Canterbury Park (CPHC) Q2 2024 earnings summary

Executive summary

• Net revenues for Q2 2024 were $16.2M, down 0.9% year-over-year; six-month revenues rose 2.2% to $30.3M.

• Net income for Q2 2024 was $338K ($0.07/share), down from $5.3M ($1.08/share) in Q2 2023 due to a prior-year $6.5M land sale gain; six-month net income was $1.3M, down from $8.1M.

• Adjusted EBITDA for Q2 2024 was $2.4M, up 1% year-over-year; six-month Adjusted EBITDA rose 8% to $5.6M.

• Casino revenue declined 5.2% in Q2, offset by growth in pari-mutuel, food and beverage, and other revenues.

• Ongoing development at Canterbury Commons and a strong balance sheet support growth initiatives and shareholder returns.

Financial highlights

• Casino revenue for Q2 2024 was $9.8M, down $539K year-over-year; six-month casino revenue was $19.9M.

• Pari-mutuel revenue increased 5.2% in Q2 and 4.7% for the six months, driven by more live race days and higher out-of-state handle.

• Food and beverage revenue grew 3.6% in Q2 and 9.4% for the six months, aided by special events and more race days.

• Operating expenses decreased 1.3% in Q2 but rose 1.4% for the six months; purse expense and salaries increased, while advertising and other expenses declined.

• Q2 basic and diluted EPS: $0.07 (down 93.5% year-over-year); six months: $0.27 (down 83.5%).

Outlook and guidance

• Management expects available cash, credit, and operating funds to cover regular operations and planned development for at least the next 12 months.

• Additional financing may be required for significant real estate development or strategic growth initiatives.

• Management remains confident in executing growth strategies and driving long-term shareholder value.

• Canterbury Commons development progressing, with new commercial and residential projects on track for 2025 openings.

• Solid cash position (~$24M) enables funding of growth initiatives and continued dividend payments.