Canterbury Park Holding Corporation (NASDAQ:CPHC) today
announced results for the third quarter and nine months ended
September 30, 2015.
Canterbury Park Holding Corporation (the “Company”) reported net
income of $813,059 on net revenues of $16,851,658 for the three
months ended September 30, 2015, compared to net income of $623,306
on net revenues of $15,046,958 for the same period in 2014. For the
nine months ended September 30, 2015, net income was $1,773,313 on
net revenues of $41,580,773, compared to net income of $1,472,247
on net revenues of $38,206,126 for the same period in 2014. Diluted
income per share for the 2015 third quarter was $.19 compared to
$.15 per share for the same period in 2014. Diluted income per
share for the nine months ended September 30, 2015 was $.42
compared $.35 per share for the same period in 2014.
Our 12% increase in net revenues in the 2015 third quarter over
the same period in 2014 reflects the following business segment
results:
- Card Casino revenues increased 11% to
$7,404,926 in the 2015 third quarter from $6,645,197 in the 2014
third quarter, primarily due to a 19% increase in table games
revenue. The strong increase in table games revenue is largely due
to the increased effectiveness of our direct marketing programs
driven by new CRM technology and a volume increase due to live
racing and event attendance.
- Food & beverage revenue increased
12% to $3,299,659 in the 2015 third quarter from $2,954,609 in the
2014 third quarter, primarily due to increased sales during live
racing and events.
- Pari-mutuel revenues increased 1% to
$3,887,494 in the 2015 third quarter from $3,844,749 in the 2014
third quarter, reflecting the net effect of a strong increase in
out-of-state wagering on our live races and a decline in on-track
simulcast wagering.
For the nine months ended September 30, 2015, our $3,374,000, or
8%, increase in net revenues compared to the same period in 2014 is
primarily attributable to increases in Card Casino and Concessions
revenues of 8% and 13%, respectively, offset by a 0.8% decrease in
Pari-mutuel revenues.
Operating expenses increased $1,482,000, or 11%, and increased
$2,866,000, or 13%, respectively, in the three and nine month
periods ended September 30, 2015 as compared to the same periods in
2014. These changes are primarily due to increased wages and
benefits expense and professional fees related to recently
announced corporate restructuring and real estate development
initiatives.
The Company generated adjusted EBITDA of $4,290,171 in the first
nine months of 2015, an increase of $207,995, or 5%, from the same
period a year ago.
Further detail regarding our results for the third quarter and
first nine 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 with the Securities and Exchange Commission on
November 13, 2015.
Randy Sampson, Canterbury Park’s President and CEO commented:
“We are pleased with our third quarter and nine month results as
they reflect a return on investments made and growth initiatives in
earlier periods. Our Cooperative Marketing Agreement with the
Shakopee Mdewakanton Sioux Community has enabled us to improve our
live horse racing product which has led to improved attendance and
substantially increased our out-of-state live handle. Our
investment in CRM technology has enabled us to improve the
effectiveness of our marketing to our Card Casino customers and led
to increased Card Casino patronage. Finally, our investments in the
new Expo Center and remodeled Triple Crown Club, both well received
additions to our property, are already generating increases in
catering and events revenues. While we face challenges ahead,
particularly in absorbing the impact of further minimum wage
increases, we are optimistic these investments and initiatives will
lead to further revenue increases and improved earnings in future
periods.”
Mr. Sampson concluded: “We continue to pursue our previously
announced corporate restructuring and subdivision of our land as
first steps needed to give the Company the flexibility to develop
our underutilized land. While this process has taken longer, and
has been more challenging than anticipated, we are making good
progress in this important strategy to enhance shareholder value,
as evidenced by our sale in October of an approximately six acre
parcel to the Minnesota Municipal Power Agency for $1.43 million.
As previously announced, our current focus is on development
opportunities that don’t require a major relocation of our barn
area. We are excited about the possibility for the first phase of
development of our underutilized properties to include a unique
multi-family residential community along with a business park and
retail opportunities including a hotel and restaurants.”
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. Adjusted EBITDA
represents earnings before interest income, income tax expense,
depreciation and amortization and gains from insurance recoveries
and disposal of assets. 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 annual live race meet generally begins in May and
ends in September. 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
SUMMARY OF
OPERATING RESULTS
(UNAUDITED)
Three Months Three Months
Nine Months Nine Months Ended Ended Ended
Ended September 30, September 30, September 30, September 30, 2015
2014 2015 2014
Operating Revenues, (net) $16,851,658 $15,046,958 $41,580,773
$38,206,126 Operating Expenses $15,464,147 $13,982,105
$38,562,064 $35,696,560 Non-Operating Income, (net) $348
$644 $1,653 $1,993 Income before Income Taxes $1,387,859
$1,065,497 $3,020,362 $2,511,559 Income Tax Expense
($574,800) ($442,191) ($1,247,049) ($1,039,312) Net Income
$813,059 $623,306 $1,773,313 $1,472,247 Basic Net Income Per
Common Share
$0.19
$0.15
$0.42
$0.35
Diluted Net Income Per Common Share
$0.19
$0.15
$0.42
$0.35
RECONCILIATION OF
NET INCOME TO ADJUSTED EBITDA
Nine Months Nine Months Ended Ended
September 30, 2015 September 30, 2014 Net income $ 1,773,313
$ 1,472,247 Interest income (1,653 ) (1,993 ) Income
tax expense 1,247,049 1,039,312 Depreciation
1,738,900
1,572,660
Gain(s) from Insurance and disposal
(467,438
)
0
Adjusted EBITDA $
4,290,171
$
4,082,226
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151112006650/en/
Canterbury Park Holding CorporationRandy Sampson,
952-445-7223
Canterbury Park (NASDAQ:CPHC)
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