Note 10 - Operating Segments

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10.  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, 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, 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

	Year Ended December 31, 2023
	Horse Racing			Casino		Food and Beverage		Development		Total
Net revenues from external customers	$	13,198		$	39,781	$	8,458	$	—	$	61,437
Intersegment revenues		235			—		1,181		—		1,416
Net interest income		1,058			—		—		920		1,978
Depreciation		2,674			301		170		—		3,145
Segment (loss) income before income taxes		(5,142	)		9,320		2,132		8,670		14,980
Segment tax (benefit) expense		(1,516	)		2,748		629		2,556		4,417

	At 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 for the years ended December 31, 2024 and 2023 (in 000’s):

	Year Ended December 31,
	2024			2023
Revenues
Total net revenue for reportable segments	$	63,168		$	62,853
Elimination of intersegment revenues		(1,606	)		(1,416	)
Total consolidated net revenues	$	61,562		$	61,437

Income (loss) before income taxes
Total segment income before income taxes	$	5,661		$	17,946
Elimination of intersegment loss before income taxes		(2,624	)		(2,966	)
Total consolidated income before income taxes	$	3,037		$	14,980

	December 31,			December 31,
	2024			2023
Assets
Total assets for reportable segments	$	175,618		$	163,162
Elimination of intercompany balances		(65,695	)		(58,483	)
Total consolidated assets	$	109,923		$	104,679