Canterbury Park Provides Further Information Regarding Possible Suspension of Operations Due to Pending Minnesota State Gover...
June 17 2011 - 4:00PM
Business Wire
On June 14, 2011, Canterbury Park Holding Corporation
(NASDAQ:CPHC) reported that it may be forced to suspend all or
substantially all of its operations on July 1, 2011 if the current
budget impasse between Minnesota’s Governor and Legislature
continues into July and if layoff notices recently sent to
employees of the Minnesota Racing Commission (the “MRC”), which
regulates Canterbury Park’s gaming operations, remain in effect on
July 1, 2011. Today, Randy Sampson, Canterbury Park’s President and
CEO, provided additional information about steps being taken to
avoid a suspension of operations, as well as what the impact on the
Company could be if substantially all operations were suspended
beginning July 1.
“We are working with the MRC to evaluate various options that
might allow the Company to keep all or part of its gaming
operations open even if the budget impasse continues into July,”
began Mr. Sampson. “However, at this time, we can provide no
assurance that we will be able to avoid a complete suspension of
operations on July 1.”
Mr. Sampson continued: “If we were forced to suspend all horse
racing, simulcasting and Card Casino operations, the result would
be a significant, adverse impact on the Company. We would lose
gaming and concession revenues in excess of $1 million per week but
would continue to incur substantial operating expenses, including
expenses to support our backside horse population. Without any
revenues coming in, we would be forced to lay off substantially all
of our 1,000 full time and part time employees causing hardship for
them and their families. The shutdown would have a particularly
severe impact on Canterbury over the Fourth of July weekend, which
is typically the busiest weekend of the year.”
Mr. Sampson added: “Unless there is a quick end to the budget
impasse, another concern is that owners and trainers will likely
start moving their horses from Canterbury to other racetracks
within a week or two of July 1, and once they leave it is unlikely
they will return. Clearly, if the budget impasse continues beyond
early to mid-July the impact could be devastating for Canterbury
and the horse industry. We could lose the entire remainder of the
racing season.”
Mr. Sampson concluded: “Although the MRC is among the state
agencies that are slated to be closed in the event of a government
shutdown, we believe Canterbury should be permitted to operate even
if the budget impasse continues into July. Canterbury pays all of
the costs incurred to regulate our operations, which in 2010
represented roughly $1 million in total fees. We are exploring this
common sense solution with the MRC so that unnecessary harm to
Canterbury, its employees and the horse industry can be
avoided.”
About Canterbury Park:Canterbury Park Holding Corporation
owns and operates Canterbury Park Racetrack, Minnesota’s only
thoroughbred and quarter horse racing facility. The Company’s
62-day 2011 live race meet began on May 20th and ends September
5th. In addition, Canterbury Park’s Card Casino hosts “unbanked”
card games 24 hours a day, seven days a week, offering both poker
and table games. The Company also conducts year-round wagering on
simulcast horse racing and hosts a variety of other entertainment
and special events at its facility in Shakopee, Minnesota. For more
information about the Company, please visit us 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 (NASDAQ:CPHC)
Historical Stock Chart
From May 2024 to Jun 2024
Canterbury Park (NASDAQ:CPHC)
Historical Stock Chart
From Jun 2023 to Jun 2024