Canterbury Park Holding Corporation · NASDAQ:CPHC
Canterbury Park — Shareholder Meeting (June 2019)
53 slides from Canterbury Park's shareholder meeting presentation, Jun 5, 2019
Slide 1: Shareholders' Meeting June 5, 2019
Shareholders’ Meeting June 5, 2019
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: Guiding Principles: Vision and Mission
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 5: Business overview: Racing, Cards, Hospitality, Real Estate
Racing: Competitive live racing May thru September fueled by the SMSC Purse Enhancement Agreement; Draws nearly a half - million guests annually with average daily attendance consistently more than 6,500; Racebook attracts avid horseplayers year - round offering racing from around the world. Cards:
Slide 6: Operating Highlights Year Ended December 31
CPHC Financial Results OPERATING HIGHLIGHTS (000’s) Year Ended December 31 2018 2017 Net Revenues $59,142 $56,953 Operating Expenses $51,495 $52,432 Net Income $5,718 $4,091 Diluted Net Income Per Share $1.26 $0.93 Adjusted EBITDA* $7,940 $6,912 *EBITDA represents earnings before interest, income ta
Slide 7: Operating Highlights Quarter Ended March 31
CPHC Financial Results OPERATING HIGHLIGHTS (000’s) Quarter Ended March 31 2019 2018 Net Revenues $11,591 $12,220 Operating Expenses $11,614 $10,863 Net Income $57 $990 Diluted Net Income Per Share $0.01 $0.22 Adjusted EBITDA* $717 $1,971 *EBITDA represents earnings before interest, income tax expen
Slide 8: Cash Rollforward
CPHC Financial Results CASH ROLLFORWARD (000’s) JANUARY 1, 2018 – MARCH 31, 2019 Cash Beginning Balance $ 8,888 Net Income 5,774 Depreciation 3,190 Increase in restricted cash (4,127) Changes in assets and liabilities (1,155) Other changes in operations (16) Net Cash Provided by Operations 3,667 Car
Slide 9: Core Business Growth
Core Business Growth Total Net Revenue has increased $10.7 million since 2014. $6.9 million of this increase is from the Card Casino. +25% +15% +4% Change from 2014 +22% Financial Highlights +48% $ 59,142 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 2014 2015 2016 2017 2018 Net Revenue
Slide 10: Continue to Generate Strong Adjusted EBITDA
Continue to Generate Strong Adjusted EBITDA Adjusted EBITDA excludes gains/losses on disposal of fixed assets and insurance recoveries 2018 and 2017 amounts above exclude net gains on disposal of fixed assets, sale of land, transfer of land, and insurance recoveries totaling $2.3 million and $138,00
Slide 11: Key Financial Metrics and Shareholder Value
2014 2015 2016 2017 2018 Cash ($ in ‘000) $ 8,762 $ 8,274 $ 6,299 $ 8,888 $ 4,895 Current Ratio 1.89 1.53 1.39 1.42 1.21 Return on Equity 7.8% 8.2% 11.5% 10.0% 12.2% Cap - Ex ($ in ‘000) $ 5,658 $ 9,223 * $ 4,431 $ 3,782 $ 5,501 Dividends $ - $ 0.25 $ 0.35 $ 0.23 $ 0.28 Key Financial Metrics Other K
Slide 12: Key Investment Highlights
Experienced Executive Management Team - Over 150 years of experience in the industry - Dedicated, loyal workforce with high retention levels - Led Canterbury Park to profitability 22 of past 23 years - Record level of revenue and net income in 2018 Valuable Real Estate to Drive Long - Term Growth in
Slide 13: Key Investment Highlights: Solid Financial Position
Solid Financial Position - Significant appreciation in land value, which is not reflected on our balance sheet - Ten consecutive years of revenue growth; record level of revenue, net income, and adjusted EBITDA in 2018 - Increased stockholders’ equity $6M to $47M, total assets $7M to $61M, and prope
Slide 14: Recent Highlights - Racing
Recent Highlights - Racing 2018 Live Race Meet Produced Record Handle and Purses Paid - A successful 69 - day race meet was highlighted by strong growth in Out - of - State revenue of nearly 16% Captured Minnesota ADW Revenue Based on Modified Legislation - Source market fees generated $1.7 million
Slide 15: Positioned For Growth - Cards
Positioned For Growth - Cards Remodeled & Expanded Card Casino - Increased capacity for rapidly growing Table Games from 32 to 43 tables - Created High Limit room for courting and maintaining high value guests - Created grand entrance from live racing and event space to introduce new audience to our
Slide 16: Positioned For Growth - Cards
Positioned For Growth - Cards Revised Poker Revenue/Promotional Model - Modified rake structure to enhance available promotional fund marketing dollars - Introduced sweeping changes to daily promo schedule - Added Tournament Director specific role where growth opportunity exists Enhanced Analytical
Slide 17: BURY PARK
NO BURY PARK
Slide 18: % t
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Slide 19: Positioned For Growth - Hospitality
Positioned For Growth - Hospitality New Team, New Talent - New leadership team brings significant experience in restaurant and facility food and beverage operations - New ideas to make food a more featured part of Canterbury experience Enhanced Onsite Food & Beverage Opportunity - Create food experi
