Canterbury Park Holding Corp. (CPHC, Financial) filed Quarterly Report for the period ended 2010-09-30.
Canterbury Park Holding Corp. has a market cap of $51.4 million; its shares were traded at around $12.73 with and P/S ratio of 1.3. Canterbury Park Holding Corp. had an annual average earning growth of 5.6% over the past 10 years.CPHC is in the portfolios of Mario Gabelli of GAMCO Investors.
Total Card Casino revenue increased $1,214,889, or 8.0%, for the first nine months of 2010 and $502,405, or 10.1%, for the third quarter of 2010 compared to the same periods in 2009. The primary source of Card Casino revenue is a percentage of the wagers received from the players as compensation for providing the Card Casino facility and services, referred to as the collection revenue. Other revenue includes fees collected for the administration of tournaments, and amounts earned as reimbursement of the administrative costs of maintaining jackpot funds. Poker collection revenue fell $235,252, or 2.7%, compared to the first nine months of 2009, but increased $59,460, or 2.2%, for the quarter ended September 30 compared to the same period in 2009. In addition, Table Games collection revenue increased $1,260,531, or 23.5%, compared to the first nine months of 2009 and $433,242, or 22.8%, for the quarter ended September 30 compared to the same period in 2009. The increases in the third quarter are largely due to the opening of the Companys new Card Casino on April 14, 2010. While the continued lingering effects of the economic recession and unlawful wagering on poker over the Internet continues to adversely affect Card Casino revenues, the Company believes these factors were more than offset by the new Card Casino that has provided both an exciting and an inviting atmosphere and sparked an increase in card play by patrons. Total Card Casino revenues represented 52.6% and 45.8% of net revenues for the nine-month and three-month periods ended September 30, 2010, respectively. See the Summary of Card Casino Data below:
Loss before income taxes was $1,460,385 for the nine months ended September 30, 2010 compared to income before income taxes of $342,770 for the nine months ended September 30, 2009. After an income tax benefit of $306,900 for the nine months ended September 30, 2010, net loss was $1,153,485 in 2010 compared to net income of $160,070 in 2009. For the quarter ended September 30, 2010, the Company recorded a $139,575 loss before income tax benefit compared to income before income tax expense of $51,195 for the quarter ended September 30, 2009, a decrease of $190,770. After an income tax benefit of $6,700 in the third quarter of 2010, net loss was $132,875 compared to net income of $16,395 for the third quarter of 2009, a decrease of $149,270.
Cash provided by operating activities during the period January 1, 2010 through September 30, 2010 was $104,251 and was the result of several factors. During the first quarter of 2010, the Company incurred a one-time loss on disposal of assets in the amount of $909,540 relating to the remodel of our card room. In addition, depreciation during the first nine months of 2010 was $1,473,616, and the Company experienced an increase in accounts payable and accrued wages and payroll taxes of $815,149, caused primarily by a timing issue related to payroll payments. Finally, during the third quarter of 2010, the Company had a cost segregation study performed on our assets in use. As a result of the study, our deferred tax liability increased $884,210. These items were nearly completely offset by a net loss of $1,153,485, an increase in due from Minnesota horsemen associations of $1,169,066, resulting primarily from purse overpayments, and an
increase in income taxes receivable of $1,154,455 as a result of the aforementioned cost segregation study. Cash provided by operating activities during the period January 1, 2009 through September 30, 2009 was $660,901, resulting primarily from net income of $160,070, depreciation of $1,584,240, and an increase in accounts payable and accrued wages and payroll taxes of $562,963, caused primarily by a seasonal increase of $396,548 in horse racing payables. These items were offset by an increase in accounts receivable of $332,647 and an increase in due from Minnesota horsemen associations of $1,353,173, resulting primarily from purse overpayments.
Net cash used in investing activities for the first nine months of 2010 was $2,302,492 due primarily to costs to remodel our card room totaling approximately $2,296,000. Net cash used in investing activities for the first nine months of 2009 of $522,726 resulted primarily from upgrades to our grandstand for approximately $261,000 and the purchase of equipment for our backside operations for approximately $167,000, offset by a decrease in our short-term investments of $284,990.
