Canterbury Park (CPHC) investor relations material

Executive summary

• Net revenues for Q1 2026 increased 2.8% year-over-year to $13.5 million, driven by strong growth in food and beverage (+13.8%) and other revenues (+12.5%), while casino revenue was up 0.5% and pari-mutuel revenue declined 5.6%.

• Net income was $170,000 ($0.03 per share), reversing a net loss of $299,000 ($-0.06 per share) in Q1 2025, reflecting improved operating performance and lower losses from equity investments.

• Adjusted EBITDA rose 35.6% to $2.85 million, with margin expanding to 21.1% from 16.0% a year ago, due to higher revenues and flat operating expenses.

• Casino revenue growth was limited by a historically low table games hold in March, but underlying demand remained strong.

• Real estate and diversification initiatives, including new entertainment venues and joint ventures, are exceeding expectations.

Financial highlights

• Casino revenue reached $9.24 million (+0.5% YoY), food and beverage $1.85 million (+13.8%), other revenues $1.40 million (+12.5%), and pari-mutuel $1.02 million (-5.6%).

• Operating expenses were $12.45 million, down 0.3% year-over-year, with a 4% reduction in labor costs offset by higher property taxes and event promoter fees.

• Depreciation and amortization increased 12.6% to $1.05 million due to recent capital projects.

• Loss from equity investments improved to $1.22 million from $1.57 million, primarily due to higher leasing rates in joint ventures.

• Cash, cash equivalents, and restricted cash totaled $16.36 million at quarter-end; liquidity exceeded $17 million.

Outlook and guidance

• Management expects continued benefit from diversification and real estate development, with strong demand for new entertainment venues and residential units, including a 19,000-capacity amphitheater opening in June 2026.

• The company remains debt-free, with significant liquidity and ongoing TIF receivable collections expected throughout 2026.

• Additional entertainment and hospitality projects are planned for remaining land parcels, with a focus on maximizing shareholder value and mixed-use development.

• Ongoing market analysis and design work for a prime 25-acre site near the amphitheater, with Gensler leading planning.