Canterbury Park Holding Corporation · NASDAQ:CPHC
Canterbury Park — Investor Presentation (June 2020)
32 slides from Canterbury Park's investor presentation, Jun 25, 2020
Slide 1: Canterbury Park Holding Corporation
Po eX (6 ao F Canterbury Park Holding Corporation Randy Sampson, CEO Randy Dehmer, CFO CPHC: Nasdaq June 25, 2020 ~
Slide 2: Cautionary Statement
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 activities or plans which ar
Slide 3: Canterbury Park Overview
Canterbury Park Overview Located in Shakopee, MN + 1.8 milion people within a 30-minute “ Sarating are pe cocina /erse business model + Card Casino featuring poker and unbanked games + Live and pari-mutuel horse racing + Extensive FB, hospitality and events offerings + Seat realestate toting: nterbu
Slide 4: COVID-19 Impact
Slide 5: COVID-19 Response
COVID-19 Response Voluntary shut down of operations began on March 16, 2020 Following actions taken to maximize liquidity during shut dows + All regularly scheduled employees | tien ks wages + Boing Aol, 2020, susan a employes ped (on unpaid furlou " enoyees not rxoied subject to salary reduction ‘C
Slide 6: Amended Purse and Marketing Agreement
Amended Purse and Marketing Agreement Company and Shakopee Mdewakanton Sioux Community recently entered into amended purse enhancement and marketing agreement for 2020 live racing meet 2020 {62 million Annual Purse Enhancement Subject to 52 days of live racing + No annual marketing payment 2021 + $7
Slide 7: COVID-19 Health/Safety Plans
COVID-19 Health/Safety Plans Creating Safe Environment hess team members, veda and ose om cessing Maintaining a Sanitary Facility mented detailed cleaning standards to ensure all areas of ng {rae and contact ae detected "equa ob rer matice, property wil cose from 4AM to 1OAM for dsinfecton Employing
Slide 8: Return to Operations
Live thoroughbred and quarter horse racing began June 10, + Canterbury Park anticipates 52, forse racing in 2020 * Governor's Emergency Executive Order allows for ited ‘number of spectator * nia tation i upto 250 fans * Company working to create addtional spaces fr 250 fans wh expectaton that ss man
Slide 9: Core Business Overview
Core Business Overview NOTE: Except where noted, the following slides generally reflect the Company's business pre-COVID-19
Slide 10: Card Casino, Diverse Business Model
Card Casino + 69" total tables operating 24/7 {Table games include Blackjack, Missssgpt Stud 2 Baccarat, Three Card fee Up Pa Gow ok, timate Teas + Poker games include Texas Holatem, (Omahs HL, Seven Cord Sti + known for friendly dealers and comfortable ensronmer “TIM revenve of $34.1 milion Diverse
Slide 11: Profitable and growing Card Casino
Profitable and growing Card Casino + Operates 24 hours per dy 7 dys Features wide varity of poker games and unbanked table go ‘Basuaeraenameras paar neoomes + Multiple opportunist increase station and spend per vist Actively converting real estate to shareholder value _ tomes iedertai dace + Canter
Slide 12: Overview: Card Casino
Overview: Card Casino Table and poker games + 49 table games +25 poker tables Card Casino games are “unbanked” + Revenue represents percentage of wagers received + Wagers lost accumulated into a player pod! lability which is retumed to players thraugh giveaways, prometional items or prizes + $800 pe
Slide 13: Growth Drivers: Card Casino
Growth Drivers: Card Casino Increased guest frequency + Focus on rated players within 30-minute chive (rougkly 54% of total rated players) + average annual visitation of 10 tips * Customer ADT of roughly $105 + Che addtional wsit per player werth aperaximately {$900,000 ofincremental GGR Deeper mark
Slide 14: Growth Drivers: Card Casino
Growth Drivers: Card Casino Expand marketing reach * Digtal media Facebook) + New player coupore + Allows for effcient casino host prospactng + Svategc parverships + Caesars Entertarmant for Las Vege tps + Local Patels + Wadtinal media Floor and game mix enhancements + Added games at front entrance
Slide 15: Growth Drivers: Hospitality and Racing