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Canterbury Park Holding Corp. has a market cap of $51.4 million; its shares were traded at around $12.73 with and P/S ratio of 1.3. Canterbury Park Holding Corp. had an annual average earning growth of 5.6% over the past 10 years.CPHC is in the portfolios of Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:
Pari-mutuel revenues decreased $962,871, or 10.2%, in the nine-month period ended September 30, 2010 compared to the same period in 2009, and decreased $393,399, or 10.0%, for the three-month period ended September 30, 2010 compared to the same period in 2009. Total handle wagered for the first nine months of 2010 was down $5.0 million, or 9.0%, compared to the same period last year. The decrease is attributable to the lingering effects of the economic recession that has adversely impacted discretionary spending on entertainment. In addition, inclement weather during the first half of 2010 resulted in the cancellation of a significant number of races at racetracks simulcasting their signal to our racetrack. Severe weather also resulted in the cancellation of one of the Companys live race days, further adversely impacting handle wagered. Finally, the Company believes that an increasing number of Minnesota residents are unlawfully wagering on horse races over the Internet. See the Summary of Pari-mutuel Data below.Total Card Casino revenue increased $1,214,889, or 8.0%, for the first nine months of 2010 and $502,405, or 10.1%, for the third quarter of 2010 compared to the same periods in 2009. The primary source of Card Casino revenue is a percentage of the wagers received from the players as compensation for providing the Card Casino facility and services, referred to as the collection revenue. Other revenue includes fees collected for the administration of tournaments, and amounts earned as reimbursement of the administrative costs of maintaining jackpot funds. Poker collection revenue fell $235,252, or 2.7%, compared to the first nine months of 2009, but increased $59,460, or 2.2%, for the quarter ended September 30 compared to the same period in 2009. In addition, Table Games collection revenue increased $1,260,531, or 23.5%, compared to the first nine months of 2009 and $433,242, or 22.8%, for the quarter ended September 30 compared to the same period in 2009. The increases in the third quarter are largely due to the opening of the Companys new Card Casino on April 14, 2010. While the continued lingering effects of the economic recession and unlawful wagering on poker over the Internet continues to adversely affect Card Casino revenues, the Company believes these factors were more than offset by the new Card Casino that has provided both an exciting and an inviting atmosphere and sparked an increase in card play by patrons. Total Card Casino revenues represented 52.6% and 45.8% of net revenues for the nine-month and three-month periods ended September 30, 2010, respectively. See the Summary of Card Casino Data below:
Loss before income taxes was $1,460,385 for the nine months ended September 30, 2010 compared to income before income taxes of $342,770 for the nine months ended September 30, 2009. After an income tax benefit of $306,900 for the nine months ended September 30, 2010, net loss was $1,153,485 in 2010 compared to net income of $160,070 in 2009. For the quarter ended September 30, 2010, the Company recorded a $139,575 loss before income tax benefit compared to income before income tax expense of $51,195 for the quarter ended September 30, 2009, a decrease of $190,770. After an income tax benefit of $6,700 in the third quarter of 2010, net loss was $132,875 compared to net income of $16,395 for the third quarter of 2009, a decrease of $149,270.
Cash provided by operating activities during the period January 1, 2010 through September 30, 2010 was $104,251 and was the result of several factors. During the first quarter of 2010, the Company incurred a one-time loss on disposal of assets in the amount of $909,540 relating to the remodel of our card room. In addition, depreciation during the first nine months of 2010 was $1,473,616, and the Company experienced an increase in accounts payable and accrued wages and payroll taxes of $815,149, caused primarily by a timing issue related to payroll payments. Finally, during the third quarter of 2010, the Company had a cost segregation study performed on our assets in use. As a result of the study, our deferred tax liability increased $884,210. These items were nearly completely offset by a net loss of $1,153,485, an increase in due from Minnesota horsemen associations of $1,169,066, resulting primarily from purse overpayments, and an
increase in income taxes receivable of $1,154,455 as a result of the aforementioned cost segregation study. Cash provided by operating activities during the period January 1, 2009 through September 30, 2009 was $660,901, resulting primarily from net income of $160,070, depreciation of $1,584,240, and an increase in accounts payable and accrued wages and payroll taxes of $562,963, caused primarily by a seasonal increase of $396,548 in horse racing payables. These items were offset by an increase in accounts receivable of $332,647 and an increase in due from Minnesota horsemen associations of $1,353,173, resulting primarily from purse overpayments.
Net cash used in investing activities for the first nine months of 2010 was $2,302,492 due primarily to costs to remodel our card room totaling approximately $2,296,000. Net cash used in investing activities for the first nine months of 2009 of $522,726 resulted primarily from upgrades to our grandstand for approximately $261,000 and the purchase of equipment for our backside operations for approximately $167,000, offset by a decrease in our short-term investments of $284,990.
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