Canterbury Park Holding Corporation Reports 2024 Third Quarter Results
Canterbury Park Holding (Nasdaq: CPHC) announced its Q3 2024 financial results. Net revenues were $19.3M, a slight increase from $19.27M in Q3 2023. Net income rose 77.9% to $2.02M, and Basic EPS increased 73.9% to $0.40. Adjusted EBITDA saw a 2.8% rise to $3.28M. However, for the nine months ended September 30, 2024, net income dropped 63.5% to $3.36M, with Basic EPS down 64.2% to $0.67. Operating expenses fell slightly to $17.4M in Q3 2024 from $17.5M in Q3 2023. The company recorded a $1.7M gain from a land transfer, offsetting declines in Casino, Pari-mutuel, and Food & Beverage revenues. Canterbury Commons development continues, adding residential units, commercial spaces, and entertainment venues. CEO Randy Sampson emphasized future growth potential, backed by strong cash flow and real estate assets.
Canterbury Park Holding (Nasdaq: CPHC) ha annunciato i risultati finanziari del terzo trimestre 2024. I ricavi netti sono stati di 19,3 milioni di dollari, una leggera crescita rispetto ai 19,27 milioni di dollari del terzo trimestre 2023. Il reddito netto è aumentato del 77,9% a 2,02 milioni di dollari, e l’EPS di base è salito del 73,9% a 0,40 dollari. EBITDA rettificato ha registrato un aumento del 2,8% a 3,28 milioni di dollari. Tuttavia, per i nove mesi terminati il 30 settembre 2024, il reddito netto è diminuito del 63,5% a 3,36 milioni di dollari, con l’EPS di base in calo del 64,2% a 0,67 dollari. Le spese operative sono leggermente diminuite a 17,4 milioni di dollari nel terzo trimestre 2024 dai 17,5 milioni di dollari nel terzo trimestre 2023. L'azienda ha registrato un guadagno di 1,7 milioni di dollari da un trasferimento di terreno, compensando i cali nei ricavi di Casinò, scommesse e cibo & bevande. Lo sviluppo di Canterbury Commons continua, aggiungendo unità residenziali, spazi commerciali e luoghi di intrattenimento. Il CEO Randy Sampson ha enfatizzato il potenziale di crescita futura, supportato da un forte flusso di cassa e beni immobili.
Canterbury Park Holding (Nasdaq: CPHC) anunció sus resultados financieros del tercer trimestre de 2024. Los ingresos netos fueron de 19,3 millones de dólares, un ligero aumento con respecto a 19,27 millones de dólares en el tercer trimestre de 2023. El ingreso neto aumentó un 77,9% a 2,02 millones de dólares, y el EPS básico creció un 73,9% a 0,40 dólares. EBITDA ajustado vio un aumento del 2,8% a 3,28 millones de dólares. Sin embargo, para los nueve meses que finalizaron el 30 de septiembre de 2024, el ingreso neto cayó un 63,5% a 3,36 millones de dólares, con el EPS básico disminuyendo un 64,2% a 0,67 dólares. Los gastos operativos cayeron ligeramente a 17,4 millones de dólares en el tercer trimestre de 2024 desde 17,5 millones de dólares en el tercer trimestre de 2023. La empresa registró una ganancia de 1,7 millones de dólares por la transferencia de un terreno, compensando las caídas en los ingresos del casino, pari-mutuel y alimentos y bebidas. El desarrollo de Canterbury Commons continúa, añadiendo unidades residenciales, espacios comerciales y lugares de entretenimiento. El CEO Randy Sampson enfatizó el potencial de crecimiento futuro, respaldado por un fuerte flujo de efectivo y activos inmobiliarios.
캔터베리 파크 홀딩(Nasdaq: CPHC)은 2024년 3분기 재무 결과를 발표했습니다. 순수익은 1,930만 달러로, 2023년 3분기의 1,927만 달러에서 약간 증가했습니다. 순이익은 77.9% 증가하여 202만 달러를 기록했으며, 기본 주당순이익은 73.9% 증가하여 0.40달러에 도달했습니다. 조정 EBITDA는 2.8% 증가하여 328만 달러에 이르렀습니다. 그러나 2024년 9월 30일 마감 기준 9개월 동안 순이익은 63.5% 감소하여 336만 달러로 줄어들었으며, 기본 주당순이익은 64.2% 감소하여 0.67달러로 하락하였습니다. 운영 비용은 2024년 3분기에는 1,750만 달러에서 1,740만 달러로 약간 감소했습니다. 회사는 토지 이전으로부터 170만 달러의 이익을 기록하여 카지노, 마주 및 식음료 수익의 감소를 상쇄했습니다. 캔터베리 커먼스 개발이 계속 진행 중이며, 주거 유닛, 상업 공간 및 엔터테인먼트 장소가 추가되고 있습니다. CEO 랜디 샘슨은 강력한 현금 흐름과 부동산 자산을 뒷받침으로써 향후 성장 잠재력을 강조했습니다.
