Exhibit 99.1
Canterbury Park Holding Corporation Reports Financial Results for the Second
Quarter of 2005
SHAKOPEE, Minn.--(BUSINESS WIRE)--Aug. 12, 2005--Canterbury Park
Holding Corporation (AMEX:ECP) today announced results for the second
quarter and six months ended June 30, 2005.
The Company earned net income of $454,149 on revenues of
$14,906,919 for the three months ended June 30, 2005, compared to net
income of $580,860 on revenues of $14,422,649 for the same period in
2004. Diluted earnings per share for the second quarter of 2005 were
$.11 compared to $.14 for the second quarter of 2004. Further results
for the first six months of 2005 are presented in the accompanying
table.
Revenues for the second quarter increased approximately $484,000,
a 3.4% increase compared to revenues in the quarter ended June 30,
2004. The increase in second quarter revenues is primarily due to an
increase in Card Club revenues to $7.3 million, a 7.1% increase above
Card Club revenues in the same quarter in 2004 and, reflects continued
strong interest in the Card Club's poker games. Offsetting the Card
Club revenue increase, second quarter pari-mutuel revenues declined to
$4.9 million, 5.2% below the same period in 2004. The decrease was
caused by a reduction in simulcast wagering, which is down primarily
due to the impact of Internet wagering on simulcast handle at
Canterbury Park. The decrease in simulcast wagering was, however,
partially offset by an increase in on-track wagering on live racing
due to two additional live racing days in the 2005 second quarter
compared to the second quarter of 2004. Operating expenses increased
approximately $606,000 or 4.5% in the three months ended June 30, 2005
compared to the second quarter last year. The increase was primarily
attributable to the following factors: an increase in salaries and
benefits associated with the increased level of operations in the Card
Club and concessions; the cost of sales related to concessions due to
higher sales and an increase in other operating expenses due to
professional fees related to the Company's legislative efforts to
obtain additional gaming authorizations.
"We are pleased to see the continued growth in Card Club revenues,
which set a new record in the second quarter of 2005," stated Randy
Sampson, Canterbury Park's President. "However, while poker revenues
continue to grow and set records, our Casino Games revenues declined
slightly partially due to the effects of expanded offerings of
unbanked card games at Native American casinos in Minnesota. The
decline in pari-mutuel revenue is disappointing to us, but this
reflects the experience of racetracks around the country. In
particular, we believe that the availability of Internet wagering on
horse racing is having a significant a negative impact on our
simulcast operations. Internet wagering, which is illegal in
Minnesota, offers a level of convenience that Canterbury Park cannot
offer, making it difficult to compete with. Nevertheless, we are
continuing to look for ways to make Canterbury Park the most
attractive alternative when our customers want to wager on
horseracing."
In July, the special session of the Minnesota Legislature
adjourned without taking final action on the Company's proposed
"Racino" legislation, which would authorize electronic gaming devices
to be operated by the Minnesota Lottery at the Racetrack. "We are
disappointed in the results of the 2005 legislative session," stated
Mr. Sampson. "However, as public opinion surveys consistently show
that Minnesotans overwhelmingly support the Racino proposal, we intend
to renew our efforts to gain approval of our Racino bill in the
Minnesota Legislature when session reconvenes in March 2006."
In recognition of the Company's sound financial position, on June
2, 2005 the Canterbury Park Board of Directors declared a special cash
dividend of $.25 per share of common stock, which was paid to
shareholders on July 8, 2005.
About Canterbury Park:
Canterbury Park Holding Corporation owns and operates Canterbury
Park Racetrack, Minnesota's only pari-mutuel horse racing facility.
The Company's 69-day 2005 live race meet began on May 7th and ends
September 5, 2005. In addition, the Company is authorized under
Minnesota law to host "unbanked" card games. Canterbury Park's Card
Club operates 24 hours a day, seven days a week, and receives
collection revenues from 31 poker tables, and 19 tables offering a
variety of card games. The Company also conducts year-round wagering
of 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: From time to time, in reports filed with the
Securities and Exchange Commission, in press releases, and in other
communications to shareholders or the investing public, the Company
may make forward-looking statements concerning possible or anticipated
future financial performance, business activities or plans which are
typically preceded by the words "believes," "expects," "anticipates,"
"intends" or similar expressions. Shareholders and the investing
public should understand that such forward-looking information and
statements are subject to risks and uncertainties which could cause
actual performance, activities or plans to differ significantly from
those presented in the forward-looking statements. Such risks and
uncertainties include, but are not limited to: material fluctuations
in attendance at the Racetrack, material changes in the level of
wagering by patrons, decline in interest in the unbanked card games
offered at the Card Club, competition from other venues offering
unbanked card games, legislative and regulatory changes subsequent to
2005, the impact of wagering products and technologies introduced by
competitors; increases in the percentage of revenues allocated for
purse fund payments; higher than expected increases in compensation
and employee benefit costs; a decline in the general level of interest
in gaming products as a form of entertainment; higher than expected
expense related to new marketing initiatives; and other factors
discussed from time to time in the Company's filings with the
Securities and Exchange Commission. For such forward-looking
information and statements, the Company claims the protection of the
safe harbor for forward-looking statements contained in federal
securities laws.
CANTERBURY PARK HOLDING CORPORATION'S
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SUMMARY OF OPERATING RESULTS
----------------------------
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
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Operating Revenues $14,906,919 $14,422,649 $26,629,474 $25,808,614
Operating Expenses $14,000,302 $13,394,712 $23,795,677 $22,500,449
Income from
Operations $906,617 $1,027,937 $2,833,797 $3,308,165
Non-Operating
Income $24,830 $7,151 $42,198 $16,401
Income Tax Expense ($477,298) ($454,228) ($1,341,418) ($1,483,528)
Net Income $454,149 $580,860 $1,534,577 $1,841,038
Basic Net Income
Per Common Share $0.12 $0.15 $0.40 $0.49
Diluted Net Income
Per Common Share $0.11 $0.14 $0.37 $0.44
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CONTACT: Canterbury Park Holding Corporation, Shakopee
Randy Sampson, 952-445-7223