Canterbury Park Holding Corporation (NASDAQ:CPHC) today announced results for the third quarter and nine months ended September 30, 2012.
Canterbury Park Holding Corporation (the “Company”) reported income before income taxes of $387,875, income tax expense of $185,841 and net income of $202,034 for the three months ended September 30, 2012 compared to a loss before income taxes of $298,357, income tax benefit of $528,489 and net income of $230,132 for the same period in 2011. Net revenues for the quarter increased 27.1% to $13,876,292 compared to $10,917,762 for the same period in 2011. For the nine months ended September 30, 2012, net income was $568,002 on net revenues of $35,449,086 compared to net income of $92,631 on revenues of $30,891,092 for the same period in 2011. Diluted earnings per share for the 2012 third quarter were $.05 compared to $.06 for the third quarter of 2011, and diluted earnings per share for the nine months ended September 30, 2012 were $.14 compared to $.02 for the same nine month period in 2011. In addition, Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) increased $692,692, or 40.1%, and also increased as a percentage of net revenues to 6.8% from 5.6% for the nine months ended September 30, 2012 compared to the same period in 2011.
The increase in net revenues in the 2012 third quarter reflects several factors. First, the quarterly results compare favorably to the same period in 2011 due primarily to the state government imposed shutdown of operations from July 1 to July 20 in 2011 that closed the agency that regulates gaming and racing operations. In addition, our 2012 third quarter results reflect revenue increases attributable to legislation passed in May of 2012 as well as the Cooperative Marketing Agreement that the Company reached with the Shakopee Mdewakanton Sioux Community (“SMSC”) in June 2012. The overall revenue increase for the quarter of 27.1% reflects an increase in Card Casino revenues of 26.2%, pari-mutuel revenues of 21.6% and food and beverage revenues of 32.5% when compared to the 2011 third quarter. For the nine months ended September 30, 2012, the increase in net revenues of 14.8% as compared to the same period in 2011 represents a 10.0% increase in pari-mutuel revenues, a 13.0% increase in Card Casino revenues and a 22.9% increase in food and beverage revenues. Operating expenses also increased in the third quarter and nine month periods, increasing $2,272,465, or 20.3%, and $3,771,789, or 12.3%, as compared to respective periods in 2011.