Slide 20: Slide 20
Slide 21: Positioned For Growth - Hospitality
Positioned For Growth - Hospitality Catering Opportunities - Revised catering operations team and sales structure - Enhanced VIP package opportunities and upgrades - Showcased expanded vision of catering and event opportunities at open house event - Record catering revenue in 2018 Enhanced Event Exp
Slide 22: Twin Cities Summer Jam
Twin Cities Summer Jam ———
Slide 23: Positioned For Growth - Real Estate Development
Positioned For Growth - Real Estate Development Project Management & Marketing - Hired Director of Development to lead planning and future phase recruitment - Planning and identification of development partners for 50 - acre Phase I nearing completion Triple Crown Apartments - Transferred 13 acres o
Slide 24: Canterbury Park and Canterbury Commons
Canterbury Park and Canterbury Commons – 370 acres
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: Conceptual Master Plan
Conceptual Master Plan Southwest Development Canterbury Commons - Conceptual site Ren ng stantec
Slide 31: Canterbury Commons: Live
Canterbury Commons Conceptualizing a New Place to LIVE, Stay, Work & Play Apartments by Doran Lifestyle Renters: Triple Crown Apartments Upscale Townhomes Meeting the Demands of Our Region 55+ Housing Rental and Ownership Strong Interest Strong Interest
Slide 32: The Triple Crown at Canterbury
The Triple Crown at Canterbury Clubhouse Parking Structure Footings & Foundations
Slide 33: The Triple Crown at Canterbury
The Triple Crown at Canterbury
Slide 34: The Triple Crown at Canterbury Renderings
The Triple Crown at Canterbury Renderings
Slide 35: The Triple Crown at Canterbury
The Triple Crown at Canterbury
Slide 36: The Triple Crown at Canterbury
The Triple Crown at Canterbury
Slide 37: The Triple Crown at Canterbury
The Triple Crown at Canterbury
Slide 38: The Triple Crown at Canterbury
The Triple Crown at Canterbury
Slide 39: The Triple Crown at Canterbury
The Triple Crown at Canterbury
Slide 40: Canterbury Commons: Townhomes
Canterbury Commons: Townhomes HAUER Details 1. 14.5 acres 2. 60 - 80 homes 3. Owner occupied 4. Land sale
Slide 41: Canterbury Commons: Townhomes Developer Selection Criteria
Canterbury Commons: Townhomes Criteria for Developer Selection • Land price • Style (Duplex, Quad, Villa, Rowhome) • Upper end real estate market • Celebrate Canterbury
Slide 42: Canterbury Commons
Canterbury Commons ~. Coatebry Corres (on#pl0aIaie Nera Tan Gurr
Slide 43: Canterbury Commons Southwest Development
Canterbury Commons Southwest Development LIVE , STAY , WORK & Play Extended Stay Hotel • In discussions with developer/operator Senior Housing • In discussions with developer • 55+ Active Adult Office/Other • Shakopee Business relocation • Medical Office • Pre - school
Slide 44: Southwest Development Concept Plan
Southwest Development Concept Plan Massing Plan • Views of Track • Efficient Parking • Underground Parking • Shared Parking • 1 to 4 story buildings
Slide 45: Canterbury Commons: Work
Canterbury Commons Conceptualizing a New Place to Live, Stay, WORK & Play
Slide 46: Canterbury Commons: Business Park
Canterbury Commons: Business Park Details • 20 acres • Under contract with experienced developer • Currently marketing for office/flex tenant
Slide 47: Canterbury Commons Mixed Use
Canterbury Commons Mixed Use • Entertainment • Hospitality • Dining • Plaza Conceptualizing a New Place to Live, Stay, Work & PLAY
Slide 48: Canterbury Commons
Canterbury Commons
Slide 49: Canterbury Commons: Master Planning
Canterbury Commons: Master Planning Design Team / Master Planner / Landscape Architect 1. Landscape Design in Canterbury Parking Lot 2. Branding – Branded Development 3. Design Specs for Future Development 4. Programming of Space 5. Integrate Uses – mixed use, public plaza, barns 6. Visioning 7. Des
Slide 50: Development Timeline
Development Timeline Triple Crown Apartments (Doran Cos.) Broke ground Oct. 2018 Club House and Model unit: Fall Occupancy Early 2020 Townhomes Developer selection, Summer of 2019 Targeted construction, 2020 Southwest Development Replat, entitlement Summer of 2019 Contingent on selecting a partner b
Slide 51: Development Timeline
Development Timeline Business Park Contingent on deal terms with experienced developer – speculative office is contemplation for construction start of 2020 Experiential /Retail/ Mixed Use Planning , Budgeting, And Programming 2019 - 2020; Development Partner Selection Shenandoah Drive and 12 th Ave
Slide 52: Development Plan – First Phase
Development Plan – First Phase Great progress in the past year on the first phase of Canterbury Commons Shenandoah Road construction underway, opening the opportunity to develop over 50 acres Uses are programmed and we are finalizing the development partner selection process Residential and office u
Slide 53: Thank you!
Thank you!
Canterbury Park Holding — Shareholder Meeting (June 2019) on 6ix