Canterbury Park Holding Corporation (NASDAQ:CPHC) today
announced financial results for the first quarter ended March 31,
2015.
Canterbury Park Holding Corporation (the “Company”) reported net
income of $388,680 on net revenues of $9,881,038 for the three
months ended March 31, 2015, compared to net income of $406,007 on
net revenues of $9,374,454 for the same period in 2014. Diluted
earnings per share in the 2015 first quarter were $.09, compared to
diluted earnings per share of $.10 for the same period last
year.
Net revenues in the first quarter increased $506,584, or 5.4%,
from the 2014 first quarter, due to a 6.5% increase in Card Casino
revenue and a 3.6% increase in food and beverage revenue, partially
offset by a 10.4% decrease in pari-mutuel revenue. The overall
revenue increase is primarily attributable to an increase in table
games collection revenue in our Card Casino due in part to more
effective utilization of the CRM software and data base marketing
initiative. At the same time, our first quarter 2015 simulcast
revenues were adversely affected by the resumption of simulcasting
at our competitor Running Aces in August 2014, a continuing
migration of our simulcast customers to internet wagering
platforms, and a nationwide decline in simulcast wagering compared
to the first quarter of 2014.
Total operating expenses in the first quarter of 2015 increased
$537,109, or 6.2%, to $9,218,732 compared to $8,681,623 for the
three-month period ended March 31, 2014. This increase is primarily
a result of higher labor expenses due to the increase in
Minnesota’s statutory minimum wage on August 1, 2014 and increased
head count to support our catering and events initiatives.
Additional information regarding the Company’s first quarter
2015 results is presented in the accompanying table and in our Form
10-Q report that will be filed with the Securities and Exchange
Commission on May 15, 2015.
Management CommentsRandy
Sampson, Canterbury Park’s President and Chief Executive Officer,
commented: “Our 2015 first quarter operating results reflect both
the opportunities and the challenges in our business as our table
games, food and beverage, and events businesses posted solid gains,
but were partially offset by declining simulcast revenues and an
increase in Minnesota’s minimum wage. These mixed business
conditions and challenges are expected to continue and will include
an increase in the minimum wage from $8 per hour to $9 per hour in
August. We are, nevertheless, excited about growth opportunities in
our Card Casino and Live Racing businesses as well as recent
initiatives and activities in our Catering and Events business that
we expect will generate significant profitable growth. These
include our new 30,000 square foot Expo Center that opened in
September, 2014 and the first quarter remodel of our Triple Crown
Club, which has created a first class banquet facility for
year-round parties and events. In addition, as we recently
announced, we continue to make progress in our goal to transform
our excess and underutilized land into a destination mixed-use
development adjacent to our Racetrack.”
Mr. Sampson added: “In a few weeks we will celebrate the third
anniversary of our Cooperative Marketing Agreement (CMA) with the
Shakopee Mdewakanton Sioux Community (SMSC). The CMA has enabled us
to offer a very competitive purse structure and the cooperative
marketing funds have allowed us to increase our live racing
advertising and promotions as well as enhance our guest experience.
As a result, we anticipate that the 2015 live race meet that begins
on May 15 will feature the highest quality and most competitive
racing in the history of Canterbury Park.”
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, Minnesota’s only
thoroughbred and quarter horse racing facility. The Company’s
70-day 2015 live race meet begins on May 15 and ends September 12.
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, MN. 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
SUMMARY OF
OPERATING RESULTS
(UNAUDITED)
Three Months Three Months Ended Ended
March 31, 2015 March 31, 2014 Operating Revenues, (net)
$9,881,038 $9,374,454 Operating Expenses $9,218,732
$8,681,623
Non-Operating Income, net
$616
$637
Income Before Income Taxes
$662,922
$693,468
Income Tax Expense $(274,242) $(287,461) Net Income
$388,680 $406,007
Basic Net Income Per Common Share
$.09
$0.10
Diluted Net Income Per Common Share
$.09
$0.10
RECONCILIATION OF
NET INCOME TO EBITDA
Three Months Three Months Ended
Ended
March 31,
2015
March 31,
2014
Net income $ 388,680 $ 406,007 Interest income, net
of interest expense (616) (637) Income tax expense 274,242
287,461 Depreciation 564,105 526,620 EBITDA $
1,236,411 $ 1,219,451
Canterbury Park Holding CorporationRandy Sampson,
952-445-7223
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