UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of report (Date of earliest event reported): August 13, 2015
Canterbury
Park Holding Corporation
(Exact
name of registrant as specified in its charter)
Minnesota
(State
or Other Jurisdiction of Incorporation)
001-31569
|
41-1775532
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(Commission
File Number)
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(IRS
Employer Identification No.)
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1100
Canterbury Road, Shakopee, Minnesota
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55379
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(952)
445-7223
(Registrant’s
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see
General
Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Section 2 - Financial Information
Item 2.02 - Results of
Operations and Financial Condition
On August 13, 2015, Canterbury Park Holding Corporation (the “Company”)
issued a press release regarding its results of operations for the three
months ended June 30, 2015. A copy of the press release is furnished as
Exhibit 99.1 to this Form 8-K.
The information provided pursuant to Item 2.02 of this Form 8-K is being
furnished and is not “filed” for purposes of Section 18 of the
Securities Act of 1934, nor may it be deemed incorporated by reference
in any filing under the Securities Act of 1933, except as expressly set
forth by specific reference in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01 -
Financial Statements and Exhibits
(d) Exhibits
The following are filed or furnished as Exhibits to this Report:
Exhibit No.
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Description of Exhibit
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99.1
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Press release dated August 13, 2015, reporting results for the three
months ended June 30, 2015.
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SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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CANTERBURY
PARK HOLDING CORPORATION
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Dated:
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August
13, 2015
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By:
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/s/
Randall D. Sampson
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Randall
D. Sampson
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Chief
Executive Officer
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Exhibit 99.1
Canterbury
Park Holding Corporation Reports Financial Results for the Second
Quarter and First Six Months of 2015
SHAKOPEE, Minn.--(BUSINESS WIRE)--August 13, 2015--Canterbury Park
Holding Corporation (NASDAQ:CPHC) today announced results for the second
quarter and six months ended June 30, 2015.
Canterbury Park Holding Corporation (the “Company”) reported net income
of $571,650 on net revenues of $14,848,077 for the three months ended
June 30, 2015, compared to net income of $442,934 on net revenues of
$13,784,714 for the same period in 2014. For the six months ended June
30, 2015, net income was $960,254 on net revenues of $24,729,115,
compared to net income of $848,941 on net revenues of $23,159,168 for
the same period in 2014. Diluted income per share for the second quarter
of 2015 was $.14 compared to $.11 for the same period in 2014. Diluted
income per share for the six month period ended June 30, 2015 was $.23
compared to diluted income per share of $.20 for the six month period
ended June 30, 2014.
The 7.7% increase in net revenues in the 2015 second quarter compared to
the same period in 2014 reflects the following results:
-
Pari-mutuel revenues increased $49,754 from $3,276,216 in the 2014
second quarter to $3,325,970 in the 2015 second quarter, or 1.5%. This
slight increase reflects the growth of live racing revenues offset by
a decline in simulcast revenues.
-
Card Casino revenues increased 6.5% from $6,932,066 in the 2014 second
quarter to $7,381,906 in the 2015 second quarter, primarily due to
increased wagering in our table games operations.
-
Food and Beverage revenue increased 19.9%, from $2,099,973 in the 2014
second quarter to $2,518,847 in the 2015 second quarter, primarily due
to an increase in revenues from special events
For the six months ended June 30, 2015, our 6.8% increase in net
revenues compared to the same period in 2014 is primarily attributable
to increases in Card Casino and Food and Beverage revenues of 6.5% and
14.8%, respectively, offset by an 2.3% decrease in Pari-mutuel revenues.
The Company generated EBITDA of $2,802,907 in the first six months of
2015, an increase of $322,934, or 13%, from the same period a year ago.
Operating expenses increased $846,277, or 6.5%, and $1,383,463, or 6.4%,
respectively, in the second quarter and six month periods ended June 30,
2015. These increases are primarily due to increased salaries and
benefits expense, increased depreciation expense and increased other
operating expenses, partially offset by a reduction in utilities expense.
Further detail regarding our results for the second quarter and first
six months of 2015 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 August
14, 2015 with the Securities and Exchange Commission.
Randy Sampson, Canterbury Park’s President and CEO commented: “We are
pleased with the solid revenue increases in our Card Casino and Food and
Beverage operations for the second quarter and six months ended June 30,
2015. We are also encouraged that our pari-mutuel operations achieved a
slight increase in revenues for the second quarter in spite of continued
declines in simulcast revenues. For the quarter, the decline in
simulcast revenue was more than offset by a 4.3% increase in on-track
handle and a 45% increase in out-of-state handle during the first 26
days of our 2015 live race meet. However, our operating expenses also
increased in the three and six month periods at a similar pace to our
revenue increases, primarily due to a state mandated minimum wage
increase and an increase in head-count to support our expanded catering
and events operations.”
