Canterbury Park Holding Corporation, owner of Canterbury Park Racetrack and Card Casino in Shakopee, Minnesota, has announced financial results for its second quarter and six month periods ended June 30, 2019.
The company reported net revenues of $16.4m for the three months ended June 30, 2019, a decrease of 0.5% from revenues of $16.5m year-on-year. Card Casino revenues increased $411,000, or 4.8%, primarily due to an increase in table games revenues. Pari-mutuel revenues decreased $297,000, or 8.5%, due to a decrease in guest fees and simulcast revenue.
Other revenues decreased $337,000, or 15.8%, primarily due to a decrease in RiverSouth advertising revenues, which are offset by decreased advertising expenses for RiverSouth compared to the same period last year.
For the six months ended June 30, 2019, the company’s net revenues were $28m, a decrease of 2.5% from revenues of $28.7m year-on-year. Card Casino revenues increased $33,000, or 0.2%, while pari-mutuel revenues decreased $347,000, or 6.9%, as a result of a decrease in simulcast and guest fee revenue. Other revenues decreased $588,000, or 18.2%, primarily due to decreased space rental revenues as well as RiverSouth advertising revenues.
Net income for the three and six months ended June 30, 2019 totaled $958,000 and $1m, respectively, compared to $725,000 and $1.7m year-on-year. Adjusted EBITDA totalled $1.7m for the three months ended June 30, 2019, a decrease of $24,000, or 1.4%, from the same period a year ago.
CEO Randy Sampson commented: “After disappointing 2019 first quarter results which were negatively impacted by a number of factors, most significantly construction disruption and unusually inclement weather, we were pleased to see our second quarter revenues and net income return to more normalized levels.
“Card Casino revenues and food and beverage revenues were up approximately 5% and 6%, respectively. These increases are primarily attributable to the company’s investment in the re-modeling of our Card Casino and upgraded food and beverage offerings that we completed during the first quarter of 2019. Also, our focus on expense control resulted in a slight decrease in operating expenses for the quarter.
“However, overall results were negatively impacted by a decrease in pari-mutuel revenues for the quarter of 8.5%. This decrease was primarily due to two factors. Simulcast revenues decreased approximately 8% due largely to a general lack of interest in the 2019 Triple Crown races.
In addition, our guest fee revenue from out of state handle declined approximately 25% due primarily to the temporary loss of a high-volume wagering company resulting from a contract dispute between Churchill Downs, the company’s content provider, and Monarch Content Management. Fortunately, this dispute was substantially resolved after the quarter ended June 30, 2019.”