para el segundo trimestre de 2024, mostrando un desempeño mixto. Los ingresos netos disminuyeron ligeramente en un 0,9% en comparación con el año anterior, alcanzando $16,2 millones, mientras que el ingreso neto cayó un 93,6% a $338,000 debido a la falta de una ganancia por la venta de terrenos única del año anterior.
El EBITDA ajustado aumentó un 1% a $2,4 millones. A pesar de una caída del 5,2% en los ingresos del casino, aumentos en los ingresos por apuestas mutuas, alimentos y bebidas, y otros ingresos compensaron parcialmente las pérdidas. La empresa también registró una pérdida de $1,2 millones de inversiones en acciones.
Para los seis meses que terminaron el 30 de junio de 2024, los ingresos netos aumentaron un 2,2% a $30,3 millones. Los gastos operativos aumentaron un 1,4% a $27,4 millones. El ingreso neto para este período cayó un 83,4% a $1,3 millones. Los proyectos de desarrollo de Canterbury, incluidos los Canterbury Commons, están avanzando, con varios nuevos edificios comerciales y residenciales programados para abrir pronto.
캔터베리 파크 홀딩 (Nasdaq: CPHC)는 2024년 2분기 재무 결과를 발표하며 혼합된 성과를 보였습니다. 순수익은 전년 대비 0.9% 감소하여 $16.2 백만에 이르렀으며, 순이익은 작년의 일회성 토지 매각 이익 부재로 인해 93.6% 감소한 $338,000으로 떨어졌습니다.
조정 EBITDA는 1% 증가하여 $2.4 백만에 이르렀습니다. 카지노 수익이 5.2% 감소했지만, 패리무추얼, 음식 및 음료, 그리고 기타 수익의 증가가 손실을 부분적으로 상쇄했습니다. 이 회사는 또한 자본 투자로 인해 $1.2 백만의 손실을 기록했습니다.
2024년 6월 30일로 종료된 6개월 동안의 순수익은 2.2% 증가하여 $30.3 백만에 달했습니다. 운영 비용은 1.4% 증가하여 $27.4 백만에 이르렀습니다. 이 기간의 순이익은 83.4% 감소하여 $1.3 백만이 되었습니다. 캔터베리의 개발 프로젝트인 캔터베리 커먼즈를 포함하여 여러 신규 상업 및 주거용 건물이 곧 개장될 예정입니다.
Canterbury Park Holding (Nasdaq: CPHC) a présenté ses résultats financiers pour le 2e trimestre de 2024, montrant une performance mixte. Les revenus nets ont légèrement diminué de 0,9% d'une année sur l'autre pour atteindre $16,2 millions, tandis que le bénéfice net a chuté de 93,6% à $338.000 en raison de l'absence d'un gain exceptionnel lié à la vente de terrains de l'année précédente.
EBITDA ajusté a augmenté de 1% à $2,4 millions. Malgré une baisse de 5,2% des revenus du casino, les augmentations des revenus de Pari-mutuel, de la nourriture et des boissons, et d'autres revenus ont partiellement compensé les pertes. L'entreprise a également enregistré une perte de $1,2 million provenant d'investissements en actions.
Pour les six mois se terminant le 30 juin 2024, les revenus nets ont augmenté de 2,2% pour atteindre $30,3 millions. Les dépenses d'exploitation ont augmenté de 1,4% pour atteindre $27,4 millions. Le bénéfice net pour cette période a chuté de 83,4% à $1,3 million. Les projets de développement de Canterbury, y compris Canterbury Commons, progressent, avec plusieurs nouveaux bâtiments commerciaux et résidentiels prévus pour ouvrir bientôt.
Canterbury Park Holding (Nasdaq: CPHC) hat seine Finanzergebnisse für das 2. Quartal 2024 bekannt gegeben, die eine gemischte Leistung zeigen. Die Nettoeinnahmen sind im Vergleich zum Vorjahr um 0,9% auf 16,2 Millionen Dollar gesunken, während der Nettoertrag um 93,6% auf 338.000 Dollar gefallen ist, was auf das Fehlen eines einmaligen Gewinns aus dem Verkauf von Land im Vorjahr zurückzuführen ist.
Bereinigtes EBITDA stieg um 1% auf 2,4 Millionen Dollar. Trotz eines Rückgangs der Casino-Einnahmen um 5,2% haben Anstiege bei Pari-Mutuel-, Lebensmittel- und Getränkeeinnahmen sowie anderen Einnahmen die Verluste teilweise ausgeglichen. Das Unternehmen verzeichnete auch einen Verlust von 1,2 Millionen Dollar aus Beteiligungsinvestitionen.
