Canterbury Park Holding Corporation · NASDAQ:CPHC
Canterbury Park — Shareholder Meeting (June 2018)
57 slides from Canterbury Park's shareholder meeting presentation, Jun 8, 2018
Slide 1: Shareholders' Meeting June 6, 2018
Shareholders’ Meeting June 6, 2018
Slide 2: Cautionary Statement
CPHC Financial Results Cautionary Statement: From time to time, in reports filed with the SEC, in press releases, and in other communications to shareholders or the investing public, we may make forward - looking statements concerning possible or anticipated future financial performance, business ac
Slide 3: Cautionary Statement (continued)
CPHC Financial Results Cautionary Statement (continued): These presentation materials use the terms “EBITDA” and “adjusted EBITDA.” EBITDA represents earnings before interest income, income tax expense, and depreciation and amortization. Neither EBITDA nor adjusted EBITDA are measures of performance
Slide 4: Balance Sheet Highlights
CPHC Financial Results BALANCE SHEET HIGHLIGHTS (000’s) as of December 31 2017 2016 Cash & Cash Equivalents $8,888 $6,299 Property & Equipment, Net $36,962 $35,379 Total Assets $54,537 $49,625 Stockholders’ Equity $40,717 $36,551
Slide 5: Operating Highlights
CPHC Financial Results OPERATING HIGHLIGHTS (000’s) Year Ended December 31 2017 2016 Net Revenues $56,953 $52,460 Operating Expenses $52,432 $45,319 Net Income $4,091 $4,196 Diluted Net Income Per Share $0.93 $0.97
Slide 6: Tax Savings
CPHC Financial Results Tax Savings Effect of Tax Regulation Change on Canterbury • Tax Cuts and Jobs Act effective December 22, 2017 • Reduced the statutory federal tax rate from 34% to 21% • Revaluation of net deferred tax liability on December 31, 2017 • One - time tax benefit of approximately $1.
Slide 7: EBITDA Highlights
CPHC Financial Results EBITDA HIGHLIGHTS (000’s) Year Ended December 31 2017 2016 EBITDA $7,051 $9,689 Gain on Disposals of Assets (2) (23) Gain on Sale of Land - (3,846) Gain on Insurance Recoveries (141) (1,465) Adjusted EBITDA $6,912 $4,355
Slide 8: Cash Flow Highlights
CPHC Financial Results CASH FLOW HIGHLIGHTS (000’s) Year Ended December 31 2017 2016 Cash Provided by Operations $7,086 $4,941 Cash Used in Investing $(3,782) $(3,817) Cash Used in Financing $(715) $(3,100) Net Increase (Decrease) in Cash and cash equivalents $2,589 $(1,975)
Slide 9: Operating Highlights Q1
CPHC Financial Results OPERATING HIGHLIGHTS (000’s) Quarter Ended March 31 2018 2017 Net Revenues $12,220 $11,443 Operating Expenses $10,863 $10,581 Net Income $990 $513 Diluted Net Income Per Share $0.22 $0.12
Slide 10: EBITDA Highlights Q1
CPHC Financial Results EBITDA HIGHLIGHTS (000’s) Quarter Ended March 31 2018 2017 Net Income $ 990 $ 513 Interest Income, net (12) (12) Income Tax Expense 379 361 Depreciation 635 646 EBITDA $1,992 $1,508
Slide 11: Market Information
CPHC Financial Results MARKET INFORMATION 2017 2016 Common Stock High Low High Low First Quarter $10.75 $9.80 $10.80 $9.43 Second Quarter $11.38 $9.99 $11.21 $9.92 Third Quarter $12.80 $10.98 $11.13 $10.10 Fourth Quarter $17.55 $11.75 $11.05 $9.80
Slide 12: Financial Trends
Financial Trends ———
Slide 13: Net Revenue – Year Trend
Net Revenue – 5 Year Trend The Company’s growth since 2013 is attributed to the redesign of the Card Casino and significant growth in our table games. Financial Highlights $40,000 $42,000 $44,000 $46,000 $48,000 $50,000 $52,000 $54,000 $56,000 $58,000 2013 2014 2015 2016 2017 Net Revenue In 000's
Slide 14: Core Business Growth
Core Business Growth Total Net Revenue has increased $10.2 million since 2013. $6.4 million of this increase is from the Card Casino. +25% +23% - 6% Change from 2013 +22% Financial Highlights $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2013 2014 2015 2016 2017 Net Revenue by Segments (In 000'
Slide 15: Net Revenue by Segments
Financial Highlights Net Revenue by Segments Card Casino 56% Pari - Mutuel 18% Food and Beverage 14% Other 12% 2017
Slide 16: Continue to Generate Strong Adjusted EBITDA
Continue to Generate Strong Adjusted EBITDA Adjusted EBITDA excludes gains on disposal of fixed assets and insurance recoveries. 2017 and 2016 amounts above exclude net gains on disposal of fixed assets, sale of land, and insurance recoveries totaling $138 ,000 and $5.3 million, respectively. Financ
Slide 17: Key Financial Metrics and Shareholder Value
2013 2014 2015 2016 2017 Cash ($ in ‘000) $ 8,739 $ 8,762 $ 8,274 $ 6,299 $ 8,888 Current Ratio 1.80 1.89 1.53 1.39 1.42 Return on Equity 3.6% 7.8% 8.2% 11.5% 10.0% Cap - Ex ($ in ‘000) $ 4,311 $ 5,658 $ 9,223 * $ 4,431 $ 3,782 Dividends $ - $ - $ 0.25 $ 0.35 $ 0.23 Key Financial Metrics Other Key F
Slide 18: Vision, Mission and Guiding Principles
Vision: To generate sustainable growth in our core operations while creating new opportunities to expand and broaden our business. Canterbury Park Guiding Principles Mission: To provide our guests with a premier gaming, entertainment and event experience by conducting ourselves #TheCanterburyWay.
