Canterbury Park Holding Corporation · NASDAQ:CPHC
Canterbury Park — Investor Presentation (June 2021)
33 slides from Canterbury Park's investor presentation, Jun 3, 2021
Slide 1: Canterbury Park CPHC June 2021
Prog Ga [mm CPHC: asda x3 June 2021 ~
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-loo) ing possible or aritapatee futere fanctal performance, business aia apesbie For such forward-looking stater cai safe
Slide 3: 2020 Financials
2020 Financials 2020 results impacted by COVID-19 Pandemi + Net revenues decreased 44.0% Y/Y to $33.1 milion + Net income decreased 60.9% Y/Y to $1.1 milion + Adjusted EBITDA declined 87.3% Y/Y to $806,000 + Nearly 4.5 months of suspended operations Operations performed wall when open ees fe saksted
Slide 4: 1Q21 Financials
1Q21 Financials Strong operating momentum in 1921 imjlar number of operatin “ Bectea ee ede aed Sn F885 + 1Q21 included significant COVIt ad restiions 20 had re OVID 9 restos tl March 16,2020 spersion of operations. Monily tevenues improved throughout Van ce + Total reverue Pe ey “Fe ear rect ee “Te
Slide 5: Three Months Ended March 31 P&L
Three Month March 31 vere S26 Hn88 ope oe oss) ga i a sm et 1Q21 P&L Net incomet!) $551 $255 Adjusted EBITDA 1,422 859 hacia Notions = 16 — 08 Diluted EPS $0.12 $0.05, "he pena etc iatni d caec
Slide 6: 1Q21 Balance Sheet
1Q21 Balance Sheet cash Restricted cash Other current assets Current assets TIF receivable Total assets Long-term debt ‘Total liabilities Stockholders’ equity ‘Total liabilities and stockholders’ equity $2,271 3,855 4gut 10,937 12,041
Slide 7: 1Q21 EBITDA Reconciliation
Mhree Months Ended March 31, Net income $551 $255 Interest income, net (169) (164) Income tax expense 252 50 Depreciation 690 m7 EBITDA 1324 852 Depreciation and amertzaton rated to equity 394 : 1Q21 EBITDA Interest expense related to equity investments 219 - Reconciliation Other revenue (COVID-19 r
Slide 8: Business Update
Slide 9: Current Business Status
Effective May 7, 2021 * Chips Bar now open uni 2:00 am Food & beverage service available until 3:00 am + Seltservice soda reinstated +s and ar seni ew t10 working oui in non-publespces ht can maintain soda distancing may remove thei asl + Team members must wear masks ‘are all live racing ours Curren
Slide 10: Card Casino
Card Casino COVID-19 takeaways + Table games revenue improved steadily 2s capacity increased * Focus on better quality players has driven margin, improvernent + Targeted social media advertising aimed at new payers + Improved efficiencies in labor, purchasing, pricing, and marketing that we plan to
Slide 11: Racing: COVID-19 takeaways
COVID-19 takeaways + 2020 racing capacity constraints, led to: + Shift to Monday-Thursday racing with a 4:30 first post to tind least competitive time + faggrgssive effort to court put-of state players by ling Canterbury ase orcepayer fendi racetrack through promotion and race placement + Facrgased
Slide 12: Hospitality
Hospitality Schedule plans for 2021 provide for significant upside potential + Return of Trin ities Summer Jam + Changes to racing schedule allo for nev event ‘opportunities for Friday and Saturdayand large crowds and event revenue on Sunday. * More weeknight catering opportunities for live race day
Slide 13: Canterbury Park: 350 acres
Canterbury Park: 297 acres
Slide 14: Real Estate Development
Real Estate Development Significant opportunity to develop attractive mix of lifestyle and entertainment offerings + Brings financial benefits and dives visitation benefits + Development conternplates residential real estate, retal, entertanment, hotels, school, theater and restaurants + Repurposing
Slide 15: Growth Drivers: Real Estate Development
Growth Drivers: Real Estate f Nwage Phase 2 Development z \( i Development
Slide 16: Triple Crown Apartments Phases
Phase 1 + Construction now complete ; + A321 uns avalable for occupancy Triple Crown + Leasing continues wih strong interest Apartments Phase 2 + Construction expected to begin in summer 2021 * Groundwork now undenvay
Slide 17: Triple Crown Apartments
Triple Crown Apartments
Slide 18: Triple Crown Apartments
Triple Crown Apartments (38
Slide 19: Pulte
Pulte Represents approximately 7.5 of the 10 acres sold for total consideration of $2.5 million Phase 2 encompassing approximately 4 acres expected to close in 2022 109 for-sale residential townhomes and row homes Construction is underway
Slide 20: Lifestyle Communities
Lifestyle Communities Represents approximately 2.5 of the 10 acres sold for total consideration of $2.5 million 56-unit cooperative community across four levels (stories) More than 5,000 square feet of amenity space Construction is expected to begin in fall 2021
Slide 21: Lifestyle Communities
Lifestyle Communities a
Slide 22: Southwest Development
Southwest Development Greystone Construction selected as developer and JV Partner. Canterbury is 62% Equity Ownership of Partnership Total land of 13 acres Construction of new 28,000 square foot office building, including a corporate headquarters for Greystone, expected to be completed by July 2024
Slide 23: Southwest Development
Southwest Development a =-Letter of Intent Negotiating PA
Slide 24: Greystone Construction
Greystone Construction
Slide 25: 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 + Provde visors and resdents with varity of attractions and amenities Potential land uses may include: + Retail entert
Slide 26: Investment Highlights
Investment Highlights ED oo orcscpnemncan on Profitable and growing Card Casino pate 24 se chy 7 ds we tae aes ae “aig Neeisse cra af Oe ad per ond er « Mute opparures to nrense stat and spend per vt Actively converting real estate to shareholder value 1 acres fan for ft eveopment “Ghar mil uses cdg
Slide 27: Appendix
Appendix
Slide 28: Canterbury Park Overview
Canterbury Park Overview Located in Shakopee, MN + 25 miles from downtown Minneapolis + 1.8 million people within a 30-minute drive Surrounding area is a popular entertainment destination Diverse business model Cara Casino featuring poker, unbanked games and dealer + Live and pari-mutuel horse racin
Slide 29: Diverse Business Model
Diverse Business Model Card Casino Real Estate Development Racing Hospitality + 69 oa tates operating 24 7 RURESereetaehnet es Wve acing May w Sertenber ‘nee ced Coane ei lis "Said G'ssccarat Three Cars Poker,” * TIEunding avaiable trough partnership + Nearvoune race smelcasing service Bar i, Cz sac
Slide 30: Card Casino: Table and poker games
Table and poker games + 43 table games + 25 poker tables + 22 dese. asslstecronc gaming positions Card Casino games are “unbanked” + Revenue represents parcentage of wagers received + Wagers lost accumulated into a player pocl liability which is retuned to players through giveaways, promotional iter
Slide 31: Multiple paths to monetize the excess real estate
Multiple paths to monetize the excess real estate surrounding Canterbury Park Land Sales + Two parcels, encompassing roughly 30 acres, sold for total consideration of approximately $5.8 million (Sold in 2015 and 2016) + Implied value of raw land is about $192,000 per acre + Company has entered into
Slide 32: Monetization of Canterbury Real Estate
Monetization of Canterbury 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 $228,000 for Phase 1 + Doran exercised option for Phase 2 i
Slide 33: Q&A
Canterbury Park Holding — Investor Presentation (June 2021) on 6ix