Für die sechs Monate bis zum 30. Juni 2024 stiegen die Nettoeinnahmen um 2,2% auf 30,3 Millionen Dollar. Die Betriebskosten stiegen um 1,4% auf 27,4 Millionen Dollar. Der Nettoertrag für diesen Zeitraum fiel um 83,4% auf 1,3 Millionen Dollar. Die Entwicklungsprojekte von Canterbury, darunter Canterbury Commons, machen Fortschritte, wobei mehrere neue gewerbliche und Wohngebäude demnächst eröffnet werden.
- Adjusted EBITDA increased by 1% to $2.4 million for Q2 2024.
- Net revenues rose by 2.2% to $30.3 million in the first half of 2024.
- Pari-mutuel, Food & Beverage, and Other revenues increased year-over-year.
- Operating expenses declined by $199,000 in Q2 2024.
- Canterbury Commons development projects are on track, with new facilities expected to open soon.
- Net income decreased by 93.6% to $338,000 in Q2 2024.
- Casino revenue declined by 5.2% year-over-year.
- Net income for the first half of 2024 fell by 83.4% to $1.3 million.
- Loss from equity investments increased to $1.2 million in Q2 2024.
- EPS dropped by 93.5% to $0.07 in Q2 2024.
Insights
Canterbury Park's Q2 2024 results show a mixed performance. Net revenues slightly decreased by
Key points:
- Casino revenue declined
5.2% , offset by growth in other segments - Adjusted EBITDA margin improved slightly to
14.9% - Strong balance sheet with
$24 million in cash and short-term investments - Ongoing development of Canterbury Commons progressing well
While the core business appears stable, the company's future growth seems heavily tied to the success of its Canterbury Commons development project.
The Canterbury Commons project is showing promising progress. Key developments include:
- Swervo's amphitheater on track for Summer 2025 opening
- New commercial building in Winners Circle nearing completion
- High occupancy rates in residential developments (80% for Triple Crown Residences Phase II, 63% for The Omry)
- Potential new 28,000 sq ft commercial office building in the pipeline
The mixed-use strategy appears to be gaining traction, potentially creating a sustainable ecosystem of residential, commercial and entertainment spaces. This could drive long-term value by diversifying revenue streams and increasing foot traffic. However, the success of this project will depend on continued market demand and the company's ability to attract and retain quality tenants and partners.
Canterbury Park's strategy of optimizing its casino operations while diversifying into real estate development presents both opportunities and challenges. The
The growth in non-casino segments (Pari-mutuel, Food & Beverage and Other) is encouraging, indicating successful diversification efforts. The Canterbury Commons project, if executed well, could create a unique destination that sets the company apart in the regional entertainment and lifestyle market.
Key risks include potential economic downturns affecting discretionary spending and the inherent uncertainties in large-scale real estate development. Investors should closely monitor the progress of Canterbury Commons and the company's ability to maintain its core gaming business while pursuing this ambitious expansion.
SHAKOPEE, Minn., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Canterbury Park Holding Corporation (“Canterbury” or the “Company”) (Nasdaq: CPHC) today reported financial results for the three and six months ended June 30, 2024.
| ($ in thousands, except per share data and percentages) | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||
| Net revenues | -0.9 | % | 2.2 | % | |||||||||||||
| Net income (1) | -93.6 | % | -83.4 | % | |||||||||||||
| Adjusted EBITDA (2) | 1.0 | % | 8.0 | % | |||||||||||||
| Basic EPS (1) | -93.5 | % | -83.5 | % | |||||||||||||
| Diluted EPS (1) | -93.5 | % | -83.5 | % | |||||||||||||
| (1) | Net income and basic and diluted EPS for the three and six months ended June 30, 2023 include a |
| (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. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of net revenues. |
Management Commentary
“Canterbury delivered solid second quarter 2024 financial results, with net revenues and Adjusted EBITDA of
“Our long-term vision for Canterbury Commons to be transformed as both a regional destination for ‘Live, Work, Stay, and Play’ and as a driver of new revenue sources and economics for the Company continues to gain momentum with development progress being made every day. Swervo Development Corporation’s (“Swervo”) amphitheater remains on schedule for a Summer 2025 opening as does construction of the 10,000 square foot commercial building in our Winners Circle development that will be home to BBQ and pizza restaurants and a fitness center, all of which are expected to open within the next few months. Greystone, our partner in the Winners Circle development, is also working through the pre-development process for a second 28,000 square foot commercial office building that would complement their headquarters at Canterbury Commons. We expect these commercial developments will add daytime traffic, bringing energy to the Winners Circle and our overall Canterbury Commons development.
“Our solid balance sheet with unrestricted cash and short-term investments of nearly
Canterbury Commons Development Update
Swervo continues to make progress on the construction of its state-of-the-art amphitheater which is expected to open Summer 2025. The Company’s barn relocation and redevelopment plan is also well underway with three new barns complete and in operation, with the balance of the planned backside improvements on schedule for completion in early 2025. Canterbury also recently began work on 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
80% of its available units.- Repairs continue on Phase I of the Triple Crown Residences and are expected to be fully complete in late 2024.
