Executive Summary

Q3 2017 net revenues rose 6.2% year over year to $17,666,841, with Adjusted EBITDA up 33.2% to $2,182,863 and margin expanding to 12.4% from 9.9% .
Diluted EPS was $0.22 vs $0.21 in Q3 2016 and up from $0.16 in Q2 2017; net income was $952,635 vs $925,837 YoY and $716,573 in Q2 .
Segment drivers: Card Casino table games revenue increased by $646,000; pari-mutuel revenue increased $311,000 aided by $155,000 in ADW source market fees; Food & Beverage declined $262,000 due to six fewer live racing days in the quarter .
Management remains optimistic but expects growth rates to moderate given tougher comps; real estate development progress continues amid delays—key narrative catalysts for investor focus near term .

What Went Well and What Went Wrong

What Went Well

Continued core revenue growth with net revenues up 6.2% YoY; Adjusted EBITDA rose 33.2% and margin expanded to 12.4%, reflecting improved operating leverage .
Card Casino performance remained strong: table games revenue up $646,000, supported by marketing and a strong economy; management emphasized ongoing momentum in table games .
Pari-mutuel segment posted its third consecutive quarterly revenue increase, aided by $155,000 in ADW source market fees and growth in live on-track and simulcast wagering; “we are very pleased with our results” (Randy Sampson, CEO) .

What Went Wrong

Food & Beverage revenue declined $262,000 (−7.6%) due to six fewer live racing days, highlighting sensitivity to racing calendar variability .
Operating expenses rose 7.0% YoY; after normalizing for prior-year insurance recoveries, expenses still increased 3.0%, driven by higher purses, Breeders’ Fund expense, salaries and benefits, and other costs tied to revenue growth .
Management signaled near-term revenue growth percentages will moderate as comparisons toughen; real estate development timeline faces approval delays, tempering incremental catalysts .

Financial Results

Quarterly Trend – Core P&L and Cash Earnings

Metric	Q1 2017	Q2 2017	Q3 2017
Net Revenues ($USD)	$11,443,071	$15,846,475	$17,666,841
Net Income ($USD)	$512,997	$716,573	$952,635
Diluted EPS ($USD)	$0.12	$0.16	$0.22
EBITDA ($USD)	$1,507,532	$1,768,433 (Adjusted EBITDA)	$2,182,863 (Adjusted EBITDA)
EBITDA Margin %	13.2% (EBITDA as % of net revenues)	N/A	12.4% (Adjusted EBITDA as % of net revenues)

Notes: Q2 EBITDA shown is Adjusted EBITDA per release; Q3 EBITDA is Adjusted EBITDA; Q1 margin provided for EBITDA; Q2 margin not disclosed .

Year-over-Year Comparison – Q3 2017 vs Q3 2016

Metric	Q3 2016	Q3 2017	YoY Change
Net Revenues ($USD)	$16,630,408	$17,666,841	+6.2%
Operating Expenses ($USD)	$15,071,503 (incl. $592k insurance recovery)	$16,130,028	+7.0% (or +3.0% ex-insurance recovery)
Net Income ($USD)	$925,837	$952,635	+2.9%
Diluted EPS ($USD)	$0.21	$0.22	+$0.01
Adjusted EBITDA ($USD)	$1,639,094	$2,182,863	+33.2%
Adjusted EBITDA Margin %	9.9%	12.4%	+250 bps

Segment and Key Drivers – Q3 2017 vs Q3 2016

Segment / KPI	Q3 2017 Detail	YoY Change
Card Casino revenues	+$655,000, driven by +$646,000 table games revenue	+8.9%
Pari-mutuel revenues	+$311,000 including $92,000 simulcast; $155,000 ADW source market fees	+8.8%
Food & Beverage revenues	−$262,000 primarily due to six fewer live racing days	−7.6%
Live racing days	Six fewer vs Q3 2016	−6 days

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue growth trajectory	Remainder of 2017 and beyond	Growing core businesses (table games, F&B, non-gaming)	Growth expected to continue, but percentage to moderate given tougher YoY comps	Maintained direction; clarified moderation
Cash flow growth (core business)	Remainder of 2017	Continued growth expected	Continued revenue and cash flow growth primarily from table games and non-gaming	Maintained
Real estate development timeline	Initial phase approvals	Progressing with partner; in approvals	Continuing to make progress; experiencing delays in approval process	Delayed

Note: No numerical guidance ranges (revenue, margins, OpEx, tax rate) were provided in Q3 materials; commentary was directional only .

Earnings Call Themes & Trends

Note: No earnings call transcript was available in our document set for Q3 2017; themes below are synthesized from quarterly press releases.

