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Shares of Canterbury Park Holding Corporation CPHC have slipped 6.9% since reporting results for the fourth quarter of 2024. This compares to the S&P 500 index’s 2.3% decline over the same time frame. Over the past month, the stock has lost 8.5% compared with the S&P 500’s 8.4% fall.
Revenue & Earnings Decline Y/Y in Q4
Canterbury Park reported a fourth-quarter 2024 diluted loss per share of 25 cents against earnings of 27 cents in the prior-year quarter.
CPHC reported net revenues of $11.98 million, a 4.4% decrease from $12.53 million in the same period of 2023. Adjusted EBITDA fell 34.9% year over year to $1.34 million from $2.05 million.
For the year, net revenues were nearly flat at $61.56 million compared with $61.44 million in 2023. However, net income plunged 80% to $2.11 million from $10.56 million, whereas diluted EPS declined to 42 cents from $2.13. Adjusted EBITDA for 2024 was $10.23 million, a 2% decrease from $10.45 million a year ago.
Canterbury Park Holding Corporation Price, Consensus and EPS Surprise
Canterbury Park Holding Corporation price-consensus-eps-surprise-chart | Canterbury Park Holding Corporation Quote
Business Performance & Key Metrics
Casino revenues, which represent Canterbury Park’s largest business segment, declined 4.9% year over year to $8.99 million in the fourth quarter of 2024, reflecting increased competition in the market. Pari-mutuel revenues fell 9.5% year over year to $1.13 million due to a lower simulcasting handle. However, Food & Beverage, and Other revenue categories posted modest increases of 1.7% and 2%, respectively.
Operating expenses rose slightly to $12.08 million from $11.94 million in the prior-year period, driven by higher salaries and benefits expenses due to annual wage increases and increased depreciation expenses related to the company’s barn relocation and redevelopment plan. However, these were partially offset by lower advertising and marketing expenses.
CPHC also recorded a loss from equity investment of $2.1 million in the fourth quarter of 2024 against a $939,000 gain in the prior-year quarter due to depreciation, amortization and interest expenses from its joint ventures.
Management Commentary & Strategic Initiatives
Canterbury Park’s management acknowledged that the fourth quarter was seasonally the slowest for the company and highlighted efforts to mitigate competitive pressures in its casino operations. CEO Randy Sampson outlined several initiatives to enhance guest service and expand marketing efforts beyond existing customers to attract patrons. The company also introduced table game offerings and emphasized growing its non-gaming entertainment business, which saw a record number of mid and large-scale events in 2024.