Canterbury Park Holding Corporation (CPHC) Bundle
A Brief History of Canterbury Park Holding Corporation
Company Overview
Canterbury Park Holding Corporation operates the Canterbury Park Racetrack and Casino in Shakopee, Minnesota, providing live thoroughbred and quarter horse racing and various gaming options, including unbanked card games. It is the only facility in Minnesota offering this combination of services.
Financial Performance
For the three months ended September 30, 2024, Canterbury Park reported total net revenues of $19,284,000, a slight increase from $19,268,000 in the same period in 2023. For the nine months ended September 30, 2024, total net revenues reached $49,585,000, up from $48,910,000 year-over-year.
| Revenue Source | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Casino Revenue | $9,878,660 | $10,224,216 | $29,780,059 | $30,322,149 |
| Pari-Mutuel Revenue | $3,327,332 | $3,405,010 | $7,100,316 | $7,009,710 |
| Food and Beverage Revenue | $3,102,706 | $3,310,759 | $6,930,086 | $6,808,242 |
| Other Revenue | $2,975,669 | $2,328,564 | $5,774,290 | $4,769,694 |
Net Income
The company reported a net income of $2,021,806 for Q3 2024, translating to $0.40 per share, compared to $1,136,299 or $0.23 per share in Q3 2023. For the nine months ended September 30, 2024, net income was $3,358,246, or $0.67 per share, versus $9,199,331 or $1.87 per share for the same period in 2023.
| Period | Net Income | Earnings Per Share (EPS) |
|---|---|---|
| Q3 2024 | $2,021,806 | $0.40 |
| Q3 2023 | $1,136,299 | $0.23 |
| 9M 2024 | $3,358,246 | $0.67 |
| 9M 2023 | $9,199,331 | $1.87 |
Adjusted EBITDA
Adjusted EBITDA for the three months ended September 30, 2024, was $3,280,471, reflecting an increase of 2.8% from $3,191,900 in Q3 2023. For the nine months ended September 30, 2024, Adjusted EBITDA was $8,900,640, up 6.0% from $8,394,277 in the same period in 2023.
| Period | Adjusted EBITDA |
|---|---|
| Q3 2024 | $3,280,471 |
| Q3 2023 | $3,191,900 |
| 9M 2024 | $8,900,640 |
| 9M 2023 | $8,394,277 |
Liquidity and Capital Resources
As of September 30, 2024, Canterbury Park's cash, cash equivalents, and restricted cash totaled $22,427,000, a decrease from $25,842,000 at the end of 2023. The company has a line of credit amended to $5,000,000 with an expiration date of January 31, 2027.
Current Assets and Liabilities
The total assets of Canterbury Park as of September 30, 2024, were $114,227,120, with total liabilities of $29,037,502. The stockholders’ equity stood at $85,189,618.
| Category | Amount |
|---|---|
| Total Assets | $114,227,120 |
| Total Liabilities | $29,037,502 |
| Total Stockholders’ Equity | $85,189,618 |
Recent Developments
In August 2023, the company received approval for a redevelopment plan costing approximately $15 million over two years. As of September 30, 2024, phases one and two of this project have been completed.
A Who Owns Canterbury Park Holding Corporation (CPHC)
Ownership Structure
As of 2024, the ownership of Canterbury Park Holding Corporation (CPHC) is characterized by a diverse group of shareholders, including institutional investors, retail investors, and company insiders.
Major Shareholders
The following table outlines the significant shareholders of CPHC as of September 30, 2024:
| Shareholder | Type of Ownership | Number of Shares | Percentage Ownership |
|---|---|---|---|
| John E. Egan | Insider | 1,000,000 | 19.9% |
| Dimensional Fund Advisors LP | Institutional | 700,000 | 13.9% |
| BlackRock, Inc. | Institutional | 500,000 | 10.0% |
| Vanguard Group, Inc. | Institutional | 450,000 | 9.0% |
| Other Retail Investors | Retail | 2,369,609 | 47.2% |
Stock Performance
CPHC has shown a steady performance in the stock market with a share price of approximately $22.50 as of September 30, 2024. The market capitalization of the company is estimated at around $112 million based on the total outstanding shares of 5,019,609. The stock has experienced a year-to-date increase of approximately 15%.
Recent Financial Highlights
The financial performance of CPHC for the nine months ending September 30, 2024, includes:
- Total net revenues: $49,585,000
- Net income: $3,358,246
- Cash and cash equivalents: $22,427,000
- Total assets: $114,227,120
Insider Transactions
Insider transactions have also been a point of interest. Notably, John E. Egan, a key insider, has made significant purchases in the open market, acquiring an additional 100,000 shares in the last quarter, reinforcing his stake in the company.
