Canterbury Park Holding Company released its annual report (SEC 10K) on March 29, 2016. Canterbury is listed under the symbol CPHC on the Nasdaq exchange and has a market cap of about $44 million.
CPHC owns the Canterbury Park Racetrack and Casino in Shakopee, Minnesota near the Twin Cities. CPHC operates in three business segments, as follows:
Pari-mutuel wagering on live and simulcast Thoroughbred and Quarter Horse Racing. Live racing is held for approximately 70 days per year from May to September and simulcasting is held the entire year. The main competition comes from North Metro Harness Initiative, which operates Running Aces Harness Park about 50 miles from Canterbury Downs and offers Standardbred racing and a card room.
Total handle in 2015 was $70.3 million (versus $68.5 million in 2014) with live handle accounting for $12.5 million in 2015 and $12.3 million in 2014. Minnesota state law caps the takeout rate at 17% on straight wagers and 23% on exotic pools.
Unbanked card games (i.e. patrons compete against one another playing poker and other card games).
Food and beverage sales. CPHC has the fourth largest event space in the Twin Cities of 100,000 square feet.
In 2015, CPHC showed increases in net revenues, net income, and earnings per share over 2014. Net revenues in 2015 were $52.3 million, up by nearly 8% from the year before. Net income for 2015 was $2.7 million, an increase of 12.5% from 2014. Earnings per share were $0.64 in 2015 compared to $0.57 in 2014. CPHC has had a slow but steady increase in all these measure in the past five years.
The CHPC common stock price per share increased in 2015 from $8.98 at the beginning of the year to $10.59 at the close of the year, for an 18% price appreciation. The stock was at $10.36 per share at the end of the third quarter 2016. CPHC has a price-to-earnings ratio of around 16.75 and a beta of .12, which means that it has a weak correlation to the Nasdaq index. Short interest rose dramatically in March 2016, indicating that short sellers are increasingly betting on the stock price to decline.
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