USA – A horse racing track in Minnesota; Canterbury Park, has today announced the results of its fourth quarter financials for the period of October through December 2019.
Canterbury Park runs a meet that consists of about 70 racing days from early May to mid-September, generally holding scheduled races Thursday through Sunday.
The firm is currently under a period of suspension on the advice of Minnesota state and regulatory bodies due to the Covid-19 outbreak.
Canterbury Park also includes a card club and hosts a two-week series of poker tournaments along with Corgi Dog Races, Wiener Dog Races, and the annual Running of the Bulldogs.
According to reports, the fourth quarter figures show a revenue of over twelve million dollars and company growth of almost ten percent compared with the previous year.
President and Chief Executive Officer of Canterbury Park Randy Sampson commented on the figures:
“The fourth quarter concluded a productive year for Canterbury as we generated record fourth quarter revenue of $12.6 million and adjusted EBITDA of $1.7 million, reflecting year-over-year growth of 5% and 9%, respectively. The improved fourth quarter performance was primarily driven by initiatives we implemented in our Card Casino that we believe will help deliver consistent future growth in a normalized operating environment. At the same time, we made noteworthy progress on the development and monetization of our extensive real estate holdings as the first phase of the new Triple Crown Apartments remains on-track for completion and initial occupancy in the 2020 second quarter.”
Sampson elaborated on the details and factors that drove growth along with revenue from leasing:
“Card Casino revenue growth for the 2019 fourth quarter and full year periods was driven by recent floor enhancements and game-mix updates, as well as the more aggressive player development and promotional programs we implemented in the second half of 2019. In addition, we have been seeing positive results from the expansion of our food and beverage program in and around the Card Casino. Pari-mutuel revenues decreased by 5% in the fourth quarter on lower simulcast revenue, and by 8% for the full year, reflecting both lower simulcast and live racing revenue. In addition, pre-leasing for the 321-unit first phase at the Triple Crown Apartments in our Canterbury Commons™ development is now underway and has generated strong interest to-date. We expect that residents will begin to take occupancy of these rental units during the second quarter of 2020, and, at present, we continue to expect the first phase of the Triple Crown Apartments project will be complete by year-end.”
During the announcement, Canterbury Park executives also took the opportunity to summarise the entire year’s results for 2019, which included highlights of ‘net income and diluted earnings per share for 2019 were $2.7 million and $0.62, respectively and net income and diluted earnings per share for 2018 were $5.7 million and $1.26, respectively’.
Randy Sampson expanded on the current and ongoing coronavirus pandemic:
“Our operating performance in the 2020 first quarter continued to demonstrate momentum with strong revenue increases prior to the temporary suspension of all operations on March 16, 2020. However, our upcoming results will reflect this disruption to our operations. The temporary suspension of our operations at this time is critical to our ability to ensure the safety and well being of our team members and guests. We are closely monitoring developments and relying on information and advice from the Minnesota Department of Health and other government resources, and will make a decision on reopening Canterbury Park at the appropriate time.”
According to reports, more than 200 cases of coronavirus have been identified in Minnesota since the first confirmed case was reported March 6 in Ramsey County by the Minnesota Department of Health.