Canterbury Park Holding Corp. (CPHC, Financial) filed Quarterly Report for the period ended 2009-09-30.
Canterbury Park Holding Corporation is in the business of conducting live Thoroughbred and Quarter Horse racing and pari-mutuel wagering operations. Its facilities are in Shakopee, Minnesota. They also conduct ``simulcasting``. Simulcasting is pari-mutuel wagering on races that areheld at out-of-state racetracks and are televised simultaneously at the Racetrack. They also receive revenues from related services and activities. These include admissions, concessions, parking and programs. the season runs from May to August. Canterbury Park Holding Corp. has a market cap of $26 million; its shares were traded at around $6.5199 with a P/E ratio of 217.3 and P/S ratio of 0.6.
Salaries and benefits decreased $2,430,650, or 15.5%, in the 2009 nine-month period ended September 30 and $524,316, or 9.9%, in the three-month period ended September 30, 2009 compared to the same periods last year primarily due to savings achieved through a reduction-in-force that occurred in October of 2008. Additionally, the suspension of the bonus program, contributions to the Companys Employee Stock Ownership Plan (ESOP), and 401(k) match contributions, as reported in prior filings, have continued to provide cost savings. Advertising and marketing costs decreased $183,015, or 13.3%, in the 2009 nine-month period ended September 30 and $33,276, or 5.9%, in the three-month period ended September 30 compared to the same periods last year primarily as a result of lower advertising agency and related fees compared to the prior year. In addition, utility expenses decreased $335,616, or 27.2%, and $156,955, or 29.3%, for the nine-month and three-month periods ended September 30, 2009, respectively, compared to the prior year. This decrease is attributable to the efficiencies provided by a new building management system and decreased prices for utilities.
Income before income taxes was $342,770 for the nine months ended September 30, 2009 compared to $787,466 for the nine months ended September 30, 2008. After income tax expense of $182,700 for the nine months ended September 30, 2009, net income was $160,070 in 2009 compared to $422,666 in 2008, a decrease of $262,596 or 62.1%. For the quarter ended September 30, 2009, the Company recorded $51,195 in income before income tax expense compared to a loss before income tax expense of $29,597 for the quarter ended September 30, 2008, an increase of $80,792 or 273.0%. After income tax expense of $34,800 in the third quarter of 2009, net income was $16,395 compared to a net loss of $40,795 for the third quarter of 2008, an increase of $57,190 or 140.2%.
Cash provided by operating activities during the period January 1, 2009 through September, 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. Cash used in operating activities during the period January 1, 2008 through September 30, 2008 was $455,722, resulting primarily from net income of $422,666, depreciation of $1,544,763, and a decrease in restricted cash of $878,455, resulting primarily from the decrease of $567,606 in the player pool, a fund which is used to enhance the total amount paid back to winning players. These items were offset by a decrease in card club accruals of $936,596 and an increase in due from Minnesota horsemen associations of $1,281,096, resulting primarily from purse overpayments.
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. The Company expects to spend an estimated $200,000 in additional investments in property, plant, and equipment for the remainder of fiscal year 2009. Net cash used in investing activities for the first nine months of 2008 of $1,664,006 resulted primarily from the purchase of a building management system for approximately $391,000, upgrades to the grandstand building of approximately $306,000, and upgrades to the Card Club of approximately $150,000.
During the period January 1, 2009 through September 30, 2009, cash provided by financing activities consisted solely of proceeds received upon the exercise of stock options of $245,495. During the period January 1, 2008 through September 30, 2008, cash used in financing activities was $2,323,058, resulting primarily from repurchases of company stock of $1,478,185 and a cash dividend paid of $1,007,173 offset by proceeds and tax benefits regarding the exercise of stock options of $162,300.
