Canterbury Park Reports Net Loss of $299,210 for Q1 2025 Amid Revenue Decline

Canterbury Park Holding Corporation reported a net loss of $299,210, or $0.06 per share, for the three months ended March 31, 2025, a significant decline from the net income of $998,154, or $0.20 per share, recorded in the same period of 2024. Total net revenues decreased by 6.8% to $13.14 million, down from $14.10 million in the prior year. The decline in revenue was primarily driven by decreases in casino and pari-mutuel revenues, which fell by 8.6% and 8.2%, respectively. Casino revenues totaled $9.19 million, while pari-mutuel revenues reached $1.08 million. Food and beverage revenues also saw a decrease of 5.9%, totaling $1.62 million.

Operating expenses increased slightly by 1.3% to $12.49 million, compared to $12.34 million in the previous year. Notable changes included a decrease in purse expenses, which fell by 9.5% to $1.24 million, and an increase in salaries and benefits, which rose by 2.6% to $6.31 million. The increase in salaries was attributed to annual wage increases and a mandated minimum wage increase in Minnesota. Additionally, depreciation and amortization expenses increased by 9.5% to $931,488, reflecting the addition of larger fixed assets related to ongoing redevelopment projects.

In terms of operational metrics, Canterbury Park's cash, cash equivalents, and restricted cash increased to $15.74 million as of March 31, 2025, compared to $13.69 million at the end of 2024. The company reported net cash provided by operating activities of $3.37 million for the first quarter of 2025, a notable increase from $1.62 million in the same period last year. This increase was primarily due to changes in working capital, including a significant rise in payables to horsepersons, which increased by $1.21 million, reflecting the timing of the live racing season.

Looking ahead, Canterbury Park is focused on its ongoing redevelopment projects, including the barn relocation and redevelopment plan, which is expected to cost approximately $15 million over two years. As of March 31, 2025, the company has completed the first two phases of this project, with the third phase currently underway. The company anticipates that its available cash, along with funds from operations and potential future land sales, will be sufficient to meet its liquidity and capital resource requirements for the next twelve months. However, management acknowledges that additional financing may be necessary for any significant future developments or improvements.