Exhibit 99.1
Canterbury Park Holding Corporation Reports 2006 Fiscal Operating Results
SHAKOPEE, Minn.--(BUSINESS WIRE)--March 28, 2007--Canterbury Park Holding
Corporation (AMEX:ECP) today announced financial results for the fourth quarter
and year ended December 31, 2006.
The Company earned net income of $3,125,043 on revenues of $55.8 million
for the year ended December 31, 2006, compared to net income of $3,053,479 on
revenues of $54.9 million for the year ended December 31, 2005. Fully diluted
earnings per share for fiscal 2006 were $.74 compared with $.73 for fiscal 2005.
Further results for 2006 are presented in the accompanying table.
For the fourth quarter of 2006, the Company posted revenues of $12.6
million, up 4.5% from revenues of $12.0 million during the same period in 2005.
Net income was $1,092,605, or $.26 per diluted share, versus $830,530, or $.20
per diluted share in the fourth quarter of 2005.
The Company's net revenues in 2006 of $55.8 million were only slightly
greater than 2005 and the increase was the result of growth in Card Club
revenues of 1.9%, offset by a decrease of .5% in pari-mutuel revenues, and a
4.5% increase in other revenues. Operating expenses increased 2.4% to $50.7
million in 2006, primarily due to increases in purse expense, salaries and
benefits and depreciation.
"While 2006 results were below our internal goals for the year, we are
generally pleased with the financial performance given the continued growth of
illegal Internet wagering, the expansion of poker at tribal casinos, and the
Card Club's 50 table maximum capacity mandated by state law" stated Canterbury
Park's President Randy Sampson. "Despite these challenges, we were able to
produce modest growth in revenues and, combined with a variety of cost cutting
measures initiated late in 2006, post an increase in net income of 2.3% over
2005. In addition, we are particularly pleased to report the 2006 fourth quarter
was our most profitable fourth quarter ever. This strong finish was partially
due to successful promotions in the Card Club funded by our player pool."
Mr. Sampson continued: "We remain committed to gaining legislative approval
for expanded gaming options at the Racetrack. While recent election results have
made the challenge of passing favorable legislation more difficult, we will
continue to advocate at the State Capitol for a Racino at Canterbury Park, as we
believe it is the best way to provide a major boost to Minnesota's horse
industry. Finally, in 2007 we will give increased attention to potential further
development of our 380-acre site in Shakopee. Our property is located in one of
the fastest growing areas in the region, and we believe development
opportunities exist that will enable us to enhance the character of Canterbury
Park as a unique entertainment complex, grow our revenues, and enhance
shareholder value.
The Company also announced today that its 2007 Annual Meeting of
Shareholders would be held on Thursday, June 7, 2007 at 4:00 pm, at the
Racetrack in Shakopee, Minnesota. The date of record for shareholders entitled
to vote at the Annual Meeting is Friday, April 13, 2007.
About Canterbury Park:
Canterbury Park Holding Corporation owns and operates Canterbury Park
Racetrack, Minnesota's only pari-mutuel horse racing facility. The Company's
68-day 2007 live race meet begins on May 5th and ends September 3, 2007. In
addition, Canterbury Park's Card Club hosts "unbanked" card games 24 hours a
day, seven days a week, offering 34 poker tables and 16 tables of other card
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:
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, we 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. For such forward-looking statements, we claim
the protection of the safe harbor for forward-looking statements contained in
federal securities laws. Shareholders and the investing public should understand
that such forward-looking statements are subject to risks and uncertainties
which could affect our actual results, and cause actual results to differ
materially from those indicated 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 or other forms
of wagering, competition from other sports and entertainment options, costs
associated with our efforts to obtain legislative authority for additional
gaming options, increases in compensation and employee benefit costs; increases
in the percentage of revenues allocated for purse fund payments; higher than
expected expense related to new marketing initiatives; the impact of wagering
products and technologies introduced by competitors; legislative and regulatory
decisions and changes; the general health of the gaming sector; and other
factors that are beyond our ability to control or predict.
CANTERBURY PARK HOLDING CORPORATION'S
SUMMARY OF OPERATING RESULTS
(Unaudited)
- ----------------------------------------------------------------------
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2006 2005 2006 2005
-----------------------------------------------------
Operating
Revenues $12,583,842 $12,044,084 $55,839,697 $54,919,617
Operating
Expenses $10,748,842 $10,585,961 $50,660,163 $49,473,668
Income from
Operations $1,835,000 $1,458,123 $5,179,534 $5,445,949
Non-Operating
Revenues, net $70,004 $42,630 $279,208 $119,373
Income Tax
Expense ($812,399) ($670,223) ($2,333,699) ($2,511,843)
Net Income $1,092,605 $830,530 $3,125,043 $3,053,479
Basic Net Income
Per Common Share $0.27 $0.21 $0.78 $0.78
Diluted Net
Income Per
Common Share $0.26 $0.20 $0.74 $0.73
CONTACT: Canterbury Park Holding Corporation
Randy Sampson, 952-445-7223