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): November 12, 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 November 12, 2015, Canterbury Park Holding Corporation (the
“Company”) issued a press release regarding its results of operations
for the three months ended September 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.
|
Description of Exhibit
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99.1
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Press release dated November 12, 2015, reporting results for the
three months ended September 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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November
12, 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 Third Quarter
and First Nine Months of 2015
SHAKOPEE, Minn.--(BUSINESS WIRE)--November 12, 2015--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.
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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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Nine Months
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Nine 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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September 30,
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September 30,
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September 30,
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September 30,
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2015
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2014
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2015
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2014
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Operating Revenues, (net)
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$16,851,658
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$15,046,958
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$41,580,773
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$38,206,126
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Operating Expenses
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$15,464,147
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$13,982,105
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$38,562,064
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$35,696,560
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Non-Operating Income, (net)
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$348
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$644
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$1,653
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$1,993
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Income before Income Taxes
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$1,387,859
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$1,065,497
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$3,020,362
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$2,511,559
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Income Tax Expense
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($574,800)
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($442,191)
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($1,247,049)
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($1,039,312)
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Net Income
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$813,059
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$623,306
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$1,773,313
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$1,472,247
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Basic Net Income Per Common Share
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$0.19
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$0.15
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$0.42
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$0.35
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Diluted Net Income Per Common Share
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$0.19
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$0.15
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$0.42
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$0.35
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RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
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Nine Months
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Nine Months
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Ended
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Ended
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September 30, 2015
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September 30, 2014
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Net income
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$
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1,773,313
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$
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1,472,247
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Interest income
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(1,653
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)
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(1,993
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)
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Income tax expense
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1,247,049
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1,039,312
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Depreciation
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1,738,900
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1,572,660
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Gain(s) from Insurance and disposal
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(467,438
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)
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0
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Adjusted EBITDA
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$
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4,290,171
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$
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4,082,226
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CONTACT:
Canterbury Park Holding Corporation
Randy
Sampson, 952-445-7223
Canterbury Park (NASDAQ:CPHC)
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