Exhibit 99.1
Canterbury Park Holding Corporation Announces First Quarter Results
SHAKOPEE, Minn.--(BUSINESS WIRE)--May 11, 2007--Canterbury Park
Holding Corporation (AMEX:ECP) today announced results for the first
quarter ended March 31, 2007.
The Company earned net income of $892,377 on revenues of
$11,468,589 for the three months ended March 31, 2007, compared to net
income of $1,162,647 on revenues of $12,096,377 for the same period in
2006. Diluted earnings per share for the first quarter of 2007 were
$.21 compared to $.26 for the same period last year. Further results
for the first three months of 2007 are presented in the accompanying
table below.
Revenues in the first quarter of 2007 decreased 5.2% over the
quarter ended March 31, 2006. This decrease is primarily due to a 9.9%
decrease in pari-mutuel revenues to $2.7 million in the first quarter
from $3.0 million for the same period in 2006. This decrease is
partially due to the cancellation of a significant number of races due
to inclement weather at many racetracks which are simulcast at
Canterbury Park, more typical winter weather in Minnesota compared to
last year's unusually mild winter, and growing competition from
Internet wagering on simulcast racing. In addition, Card Club revenues
decreased 3.4% in the first quarter to $7.5 million from $7.8 million
for the same period in 2006. The Card Club revenue decrease reflects a
6.2% decrease from poker games partially due to the more typical 2007
winter weather conditions in Minnesota as well as waning interest
nationwide in poker, and by a 1.8% revenue decrease from casino games.
Operating expenses decreased approximately $92,726 in the first
quarter, a .9% decrease compared to the same period in 2006,
reflecting decreases in advertising, maintenance and other expenses,
offset by increases in depreciation and utilities, as well as a charge
to salaries expense of approximately $246,000 related to a one-time
retirement benefit offered to certain eligible employees and severance
pay related to involuntary terminations.
Randy Sampson, Canterbury Park's President commented: "The decline
in first quarter net income reflects the impact of growing competition
from the Internet and Native American casinos. In addition, the poor
weather conditions experienced locally and throughout other parts of
the country had an adverse impact on our simulcast operations.
However, we have initiated several cost reduction programs which will
help counter the adverse effect on revenues and prepare us for future
competition."
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 began on May 5th and ends
September 3, 2007. 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 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. 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, competition from other sports and entertainment
options, increases in 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
Ended Ended
March 31, 2007 March 31, 2006
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Operating Revenues (net) $11,468,589 $12,096,377
Operating Expenses $10,017,588 $10,110,314
Income from Operations $1,451,001 $1,986,063
Non-Operating Income, net $72,460 $53,084
Income before Income Tax Expense $1,523,461 $2,039,147
Income Tax Expense $631,084 $876,500
Net Income $892,377 $1,162,647
Basic Net Income Per Common Share $0.22 $0.29
Diluted Net Income Per Common Share $0.21 $0.26
CONTACT: Canterbury Park Holding Corporation
Randy Sampson, 952-445-7223