Note 5 - Operating Segments

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

5.    OPERATING SEGMENTS

The Company has four reportable operating segments: horse racing, Card Casino, food and beverage, and development. The horse racing segment primarily represents simulcast and live horse racing operations. The Card Casino segment represents operations of Canterbury Park’s Card Casino. The food and beverage segment represents food and beverage operations provided during simulcast and live racing, in the Card 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 process to produce those products and services. The Minnesota Racing Commission regulates the horse racing and Card Casino segments.

Depreciation, interest, and income taxes 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 live racing and special event days to the horse racing segment for use of the facilities. Starting in 2020, the food and beverage segment has not paid a commission to the horse racing segment subsequent to the Company's first temporary shutdown of operations starting March 16, 2020. 

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

	Three Months Ended March 31, 2022
	Horse Racing			Card Casino		Food and Beverage		Development			Total
Net revenues from external customers	$	2,112		$	10,360	$	1,166	$	—		$	13,638
Intersegment revenues		64			—		244		—			308
Net interest income		1			—		—		192			193
Depreciation		621			75		50		—			746
Segment income (loss) before income taxes		(14	)		2,447		171		(119	)		2,485
Segment tax expense (benefit)		(31	)		624		43		(30	)		606

	March 31, 2022
Segment Assets	$	55,401	$	2,651	$	27,359	$	26,951	$	112,362

	Three Months Ended March 31, 2021
	Horse Racing			Card Casino		Food and Beverage			Development			Total
Net revenues from external customers	$	1,972		$	6,864	$	390		$	—		$	9,226
Intersegment revenues		1			—		95			—			96
Net interest income		2			—		—			167			169
Depreciation		564			75		51			—			690
Segment income (loss) before income taxes		(430	)		1,135		(203	)		(527	)		(25	)
Segment tax expense (benefit)		125			356		(64	)		(165	)		252

	December 31, 2021
Segment Assets	$	50,647	$	2,726	$	27,091	$	26,183	$	106,647

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

	Three Months Ended March 31,
	2022			2021
Revenues
Total net revenue for reportable segments	$	13,946		$	9,322
Elimination of intersegment revenues		(308	)		(96	)
Total consolidated net revenues	$	13,638		$	9,226

Income before income taxes
Total segment income (loss) before income taxes	$	2,485		$	(25	)
Elimination of intersegment (income) loss before income taxes		(105	)		829
Total consolidated income before income taxes	$	2,380		$	804

	March 31,			December 31,
	2022			2021
Assets
Total assets for reportable segments	$	112,362		$	106,647
Elimination of intercompany balances		(26,583	)		(23,585	)
Total consolidated assets	$	85,779		$	83,062