Note 5 - Operating Segments

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

5.    OPERATING SEGMENTS

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 process to produce those products and services. The Minnesota Racing Commission regulates the horse racing and 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 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 Nine Months Ended September 30, 2024
	Horse Racing			Casino		Food and Beverage		Development			Total
Net revenues from external customers	$	12,093		$	29,780	$	7,712	$	—		$	49,585
Intersegment revenues		238			—		1,044		—			1,282
Net interest income		809			—		—		784			1,593
Depreciation		2,328			225		123		—			2,676
Segment income (loss) before income taxes		(1,962	)		5,636		2,086		(1,038	)		4,722
Segment tax expense (benefit)		(567	)		1,628		603		(300	)		1,364

	September 30, 2024
Segment Assets	$	104,133	$	1,899	$	35,912	$	39,381	$	181,325

	For the Nine Months Ended September 30, 2023
	Horse Racing			Casino		Food and Beverage		Development		Total
Net revenues from external customers	$	11,186		$	30,322	$	7,402	$	—	$	48,910
Intersegment revenues		194			—		893		—		1,087
Net interest income		754			—		—		679		1,433
Depreciation		1,954			225		129		—		2,308
Segment income (loss) before income taxes		(3,745	)		6,940		2,137		7,576		12,908
Segment tax expense (benefit)		(1,076	)		1,994		614		2,177		3,709

	December 31, 2023
Segment Assets	$	92,970	$	2,125	$	33,175	$	34,892	$	163,162

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 Nine Months Ended September 30,
	2024			2023
Revenues
Total net revenue for reportable segments	$	50,867		$	49,997
Elimination of intersegment revenues		(1,282	)		(1,087	)
Total consolidated net revenues	$	49,585		$	48,910

Income before income taxes
Total segment income before income taxes	$	7,401		$	15,833
Elimination of intersegment income loss before income taxes		(2,679	)		(2,925	)
Total consolidated income before income taxes	$	4,722		$	12,908

	September 30,			December 31,
	2024			2023
Assets
Total assets for reportable segments	$	181,325		$	163,162
Elimination of intercompany balances		(67,098	)		(58,483	)
Total consolidated assets	$	114,227		$	104,679