Canterbury Park Holding (Nasdaq: CPHC) a annoncé ses résultats financiers pour le troisième trimestre 2024. Les revenus nets s'élevaient à 19,3 millions de dollars, enregistrant une légère augmentation par rapport à 19,27 millions de dollars au troisième trimestre 2023. Le résultat net a augmenté de 77,9 % pour atteindre 2,02 millions de dollars, et le BPA de base a augmenté de 73,9 % pour atteindre 0,40 dollar. EBITDA ajusté a connu une hausse de 2,8 % à 3,28 millions de dollars. Cependant, pour les neuf mois se terminant le 30 septembre 2024, le résultat net a chuté de 63,5 % à 3,36 millions de dollars, avec un BPA de base en baisse de 64,2 % à 0,67 dollar. Les charges d'exploitation ont légèrement baissé à 17,4 millions de dollars au troisième trimestre 2024, contre 17,5 millions de dollars au troisième trimestre 2023. L'entreprise a enregistré un gain de 1,7 million de dollars provenant d'un transfert de terrain, compensant ainsi les baisses de revenus des jeux, des paris et de la restauration. Le développement de Canterbury Commons se poursuit, avec l'ajout d'unités Résidentielles, d'espaces commerciaux et de lieux de divertissement. Le PDG Randy Sampson a mis en avant le potentiel de croissance future, soutenu par un solide flux de trésorerie et des actifs immobiliers.
Canterbury Park Holding (Nasdaq: CPHC) hat seine Finanzzahlen für das 3. Quartal 2024 bekannt gegeben. Der Nettoumsatz betrug 19,3 Millionen Dollar, ein leichter Anstieg von 19,27 Millionen Dollar im 3. Quartal 2023. Der Nettogewinn stieg um 77,9% auf 2,02 Millionen Dollar, und der Basis-EPS erhöhte sich um 73,9% auf 0,40 Dollar. Bereinigtes EBITDA verzeichnete einen Anstieg von 2,8% auf 3,28 Millionen Dollar. Für die neun Monate bis zum 30. September 2024 fiel der Nettogewinn jedoch um 63,5% auf 3,36 Millionen Dollar, wobei der Basis-EPS um 64,2% auf 0,67 Dollar sank. Die Betriebskosten sanken im 3. Quartal 2024 leicht auf 17,4 Millionen Dollar von 17,5 Millionen Dollar im 3. Quartal 2023. Das Unternehmen verzeichnete einen Gewinn von 1,7 Millionen Dollar aus einer Grundstücksübertragung, der Rückgänge bei den Einnahmen aus Casino, Pari-Mutuel und Speisen & Getränken ausglich. Die Entwicklung von Canterbury Commons schreitet weiter voran und fügt Wohnflächen, Geschäftsräume und Freizeitmöglichkeiten hinzu. CEO Randy Sampson hob das zukünftige Wachstumspotenzial hervor, unterstützt durch starken Cashflow und Immobilienwerte.
- Net income increased 77.9% to $2.02M for Q3 2024.
- Basic EPS rose 73.9% to $0.40 for Q3 2024.
- Adjusted EBITDA increased 2.8% to $3.28M for Q3 2024.
- Operating expenses decreased slightly to $17.4M in Q3 2024.
- Canterbury Commons development adding new residential, commercial, and entertainment spaces.
- Net income for the nine months ended September 30, 2024, fell 63.5% to $3.36M.
- Basic EPS for the nine months ended September 30, 2024, decreased 64.2% to $0.67.
- Casino revenue declined 3.4% in Q3 2024.
- Pari-mutuel revenue dropped 2.3% in Q3 2024.
- Food & Beverage revenue decreased 6.3% in Q3 2024.
Insights
The Q3 2024 results show mixed performance with some notable highlights. Net revenues remained essentially flat at
The core business shows some pressure points with Casino revenue down
The balance sheet remains strong with
The Canterbury Commons development is showing strong momentum. The residential component has achieved impressive leasing metrics, with
The entertainment venue expansion continues with Swervo's amphitheater on track for August 2025 opening and a new 16,000 square-foot music venue/restaurant project underway. The completion of infrastructure improvements, including the new road, will unlock approximately 25 acres for future development, representing significant untapped value potential.
SHAKOPEE, Minn., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Canterbury Park Holding Corporation (“Canterbury” or the “Company”) (Nasdaq: CPHC) today reported financial results for the three and nine months ended September 30, 2024.
($ in thousands, except per share data and percentages)
| Three Months Ended September 30, | Nine months ended September 30, | ||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||
| Net revenues | |||||||||||||||||
| Net income (1) | - | ||||||||||||||||
| Adjusted EBITDA (2) | |||||||||||||||||
| Basic EPS (1) | - | ||||||||||||||||
| Diluted EPS (1) | - | ||||||||||||||||
(1) Net income and basic and diluted EPS for the three and nine months ended September 30, 2024 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.