Topic	Previous Mentions (Q1 2017)	Previous Mentions (Q2 2017)	Current Period (Q3 2017)	Trend
Card Casino table games	+18% table games revenue; best first-quarter Card Casino revenue since 2006	+26.8% table games revenue; strong momentum	+$646,000 table games revenue YoY; strength attributed to marketing and economy	Sustained growth; moderation relative to Q2’s pace
ADW source market fees	$216,000 received; supporting pari-mutuel revenues	$284,000 received; double-digit pari-mutuel growth	$155,000 received; third consecutive quarterly increase in pari-mutuel revenue	Ongoing contribution; seasonal normalization
Food & Beverage	+24.5% YoY; best first-quarter results; expo center events	+12.3% six-month increase; more special events	−7.6% YoY; impact from six fewer live racing days; catering/event business remains strong	Seasonality; non-racing events offset some pressure
Live racing operations	Early start; record Derby day attendance; barns near capacity	+4 racing days YoY; strong start to live season	Six fewer racing days YoY in quarter	Calendar-driven variability
Real estate development	Application submitted for 305-unit apartment; working with City and partner	Progress slower than anticipated; working through approvals	Progress continues; delays persist in approvals	Delayed but advancing
Events	Expanding event calendar in expo/infield	New fall events planned (concert; Lantern Light Festival)	Emphasis on catering/events growth continues	Strategic diversification continues

Management Commentary

“We are very pleased with our results… the operating results in our core operations… showed continuing growth… with all three of our operating segments reporting increased revenues for the nine month period… Perhaps the best measure of our performance… Adjusted EBITDA… increased 67.3% to $5.5 million… 12.2% of our net revenues” — Randy Sampson, President and CEO .
“For the third consecutive quarter we reported increased revenue in our pari-mutuel wagering segment in spite of running six less live racing days in the third quarter of 2017… This increase primarily reflects new ADW source market fee revenues… as well as an increase in revenue from simulcast wagering” .
“We believe we will continue to see revenue and cash flow growth in our core business… However… we expect the future revenue growth percentage to moderate as we face more difficult year over year comparisons… [and] continue to pursue our real estate development efforts… [with] delays in the approval process” .
Prior quarters set the backdrop: “Fueled by an 18% increase in table games revenues… best ever first quarter [Food & Beverage] results… encouraged by… ADW source market fees” ; “Table games… increased by 26.8%… strong start to our live racing season… progress in our catering and events growth initiatives” .

Q&A Highlights

No earnings call transcript was available in our document catalog for Q3 2017; no Q&A disclosures were provided in filings or press releases .

Estimates Context

Wall Street consensus (S&P Global/Capital IQ) for Q3 2017 EPS and Revenue was unavailable due to access limitations; therefore, no direct comparison to consensus is provided. Values retrieved from S&P Global were unavailable due to request limit on the day.
Given the absence of consensus figures, investors should focus on the sequential acceleration in net revenues, EPS progression, and Adjusted EBITDA margin expansion to gauge underlying trajectory .

Key Takeaways for Investors

Core operations delivered consistent growth across 2017 with Q3 net revenues up 6.2% YoY and Adjusted EBITDA up 33.2%; margin expansion to 12.4% underscores improved operating leverage .
Table games remain the primary growth engine; sustained increases since Q1 suggest durable demand supported by marketing and macro tailwinds .
ADW source market fees provide a recurring tailwind to pari-mutuel revenue, helping offset live racing calendar variability and supporting year-round wagering .
Food & Beverage is sensitive to racing schedules but catering/events diversification mitigates seasonality; monitor growth in non-racing events as margin-accretive drivers .
Management’s caution on moderating growth rates due to tougher comps and ongoing real estate approval delays tempers near-term expectations; the development pipeline remains a medium-term optionality .
Near-term trading: positive print on revenue/EPS/Adjusted EBITDA with margin expansion is supportive; lack of quantified guidance and consensus visibility may cap upside until development milestones or event-driven catalysts materialize .
Medium-term thesis: continued table games growth, ADW fee tailwinds, and event/catering expansion alongside eventual real estate progress could compound cash generation; watch regulatory and competitive dynamics outlined in risk disclosures .

Appendix: Additional Quarterly Summaries

Q2 2017 highlights: Net revenues $15,846,475 (+14.1% YoY); Net income $716,573; Diluted EPS $0.16; Adjusted EBITDA $1,768,433; table games +26.8% YoY; ADW fees $284,000; four additional racing days YoY .
Q1 2017 highlights: Net revenues $11,443,071 (+10.1% YoY); Net income $512,997; Diluted EPS $0.12; EBITDA margin 13.2%; ADW fees $216,000; best-ever first-quarter Food & Beverage results .

Canterbury Park Holding Corp (CPHC)·Q3 2017 Earnings Summary