Executive Summary

Q1 2017 net revenues rose 10.1% to $11.4M, driven by Card Casino (+$0.6M), Food & Beverage (+$0.3M), and Pari-mutuel (+$0.1M); diluted EPS increased to $0.12 from $0.07 (+65% YoY) .
EBITDA grew 37.1% to $1.51M with margin expanding to 13.2% from 10.6% YoY, reflecting stronger segment performance and operating leverage .
Operating expenses increased 7.2% to $10.6M, including a $0.207M rise in professional/contracted services tied to property development initiatives .
Catalysts: early start to the 2017 live racing meet (Derby day attendance >20,000 with revenues at/near records), ADW source market fees aiding pari-mutuel, and progress on Canterbury Commons (305-unit apartment application submitted) .

What Went Well and What Went Wrong

What Went Well

“Fueled by an 18% increase in table games revenues, our first quarter Card Casino revenues were our best since 2006.” — Randy Sampson, President & CEO .
“Our Food and Beverage segment posted its best ever first quarter results, primarily due to an increase in our expo center event business.” .
Pari-mutuel benefited from ADW legislation, with $216,000 of source market fees recognized, supporting revenue growth despite structural headwinds .

What Went Wrong

Operating expenses rose $711K (+7.2%) due to higher purses/Breeders’ Fund, cost of F&B sales, and consulting tied to development; professional & contracted services increased $207K YoY .
Ongoing industry headwinds: structural shift toward internet wagering has pressured simulcast pari-mutuel revenue (management highlighted this trend across recent periods) .
Sequentially, diluted EPS fell vs Q4 2016 ($0.12 vs $0.16), as the quarter lacked the Q4 seasonal/event mix and one-off benefits present in prior periods .

Financial Results

Consolidated P&L Summary (oldest → newest)

Metric	Q1 2016	Q4 2016	Q1 2017
Net Operating Revenues ($USD)	$10,393,311	$11,550,492	$11,443,071
Operating Expenses ($USD)	$9,870,318	$10,388,683	$10,581,262
Net Income ($USD)	$310,752	$684,491	$512,997
Diluted EPS ($USD)	$0.07	$0.16	$0.12

EBITDA and Margins (YoY comparison)

Metric	Q1 2016	Q1 2017
EBITDA ($USD)	$1,099,473	$1,507,532
EBITDA Margin (%)	10.6%	13.2%

Segment Revenues (YoY)

Segment	Q1 2016	Q1 2017
Card Casino ($USD)	$7.1M	$7.7M
Food & Beverage ($USD)	$1.1M	$1.4M
Pari-mutuel ($USD)	$1.4M	$1.5M
Total Net Revenues ($USD)	$10.4M	$11.4M

KPIs

KPI	Q1 2017	Context
Table games revenue increase ($USD)	+$722,000	Drove Card Casino growth (best since 2006)
ADW source market fees ($USD)	$216,000	Supported pari-mutuel revenue
EBITDA ($USD)	$1,507,532	Up +37.1% YoY
EBITDA Margin (%)	13.2%	+260 bps YoY
Professional/contracted services ($USD)	+$207,000 YoY	Property development initiatives
Derby day attendance (people)	>20,000	Early start of live racing meet

Actuals vs Estimates

Metric	Actual (Q1 2017)	Consensus (S&P Global)	Surprise
Revenue ($USD)	$11,443,071	Unavailable (S&P Global data not available)	N/A
Diluted EPS ($USD)	$0.12	Unavailable (S&P Global data not available)	N/A
Note: Wall Street consensus via S&P Global was unavailable for this period.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (qualitative)	FY 2017	None provided	Management “optimistic that revenues… particularly in table games, will continue to show increases over 2016”	Raised (narrative)
Pari-mutuel takeout (pricing)	2017 live racing	Not specified	Plan to return to traditional takeout rates to increase on-track revenues	Raised (pricing back to prior)
Events/F&B revenue (qualitative)	FY 2017	Not specified	“Adding more events… to more fully utilize catering areas as well as the expo center and infield concert/festival site”	Raised (narrative)
Real estate development (milestone)	2017–2018	Not applicable	Submitted Planned Development/Plat application for 305 apartments with Doran Companies	New milestone

No formal numerical guidance ranges (revenue, margins, OpEx, tax rate) were provided in Q1 2017 .

