Operating Segments

9 Months Ended

Sep. 30, 2013

Operating Segments [Abstract]

Operating Segments

5.   OPERATING SEGMENTS

The Company hasthree reportable operating segments:  horse racing, Card Casino, and concessions.  The horse racing segment primarily represents simulcast and live horse racing operations and the operation of an RV park.  The Card Casino segment represents operations of Canterbury Park’s Card Casino, and the concessions segment represents food and beverage operations provided during simulcast and live racing, in the Card Casino, and during special events.  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 processes to produce those products and services.  The Minnesota Racing Commission regulates the horse racing and Card Casino segments.

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies in the 2012 Annual Report on Form 10-K.

Depreciation, interest expense and income taxes are allocated to the segments but no allocation is made to concessions for shared facilities.  However, the concessions 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. 

The following tables provide information about the Company’s operating segments (in 000’s):

	Nine Months Ended September 30, 2013
	Horse Racing		Card Casino		Concessions		Total
Net revenues from external customers	$	12,166	$	18,942	$	5,592	$	36,700
Intersegment revenues		585		-		1,143		1,728
Net interest income		2		-		-		2
Depreciation		860		405		96		1,361
Segment (loss) income before income taxes		(1,757)		3,517		622		2,382
	At September 30, 2013
Segment Assets	$	34,950	$	1,775	$	13,901	$	50,626

	Nine Months Ended September 30, 2012
	Horse Racing		Card Casino		Concessions		Total
Net revenues from external customers	$	11,276	$	19,006	$	5,167	$	35,449
Intersegment revenues		459		-		1,142		1,601
Net interest income		5		-		-		5
Depreciation		793		426		100		1,319
Segment (loss) income before income taxes		(1,855)		3,514		668		2,327
	At December 31, 2012
Segment Assets	$	31,950	$	2,337	$	12,538	$	46,825

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

	Nine Months Ended September 30,
	2013		2012
Revenues
Total net revenue for reportable segments	$	38,428	$	37,050
Elimination of intersegment revenues		(1,728)		(1,601)
Total consolidated net revenues	$	36,700	$	35,449

Income before income taxes
Total segment income before income taxes	$	2,382	$	2,327
Elimination of intersegment income before income taxes		(1,267)		(1,224)
Total consolidated income before income taxes	$	1,115	$	1,103

	September 30,		December 31,
	2013		2012
Assets
Total assets for reportable segments	$	50,626	$	46,825
Elimination of intercompany receivables		(13,294)		(11,925)
Total consolidated assets	$	37,332	$	34,900