Canterbury Park Holding Corporation on Monday reported what it said was “record” financial results for the fourth quarter and full year ending December 31, 2021.
Canterbury Park Holding Corporation owns and operates Canterbury Park Racetrack and Card Casino in Shakopee, Minnesota. It is the only thoroughbred and quarter horse racing facility in the state.
In the fourth quarter 2021, the company’s net revenue was $13.95m, up 128% from the $6.1m in revenue during Q4 2020.
Quarterly net income was $6.6, compared to just $139,000 in the pandemic lockdown of Q4 2020.
Adjusted EBITDA for the fourth quarter of 2021 was $3.3m, compared to a negative $27,000 one year earlier.
For full year 2021, net revenue hit $60.4m, an 82% increase from $33.1m in 2020.
Annual net income was $11.79m in 2021, an increase of 1,011% from 2020, when the company reported slightly more than $1m in net income.
2021 adjusted EBITDA likewise shot up 1,572% to $13.4m from 806,000 the previous year.
The company noted its net income for 2021 included a $6.3m credit to salaries and benefits expense related to the Employee Retention Credit (ERC), a refundable tax credit recorded in accounts receivable. The ERC assisted business owners and their employees by providing an incentive to keep workers on the payroll and eligible businesses received a tax credit for a percentage of each eligible employee’s wage.
Net income for the 12-month period ending December 31, 2020, included a benefit of a $2.4m gain related to transfers of land to the Doran Canterbury II and Canterbury DBSV joint ventures.
Officials further noted its financial results for 2021 included the impact of the state-mandated closure of Canterbury Park, which ended January 10, 2021, as well as the impact of capacity restrictions from January 11 to May 28, 2021.
Financial results for the three and 12 months ending December 31, 2020, reflected the impact of the onset of the COVID-19 pandemic and closure of the Card Casino, simulcast, and special events operations at Canterbury Park from March 16 to June 9, 2020, after which the company reopened in a limited capacity, as well as the state-mandated closure of Canterbury Park from November 21 through the end of the year.
“Canterbury Park finished 2021 with strong fourth quarter financial results that further demonstrate our ongoing recovery since we fully reopened our business late in the second quarter,” Randy Sampson, President and Chief Executive Officer of Canterbury said in a statement. “In particular, our fourth quarter performance benefited from strong Card Casino results as visitation and spend per customer continue to improve across our customer base. In this regard, our targeted marketing efforts and expanded special events and tournaments calendar are attracting new customers and driving additional visits and spend from existing customers. In addition, the return of some of our traditional in-person events, including our annual craft show in November and a large poker tournament in December, contributed to the strong results and overall performance in the fourth quarter 2021.”
