Canterbury Park Holding Corporation Reports Financial Results for Its Third Quarter and Nine Months Ended September 30, 2013

  Canterbury Park Holding Corporation Reports Financial Results for Its Third
  Quarter and Nine Months Ended September 30, 2013

Business Wire

SHAKOPEE, Minn. -- November 13, 2013

Canterbury Park Holding Corporation (NASDAQ:CPHC) today announced results for
the third quarter and nine months ended September 30, 2013.

Canterbury Park Holding Corporation (the “Company”) reported net income of
$170,503 on net revenues of $14,274,459 for the three months ended September
30, 2013 compared to net income of $202,034 on net revenues of $13,876,292 for
the same period in 2012. For the nine months ended September 30, 2013, net
income was $654,832 on net revenues of $36,699,977 compared to net income of
$568,002 on net revenues of $35,449,086 for the same period in 2012. Diluted
earnings per share for the 2013 third quarter were $.04 compared to $.05 for
the third quarter of 2012, and diluted earnings per share for the nine months
ended September 30, 2013 were $.16 compared to $.14 for the same nine- month
period in 2012.

Net revenues in the 2013 third quarter increased 2.9% compared to the 2012
third quarter primarily due to conducting six additional days of live racing.
This led to a 13.3% increase in pari-mutuel revenues and a 15.2% increase in
food and beverage revenues offset by a 5.5% decrease in Card Casino revenues
when compared to the same period in 2012. For the nine months ended September
30, 2013, net revenues increased $1,480,291, or 3.5% as compared to the same
period in 2012. This includes an $875,111 increase in pari-mutuel revenues, of
which approximately $412,000 represents a change in accounting estimate made
at the end of the 2013 second quarter related to unredeemed vouchers, as well
as a $418,670 increase in food and beverage revenues that were offset by a
$64,000 decrease in Card Casino revenues. Operating expenses in the third
quarter and nine-month periods respectively, increased $510,041, or 3.8%, and
$1,236,422, or 3.6%, as compared to the same periods in 2012.

Our operations continue to generate positive cash flow. For the nine months
ended September 30, 2013 compared to the same period in 2012, Earnings before
Interest, Taxes, Depreciation and Amortization (“EDITDA”) increased 2.3% to
$2,473,427, while decreasing slightly as a percentage of net revenues to 6.7%
from 6.8%.

Further detail regarding Company results for the third quarter and first nine
months of 2013 is presented in the accompanying table, and additional
information regarding the Company’s financial results will be presented in the
Company’s Form 10-Q Report that will be filed on November 14, 2013 with the
Securities and Exchange Commission.

Randy Sampson, President and CEO of Canterbury Park Holding Corporation
commented: “We continue to see the benefits of our Cooperative Marketing
Agreement (CMA) with the Shakopee Mdewakaton Sioux Community (SMSC). Purse
fund enhancements of $5.3 million were paid to our horsemen from the SMSC
purse enhancement fund, and the 2013 increases in purses attracted new stables
and better quality horses which fueled increased fan support for our 2013 live
race meet. As anticipated, revenues for the nine-month period compared
favorably to the same period in 2012 primarily due to the 69-day racing
season, our longest since 2006. In addition, we believe both racing and card
casino revenues were adversely impacted in the third quarter of 2013 due to
significant road construction in our area.” Mr. Sampson added, “While the CMA
has secured a long-term future for both Canterbury Park and the Minnesota
horse racing industry, we will continue to look for ways to increase the
profitability of our current operations, even as we explore opportunities to
further develop our property.”

Use of Non-GAAP Financial Measures:
In addition to the results provided in accordance with U.S. Generally Accepted
Accounting Principles (GAAP), the Company has provided investors with EBITDA,
a non-GAAP measure, which the Company defines as earnings before interest
income, income tax expense, and depreciation and amortization. EBITDA should
not be considered an alternative to, or more meaningful than, net income as an
indicator of our operating performance, or cash flows from operating
activities as a measure of liquidity. EBITDA has been presented as a
supplemental disclosure because it is a widely used measure of performance by
companies in our industry. Moreover, other companies that provide EBITDA
information may calculate EBITDA differently than we do.

About Canterbury Park:
Canterbury Park Holding Corporation owns and operates Canterbury Park
Racetrack, Minnesota’s only thoroughbred and quarter horse racing facility.
The Company’s 69-day 2013 live race meet began on May 17^th and ended on
September 14^th. In addition, Canterbury Park’s Card Casino hosts card games
24 hours a day, seven days a week, offering both poker and table games. The
Company also conducts year-round wagering on simulcast horse racing and hosts
a variety of other entertainment and special events at its facility in
Shakopee, Minnesota. For more information about the Company, please visit us
at www.canterburypark.com.

Cautionary Statement:
From time to time, in press releases and in other communications to
shareholders or the investing public, the Canterbury Park Holding Corporation
may make forward-looking statements concerning possible or anticipated future
financial performance, business activities or plans based on management’s
beliefs and assumptions. These forward- looking statements are typically
preceded by the words such as "believes," "expects," "anticipates," "intends"
or similar expressions. Shareholders and the investing public should
understand that these forward-looking statements are subject to risks and
uncertainties, including those disclosed in our periodic filings with the
Securities and Exchange Commission, which could cause actual performance,
activities or plans after the date the statements are made to differ
significantly from those indicated in the forward-looking statements when
made.


CANTERBURY PARK HOLDING CORPORATION’S
SUMMARY OF OPERATING RESULTS
(UNAUDITED)

                                                             
                  Three Months    Three Months    Nine Months     Nine Months
                  Ended             Ended             Ended             Ended
                  Sept. 30,       Sept. 30,       Sept. 30,       Sept. 30,
                  2013              2012              2013              2012
                                                                        
Operating
Revenues,         $14,274,459       $13,876,292       $36,699,977       $35,449,086
(net)
                                                                        
Operating         $13,999,754       $13,489,713       $35,587,320       $34,350,898
Expenses
                                                                        
Non-Operating     $553              $1,296            $2,225            $4,635
Income, (net)
                                                                        
Income before     $275,258          $387,875          $1,114,882        $1,102,823
Income Taxes
                                                                        
Income Tax        ($104,755   )     ($185,841   )     ($460,050   )     ($534,821   )
Expense
                                                                        
Net Income        $170,503          $202,034          $654,832          $568,002
                                                                        
Basic Net
Income Per        $0.04             $0.05             $0.16             $0.14
Common Share
                                                                        
Diluted Net
Income Per        $0.04          $0.05          $0.16          $0.14       
Common Share
                                                                                    


RECONCILIATION OF NET INCOME TO EBITDA
                                         
                       Nine Months            Nine Months
                       Ended                  Ended
                       September 30, 2013     September 30, 2012
                                              
Net income             $   654,832            $   568,002
                                              
Interest income            (2,225      )          (4,635      )
                                              
Income tax expense         460,050                534,821
                                              
Depreciation               1,360,770              1,318,617
                                              
EBITDA                 $   2,473,427          $   2,416,805
                                                              

Contact:

Canterbury Park Holding Corporation
Randall D. Sampson, 952-445-7223
Chief Executive Officer
 
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