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Canterbury Park Holding Corporation's CPHC third-quarter 2024 results reflect its transition by navigating challenges through adjustments to improve operational efficiency and diversification. Despite facing headwinds in its traditional Casino and Pari-mutuel segments, the company has bolstered its financial resilience by expanding entertainment offerings and controlling costs.
CPHC's proactive approach to enhancing profitability, alongside the progress of its ambitious Canterbury Commons development, showcases its commitment to growth beyond gaming. With projects like new dining and entertainment venues underway, the company positions itself as a promising regional destination, ready to capture opportunities in the coming years.
Q3 Results
Canterbury Park reported third-quarter 2024 diluted earnings per share of 40 cents, surging 73.9% from 23 cents in the prior-year quarter.
Net revenues were $19.28 million, a marginal increase of 0.1% from $19.27 million in the year-ago quarter.
The year-over-year increases were driven by special events, such as a new rodeo and comedy series, which align with the company's strategy to expand its entertainment offerings beyond gaming. Also, a $1.7 million gain from the transfer of land to a new joint venture significantly boosted the quarterly results.
Canterbury Park Holding Corporation Price, Consensus and EPS Surprise
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Segmental Performances
Casino: Revenues from the Casino segment fell 3.4% from $10.2 million in the year-ago quarter to $9.88 million in the third quarter of 2024. The decline was attributed to lower table game drop rates and a reduced average collection rate, highlighting a need to revisit strategies to enhance patronage and gaming activity.
Pari-Mutuel: Revenues from pari-mutuel operations dropped 2.3% from $3.41 million in third-quarter 2023 to $3.33 million in third-quarter 2024 due to one fewer live race day in 2024.
Food & Beverage: This segment recorded a revenue year-over-year decrease of 6.3% to $3.10 million, also impacted by the reduced race day schedule.
Other Revenues: The metric grew 27.8% year over year to $2.98 million, driven by increased admissions from special events such as Canterbury’s first rodeo in July and a successful comedy series in September. These efforts highlight Canterbury Park’s strategic pivot toward expanding its entertainment offerings beyond traditional gaming.
Profitability Metrics
The company achieved a net income of $2 million in the third quarter of 2024, a 77.9% surge from $1.1 million in the prior-year quarter. This growth was influenced by a $1.7-million gain related to the transfer of land to a new joint venture.