Canterbury Park Holding Corporation (NASDAQ:CPHC) today
announced results for the second quarter and six months ended June
30, 2010.
Canterbury Park Holding Corporation (the “Company”) reported a
net loss of $380,969 on revenues of $11,453,879 for the three
months ended June 30, 2010, compared to a net loss of $173,099 on
revenues of $11,174,591 for the same period in 2009. For the six
months ended June 30, 2010, the net loss was $1,020,610 on revenues
of $19,242,492 compared to net income of $143,675 on revenues of
$19,386,113 for the same six month period in 2009. The loss for the
six month period was largely attributable to a one-time, first
quarter charge of $909,540 related to the disposal of assets in
connection with the renovation of our Card Casino. The diluted loss
per share for the 2010 second quarter was $.09 compared to diluted
loss per share of $.04 for the second quarter of 2009, and the
diluted loss per share for the six months ended June 30, 2010 was
$.25 compared to diluted earnings per share of $.04 for the same
six month period in 2009.
The $11.5 million in net revenues earned in the 2010 second
quarter represents a 2.5% increase over net revenues in the same
period in 2009. This increase reflects a 17.2% increase in Card
Casino revenues, offset by a 10.9% decrease in pari-mutuel
revenues. In addition, operating expenses increased $520,111, or
4.5%, in the three months ended June 30, 2010 compared to the 2009
second quarter. The increase in operating expenses is due to
several factors including an increase in Card Casino labor costs
needed to support increased Card Casino revenue, an increase in the
Federal minimum wage that became effective after June 30, 2009, and
increased expenditures in support of legislation authorizing
electronic gaming devices at Canterbury Park. Further results for
the second quarter and first six months of 2010 are presented in
the accompanying table, and additional information regarding the
Company’s financial results will be provided in the Company’s Form
10-Q Report that will be filed on August 16, 2010 with the
Securities and Exchange Commission.
Randy Sampson, Canterbury Park’s President and Chief Executive
Officer, commented: “We are very pleased with the initial response
to our new Card Casino which opened on April 14, 2010. Its exciting
and inviting atmosphere enabled us to achieve increased revenues in
the second quarter despite the fact that the prolonged economic
downturn has continued to diminish discretionary spending on
entertainment. In addition, direct competition from many sources,
including unlawful Internet poker and simulcast wagering, continues
to have an adverse effect on our revenues.”
In May, the Minnesota Legislature adjourned without taking final
action on proposed legislation, usually referred to as the Racino
proposal, which would have authorized electronic gaming devices at
Canterbury Park. Mr. Sampson stated: “We are disappointed that the
Minnesota Legislature did not act on the Racino proposal in 2010. A
Racino would bring new jobs and generate significant revenues for
the State of Minnesota. Also, public opinion surveys consistently
show that Minnesotans overwhelmingly support the Racino proposal.
For these reasons, we intend to vigorously support Racino
legislation when the Minnesota Legislature begins its next session
in January 2011.”
“In addition, we continue to remain optimistic about the future,
particularly the opportunity to grow our table games revenue in our
new Card Casino,” Sampson added. “Although the racing season got
off to a slower start than we had hoped, primarily due to the
rainiest June in 10 years, we have recently seen increases in our
attendance. The increased attendance is encouraging and bodes well
for the rest of our 25th Anniversary live race meet. When paired
with the atmosphere that our new Card Casino provides, we believe
that we will continue to solidify our position as one of
Minnesota’s premier entertainment destinations.”
About Canterbury Park:Canterbury Park hosts pari-mutuel
wagering and card games at its facility in Shakopee, Minnesota.
Pari-mutuel wagering is offered on live thoroughbred and quarter
horse races each summer, and simulcast wagering on races held at
out-of-state racetracks is available year-round. Canterbury Park’s
Card Casino hosts a variety of poker and casino style table games
24 hours a day. Canterbury Park also derives revenues from related
services and activities, such as concessions, parking, programs,
and from other entertainment events held at the facility. To learn
more about Canterbury Park, visit our website at
www.canterburypark.com.
Cautionary Statement:This release contains or may contain
forward-looking statements based on management’s beliefs and
assumptions. Such statements are subject to various risks and
uncertainties that could cause results to vary materially. Please
refer to the Company’s SEC filings for a discussion of such
factors.
NOTE: Financial summary on following page.
CANTERBURY PARK HOLDING
CORPORATION’S
SUMMARY OF OPERATING RESULTS
(UNAUDITED)
Three Months Three Months Six Months Six Months Ended Ended
Ended Ended June 30, 2010 June 30, 2009
June 30, 2010 June 30, 2009 Operating
Revenues, (net) $11,453,879 $11,174,591 $19,242,492 $19,386,113
Operating Expenses $11,989,419 $11,469,308 $20,567,726
$19,102,343 Non-Operating Income, (net) $1,171 $7,518 $4,424
$7,805
(Loss) Income before Income Tax
Benefit (Expense)
($534,369
)
($287,199
)
($1,320,810
)
$291,575
Income Tax Benefit (Expense) $153,400 $114,100 $300,200
($147,900 ) Net (Loss) Income ($380,969 ) ($173,099 )
($1,020,610 ) $143,675
Basic Net (Loss) Income Per Common
Share
($0.09
)
($0.04
)
($0.25
)
$0.04
Diluted Net (Loss) Income Per Common Share
($0.09
)
($0.04
)
($0.25
)
$0.04
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