The title of the article could be "Canterbury Holding Corporation: Financial Report for Q1 2024".

Press release · 05/11 00:22
The title of the article could be "Canterbury Holding Corporation: Financial Report for Q1 2024".

The title of the article could be "Canterbury Holding Corporation: Financial Report for Q1 2024".

In a nutshell, Canterbury Holding Corporation reported a net income of $7.6 million for Q1 2024, with total assets of $496.2 million and total liabilities of $462.7 million. The company’s finance lease assets are net of accumulated amortization of $835,318 and $114,254 as of March 31, 2024 and December 31, 2023, respectively. The company’s operating segments include Horse Racing, Card Casino, Food and Beverage, and Development. Canterbury Holding Corporation’s shares are traded on the NASDAQ stock exchange.

Overview

Canterbury Park Holding Corporation operates a horse racetrack and casino in Shakopee, Minnesota. The company makes money from:

  • Live horse racing and betting on races at the track from May to September
  • Year-round betting on horse races at other tracks shown on TV screens at the track
  • Operating a 24⁄7 casino next to the track with poker, blackjack, and other table games
  • Food, drinks, parking, and other services at the track

In the first 3 months of 2024, Canterbury’s total revenue increased by 6.0% compared to the same period in 2023. Higher casino and food/beverage revenue drove the growth.

Casino Revenue

Casino gambling revenue rose 3.5% to $10.1 million in the first quarter of 2024. More people visited the casino compared to early 2023 when bad winter weather kept some customers away.

Horse Race Betting Revenue

Revenue from bets placed on horse races was almost unchanged at $1.2 million. Like the casino, betting activity was hurt by bad weather early last year.

Expenses

Total operating expenses climbed 5.0% to $12.5 million. Key factors included:

  • Higher salaries and minimum wage laws
  • More spending on building maintenance and lobbyists
  • Lower marketing costs

Even with the rise in costs, Canterbury improved profitability compared to last year.

Net Income

First quarter net income fell 64% from last year to $998,000. But the 2023 period included one-time insurance payouts of $2.5 million related to a real estate development. Excluding special items, Canterbury’s profits increased in 2024.

Cash Flow

Canterbury continues generating positive cash flow from operations. In the first quarter, operating activities produced cash of $1.6 million. Cash reserves stood at $24.3 million on March 31, 2024.

Outlook

Canterbury Park expects stable financial performance for the rest of 2024. Planned investments to upgrade horse barns could require additional financing. But the company believes current borrowing capacity and cash balances provide adequate funding for at least the next 12 months. Risks that could impact results include new competition, economic conditions, regulations, and extreme weather.