Exhibit 99.1
Canterbury Park Holding Corporation Reports Financial Results for the Second
Quarter of 2006
SHAKOPEE, Minn.--(BUSINESS WIRE)--Aug. 11, 2006--Canterbury Park Holding
Corporation (AMEX:ECP) today announced results for the second quarter and six
months ended June 30, 2006.
The Company earned net income of $345,358 on revenues of $14,912,645 for
the three months ended June 30, 2006, compared to net income of $454,149 on
revenues of $14,906,919 for the same period in 2005. Diluted earnings per share
for the second quarter of 2006 were $.08 compared to $.11 for the second quarter
of 2005. Further results for the first six months of 2006 are presented in the
accompanying table.
Revenues for the second quarter of $14.9 million increased less than 1%
when compared to revenues in the second quarter ended June 30, 2005. This slight
increase is primarily due to an increase in Concessions revenues of 2.3%, offset
by a decrease in Card Club revenues of 1%, and virtually unchanged Pari-mutuel
revenues. Operating expenses however increased approximately $375,000 or 2.7% in
the three months ended June 30, 2006 compared to the second quarter last year.
The increase was primarily attributable to the following factors: an increase in
salaries and benefits due to the $1 per hour increase to the minimum wage
mandated by the State of Minnesota in August 2005, and the implementation of
SFAS 123R accounting for stock compensation expense; and an increase in purse
expense from simulcast wagering.
"The flat revenues for the quarter were below our expectations," stated
Randy Sampson, Canterbury Park's President, "and we are particularly
disappointed to see a slight decrease in Card Club revenues compared to the
second quarter of 2005. This decline was primarily due to increased competition
for poker from Native American casinos in Minnesota, bar tournaments and the
Internet. To address this decline, we are increasing our promotions, tournaments
and player reward program to make Canterbury Park the most attractive
alternative when customers in our market want to play cards. On the Pari-mutuel
side, we were encouraged that the slight decrease in on-track live racing
handle, due primarily to weather cancellations and delays, was offset by a
slight increase in on-track simulcast handle and a significant increase in
out-of-state handle on our live product. Although our weather problems have
continued in July with excessive heat, we are optimistic that the live meet,
which ends on Labor Day, will finish with an increase in total wagering handle."
In May, the 2006 session of the Minnesota Legislature adjourned without
taking action on the Company's proposed "Racino" legislation, which would have
authorized electronic gaming devices to be operated by the Minnesota Lottery at
the Racetrack. "We are disappointed with the results of the 2006 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 next biannual session begins in January 2007."
In recognition of the Company's sound financial position, on June 1, 2006
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 14, 2006.
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 live race meet began on May 6th and ends September 4, 2006. 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, with 34
poker tables, and 16 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 2006, 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, 2006 June 30, 2005 June 30, 2006 June 30, 2005
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Operating
Revenues $14,912,645 $14,906,919 $27,067,412 $26,629,474
Operating
Expenses $14,375,025 $14,000,302 $24,543,729 $23,795,677
Income from
Operations $537,620 $906,617 $2,523,683 $2,833,797
Non-Operating
Income $66,247 $24,830 $119,331 $42,198
Income Tax
Expense ($258,509) ($477,298) ($1,135,009) ($1,341,418)
Net Income $345,358 $454,149 $1,508,005 $1,534,577
Basic Net
Income Per
Common Share $0.08 $0.12 $0.38 $0.40
Diluted Net
Income Per
Common Share $0.08 $0.11 $0.33 $0.37
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CONTACT: Canterbury Park Holding Corporation
Randy Sampson, 952-445-7223