v3.25.4
Note 10 - Operating Segments
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

10.  OPERATING SEGMENTS

 

The Company's chief operating decision maker is its Chief Executive Officer and President, Randall D. Sampson. The Company has four reportable operating segments: horse racing, Casino, food and beverage, and development. The horse racing segment primarily represents simulcast and live horse racing operations. The Casino segment represents operations of Canterbury Park’s Casino, the food and beverage segment represents food and beverage operations provided during simulcast and live racing, in the Casino, and during special events, and the development segment represents our real estate development operations. The Company’s reportable operating segments are strategic business units that offer different products and services. They are managed separately because the segments differ in the nature of the products and services provided as well as process to produce those products and services. The Minnesota Racing Commission regulates the horse racing and Casino segments.

 

Depreciation, interest expense, and income taxes are allocated to the segments but no allocation is made to food and beverage for shared facilities. However, the food and beverage segment pays approximately 25% of gross revenues earned on special event days to the horse racing segment for use of the facilities.  

 

The following tables represent a disaggregation of revenues from contracts with customers along with the Company’s operating segments (in 000’s):

 

  

Year Ended December 31, 2025

 
  

Horse Racing

  

Casino

  

Food and Beverage

  

Development

  

Total

 

Net revenues from external customers

 $13,545  $37,087  $8,936  $  $59,568 

Intersegment revenues

  329      1,245      1,574 

Net interest income

  596         1,371   1,967 

Depreciation

  3,563   301   134      3,998 

Segment (loss) income before income taxes

  (3,319)  4,863   1,745   (4,103)  (814)

Segment tax (benefit) expense

  (1,161)  1,702   610   (1,436)  (285)

 

  

At December 31, 2025

 

Segment assets

 $106,526  $740  $38,129  $35,949  $181,344 

 

  

Year Ended December 31, 2024

 
  

Horse Racing

  

Casino

  

Food and Beverage

  

Development

  

Total

 

Net revenues from external customers

 $13,967  $38,775  $8,820  $  $61,562 

Intersegment revenues

  281      1,325      1,606 

Net interest income

  1,014         1,058   2,072 

Depreciation

  3,157   301   163      3,621 

Segment (loss) income before income taxes

  (1,838)  5,855   1,891   (2,871)  3,037 

Segment tax (benefit) expense

  (559)  1,781   575   (873)  924 

 

  

At December 31, 2024

 

Segment assets

 $99,810  $1,041  $35,679  $39,088  $175,618 

 

The following are reconciliations of reportable segment revenues, income before income taxes, and assets, to the Company’s consolidated totals for the years ended December 31, 2025 and 2024 (in 000’s):

 

  

Year Ended December 31,

 
  

2025

  

2024

 

Revenues

        

Total net revenue for reportable segments

 $61,142  $63,168 

Elimination of intersegment revenues

  (1,574)  (1,606)

Total consolidated net revenues

 $59,568  $61,562 

 

Income (loss) before income taxes

        

Total segment income before income taxes

 $1,710  $5,661 

Elimination of intersegment loss before income taxes

  (2,524)  (2,624)

Total consolidated income before income taxes

 $(814) $3,037 

 

  

December 31,

  

December 31,

 
  

2025

  

2024

 

Assets

        

Total assets for reportable segments

 $181,344  $175,618 

Elimination of intercompany balances

  (68,763)  (65,695)

Total consolidated assets

 $112,581  $109,923