Canterbury Park (CPHC) Q3 2024 earnings summary

Executive summary

• Net revenues for Q3 2024 were $19.3M, up 0.1% year-over-year; nine-month revenues rose 1.4% to $49.6M.

• Net income for Q3 2024 was $2.0M ($0.40/share), up from $1.1M ($0.23/share) in Q3 2023; nine-month net income was $3.4M ($0.67/share), down from $9.2M ($1.87/share) year-over-year.

• Adjusted EBITDA for Q3 2024 was $3.3M (17.0% margin), up 2.8% year-over-year; nine-month Adjusted EBITDA was $8.9M (18.0% margin), up 6.0%.

Financial highlights

• Casino revenue declined 3.4% in Q3 and 1.8% for the nine months, mainly due to lower table games activity.

• Pari-mutuel revenue fell 2.3% in Q3 but rose 1.3% for the nine months, driven by more live race days and higher out-of-state handle.

• Food and beverage revenue dropped 6.3% in Q3 but increased 1.8% for the nine months, aided by special events.

• Other revenue rose 27.8% in Q3 and 21.1% for the nine months, boosted by new events like a rodeo and comedy series.

• Operating expenses decreased 0.5% in Q3 but increased 0.7% for the nine months; purse expense and salaries rose, while advertising and professional services declined.

• Q3 2024 included a $1.7M gain on land transfer to a joint venture.

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 new real estate or strategic projects.