v3.26.1
Note 5 - Operating Segments
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

5.    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. 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 the processes to produce those products and services. The Minnesota Racing Commission regulates the horse racing and Casino segments. 

 

Depreciation and amortization, interest, income taxes, and certain other overhead expenses are allocated to the segments, but no allocation is made to the food and beverage segment 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):

 

  

For the Three Months Ended June 30, 2026

 
  

Horse Racing

  

Casino

  

Food and Beverage

  

Development

  

Total

 

Net revenues from external customers

 $3,819  $9,631  $2,718  $  $16,168 

Intersegment revenues

  50      341      391 

Net interest income

  161         381   542 

Depreciation and amortization

  931   75   13      1,019 

Segment income (loss) before income taxes

  (1,866)  1,590   776   (721)  (221)

Segment tax expense (benefit)

  (1,720)  1,657   881   (891)  (73)

 

  

For the Six Months Ended June 30, 2026

 
  

Horse Racing

  

Casino

  

Food and Beverage

  

Development

  

Total

 

Net revenues from external customers

 $6,088  $18,871  $4,718  $  $29,677 

Intersegment revenues

  243      607      850 

Net interest income

  298         756   1,054 

Depreciation and amortization

  1,876   150   42      2,068 

Segment income (loss) before income taxes

  (2,398)  2,650   1,516   (1,639)  129 

Segment tax expense (benefit)

  (1,994)  2,204   1,261   (1,363)  108 

 

  

June 30, 2026

 

Segment Assets

 $112,338  $590  $39,688  $35,281  $187,897 

 

  

For the Three Months Ended June 30, 2025

 
  

Horse Racing

  

Casino

  

Food and Beverage

  

Development

  

Total

 

Net revenues from external customers

 $3,935  $9,489  $2,242  $  $15,666 

Intersegment revenues

  55      308      363 

Net interest income

  156         323   479 

Depreciation and amortization

  877   76   33      986 

Segment income (loss) before income taxes

  (848)  1,159   322   (1,111)  (478)

Segment tax expense (benefit)

  (283)  376   98   (342)  (151)

 

  

For the Six Months Ended June 30, 2025

 
  

Horse Racing

  

Casino

  

Food and Beverage

  

Development

  

Total

 

Net revenues from external customers

 $6,129  $18,681  $3,997  $  $28,807 

Intersegment revenues

  191      575      766 

Net interest income

  304         619   923 

Depreciation and amortization

  1,693   151   74      1,918 

Segment income (loss) before income taxes

  (1,174)  1,971   720   (2,476)  (959)

Segment tax expense (benefit)

  (406)  682   249   (857)  (332)

 

  

December 31, 2025

 

Segment Assets

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

 ​

The following are reconciliations of reportable segment revenues, income before income taxes, and assets, to the Company’s consolidated totals (in 000’s):

 ​

  

For the Three Months Ended June 30,

  

For the Six Months Ended June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Revenues

                

Total net revenue for reportable segments

 $16,559  $16,029  $30,527  $29,573 

Elimination of intersegment revenues

  (391)  (363)  (850)  (766)

Total consolidated net revenues

 $16,168  $15,666  $29,677  $28,807 

 ​

Income (loss) before income taxes

                

Total segment income (loss) before income taxes

 $619  $101  $1,424  $(20)

Elimination of intersegment income before income taxes

  (840)  (579)  (1,295)  (939)

Total consolidated income (loss) before income taxes

 $(221) $(478) $129  $(959)

 ​

  

June 30,

  

December 31,

 
  

2026

  

2025

 

Assets

        

Total assets for reportable segments

 $187,897  $181,344 

Elimination of intercompany balances

  (70,950)  (68,763)

Total consolidated assets

 $116,947  $112,581 

 ​ ​