Canterbury Park Holding Corporation (NASDAQ:CPHC) today announced
results for the third quarter and nine months ended September 30, 2014.
Canterbury Park Holding Corporation (the “Company”) reported net income
of $623,306 on net revenues of $15,046,958 for the three months ended
September 30, 2014, compared to net income of $170,503 on net revenues
of $14,274,459 for the same period in 2013. For the nine months ended
September 30, 2014, net income was $1,472,247 on net revenues of
$38,206,126, compared to net income of $654,832 on net revenues of
$36,699,977 for the same period in 2013. Diluted income per share for
the third quarter of 2014 was $.15 compared to $.04 for the same period
in 2013. Diluted income per share for the nine month period ended
September 30, 2014 was $.35 compared to diluted income per share of $.16
for the nine month period ended September 30, 2013.
The 5.4% increase in net revenues in the 2014 third quarter compared to
the same period in 2013 reflects the following results in our three
business segments:
-
Card Casino revenues increased 9.6% from $6,061,877 in the 2013 third
quarter to $6,645,197 in the 2014 third quarter, primarily due to a
23.9% increase in table games revenue which was the result of the
increased effectiveness of our direct marketing programs resulting
from our new customer relationship management system, which was
installed in late 2013, and the optimization of our table games mix.
-
Concessions revenue increased 5.6%, from $2,797,639 in the 2013 third
quarter to $2,954,609 in the 2014 third quarter, primarily due to food
and beverage price increases introduced earlier in 2014.
-
Pari-mutuel revenues decreased 5.3% from $4,058,977 in the 2013 third
quarter to $3,844,749 in the 2014 third quarter, reflecting a 10%
decrease in on-track live racing revenues and a 10% decline in
simulcast revenues, partially offset by an increase in revenue from
out-of-state wagering on Canterbury Park live races of 21%. The
Company believes the decline in revenue from pari-mutuel wagering at
the track was the result of the growing impact of Internet wagering,
the resumption of Thoroughbred and Quarter Horse simulcasting at
Running Aces Harness Park, one less live racing day and a general
industry-wide decline in horse racing handle during the period.
For the nine months ended September 30, 2014, our 4.1% increase in net
revenues compared to the same period in 2013 is primarily attributable
to increases in Card Casino and Concessions revenues of 5.6% and 8.0%,
respectively, offset by an 7.3% decrease in Pari-mutuel revenues.
Operating expenses decreased $17,649, or .1%, and increased $109,240, or
.3%, in the three and nine month periods respectively, ended September
30, 2014. These slight changes are primarily due to increased
professional fees related to special events initiatives, partially
offset by a reduction in salaries and benefits expense.
The Company generated EBITDA of $4,082,226 in the first nine months of
2014, an increase of $1,608,799 or 65%, from the same period a year ago.
Further detail regarding our results for the third quarter and first
nine months of 2014 is presented in the accompanying table, and
additional information regarding the Company’s financial results will be
presented in the Company’s Form 10-Q Report that will be filed on
November 14, 2014 with the Securities and Exchange Commission.
Randy Sampson, Canterbury Park’s President and CEO commented: “We are
pleased with the revenue increases in our Card Casino and Concession
operations for the third quarter and nine months ended September 30,
2014. In addition to the increases in Card Casino and Concessions
revenues, we were successful at holding our operating expenses to only
minimal year-over-year increases.”
Mr. Sampson added: “We are optimistic about the Company’s prospects for
the remainder of 2014 and beyond. The new Expo and Events Center opened
in mid-September to favorable reviews from both vendors and customers.
We believe this multi-use facility will allow us to schedule a wide
variety of new events, substantially increasing our special events
revenues and bringing new customers to our facility that we can
introduce to our primary entertainment options, the Card Casino and
horse racing.”
