Canterbury Park Holding Corporation has unveiled its Q2 2023 financial results, showcasing the company’s performance in the face of challenges. The report reveals a notable 8.1% decrease in net revenues compared to the same period in 2022. Despite this decline, the company emphasizes the stability of its business trends and highlights key financial metrics and strategic initiatives that position Canterbury Park for resilience and future growth.
Net Revenue Decline:
Net revenues for the three months ending June 30 declined by 8.1% to $16.3 million, compared to $17.8 million in the corresponding period of 2022. This decrease is acknowledged as part of the ongoing trends in the company’s business, reflective of the impact of higher costs and a reduced racing calendar.
Operating Expenses and Land Sale Gain:
Operating expenses for the quarter amounted to $15.3 million, representing a 1.3% increase from the same period in 2022. Notably, the financial report highlights a gain on the sale of land, where 37 acres were sold to Swervo for the future development of an amphitheater, contributing $6.5 million to the overall financial picture.
Income Tax Expense and Financial Metrics:
The company recorded an income tax expense of $2.1 million, resulting in a net income of $5.3 million and diluted earnings per share of $1.07. Adjusted EBITDA stood at $2 million, compared to $3.6 million for Q2 2022. While acknowledging the impact of higher costs and a reduced racing calendar, Canterbury Park remains optimistic about the rebound of adjusted EBITDA as a percentage of revenue over the remainder of 2023.
Performance Exceeding Pre-Covid Levels:
Canterbury Park notes that its performance, although below recent quarters, exceeds pre-Covid levels, indicating the company’s resilience and ability to adapt to changing circumstances. The proactive initiatives undertaken during the pandemic to improve cost structures and operating efficiency position the company for continued success.
Casino Revenue and Racing Calendar Impact:
Casino revenue saw a positive trend, rising by 3.9% over the prior year. Higher visitation and spending offset lower table games hold for the quarter. The report acknowledges the impact of a reduced racing calendar, with the 54-day live racing meet starting on May 27, running 15 days compared to 25 in the prior-year period. Pari-mutuel revenue declined by 31.8% year-over-year due to a significant decrease in out-of-state handle on Canterbury Park races.
Future Outlook and Strategic Initiatives:
Canterbury Park remains optimistic about the future, anticipating a rebound in adjusted EBITDA as a percentage of revenue. The strategic initiatives implemented during the pandemic to enhance cost structures and operational efficiency are expected to contribute to sustained growth. The completion of the land sale to Swervo Development for $8.8 million aligns with the company’s strategic goals.
Canterbury Park Holding Corporation’s Q2 2023 financial results highlight a period of resilience and strategic planning in the face of challenges. While acknowledging the impact of reduced revenues and operational constraints, the company’s proactive initiatives and strategic outlook position it for continued success and a rebound in financial performance. Canterbury Park remains committed to navigating uncertainties and adapting to industry dynamics with a focus on long-term sustainability and growth.