Drive expanded contribution from hospitality offerings Strengthened F8B and events management team tinuous improvement in F&B Growth Drivers: “iSitingreweneopemeg Hospitality and Racing Build on successful racing operations + Leverage cooperative marketing agreement with Shakopee Mdewakanton Sioux C
Slide 16: Growth Drivers: Real Estate Development
Growth Drivers: Real Estate Development
Slide 17: Canterbury Park: Existing Site
Canterbury Park: Existing Site
Slide 18: Growth Drivers: Real Estate Development
Growth Drivers: Real Estate Development Significant opportunity to develo Stbractive mir of lifestyle and > entertainment offerings + Bring financial benefits and drives visitation benefits + Development contemplates residential real estate, retail, ere Roe sekeal hese end estas + Repurposing of old
Slide 19: Multiple paths to monetize the excess real estate
Multiple paths to monetize the excess real estate surrounding Canterbury Park Land Sales Tw parcels, encompassing roughly 30 acres, sold for toa * consideration of approximately $5.8 mi + Implied value of raw land is about ie per acre + Company recently entered into two sales agreements, encompassin
Slide 20: Multiple paths to monetize the excess real estate
Multiple paths to monetize the excess real estate surrounding Canterbury Park Land Transfers to Joint Ventures + Doran (Triple Crown Apartments) + CPHC contributed 13 acres of land at per acre value of Monetization of = Gr rect eed opting agreement Pass 2 Canterbury Real "ingues obton 0 oes 03 fr 26
Slide 21: Canterbury Commons Phase One Status
Canterbury Commons Phase One Status Triple Crown Apartments + Tita leasing underway with trong interest + Facility opened in June with fst accupancy + Phase 1 construction completion expected 4Q20 Recent developer agreements + Two rea estate sales agreements to add more than 160 addtional residentia
Slide 22: Triple Crown Apartments
Triple Crown Apartments
Slide 23: Canterbury Commons Phase Two
Canterbury Commons Phase Two Canterbury Park continues to work with master plan developer to program second phase Objective of second phase is to drive traffic to Canterbury Commons + Provide vistors and residents with variety of atractions and amenities Potential land uses may include: + Retail ent
Slide 24: Canterbury Commons Land Use Proposal
Canterbury Commons Land Use Proposal
Slide 25: Financials
Financials Strong operating momentum pre-cowD + January and February net revenue increased 20.1% Y/ + January and February Adjusted EBITDA grew 290.9% om 120 revenue impacted by suspension of operations in mid-March + Card Casino revenues decreased 4.3% + Pari-mutuel revenues decreased 13.1% + Food
Slide 26: 1Q20 P&L
1Q20 P&L Net revenue $8812 $7,337 $2,137 Adjusted EBITDA 1,762 451 (903) Net income Basic EPS Diluted EPS Three Months Ended Mar. 31, 201 S109 1,591 859 76 $255 “97 $005 $0.01 $0.05 $0.01
Slide 27: 2019 P&L
Twelve Months Ended ironies $9927 $5930 2019 P&L Adjusted EBITDA 6.386 7940 roca ze sre — rn oie ere ‘080 125 = ee a Re ° eiiacton is coving epee: To uted conegn pr ture arc hr ne gure teeth ad eve nan pre nde Dreoe Ms sOre nar GOS
Slide 28: Balance Sheet
Balance Sheet Restricted cash Other current assets Current assets TF receivable Total assets Long-term debt “Total labilties ‘Stockholders equity ‘Total labilties and stockholders’ equity
Slide 29: Q&A
Slide 30: Appendix
Appendix
Slide 31: Definitions
Definitions EBITDA represents earnings before interest, income tax expense, and depreciation and amortization. EBITDA is not a measure of performance or liquidity calculated in accordance with generaly accepted accounting alternative to, or more meaningful than, net income as an indicator of our ope
Slide 32: EBITDA Reconciliation
Three Months Ended Twelve Months Ended March 31,2020 March 31,2019 Dee, 31, 2019 Net income $255 $87 $2,718 $5,718 Interestincome, net asa) 3) 327) (62) EBITDA Those tax (bene) expense so a6) 18 1980 Reconciliation Depreciation ny 626 2,680 2,564 EBITDA 259 02 sais 10.21 Gain on insurance recoveries
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