Canterbury Park Holding Corporation Reports Financial Results for the Third Quarter and First Nine Months of 2010
November 12 2010 - 4:00PM
Business Wire
Canterbury Park Holding Corporation (NASDAQ:CPHC) today
announced results for the third quarter and nine months ended
September 30, 2010.
Canterbury Park Holding Corporation (the “Company”) reported a
net loss of $132,875 on revenues of $12,011,366 for the three
months ended September 30, 2010, compared to net income of $16,395
on revenues of $12,159,221 for the same period in 2009. For the
nine months ended September 30, 2010, the net loss was $1,153,485
on revenues of $31,253,858 compared to net income of $160,070 on
revenues of $31,545,334 for the same nine-month period in 2009. The
loss for the nine 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 third quarter was $.03 compared
to diluted earnings per share of $.00 for the third quarter of
2009, and the diluted loss per share for the nine months ended
September 30, 2010 was $.29 compared to diluted earnings per share
of $.04 for the same nine month period in 2009.
The $12.0 million in net revenues earned in the 2010 third
quarter represents a 1.2% decrease over net revenues in the same
period in 2009. This decrease reflects a 10.1% increase in Card
Casino revenues, offset by a 10.0% decrease in pari-mutuel
revenues. In addition, operating expenses increased $39,384, or
0.3%, in the three months ended September 30, 2010 compared to the
2009 third quarter. Further results for the third quarter and first
nine 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 November 15, 2010 with the Securities and Exchange
Commission.
Randy Sampson, Canterbury Park’s President and Chief Executive
Officer, commented: “We are encouraged by the increase in revenue
from our Card Casino due largely to the extensive remodeling
project we completed in April. It is especially encouraging to see
this revenue increase in light of the overall decline in national
gaming and entertainment business caused by a decrease in
discretionary spending stemming from the Great Recession. The
increase in Card Casino revenues was, however, offset by a decline
in revenues from horse racing due to poor economic conditions and
the continuing growth in illegal Internet wagering on horse races
by Minnesota residents. While we believe our major renovation of
the Card Casino was a positive step as demonstrated by the increase
in our revenues, this action required the disposal and write-off of
card room assets that were not fully depreciated and which had a
remaining net book value of $909,540. The result is a significant
negative impact on our nine month results.”
“We continue to remain optimistic about the future, particularly
the opportunity to grow our table games revenue in our new Card
Casino,” Sampson added. “When paired with our strong balance sheet,
we believe that we are well-positioned to weather the economic
downturn as we continue to search for ways to enhance revenues and
reduce expenses. In particular, we believe the results of the
November 2010 elections will provide an improved political
environment for gaining approval of our Racino proposal. While
polls have shown a large majority of Minnesotan’s support our
proposal to add video gaming at Canterbury Park, our legislative
efforts have been stymied in the past. However, the major shift in
the make-up of the Minnesota Legislature resulting from the
November 2 elections provides us with a great opportunity. As a
result, we intend to vigorously advocate for Racino legislation
when the Minnesota Legislature begins its next session in January
2011.”
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.
CANTERBURY PARK
HOLDING CORPORATION’S
SUMMARY OF
OPERATING RESULTS
(UNAUDITED)
Three Months Three Months Nine Months Nine Months Ended
Ended Ended Ended Sept. 30, 2010 Sept. 30, 2009
Sept. 30, 2010 Sept. 30, 2009 Operating
Revenues, (net) $12,011,366 $12,159,221 $31,253,858 $31,545,334
Operating Expenses $12,159,378 $12,119,994 $32,727,104
$31,222,337 Non-Operating Income, (net) $8,437 $11,968
$12,861 $19,773 (Loss) Income before Income Tax Benefit
(Expense) ($139,575 ) $51,195 ($1,460,385 ) $342,770 Income
Tax Benefit (Expense) $6,700 ($34,800 ) $306,900 ($182,700 )
Net (Loss) Income ($132,875 ) $16,395 ($1,153,485 ) $160,070
Basic Net (Loss) Income Per Common Share ($0.03 ) $0.00 ($0.29 )
$0.04 Diluted Net (Loss) Income Per Common Share ($0.03 )
$0.00 ($0.29 ) $0.04
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