Based on the provided financial report articles, the title of the article is: "Canterbury Park Holding Corp. Reports First Quarter 2025 Financial Results" Note that the title may not be exact, as the provided text is a financial report and may not include the exact title. However, based on the content, it appears that the article is reporting the financial results of Canterbury Park Holding Corp. for the first quarter of 2025.
Canterbury Park Holding Corp. (CPHC) reported its financial results for the first quarter of 2025. The company’s revenue increased to $7.67 million, up from $7.67 million in the same period last year. Net income was $0.01 per share, compared to a net loss of $0.01 per share in the same period last year. CPHC’s finance lease assets were net of accumulated amortization of $38,766 and $30,779 as of March 31, 2025, and December 31, 2024, respectively. The company’s cash and cash equivalents decreased to $5.06 million as of March 31, 2025, from $5.04 million as of December 31, 2024. CPHC’s total assets increased to $10 million as of March 31, 2025, from $10 million as of December 31, 2024. The company’s operating segments, including horse racing, card casino, food and beverage, and development, reported revenue of $4.04 million, $1.43 million, $0.83 million, and $0.41 million, respectively, for the quarter.
Overview
Canterbury Park Holding Corporation is a company that conducts pari-mutuel wagering operations and hosts “unbanked” card games at its Canterbury Park Racetrack and Casino facility in Shakopee, Minnesota. The company’s operations include live thoroughbred and quarter horse racing during the summer months, year-round simulcasting of races from other tracks, and casino-style card games.
Operations Review for the Three Months Ended March 31, 2025
Revenues
- Total net revenues for the first quarter of 2025 were $13,142,000, a decrease of 6.8% compared to the same period in 2024.
- Casino revenue decreased 8.6% due to a drop in table games revenue, partially offset by increases in other table games and poker revenue.
- Pari-mutuel revenue decreased 8.2% due to lower simulcast revenues.
- Food and beverage revenue decreased 5.9% due to the lower casino revenue.
- Other revenue increased 9.3% due to higher admission revenue from special events.
Expenses
- Total operating expenses increased 1.3%, with increases in salaries, depreciation, advertising, and other costs, partially offset by a decrease in purse expenses.
- Other loss, net, increased by $816,000 due to higher depreciation and debt service costs from the Doran Canterbury II joint venture.
- Income tax benefit of $181,000 in Q1 2025 compared to an expense of $450,000 in Q1 2024, primarily due to lower income and a federal tax refund.
Net Income
- The company recorded a net loss of $299,000 ($0.06 per share) in Q1 2025 compared to net income of $998,000 ($0.20 per share) in Q1 2024.
EBITDA
- Adjusted EBITDA decreased 39.6% to $1,939,282 in Q1 2025 compared to $3,213,019 in Q1 2024, primarily due to the overall decrease in income from operations.
Liquidity and Capital Resources
- The company has a $5 million revolving line of credit, with no outstanding balance as of March 31, 2025.
- Cash and cash equivalents totaled $15.7 million as of March 31, 2025, up from $13.7 million at the end of 2024.
- The company expects to have sufficient funds from operations, its credit facility, and potential land sales to cover its regular operations and planned development expenses over the next 12 months.
- The company continues to analyze options for developing its underutilized land, which could require additional financing.
Outlook The company faces several challenges, including decreased revenue from live racing, competition from other forms of entertainment, and the inherent risks of the horse racing industry. The company is also undertaking a major redevelopment project that carries financial obligations. While the company believes it has sufficient liquidity in the near-term, additional financing may be required for significant future development or diversification efforts.