Slide 19: Premier Entertainment, Gaming and Event Business
Racing: Competitive live racing May thru September fueled by the SMSC Purse Enhancement Agreement; Draws nearly a half - million people annually; Racebook attracts avid horseplayers year - round. Cards: Diverse array of table gaming options including table games (such as Blackjack, Baccarat & more)
Slide 20: Key Investment Highlights
Experienced Executive Management Team - Over 150 years of experience in the industry - In 2017, added experienced executives Dan Kennedy, Sr. VP of Operations and Rob Wolf, CFO - Led Canterbury Park to profitability 21 of past 22 years Valuable Real Estate to Drive Long - Term Growth in Shareholder
Slide 21: Positioned for Continued Success
Positioned for Continued Success - SMSC Purse Enhancement Agreement solidifies quality racing for years to come. - Positive trend in Table Games business - Catering & Events infrastructure investments showing returns - Potential new revenue streams and customer awareness via land development
Slide 22: Strong Balance Sheet and Dividend History
Strong Balance Sheet and Financial Position: - $9 million in unrestricted cash and no long term debt - $3 million note receivable from United Properties - Significant appreciation in land value, which is not reflected on our balance sheet Dividend History ‒ Established dividend policy in 2016 with q
Slide 23: Recent Highlights - General
Recent Highlights - General Improved Financial Results ‒ Nine consecutive years of revenue growth; record level of adjusted EBITDA in 2017. Formalized Customer Service Measurement Program - Implemented ongoing surveys, secret shops, focus groups and data collection initiatives to improve customer ex
Slide 24: Recent Highlights - Racing
Recent Highlights - Racing Resumed Live Racing on Kentucky Derby Day in 2017 - Expanded season to 22 weeks; 70 days. - Exceeded 20,000 patrons three times in 2017 (only 20,000+ fans three total prior times in company history) Captured Minnesota ADW Revenue Based on Modified Legislation - Source mark
Slide 25: Recent Highlights - Racing
Recent Highlights - Racing Successful Shipping Incentive Program Launch - Introduced new shipping & starter bonuses - Partnered with Horsemen in 2017; expanded marketing program in 2018 Increased Average Field Size - Increased from 7.68 in 2016 to 8.03 in 2017 - Field size is 10% above national aver
Slide 26: Recent Highlights - Cards
Recent Highlights - Cards Significant Table Games Revenue Growth in 2017 - 17% Growth in Table Games revenue in 2017 compared to 2016 - Significantly enhanced promotional spend from Player Pool Expanded Quantity & Introduction of New Games - Added 4 th game to Bud Light Party Pit; Added two tables i
Slide 27: Highlights – Catering, Events & Sponsorships
Highlights – Catering, Events & Sponsorships Significant Growth in Catering & Sponsorship Revenue - Eclipsed $1 Million Catering revenue mark in 2017 - Expanded Cabana offerings; Addition of Group Host/Tour program - Increased sponsorship revenue from $469k in 2014 to $780k in 2017 New Events & Oppo
Slide 28: Recent Highlights – Property
Recent Highlights – Property Made Significant Strides in Long - Term Development Vision - Received key city approvals. - Finalized apartment project contracts Renovated Track Level & More - Remodeled concessions, bar and mutuels plus added external bar to enhance efficiency (2018) - Expanded Cabanas
Slide 29: Recent Highlights – Track Level
Recent Highlights – Track Level
Slide 30: Recent Highlights – Track Level
Recent Highlights – Track Level
Slide 31: Recent Highlights – Track Level
Recent Highlights – Track Level
Slide 32: Recent Highlights - Cabanas
Recent Highlights - Cabanas —
Slide 33: Recent Highlights – Little Big Thrill Factory
Recent Highlights – Little Big Thrill Factory
