News Column

Canterbury Park Holding Corporation Announces 2014 First Quarter Financial Results

May 14, 2014

SHAKOPEE, Minn.--(BUSINESS WIRE)-- Canterbury Park Holding Corporation (NASDAQ:CPHC) today announced financial results for the first quarter ended March 31, 2014.

Canterbury Park Holding Corporation (the “Company”) reported net income of $406,007 on net revenues of $9,374,454 for the three months ended March 31, 2014, compared to net income of $291,081 on net revenues of $9,144,568 for the same period in 2013. Diluted earnings per share in the 2014 first quarter were $.10, compared to diluted earnings per share of $.07 for the same period last year.

Net revenues in the first quarter increased $229,886, or 2.5%, from the 2013 first quarter, which reflected a 1.2% increase in Card Casino revenue and a 14.3% increase in concessions revenue, offset by a 3.0% decrease in pari-mutuel revenue. The overall revenue increase is primarily attributable to new table games offered in our Card Casino and higher special events attendance which substantially boosted concessions sales. At the same time, our simulcast revenues were adversely affected by harsh winter weather in Minnesota and throughout the country that discouraged visits to the Racetrack and led to cancellation of many races at racetracks simulcasting to our facility.

Total operating expenses in the first quarter of 2014 remained relatively flat, increasing $42,683, or .5%, to $8,681,623 compared to $8,638,940 for the three-month period ended March 31, 2013.

Additional information regarding the Company’s first quarter 2014 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, 2014.

Management Comments

Randy Sampson, Canterbury Park’s President and Chief Executive Officer, commented: “We are pleased with our improved 2014 first quarter operating results. Despite the extremely harsh winter conditions that discouraged visits to our facility, we were able to grow revenues and profits compared to the same quarter in 2013. In addition, our EBITDA as a percentage of net revenues improved from 10.4% in the first quarter of 2013 to 13.0% for the first quarter of 2014.

Mr. Sampson added: “In a few weeks we will celebrate the second anniversary of our Cooperative Marketing Agreement (CMA) with the Shakopee Mdewakanton Sioux Community (SMSC). Because of the substantially larger purses the CMA enables us to offer and our cross-marketing arrangements with the SMSC, we are looking forward to an even better live meet in 2014 than we had last year. This year, during our live meet which begins this coming weekend on Friday May 16th, we will offer eighteen weeks of exciting, high quality horse racing and unique promotions in a family friendly setting with improved racetrack amenities.”

Mr. Sampson further commented: “We are also optimistic about our long term prospects. In a few days we will break ground on a new special events center that is expected to substantially increase our special events revenues, as well as draw new visitors to our Card Casino and racetrack. While the recently enacted increase in the minimum wage beginning August 1st will be challenging to absorb, we believe we are well positioned to grow revenues and increase profitability over the longer term given our healthy cash position, the stimulus for increased pari-mutuel revenues provided by increasing purse supplements and marketing support under the CMA, additional revenues from the new events center and, most importantly, the dedication of our loyal employees.”

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 69-day 2014 live race meet begins on May 16th and ends September 13th. 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
Ended Ended
March 31, 2014March 31, 2013
 
Operating Revenues, (net) $9,374,454$9,144,568
 
Operating Expenses $8,681,623$8,638,940
 

Non-Operating Income, net

$637

$1,101

 

Income Before Income Taxes

$693,468

$506,729

 
Income Tax Expense $(287,461 ) $215,648
 
Net Income $406,007$291,081
 

Basic Net Income Per Common Share

$.10

$0.07

 

Diluted Net Income Per Common Share

$.10

$0.07

 
 

RECONCILIATION OF NET INCOME TO EBITDA

       
Three Months Three Months
Ended Ended
March 31, 2014March 31, 2013
 
Net income $ 406,007 $ 291,081
 
Interest income, net of interest expense (637 ) (1,101 )
 
Income tax expense 287,461 215,648
 
Depreciation 526,620 446,640
 
EBITDA $

1,219,451

$ 952,268
 





Canterbury Park Holding Corporation

Randy Sampson, 952-445-7223

Source: Canterbury Park Holding Corporation


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