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Canterbury Park Holding Corporation is in the business of conducting live Thoroughbred and Quarter Horse racing and pari-mutuel wagering operations. Its facilities are in Shakopee, Minnesota. They also conduct ``simulcasting``. Simulcasting is pari-mutuel wagering on races that areheld at out-of-state racetracks and are televised simultaneously at the Racetrack. They also receive revenues from related services and activities. These include admissions, concessions, parking and programs. the season runs from May to August. Canterbury Park Holding Corp. has a market cap of $26 million; its shares were traded at around $6.5199 with a P/E ratio of 217.3 and P/S ratio of 0.6.
Highlight of Business Operations:
Total Card Club revenue decreased $3,631,281, or 19.3%, for the first nine months of 2009 and $675,702, or 11.9%, for the third quarter of 2009 compared to the same periods in 2008. The primary source of Card Club revenue is a percentage of the wagers received from the players as compensation for providing the Card Club 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 $3,417,813 or 28.3% compared to the first nine months of 2008. In addition, Casino Games collection revenue dropped $618,879 or 10.2% compared to the first three quarters of 2008. The decrease is attributable to the economic recession that has adverselySalaries and benefits decreased $2,430,650, or 15.5%, in the 2009 nine-month period ended September 30 and $524,316, or 9.9%, in the three-month period ended September 30, 2009 compared to the same periods last year primarily due to savings achieved through a reduction-in-force that occurred in October of 2008. Additionally, the suspension of the bonus program, contributions to the Companys Employee Stock Ownership Plan (ESOP), and 401(k) match contributions, as reported in prior filings, have continued to provide cost savings. Advertising and marketing costs decreased $183,015, or 13.3%, in the 2009 nine-month period ended September 30 and $33,276, or 5.9%, in the three-month period ended September 30 compared to the same periods last year primarily as a result of lower advertising agency and related fees compared to the prior year. In addition, utility expenses decreased $335,616, or 27.2%, and $156,955, or 29.3%, for the nine-month and three-month periods ended September 30, 2009, respectively, compared to the prior year. This decrease is attributable to the efficiencies provided by a new building management system and decreased prices for utilities.
Income before income taxes was $342,770 for the nine months ended September 30, 2009 compared to $787,466 for the nine months ended September 30, 2008. After income tax expense of $182,700 for the nine months ended September 30, 2009, net income was $160,070 in 2009 compared to $422,666 in 2008, a decrease of $262,596 or 62.1%. For the quarter ended September 30, 2009, the Company recorded $51,195 in income before income tax expense compared to a loss before income tax expense of $29,597 for the quarter ended September 30, 2008, an increase of $80,792 or 273.0%. After income tax expense of $34,800 in the third quarter of 2009, net income was $16,395 compared to a net loss of $40,795 for the third quarter of 2008, an increase of $57,190 or 140.2%.
Cash provided by operating activities during the period January 1, 2009 through September, 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. Cash used in operating activities during the period January 1, 2008 through September 30, 2008 was $455,722, resulting primarily from net income of $422,666, depreciation of $1,544,763, and a decrease in restricted cash of $878,455, resulting primarily from the decrease of $567,606 in the player pool, a fund which is used to enhance the total amount paid back to winning players. These items were offset by a decrease in card club accruals of $936,596 and an increase in due from Minnesota horsemen associations of $1,281,096, resulting primarily from purse overpayments.
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. The Company expects to spend an estimated $200,000 in additional investments in property, plant, and equipment for the remainder of fiscal year 2009. Net cash used in investing activities for the first nine months of 2008 of $1,664,006 resulted primarily from the purchase of a building management system for approximately $391,000, upgrades to the grandstand building of approximately $306,000, and upgrades to the Card Club of approximately $150,000.
During the period January 1, 2009 through September 30, 2009, cash provided by financing activities consisted solely of proceeds received upon the exercise of stock options of $245,495. During the period January 1, 2008 through September 30, 2008, cash used in financing activities was $2,323,058, resulting primarily from repurchases of company stock of $1,478,185 and a cash dividend paid of $1,007,173 offset by proceeds and tax benefits regarding the exercise of stock options of $162,300.
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