Slide 34: Recent Highlights – Mezz Level
Recent Highlights – Mezz Level
Slide 35: Sports Betting Ruling
Sports Betting Ruling • Ruling Overview – Court ruled in favor of Phil Murphy vs. NCAA which strikes down the Professional and Amateur Sports Protection Act (PASPA) – Court indicated that Congress can regulate sports gambling directly, but if not, each state is free to act on its own. • What Happens
Slide 36: Property Development Update
Property Development Update
Slide 37: The Community is Growing Up Around Us
The Community is Growing Up Around Us
Slide 38: The Community is Growing Up Around Us
The Community is Growing Up Around Us
Slide 39: Canterbury Commons Vision
Vision A NEW PLACE TO LIVE, STAY, WORK AND PLAY . Redevelopment Concepts First In Market Entertainment & Restaurant Options Destination Retail Opportunities New Lifestyle Housing Initiatives Distinctive Hotel Experiences & More Canterbury Commons
Slide 40: Canterbury Commons: Live
Canterbury Commons Conceptualizing a New Place to LIVE, Stay, Work & Play Apartments by Doran Creating A New Space for Lifestyle Renters Upscale Townhomes Meeting the Demands of Our Region 55+ Housing Co - Op Keeping People in our Community
Slide 41: Apartments by Doran
Apartments by Doran : —
Slide 42: Townhome Concepts
Townhome Concepts HUUVHUNT LeURay Gy We ip
Slide 43: Canterbury Commons: Stay
Canterbury Commons Conceptualizing a New Place to Live, STAY , Work & Play Extended Stay Hotel Full - Service Boutique Hotel Wisconsin Dells’ Style Hotel Waterpark
Slide 44: Canterbury Commons: Stay
Canterbury Commons Conceptualizing a New Place to Live, STAY , Work & Play
Slide 45: Canterbury Commons: Work
Canterbury Commons Conceptualizing a New Place to Live, Stay, WORK & Play Office/Business Park Creating a platform to attract high - end jobs and grow Shakopee’s business base
Slide 46: Canterbury Commons: Work
Canterbury Commons Conceptualizing a New Place to Live, Stay, WORK & Play
Slide 47: Canterbury Commons: Play
Canterbury Commons Conceptualizing a New Place to Live, Stay, Work & PLAY Destination Experience Concepts • New Restaurant Choices • ‘ Eater’tainment Options • Specialty Retail • Family Entertainment Venues • Indoor Waterpark • Community Gathering Spaces
Slide 48: Canterbury Commons: Play
Canterbury Commons Conceptualizing a New Place to Live, Stay, Work & PLAY
Slide 49: Canterbury Commons: Play
Canterbury Commons Conceptualizing a New Place to Live, Stay, Work & PLAY
Slide 50: Development Timeline
Development Timeline December 19, 2017 City Council approval of Comprehensive Plan Amendment • Approved by a 4 - 1 vote March 6, 2018 City Council approval of Tax Increment Financing Plan • Approved by a 4 - 1 vote April 17, 2018 City Council vote on Preliminary Plat and Comprehensive Plan for Phase
Slide 51: Development Timeline
Development Timeline July 2018 City Council action on final plat for Phase I of development August 2018 Final approval of financing of Phase I Doran apartments • Begin construction of Phase I apartments Spring 2019 Begin construction of Shenandoah road extension Fall 2019 Completion of Shenandoah ro
Slide 52: Development Plan – First Phase
Development Plan – First Phase
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Slide 54: Preliminary Parking Plan
Preliminary Parking Plan
Slide 55: The Triple Crown Doran Companies Apartment Project
The Triple Crown Doran Companies Apartment Project • Phase I – 295 units – 13.2 acres at $224,000 per acre – Canterbury Equity Contribution $3 million for 27.4% ownership • Phase II – 300 units – 10.5 acres at $224,000 per acre – Canterbury Equity Contribution $2.4 million for 27.4% ownership • Tota
Slide 56: Doran Companies
Doran Companies Tony Kuechle Senior Vice President of Development
Slide 57: Thank you!
Thank you!
Canterbury Park Holding — Shareholder Meeting (June 2018) on 6ix