Canterbury Park Holding Corporation (NASDAQ:CPHC) today
announced results for the second quarter and six months ended June
30, 2011.
Canterbury Park Holding Corporation (the “Company”) reported a
net loss of $348,056 on revenues of $11,665,520 for the three
months ended June 30, 2011, compared to a net loss of $380,969 on
revenues of $11,453,879 for the same period in 2010. For the six
months ended June 30, 2011, the net loss was $137,501 on revenues
of $19,973,330 compared to a net loss of $1,020,610 on revenues of
$19,242,492 for the same period in 2010. Diluted loss per share for
the second quarter of 2011 was $.03 compared to diluted loss per
share of $.09 for the second quarter of 2010. Diluted loss per
share for the six month period ended June 30, 2011 was $.09
compared to a diluted loss per share of $.25 for the six month
period ended June 30, 2010.
Net revenues in the second quarter and six months ended June 30,
2011 were $11.67 million and $19.97 million, respectively, which
represented an increase of 1.8% and 3.8%, respectively, from net
revenues in the comparable periods in 2010. This overall increase
reflects an increase of 2.4% and 7.4% in Card Casino revenues in
the 2011 second quarter and six month periods, respectively, that
were somewhat offset by a 2.2% and 4.2% decrease in pari-mutuel
revenues in the respective 2011 second quarter and six month
periods. Operating expenses decreased in both the second quarter
and six month periods, decreasing $298,400, or 2.5%, and
$1,205,865, or 5.9%, as compared to respective periods in 2010. We
recorded tax expense of $323,234 against our pre-tax loss of
$24,822 in the second quarter, and the tax expense of $751,000 we
booked for the first six months more than offset our pre-tax income
of $613,499 in the first half of 2011 due to a revision to our
expected income for 2011 and the significant lobbying expenses we
incur in our efforts to gain legislative approval for a Racino at
Canterbury Park are not deductible for tax purposes. Further
results for the second quarter and first six months of 2011 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 15, 2011
with the Securities and Exchange Commission.
Randy Sampson, Canterbury Park’s President and CEO commented:
“Given the many challenges our business faces, we are pleased that
we achieved revenue growth and reduced our operating expenses in
the second quarter and six months ended June 30, 2011. This enabled
us to report improved pre-tax results as compared to the same
periods in 2010.”
Mr. Sampson continued: “Adding to our challenges this year, as
previously disclosed, we were forced to suspend our operations for
20 days because the Minnesota Racing Commission, the agency that
regulates our gaming operations, was closed during the shutdown of
Minnesota’s State government beginning July 1. Because the shutdown
occurred during the heart of our racing season, we estimate that
Canterbury Park lost as much as $1 million in revenue each week.
While we won’t know the full impact until the racing season is
over, we expect the suspension of our operations for 20 days in
July will have a material, adverse effect on the Company’s results
for the quarter ending September 30, 2011, as well as on its fiscal
year results as compared to the same periods in 2010.”
Sampson added: “While we have encountered many challenges this
year, we remain optimistic about the future. Thanks to our loyal
employees, horsemen, and others who stuck with us during the
shutdown, our live meet has resumed with strong fan support. With
race days re-scheduled to various dates through September 12, we
look forward to finishing the 2011 meet on a high note. We also
continue to be encouraged by strong business in our remodeled Card
Casino, and are particularly enthusiastic about opportunities to
grow our table games revenues. Finally, we are disappointed to
report net losses for the second quarter and six month periods.
However, bolstered by our strong balance sheet and positive cash
flow, we have the resources to sustain us as we endeavor to grow
our revenues and return to profitability.”
Sampson concluded: “Due to the challenges faced by Canterbury
Park within our current business model, we will continue to
advocate for Racino legislation that would authorize electronic
gaming devices at the Racetrack. Studies have shown that a Racino
would generate much needed revenues for the State of Minnesota,
while creating a significant number of jobs in the racing,
hospitality, and equine industries. A Racino would also enable
Minnesota’s horse racing industry, which already employs several
thousand individuals, to remain competitive and viable. Although
the Legislature adjourned without taking action, we believe our
efforts this year have increased support for a Racino in Minnesota,
both among the public and lawmakers in St. Paul, and we will
continue to vigorously pursue the Racino legislation at the
earliest possible time.”
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 2011
live race meet began on May 20th and ends September 12th. 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.
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, 2011 June 30, 2010 June 30,
2011 June 30, 2010 Operating Revenues, (net)
$11,665,520 $11,453,879 $19,973,330 $19,242,492 Operating
Expenses $11,691,019 $11,989,419 $19,361,861 $20,567,726
Non-Operating Income, (net) $667 $1,171 $2,030 $4,424 (Loss)
Income before Income Tax Benefit (Expense)
($24,822)
($534,369)
$613,499
($1,320,810)
Income Tax (Expense) Benefit ($323,234) $153,400 ($751,000)
$300,200 Net Loss ($348,056) ($380,969) ($137,501)
($1,020,610) Basic Net Loss Per Common Share ($0.03) ($0.09)
($0.09) ($0.25) Diluted Net Loss Per Common Share
($0.03)
($0.09)
($0.09)
($0.25)
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