Canterbury: Record Revenue in Fourth Quarter of 2019

Canterbury Park Holding Corporation, which owns and operates Canterbury Park in Shakopee, Minn., announced record fourth-quarter revenues in 2019.

Based on the advice of Minnesota state and regulatory bodies, CPHC temporarily suspended all card casino, simulcast, and special events operations at Canterbury Park March 16 in response to concerns about the COVID-19 pandemic, leaving the company to announce that historical 2019 results may not reflect future results due to the uncertainty caused by COVID-19.

"The fourth quarter concluded a productive year for Canterbury as we generated record fourth-quarter revenue of $12.6 million and adjusted EBITDA of $1.7 million, reflecting year-over-year growth of 5% and 9%, respectively," said Randy Sampson, president and CEO of Canterbury Park. "The improved fourth-quarter performance was primarily driven by initiatives we implemented in our Card Casino that we believe will help deliver consistent future growth in a normalized operating environment."

Later in the release, he added: "The temporary suspension of our operations at this time is critical to our ability to ensure the safety and well being of our team members and guests. We are closely monitoring developments and relying on information and advice from the Minnesota Department of Health and other government resources, and will make a decision on reopening Canterbury Park at the appropriate time."

The company is also in the midst of its first phase of an apartment development project.

CPHC expects road work to begin on newly renamed Unbridled Avenue on the north side of Canterbury Park. The Company expects Unbridled Avenue to provide significantly improved access to Canterbury Park, with the construction expected to conclude by November.

In its summary of fourth-quarter operating results, CPHC reported net revenues for the three months ended Dec. 31 increased 4.7% to $12.6 million compared to $12 million for the same period in 2018. This increase occurred despite a decrease in pari-mutuel revenues of $82,000 due to a decline in simulcast wagering.

Operating expenses for the three months ended Dec. 31 were $11.7 million, an increase of $2.9 million, or 33.5%, compared to operating expenses of $8.8 million for the same period in 2018.

Net income and diluted earnings per share for the three months ended Dec. 31 were $553,000 and $0.12, respectively. 

Full-year operating net revenues were $59.2 million, marginally up from last year's $59.1 million, despite an $806,000 decline in pari-mutuel revenues due to lower simulcast, guest fees, and live racing wagering partially resulting from three less live racing days in 2019.

Operating expenses for the 2019 full year period were $55.6 million, an increase of $4.1 million, or 8%, from $51.5 million in 2018.

Full-year net income and diluted earnings per share for 2019 were $2.7 million and $0.62, respectively. Net income and diluted earnings per share for 2018 were $5.7 million and $1.26, respectively, inclusive of the $2.2 million, or $0.35 per share, benefit from the gain on the transfer of land related to what the company called "the Doran Canterbury I joint venture."

CPHC, which trades publicly on NASDAQ, will hold its annual meeting with shareholders June 25.