Earnings Call Themes & Trends

No Q1 2017 earnings call transcript was available.

Narrative themes across recent quarters

Topic	Q3 2016 (Q-2)	Q4 2016 (Q-1)	Q1 2017 (Current)	Trend
Card Casino/table games	Slightly down YoY but improving vs prior quarters; building momentum	“Strong increases in table games revenue” in H2’16	+18% table games; best Card Casino quarter since 2006	Improving
Pari-mutuel & ADW	Simulcast erosion; lowest takeout didn’t lift volume	ADW fees began; return to traditional takeout planned	$216K ADW source fees aid revenue	Stabilizing with ADW
Food & Beverage/events	Decline due to fewer race days and no major concert	Lost major fall concert but infield event area built	Best-ever Q1 F&B from expo events	Improving
Development (Canterbury Commons)	Pursuing mixed-use; holding company structure	1031 exchange; platting; active concepts	305-unit apartment application submitted	Advancing
Labor/minimum wage costs	Pressure on expenses	+$1.1M salaries/benefits YoY	OpEx up with purses/Breeders’ Fund and consulting	Persistent cost pressure

Management Commentary

“We are very pleased with the strong increase in the Company’s 2017 first quarter revenues… Fueled by an 18% increase in table games revenues, our first quarter Card Casino revenues were our best since 2006.” — Randy Sampson, President & CEO .
“Our Food and Beverage segment posted its best ever first quarter results, primarily due to an increase in our expo center event business.” .
“The ADW legislation… provides Canterbury Park and our horsemen with partial compensation for wagering revenues we have lost to internet sites.” .
“By starting the live racing meet earlier… we got off to a great start with attendance of over 20,000 and admissions, food and beverage and card casino revenues at or near all-time records for a Canterbury Park live racing day.” .
“We continue to make progress on our development plans… Planned Development and Plat approval application… first phase of an apartment community… 305 apartment homes… partner Doran Companies.” .

Q&A Highlights

No Q1 2017 earnings call transcript or Q&A was available for review.

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable for Q1 2017; therefore, we cannot assess beats/misses versus consensus.
Given segment momentum (Card Casino table games, expo-driven F&B) and ADW fee support to pari-mutuel, near-term estimate revisions (if covered) would likely focus on raising Card Casino/F&B revenue assumptions and modestly improving EBITDA margin expectations contingent on expense control .

Key Takeaways for Investors

Broad-based top-line strength: revenue +10.1% to $11.4M; EPS $0.12 (+65% YoY); EBITDA +37.1% with margin expansion to 13.2% — positive sign of operating leverage .
Card Casino is the core growth engine: table games +$722K; best quarter since 2006; sequential comp into peak live racing season is favorable .
Events/F&B trajectory improves with expo center and infield concert capabilities; expect continued uplift as the live season ramps .
Pari-mutuel stabilized by ADW fees ($216K recognized); planned return to traditional takeout expected to help on-track revenues, though simulcast headwinds persist .
Expense vigilance needed: OpEx +7.2% YoY with development-related consulting (+$207K); maintaining margin gains will hinge on cost discipline as revenue mix shifts .
Real estate development is a medium-term value lever: 305-unit apartment application with Doran Companies underscores tangible progress on Canterbury Commons that can diversify earnings over time .
Trading lens: near-term catalysts center on live racing season performance, event calendar execution, and incremental ADW economics; absence of formal guidance and limited Street coverage can amplify price moves on operational updates .

Canterbury Park Holding Corp (CPHC)·Q1 2017 Earnings Summary