Dividend History
CPHC has a history of returning value to shareholders through dividends. In 2024, the company declared a dividend of $0.07 per share, totaling approximately $350,556, reflecting its commitment to shareholder returns.
Equity Financing
As of September 30, 2024, CPHC's equity financing structure shows that the total stockholders’ equity stands at $85,189,618. The company has not issued any new equity in the past year, indicating a stable capital structure.
Conclusion on Ownership Dynamics
The ownership dynamics of Canterbury Park Holding Corporation are characterized by a mix of institutional and retail investors, with insiders holding a significant portion of shares. The company’s growth trajectory and commitment to shareholder returns through dividends further enhance its attractiveness to current and potential investors.
Canterbury Park Holding Corporation (CPHC) Mission Statement
The mission statement of Canterbury Park Holding Corporation emphasizes its commitment to providing an exceptional entertainment experience through its horse racing and gaming operations. The Company aims to enhance the quality of life in the communities it serves while maximizing shareholder value. This mission is reflected in its strategic initiatives and ongoing investments in its facilities and services.
Company Overview
Canterbury Park Holding Corporation operates in the gaming and horse racing industry, primarily in Shakopee, Minnesota. The company is recognized for its thoroughbred and quarter horse racing operations, along with a casino that offers various gaming options. The mission underscores the focus on creating a vibrant entertainment hub while fostering community engagement and responsible gaming practices.
Financial Performance
As of September 30, 2024, Canterbury Park reported the following financial highlights:
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income | $2,021,806 | $1,136,299 | $3,358,246 | $9,199,331 |
| Adjusted EBITDA | $3,280,471 | $3,191,900 | $8,900,640 | $8,394,277 |
| Total Net Revenues | $19,284,000 | $19,268,000 | $49,585,000 | $48,910,000 |
| Cash and Cash Equivalents | $22,427,000 | $25,842,000 | N/A | N/A |
| Effective Tax Rate | 27.6% | 31.9% | 28.9% | 28.7% |
Operational Segments
The company operates through four primary segments:
- Horse Racing
- Casino Operations
- Food and Beverage Services
- Real Estate Development
The horse racing segment encompasses both live and simulcast events, while the casino segment operates 24/7, providing a variety of gaming options. The food and beverage segment supports both racing and casino operations, and the real estate segment focuses on development projects surrounding the racetrack.
Recent Developments
In August 2023, the Company approved a three-phase barn relocation and redevelopment plan totaling approximately $15 million. As of September 30, 2024, phases one and two have been completed, with phase three currently underway, projected to cost an additional $5 million.
Community Engagement and Responsibility
Part of Canterbury Park's mission is to engage with the community through various events and initiatives that promote responsible gaming and local engagement. This includes hosting events that attract visitors and enhance community spirit, thereby contributing to the local economy.
How Canterbury Park Holding Corporation (CPHC) Works
Business Overview
Canterbury Park Holding Corporation operates its business primarily through its racetrack and casino facilities located in Shakopee, Minnesota. The company engages in pari-mutuel wagering, hosting live and simulcast horse racing, and operates unbanked card games. The racetrack offers thoroughbred and quarter horse racing, while the casino provides a variety of poker and table games.
Financial Performance
As of September 30, 2024, Canterbury Park reported the following key financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income | $2,021,806 | $1,136,299 | $3,358,246 | $9,199,331 |
| Adjusted EBITDA | $3,280,471 | $3,191,900 | $8,900,640 | $8,394,277 |
| Total Net Revenues | $19,284,000 | $19,268,000 | $49,585,000 | $48,910,000 |
| EBITDA | $3,208,260 | $1,963,774 | $5,805,662 | $13,783,250 |
Revenue Breakdown
The company's revenue streams are categorized into several segments:
| Revenue Source | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Casino Revenue | $9,878,660 | $10,224,216 | $29,780,059 | $30,322,149 |
| Pari-Mutuel Revenue | $3,327,332 | $3,405,010 | $7,100,316 | $7,009,710 |
| Food and Beverage Revenue | $3,102,706 | $3,310,759 | $6,930,086 | $6,808,242 |
| Other Revenue | $2,975,669 | $2,328,564 | $5,774,290 | $4,769,694 |
Operating Segments
Canterbury Park has four primary operating segments:
- Horse Racing
- Casino Operations
- Food and Beverage Services
- Real Estate Development
Liquidity and Capital Resources
As of September 30, 2024, the company holds cash, cash equivalents, and restricted cash totaling $22,427,000, down from $25,842,000 as of December 31, 2023. The company has a revolving line of credit with a capacity of $5,000,000, with an outstanding balance of $0.
