Since releasing financial reports for the fourth quarter and full year of 2019, Canterbury Park Holding Company has followed a closure of its Minnesota-based business by celebrating a “productive year.”
The company, which is continuing to make progress on its construction of Triple Crown Apartments, scheduled to open by November, closed its Canterbury Park agency last week on the advice of Minnesota state and regulatory bodies.
As a result, in response to concerns about the COVID-19 coronavirus it temporarily suspended all card casino, simulcast and special events operations at the site.
The company states that due to the uncertainty caused by the COVID-19 coronavirus, “the overall discussion of historical 2019 results in this release may not reflect future results due to the uncertainty caused by the COVID-19 coronavirus”.
Net profit increased 4.7 percent to $12.6 m on a quarterly basis (2018: $12 m), representing a rise in card casino revenue of $532,000 related to an improvement in table games sales, as well as a rise in food and beverage sales of $102,000 due to growth. Such gains were partly offset by a $82,000 fall in pari-mutuel sales due to a decrease in wagering on simulcast.
Net profit dropped 76.7 percent from $2.37 million to $553,000, with adjusted EBITDA rising to $1.71 million, reflecting an improvement of 8.9 percent to $1.57 million.
Gross revenue for the full-year period rose marginally to $59.2 million, net profit dropped from $5.7 million to $2.7 million, and adjusted EBITDA dropped 19.8 percent from $7.9 million to $6.3 million.
As for the former, the rise represents $486,000 in card casino sales growth and an boost of $877,000 in its food and beverage division.
These rises were offset by a decrease in pari-mutuel revenues of $806,000 due to lower simulcast, guest visits, and live racing wagering partly resulting from three fewer live racing days in 2019, a decrease in other revenues of $472,000 representing the gain to other sales in 2018 from a one-time, short-term deal related to the 2018 Minneapolis Super Bowl, and a decline in the RiverSouth advertising revenues that were offset by a reduction in advertising expense.
Randy Sampson, president and CEO of Canterbury Park explained: “The fourth quarter concluded a productive year for Canterbury as we generated record fourth quarter revenue of $12.6m and adjusted EBITDA of $1.7m, reflecting year-over-year growth of 5 per cent and 9 per cent, 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 normalised operating environment.
“At the same time, we made noteworthy progress on the development and monetisation 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.”
He added: “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.”