63% of the 147 units of senior market rate apartments at The Omry at Canterbury are leased.- Construction continues on a new 10,000 square-foot commercial building within the Winners Circle development; the building will feature three tenants, including a BBQ restaurant, a pizza restaurant and a fitness center, all of which are expected to open within the next few months.
- A land use application for an additional 28,000 square-foot commercial office building within the Winners Circle development was approved by the City Planning Commission and the City Council. Construction is expected to begin this Fall, contingent on commitments, with the primary user expected to occupy
50% of the building.
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 2024 Second Quarter Operating Results
Net revenues for the three months ended June 30, 2024 decreased
Operating expenses for the three months ended June 30, 2024 were
The Company recorded a gain on sale of land of
The Company recorded a loss from equity investment of
The Company recorded income tax expense of
Adjusted EBITDA, a non-GAAP measure, for the three months ended June 30, 2024 and June 30, 2023 was
Summary of 2024 Year-to-Date Operating Results
Net revenues for the six months ended June 30, 2024 increased
Operating expenses for the six months ended June 30, 2024 were
The Company recorded a gain on sale of land of
The Company recorded a loss from equity investment of
The Company recorded income tax expense of
The Company recorded net income of
Adjusted EBITDA was
Additional Financial Information
Further financial information for the second quarter ended June 30, 2024, 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 9, 2024.
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), gain on insurance proceeds relating to equity investments, 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. 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, 2023 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; 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 cphc@jcir.com |
| 952-233-4828 or investorrelations@canterburypark.com |
- Financial tables follow –
| CANTERBURY PARK HOLDING CORPORATION'S SUMMARY OF OPERATING RESULTS (UNAUDITED) | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Operating Revenues: | |||||||||||||||
| Casino | |||||||||||||||
| Pari-mutuel | 2,598,716 | 2,471,366 | 3,772,984 | 3,604,700 | |||||||||||
| Food and Beverage | 2,100,231 | 2,027,652 | 3,827,380 | 3,497,483 | |||||||||||
| Other | 1,658,077 | 1,459,092 | 2,798,621 | 2,441,130 | |||||||||||
| Total Net Revenues | |||||||||||||||
| Operating Expenses | (15,080,180 | ) | (15,279,233 | ) | (27,416,295 | ) | (27,024,968 | ) | |||||||
| Gain on Sale of Land | - | 6,489,976 | - | 6,489,976 | |||||||||||
| Income from Operations | 1,122,215 | 7,552,431 | 2,884,089 | 9,106,254 | |||||||||||
| Other (Loss) Income, net | (641,929 | ) | (124,906 | ) | (955,649 | ) | 2,132,781 | ||||||||
| Income Tax Expense | (142,000 | ) | (2,135,000 | ) | (592,000 | ) | (3,176,000 | ) | |||||||
| Net Income | 338,286 | 5,292,525 | 1,336,440 | 8,063,035 | |||||||||||
| Basic Net Income Per Common Share | |||||||||||||||
| Diluted Net Income Per Common Share | |||||||||||||||
| RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| NET INCOME | |||||||||||||||
| Interest income, net | (532,570 | ) | (497,274 | ) | (1,071,097 | ) | (896,449 | ) | |||||||
| Income tax expense | 142,000 | 2,135,000 | 592,000 | 3,176,000 | |||||||||||
| Depreciation | 889,073 | 741,632 | 1,740,059 | 1,476,893 | |||||||||||
| EBITDA | 836,789 | 7,671,883 | 2,597,402 | 11,819,479 | |||||||||||
| Stock-based compensation | 368,789 | 364,542 | 715,155 | 700,747 | |||||||||||
| Gain on insurance proceeds related to equity investments | - | - | - | (2,528,901 | ) | ||||||||||
| Gain on sale of land | - | (6,489,976 | ) | - | (6,489,976 | ) | |||||||||
| Depreciation and amortization related to equity investments | 535,164 | 435,211 | 1,062,789 | 875,975 | |||||||||||
| Interest expense related to equity investments | 666,507 | 402,795 | 1,244,822 | 825,056 | |||||||||||
| ADJUSTED EBITDA | |||||||||||||||
FAQ
What were Canterbury Park's Q2 2024 net revenues?
How did Canterbury Park's net income perform in Q2 2024?
What was Canterbury Park's Adjusted EBITDA for Q2 2024?
What contributed to the decline in Canterbury Park's Casino revenue?
How did Canterbury Park's net revenues perform in the first half of 2024?
What is the status of Canterbury Commons development projects?
How did Canterbury Park's EPS change in Q2 2024?
What was the impact of the loss from equity investments on Canterbury Park's Q2 2024 financials?
