Canterbury Park Holding Corporation Reports 2024 Third Quarter Results
SHAKOPEE, Minn., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Canterbury Park Holding Corporation ("Canterbury" or the "Company") (NASDAQ:CPHC) today reported financial results for the three and nine months ended September 30, 2024.
($ in thousands, except per share data and percentages)
Three Months Ended September 30,
Nine months ended September 30,
2024
2023
Change
2024
2023
Change
Net revenues
$19,284
$19,269
0.1%
$49,585
$48,910
1.4%
Net income (1)
$2,022
$1,136
77.9%
$3,358
$9,199
-63.5%
Adjusted EBITDA (2)
$3,280
$3,192
2.8%
$8,901
$8,394
6.0%
Basic EPS (1)
$0.40
$0.23
73.9%
$0.67
$1.87
-64.2%
Diluted EPS (1)
$0.40
$0.23
73.9%
$0.67
$1.86
-64.0%
(1) Net income and basic and diluted EPS for the three and nine months ended September 30, 2024 include a $1.7 million gain related to the transfer of land to a new joint venture. Net income and basic and diluted EPS for the nine months ended September 30, 2023 include a $6.5 million gain on sale of land.(2) Adjusted EBITDA, a non-GAAP measure, excludes certain items from net income, a GAAP measure. Non-GAAP financial measures are not intended to be considered in isolation from, a substitute for, or superior to GAAP results. Definitions, disclosures, and reconciliations of non-GAAP financial information are included later in the release.
Management Commentary"Canterbury's 2024 third quarter results again demonstrated our ability to deliver consistent, solid financial performance. Net revenues and Adjusted EBITDA of $19.3 million and $3.3 million, respectively, were both up slightly compared to the prior year as we continue to execute on initiatives focused on delivering solid contributions from all segments of our operations," said Randy Sampson, President and Chief Executive Officer of Canterbury Park. "This focus is reflected in the 28% year-over-year increase in Other revenues in the third quarter as we continue to position our venue as a leading regional destination for events of all sizes and focus on bringing new, exciting entertainment to the property, such as the debut of the Canterbury Park rodeo in July. The strong contributions from these activities offset modest year-over-year declines in Casino, Pari-mutuel and Food & Beverage revenue. Our focus on operating more efficiently and prioritizing cash flow generation is reflected in the adjusted EBITDA margin of 17.0% in the quarter which compares to 16.6% for the same period in 2023.
"We continue our work with top-tier partners to transform the excess land around the property into Canterbury Commons, a regional destination for living, playing and working experiences. There are now currently available or under development over 900 residential units, five restaurants and breweries, two music and entertainment venues, 57,000 square-feet of office space, and other distinct amenities that are the core of an entirely new community in the region. Canterbury Commons is already bringing new, 24-hour traffic and energy to the property, and we expect it will create new long-term revenue sources and economics for the Company.
"Canterbury is well-positioned to deliver solid financial results in the near and long-term. We believe the Company's current valuation does not fully reflect our consistent annual cash flow generation, strong balance sheet with nearly $22 million in unrestricted cash and short-term investments and nearly $17 million related to our tax increment financing receivable, as well as our return of capital initiative through our quarterly cash dividend. This is heightened by the significant value in our real estate which we are unlocking through the development of Canterbury Commons. We remain on track to execute on strategies over the balance of this year and beyond that will further create long-term value for our shareholders."
Canterbury Commons Development UpdateSwervo continues to make progress on the construction of its state-of-the-art amphitheater which is expected to open in August 2025. The Company's barn relocation and redevelopment plan is nearing completion with three new barns completed and in operation, with the balance of the planned backside improvements on schedule for completion prior to the 2025 live racing season. Canterbury is also nearing completion of the road adjacent to the amphitheater which will unlock the development potential of roughly 25 acres of land in that portion of the site.
Residential and commercial construction updates related to joint ventures include:
Phase II of The Doran Group's upscale Triple Crown Residences at Canterbury Park has leased 80% of its available units.
Repairs continue on Phase I of the Triple Crown Residences and are expected to be fully complete in late 2024 with a certificate of occupancy expected in early 2025.
74% of the 147 units of senior market rate apartments at The Omry at Canterbury are leased.
The pizza restaurant and fitness center in the new, 10,000 square-foot commercial building within the Winners Circle development recently opened; the development's BBQ restaurant is expected to open before year-end.
A land use application for an additional 28,000 square-foot commercial office building within the Winners Circle development was approved by the City Planning Commission and the City Council, and construction has recently begun on the project. The primary user has 57% of the space under lease and discussions are ongoing with other potential tenants.
In the third quarter of 2024, Canterbury transferred 3.5 acres of trackside land into a new joint venture. The Company's joint venture partner, Trackside Hospitality, LLC, has begun construction of an approximately 16,000 square foot project that will house a new music venue, restaurant and bar in the spring of 2025.
Residential and commercial construction updates related to prior land sales include:
Pulte Homes of Minnesota continues development on the 45-unit second phase of its row home and townhome residences.
Developer and partner selection for the remaining 50 acres of Canterbury Commons, including 25 acres that will become available for development following the completion of the new road noted above, continues. Additional uses could include office, retail, hotel and restaurants.
Summary of 2024 Third Quarter Operating ResultsNet revenues for the three months ended September 30, 2024 and September 30, 2023 were $19.3 million. Compared to the prior-year period, Casino revenue declined 3.4% primarily due to a decrease in table games drop along with a lower average collection rate. Pari-mutuel and Food & Beverage revenue declined 2.3% and 6.3%, respectively, primarily due to ...
