Canterbury
Park Reports Q3 Results
Canterbury Park Holding Corporation
today announced financial results for the third
quarter and nine months ended September 30,
2005.
The
Company earned net income of $688,372 on revenues
of $16,485,467 for the three months ended September
30, 2005, compared to net income of $1,064,204
on revenues of $17,279,804 for the same period
in 2004. Diluted earnings per share for the
third quarter of 2005 were $.16 compared to
$.26 for the third quarter of 2004. Further
results for the first nine months of 2005 are
presented in the accompanying table.
Revenues
for the third quarter decreased approximately
$794,000, a 5% decrease compared to the third
quarter ended September 30, 2004. The decrease
in third quarter revenues is primarily due to
a 9.4% decrease in pari-mutuel revenues when
compared to the same quarter in 2004, reflecting
a significant increase in competition from Internet
pari-mutuel wagering. In addition, third quarter
Card Club revenues decreased approximately 3%
when compared to the same period in 2004 reflecting
increased poker revenues offset by decreasing
revenues in the casino games room due to increased
competition from local Native American casinos.
Operating expenses decreased slightly in the
three months ended September 30, 2005 compared
to the third quarter last year. The decrease
in operating expense is primarily attributable
to a decrease in statutory purses and Minnesota
Breeders Fund expenses, related to the reduction
in pari-mutuel revenues, which were partially
offset by an increase in depreciation expense
caused by recent major building and backside
improvements.
Commenting
on results, Randy Sampson, Canterbury Park's
President stated, "The decline in pari-mutuel
revenues was not unexpected as this reflects
the experience of racetracks around the country.
Internet wagering on horse racing continues
to grow at a rapid pace and has had a negative
impact on our simulcast operations. In addition,
the decrease in Card Club revenues is disappointing
to us and demonstrates the effects of expanded
gaming offerings at Native American casinos
in Minnesota. Ten of the eleven tribes now offer
unbanked card games in direct competition with
our Card Club."
"As
we look to the future, we are confident the
Company has exciting growth opportunities,"
continued Mr. Sampson. "We will continue
to seek legislative approval for expanded gaming
options at the Racetrack. In addition, we are
starting to plan for the potential development
of our 380-acre site in Shakopee. We believe
this property, located in one of the fastest
growing areas in the region, has the potential
to be developed into a unique entertainment
complex over the next five to ten years, and
provides additional opportunities to grow our
revenues and enhance shareholder value."
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