Mr. Sampson concluded: “We are also enthusiastic about the July launch
of RiverSouth, an area-wide branding and marketing effort that was
formed as a result of the success of the cooperative marketing agreement
between Canterbury Park and Mystic Lake. Members of RiverSouth include
the cities of Shakopee and Prior Lake as well as the major entertainment
attractions located in the area. Through joint marketing and
cross-promotional efforts we believe we can increase public awareness of
the unique RiverSouth entertainment venues and increase visitation to
the area.
Use of Non-GAAP Financial Measures:
To supplement our
financial statements, we also provide investors with EBITDA (defined
below), which is a non-GAAP measure. EBITDA represents earnings before
interest income, income tax expense, and depreciation and amortization.
EBITDA is not a measure of performance or liquidity 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, or cash flows from
operating activities as a measure of liquidity. EBITDA has been
presented as a supplemental disclosure because it is a widely used
measure of performance and basis for valuation of companies in our
industry. Moreover, other companies that provide EBITDA information may
calculate EBITDA differently than we do.
About Canterbury Park:
Canterbury Park Holding Corporation
owns and operates Canterbury Park Racetrack and Card Casino, Minnesota’s
only thoroughbred and quarter horse racing facility. The Company’s
68-day 2014 live race meet began on May 16th and ended
September 13th. In addition, Canterbury Park’s Card Casino
hosts “unbanked” card games 24 hours a day, seven days a week, offering
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 facility in Shakopee, Minnesota.
For more information about the Company, please visit us at www.canterburypark.com.
Cautionary Statement:
From time to time, in press releases
and in other communications to shareholders or the investing public, the
Canterbury Park Holding Corporation may make forward-looking statements
concerning possible or anticipated future financial performance,
business activities or plans based on management’s beliefs and
assumptions. These forward looking statements are typically preceded by
the words such as "believes," "expects," "anticipates," "intends" or
similar expressions. Shareholders and the investing public should
understand that these forward-looking statements are subject to risks
and uncertainties, including those disclosed in our periodic filings
with the Securities and Exchange Commission, which could cause actual
performance, activities or plans after the date the statements are made
to differ significantly from those indicated in the forward-looking
statements when made.
CANTERBURY PARK HOLDING CORPORATION’S
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SUMMARY OF OPERATING RESULTS
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(UNAUDITED)
|
|
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|
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|
|
|
|
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Three Months
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|
Three Months
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Nine Months
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Nine Months
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|
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Ended
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Ended
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Ended
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Ended
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|
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September 30,
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September 30,
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September 30,
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September 30,
|
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2014
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2013
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2014
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2013
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Operating Revenues, (net)
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$15,046,958
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$14,274,459
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$38,206,126
|
|
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$36,699,977
|
|
|
|
|
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Operating Expenses
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$13,982,105
|
|
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$13,999,754
|
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$35,696,560
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$35,587,320
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Non-Operating Income, (net)
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$644
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$553
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$1,993
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$2,225
|
|
|
|
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Income before Income Taxes
|
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$1,065,497
|
|
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$275,258
|
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$2,511,559
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|
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$1,114,882
|
|
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Income Tax Expense
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($442,191
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)
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($104,755
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)
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($1,039,312
|
)
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($460,050
|
)
|
|
|
|
|
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Net Income
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$623,306
|
|
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$170,503
|
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$1,472,247
|
|
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$654,832
|
|
|
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Basic Net Income Per Common Share
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$0.15
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$0.04
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$0.35
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$0.16
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Diluted Net Income Per Common Share
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$0.15
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$0.04
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$0.35
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$0.16
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RECONCILIATION OF NET INCOME TO EBITDA
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|
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Nine Months
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|
Nine Months
|
|
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Ended
|
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Ended
|
|
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September 30, 2014
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|
September 30, 2013
|
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Net income
|
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$
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1,472,247
|
|
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$
|
654,832
|
|
|
Interest income
|
|
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(1,993
|
)
|
|
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(2,225
|
)
|
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Income tax expense
|
|
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1,039,312
|
|
|
|
460,050
|
|
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Depreciation
|
|
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1,572,660
|
|
|
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1,360,770
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EBITDA
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$
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4,082,226
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$
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2,473,427
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Copyright Business Wire 2014