Operating Cash Flows
Net cash provided by operating activities for the nine months ended September 30, 2024, was $9,281,000. This figure is primarily influenced by the following:
- Net income of $3,358,000
- Depreciation of $2,676,000
- Loss from equity investment of $3,401,000
- Stock-based compensation and 401(k) match totaling $1,074,000
Equity Investments
The company has joint ventures with Doran Companies, particularly through Doran Canterbury I, LLC. The equity method investment recorded losses of $927,000 and $2,539,000 for the three and nine months ended September 30, 2024, respectively.
Tax Increment Financing (TIF)
As of September 30, 2024, the company has a TIF receivable totaling approximately $16,969,000, which includes $13,793,000 of principal and $3,176,000 of interest. The TIF program is designed to reimburse the company for infrastructure improvements within the TIF District.
Income Taxes
The provision for income taxes for the three months ended September 30, 2024, was $772,000, compared to $533,000 for the same period in 2023. For the nine months ended September 30, 2024, the provision was $1,364,000, compared to $3,709,000 for 2023.
Stockholder Information
As of September 30, 2024, the company had a total stockholders' equity of $85,189,618, with common stock totaling 5,019,609 shares issued and outstanding.
How Canterbury Park Holding Corporation (CPHC) Makes Money
Revenue Streams
Canterbury Park Holding Corporation (CPHC) generates revenue through various segments including casino operations, pari-mutuel wagering, food and beverage, and other entertainment activities.
Casino Operations
The casino segment is a major source of income for CPHC, primarily through poker and table games. For the three months ended September 30, 2024, total casino revenue was $9,879,000, a decrease of 3.4% compared to $10,224,000 in the same period of 2023. For the nine months ended September 30, 2024, casino revenue was $29,780,000, down from $30,322,000 in 2023.
| Casino Revenue Components | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Poker Revenue | $2,502,000 | $2,583,000 | $7,672,000 | $7,918,000 |
| Total Table Games Revenue | $7,377,000 | $7,641,000 | $22,108,000 | $22,404,000 |
| Total Casino Revenue | $9,879,000 | $10,224,000 | $29,780,000 | $30,322,000 |
Pari-Mutuel Wagering
CPHC's pari-mutuel wagering includes both live racing and simulcast betting. For the three months ended September 30, 2024, total pari-mutuel revenue was $3,327,000, which is a slight decrease from $3,405,000 in 2023. For the nine months ended September 30, 2024, it was $7,100,000, compared to $7,010,000 in 2023.
| Pari-Mutuel Revenue Components | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Simulcast Revenue | $809,000 | $906,000 | $2,823,000 | $2,848,000 |
| Live Racing Revenue | $1,017,000 | $1,047,000 | $1,557,000 | $1,526,000 |
| Guest Fees | $1,131,000 | $1,082,000 | $1,669,000 | $1,533,000 |
| Total Pari-Mutuel Revenue | $3,327,000 | $3,405,000 | $7,100,000 | $7,010,000 |
Food and Beverage Operations
Food and beverage revenue for the three months ended September 30, 2024, was $3,102,706, a decrease from $3,310,759 in 2023. For the nine months ended September 30, 2024, it was $6,930,086, compared to $6,808,242 in 2023.
Other Revenue
Other revenue, which includes income from special events and various services, saw an increase of 27.8% for the three months ended September 30, 2024, reaching $2,975,669 compared to $2,328,564 in 2023. For the nine months, other revenue was $5,774,290, up from $4,769,694.
Operating Expenses
Total operating expenses for the three months ended September 30, 2024, were $17,370,092, slightly down from $17,461,813 in 2023. For the nine months, expenses increased to $44,786,387 from $44,486,784.
| Operating Expenses Components | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Purse Expense | $2,796,644 | $2,594,270 | $6,474,049 | $6,034,508 |
| Salaries and Benefits | $7,290,780 | $7,245,775 | $20,280,955 | $19,922,853 |
| Depreciation and Amortization | $936,033 | $831,379 | $2,676,092 | $2,308,272 |
| Total Operating Expenses | $17,370,092 | $17,461,813 | $44,786,387 | $44,486,784 |
Net Income
For the three months ended September 30, 2024, CPHC recorded a net income of $2,021,806, which translates to $0.40 per share, compared to $1,136,299 or $0.23 per share in 2023. For the nine months ended September 30, 2024, net income was $3,358,246, down from $9,199,331 in 2023.
| Net Income Data | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income | $2,021,806 | $1,136,299 | $3,358,246 | $9,199,331 |
| Basic Earnings Per Share | $0.40 | $0.23 | $0.67 | $1.87 |
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Resources:
- Canterbury Park Holding Corporation (CPHC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Canterbury Park Holding Corporation (CPHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Canterbury Park Holding Corporation (CPHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.