Canterbury Park (CPHC) Q4 2024 earnings summary

Executive summary

• Q4 2024 net revenues declined 4.4% year-over-year to $12.0 million; full-year revenues were flat at $61.6 million.

• Q4 net loss of $1.2 million versus net income of $1.4 million in Q4 2023; full-year net income dropped to $2.1 million from $10.6 million in 2023.

• Adjusted EBITDA for Q4 fell 34.9% year-over-year to $1.3 million; full-year Adjusted EBITDA was $10.2 million, down 2.0%.

• Casino revenues declined due to increased competition; Food & Beverage and Other revenues grew, driven by more large-scale events.

• Management is focused on guest service, marketing expansion, new table games, and non-gaming event growth to offset casino headwinds.

Financial highlights

• Q4 2024 Casino revenue down 4.9% year-over-year; Pari-mutuel revenue down 9.5%; Food & Beverage up 1.7%; Other up 2.0%.

• Q4 operating expenses rose slightly to $12.1 million, mainly from higher salaries and depreciation.

• Q4 loss from equity investment of $2.1 million, compared to $0.9 million gain in Q4 2023.

• Full-year 2024 Casino revenue was $38.8 million (down from $39.8 million); Food & Beverage and Other revenues increased to $8.0 million and $6.6 million, respectively.

• Full-year gain on land transfer was $1.7 million, versus $6.5 million gain on land sale in 2023.

Outlook and guidance

• Management expects capital expenditures to decline in 2025 and further in 2026, returning to historical levels of $2–$3 million per year.

• Revenue optimization and expense control initiatives are expected to maintain solid annual cash flow.

• Anticipates further growth in non-gaming events and continued development at Canterbury Commons.