Mr. Sampson added: “We are optimistic about the Company’s prospects for
the remainder of 2015. Due in large measure to our Cooperative Marketing
Agreement with the Shakopee Mdewakanton Sioux Community, our current
live meet features the highest quality horse racing in Canterbury Park
history as substantiated by our strong out-of-state handle. Our Card
Casino and Food and Beverage revenues are expected to continue at their
strong results and we are starting to see growth in revenues resulting
from our Events Center and remodeled Triple Crown Club.”
Mr. Sampson added: “We continue to analyze the feasibility of various
options for development of our underutilized land. The initial step in
that process is to reorganize our corporate structure and subdivide our
property into the land used in our horse racing, card casino and related
businesses from land to be developed. Subject to shareholder approval,
as well as approval of the Minnesota Racing Commission, we anticipate
completion prior to year end of the process of forming a new holding
company with two subsidiaries, one that will continue to operate the
current horse racing, card casino and related businesses, and a real
estate subsidiary to hold the excess land for development. Maximizing
the potential of our property for a 200 acre mixed use development
featuring destination retail and entertainment businesses as well as
multi-family residential and office space will likely require relocation
of our barn area. We are therefore, also in the process of analyzing our
options and costs to determine the feasibility of building a new horse
barn area and other necessary infrastructure to free up the existing
backside as the prime 'front door' for our retail and entertainment
businesses. Additionally, as we believe tax increment financing is a
necessary component of any plan to relocate the current barn area and
make infrastructure improvements that are necessary for a major mixed
use development on our underutilized land, we are in the process of
preparing an application to the City of Shakopee to create a Tax
Increment Financing district on a portion of the Canterbury Park
property. Finally, we are evaluating options as to what role Canterbury
Park will play in the development of our underutilized land. We don’t
anticipate funding construction of the retail, residential and/or office
components of the project, nor do we expect to have substantial
ownership interest in these components. Currently our expectation is
that we will either sell or lease parcels through ground leases to
developers with expertise in these types of projects.”
Mr. Sampson concluded: “While we are confident we can enhance
shareholder value through development of our property, until we have
completed the analysis of the feasibility of relocating our barn area
and are able to determine the financial incentives available from local
government, we are uncertain as to when and how that development will
take place. We will continue to incur substantial costs as we proceed
with our feasibility analysis and pre-development processes, which will
not be completed until year end at the earliest. We believe this will be
a good investment in the Company’s future.”
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
70-day 2015 live race meet began on May 15th and ends
September 12th. 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,
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.
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CANTERBURY PARK HOLDING CORPORATION’S
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SUMMARY OF OPERATING RESULTS
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(UNAUDITED)
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Three Months
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Three Months
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Six Months
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Six Months
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Ended
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Ended
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Ended
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Ended
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June 30, 2015
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June 30, 2014
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June 30, 2015
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June 30, 2014
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Operating Revenues, (net)
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$14,848,077
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$13,784,714
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$24,729,115
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$23,159,168
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Operating Expenses
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$13,879,109
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$13,032,832
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$23,097,918
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$21,714,455
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Non-Operating Income, (net)
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$688
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$712
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$1,305
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$1,349
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Income before Income Taxes
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$969,656
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$752,594
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$1,632,502
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$1,446,062
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Income Tax Expense
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($398,006
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)
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($309,660
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)
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($672,248
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)
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($597,121
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)
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Net Income
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$571,650
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$442,934
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$960,254
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$848,941
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Basic Net Income Per Common Share
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$0.14
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$0.11
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$0.23
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$0.20
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Diluted Net Income Per Common Share
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$0.14
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$0.11
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$0.23
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$0.20
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RECONCILIATION OF NET INCOME TO EBITDA
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Six Months
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Six Months
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Ended
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Ended
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June 30, 2015
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June 30, 2014
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Net income
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$960,254
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$848,941
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Interest income
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(1,305
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)
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(1,349
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)
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Income tax expense
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672,248
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597,121
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Depreciation
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1,171,710
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1,035,255
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EBITDA
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$2,802,907
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$2,479,968
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CONTACT:
Canterbury Park Holding Corporation
Randy
Sampson, 952-445-7223
Canterbury Park (NASDAQ:CPHC)
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