Management Commentary
“Canterbury’s 2024 third quarter results again demonstrated our ability to deliver consistent, solid financial performance. Net revenues and Adjusted EBITDA of
“We continue our work with top-tier partners to transform the excess land around the property into Canterbury Commons, a regional destination for living, playing and working experiences. There are now currently available or under development over 900 residential units, five restaurants and breweries, two music and entertainment venues, 57,000 square-feet of office space, and other distinct amenities that are the core of an entirely new community in the region. Canterbury Commons is already bringing new, 24-hour traffic and energy to the property, and we expect it will create new long-term revenue sources and economics for the Company.
“Canterbury is well-positioned to deliver solid financial results in the near and long-term. We believe the Company’s current valuation does not fully reflect our consistent annual cash flow generation, strong balance sheet with 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 in August 2025. The Company’s barn relocation and redevelopment plan is nearing completion with three new barns completed and in operation, with the balance of the planned backside improvements on schedule for completion prior to the 2025 live racing season. 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
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 with a certificate of occupancy expected in early 2025.
74% of the 147 units of senior market rate apartments at The Omry at Canterbury are leased.- The pizza restaurant and fitness center in the new, 10,000 square-foot commercial building within the Winners Circle development recently opened; the development’s BBQ restaurant is expected to open before year-end.
- 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, and construction has recently begun on the project. The primary user has
57% of the space under lease and discussions are ongoing with other potential tenants. - In the third quarter of 2024, Canterbury transferred 3.5 acres of trackside land into a new joint venture. The Company’s joint venture partner, Trackside Hospitality, LLC, has begun construction of an approximately 16,000 square foot project that will house a new music venue, restaurant and bar in the spring of 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 2024 Third Quarter Operating Results
Net revenues for the three months ended September 30, 2024 and September 30, 2023 were
Operating expenses for the three months ended September 30, 2024 declined slightly to
The Company recorded a
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 September 30, 2024 and September 30, 2023 was
Summary of 2024 Year-to-Date Operating Results
Net revenues for the nine months ended September 30, 2024 increased
Operating expenses for the nine months ended September 30, 2024 were
The Company recorded a
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 third quarter ended September 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 November 8, 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, gain on disposal of assets, gain on the transfer or sale of land, 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, 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 | Nine months ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Operating Revenues: | |||||||||||||||
| Casino | |||||||||||||||
| Pari-mutuel | 3,327,332 | 3,405,010 | 7,100,316 | 7,009,710 | |||||||||||
| Food and Beverage | 3,102,706 | 3,310,759 | 6,930,086 | 6,808,242 | |||||||||||
| Other | 2,975,669 | 2,328,564 | 5,774,290 | 4,769,694 | |||||||||||
| Total Net Revenues | |||||||||||||||
| Operating Expenses | (17,370,092) | (17,461,813) | (44,786,387) | (44,486,784) | |||||||||||
| Gain on Transfer/Sale of Land | 1,732,353 | - | 1,732,353 | 6,489,976 | |||||||||||
| Income from Operations | 3,646,628 | 1,806,736 | 6,530,717 | 10,912,987 | |||||||||||
| Other (Loss) Income, net | (852,822) | (137,437) | (1,808,471) | 1,995,344 | |||||||||||
| Income Tax Expense | (772,000) | (533,000) | (1,364,000) | (3,709,000) | |||||||||||
| Net Income | 2,021,806 | 1,136,299 | 3,358,246 | 9,199,331 | |||||||||||
| 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 | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| NET INCOME | |||||||
| Interest income, net | (521,579) | (536,904) | (1,592,676) | (1,433,353) | |||
| Income tax expense | 772,000 | 533,000 | 1,364,000 | 3,709,000 | |||
| Depreciation and amortization | 936,033 | 831,379 | 2,676,092 | 2,308,272 | |||
| EBITDA | 3,208,260 | 1,963,774 | 5,805,662 | 13,783,250 | |||
| Stock-based compensation | 358,922 | 341,809 | 1,074,077 | 1,042,556 | |||
| Gain on insurance proceeds related to | |||||||
| equity investments | - | - | - | (2,528,901) | |||
| Gain on disposal of assets | - | (19,265) | (19,265) | ||||
| Gain on transfer/sale of land | (1,732,353) | - | (1,732,353) | (6,489,976) | |||
| Depreciation and amortization related to equity investments | 605,138 | 438,011 | 1,667,927 | 1,313,986 | |||
| Interest expense related to equity investments | 840,504 | 467,571 | 2,085,327 | 1,292,627 | |||
| ADJUSTED EBITDA | |||||||
FAQ
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