Note 5 - Operating Segments

6 Months Ended

Jun. 30, 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):

	Six Months Ended June 30, 2022
	Horse Racing			Card Casino		Food and Beverage		Development			Total
Net revenues from external customers	$	7,565		$	20,355	$	3,492	$	—		$	31,412
Intersegment revenues		86			—		494		—			580
Net interest income		9			—		—		389			398
Depreciation		1,313			75		100		—			1,488
Segment income (loss) before income taxes		(124	)		5,125		811		(502	)		5,310
Segment tax expense (benefit)		(176	)		1,320		209		(129	)		1,224

	June 30, 2022
Segment Assets	$	69,448	$	2,576	$	28,435	$	26,020	$	126,479

	Six Months Ended June 30, 2021
	Horse Racing			Card Casino		Food and Beverage		Development			Total
Net revenues from external customers	$	6,622		$	16,755	$	1,720	$	—		$	25,097
Intersegment revenues		1			—		286		—			287
Net interest income		1			—		—		343			344
Depreciation		1,207			75		102		—			1,384
Segment income (loss) before income taxes		(686	)		3,948		49		(775	)		2,536
Segment tax expense (benefit)		61			1,162		15		(228	)		1,010

	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):

	Six Months Ended June 30,
	2022			2021
Revenues
Total net revenue for reportable segments	$	31,992		$	25,384
Elimination of intersegment revenues		(580	)		(287	)
Total consolidated net revenues	$	31,412		$	25,097

Income before income taxes
Total segment income (loss) before income taxes	$	5,310		$	2,536
Elimination of intersegment (income) loss before income taxes		(557	)		894
Total consolidated income before income taxes	$	4,753		$	3,430

	June 30,			December 31,
	2022			2021
Assets
Total assets for reportable segments	$	126,479		$	106,647
Elimination of intercompany balances		(30,034	)		(23,585	)
Total consolidated assets	$	96,445		$	83,062