COLONIAL DOWNS HOLDINGS INC. REPORTS FIRST QUARTER PROFIT.NEW KENT, Va.--(BUSINESS WIRE)--May 12, 1997--Colonial Downs Holdings Inc. (Nasdaq NMS See NetWare Management System. :CDWN), which holds the only unlimited licenses to own and operate a pari- mutuel horse racing horse racing, trials of speed involving two or more horses. It includes races among harnessed horses with one of two particular gaits, among saddled Thoroughbreds (or, less frequently, quarterhorses) on a flat track, or among saddled horses over a turf course with track and satellite wagering wa·ger n. 1. a. An agreement under which each bettor pledges a certain amount to the other depending on the outcome of an unsettled matter. b. A matter bet on; a gamble. 2. facilities in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). , today reported results of operations for the first quarter of 1997, its first quarter as a publicly-held company. For the three months ended March 31, 1997, Colonial Downs Colonial Downs is a horse racing track in New Kent, Virginia adjacent to Interstate 64, halfway between Richmond, Virginia and Williamsburg, Virginia. History and information The track opened on September 1, 1997. More than 13,000 attended the track on opening day. Holdings Inc. reported net earnings of $429,000 or $0.12 per common share compared with a net loss of ($66,000) or ($0.02 per common share) in the first quarter of 1996 ended March 31, 1996. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before in the first quarter of 1997 were $478,000 compared with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of ($43,000) in the same period a year ago. Weighted average common shares outstanding in the first quarter of 1997 were 3,614,000 compared with 3,000,000 last year. (Prior to a reorganization effective March 12, 1997, the private owners of the company held partnership interests which were converted to 3,000,000 shares of stock as part of the reorganization). At the end of the first quarter of 1997, the company had 7,250,000 common shares outstanding as a result of the completion of its initial public offering of 4,250,000 shares effective March 17, 1997. Revenues for the first quarter of 1997 were $5,417,000, up 311% from $1,305,000 in the first quarter of 1996. Commenting on the first quarter results, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. O. James Peterson James Peterson is an American writer and teacher of the culinary arts. He holds a degree in chemistry from the University of California at Berkeley. His apprenticeship in the culinary arts began with classes at Paris' Cordon Bleu and with work at Le Vivarois. III said: "We are pleased to have earned a profit in our first quarter as a publicly-held company, before live horse racing has begun at the new Colonial Downs racetrack currently under construction and before our third and fourth satellite wagering facilities have opened in Hampton and Brunswick County Brunswick County is the name of several counties in the United States:
"Our earnings and revenue improvements in the first quarter of this year occurred as a result of two satellite wagering facilities, in Chesapeake and Richmond, being in operation during the entire first quarter of this year. Last year only the Chesapeake facility, which opened on February 17, 1996, was conducting satellite wagering operations," Peterson explained. "We have a very challenging period ahead of us as we prepare to open on September 1 Virginia's first pari-mutuel pari-mutuel Betting pool in which those who bet on competitors finishing in the first three places share the total amount bet minus a percentage for the management. First introduced in France c. racetrack since the 1800s. We also plan to open two additional satellite wagering facilities in Hampton and Brunswick County in the third quarter. We are continuing to investigate sites for two more satellite wagering facilities to be built, which would result in a total of six such facilities in operation, the current maximum allowed under Virginia law," Peterson said. "Some significant events have occurred since the public offering that deserve mention. First is the movement of the start of the thoroughbred Thoroughbred Light breed of racing and jumping horse descended from three desert stallions brought to England between 1689 and 1724. Thoroughbreds have a delicate head, slim body, broad chest, and short back. Most are bay, chestnut, brown, black, or gray. meet from July 1 to September 1, which was approved by the Virginia Racing Commission at its April 16 meeting. This change in schedule would have resulted in a November-December harness meet, a difficult period to conduct a harness meet because of weather and lack of availability of horses. After discussion with representatives of the harness horsemen, the company announced that it plans to hold its inaugural harness meet from April 23, 1998 to July 4, 1998 followed by a 10-day super meet in November of 1998. This change will adversely affect 1997 earnings due to the deferral deferral - Waiting for quiet on the Ethernet. of revenues from the meet until 1998," Peterson said. "Colonial Downs' sales of box seats and dining room tables have proceeded v1/2ery well and we have sold out of those opportunities for this year. We recently signed a significant sponsorship deal with Pepsi, and sponsorship income is on a pace to exceed our original expectations. Additionally, we are pleased to announce that Colonial Downs will be the host track for four thoroughbred match series races in September and October: a Grade II and a Grade III stakes, each with a $100,000 purse PURSE. In Turkey the sum of five hundred dollars is called a purse. Merch. Dict. h.t. , and two additional stakes races with purses of $75,000 and $100,000. Two of the races are scheduled to be televised by ESPN ESPN Entertainment and Sports Programming Network . These televised match series races should provide us with significant, unanticipated media exposure nationwide during our inaugural thoroughbred meet," Peterson said. Colonial Downs' inaugural thoroughbred meet will run from September 1 to October 12, 1997 and will include 30 days of live thoroughbred racing. Under an agreement signed with harness horsemen on April 17, 1997, Colonial Downs will hold its inaugural harness meet beginning in April of 1998 and ending July 4, 1998, with a 10-day super meet in November, for a total of 51 days of live racing, subject to the Virginia Racing Commission's approval. Statements regarding the anticipated opening of additional satellite wagering facilities, sponsorship income, scheduling of the thoroughbred and harness meets, and certain other statements contained in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and as such involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements, expressed or implied by such forward- looking statements. Such potential risks, uncertainties and factors include but are not limited to risks of construction delays, including unforeseen environmental, engineering or geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. problems, governmental regulation, including licensing of additional satellite wagering facilities and certain sponsorship income, approval by the Virginia Racing Commission of harness race dates for 1998, competition with other sporting events and forms of entertainment, and the success of planned advertising, marketing and promotional efforts. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the company with the Securities and Exchange Commission. Colonial Downs Holdings Inc. is a Virginia corporation organized in November of 1996 to pursue opportunities for wagering and horse racing in Virginia. The company, through its two wholly-owned subsidiaries Colonial Downs L.P. and Stansley Racing Corp., holds the only unlimited licenses to own and operate a pari-mutuel horse racing track and satellite wagering facilities in Virginia. Currently the company operates two satellite wagering facilities with two more expected to open in the third quarter of 1997. Colonial Downs Holdings Inc. became a publicly-held company in March of 1997 and trades on the Nasdaq National Market System under the symbol CDWN. -0-
Colonial Downs Holdings, Inc. --- Consolidated Statement of Earnings
Dollars in Thousands, Except Per Share Data
(Unaudited)
Quarter Ended Quarter Ended
March 31, 1997 March 31, 1996
Revenues $ 5,417 $ 1,305
Operating Earnings 478 (43)
Interest Income (Expense), Net (13) (23)
Earnings Before Income Taxes 465 (66)
Income Taxes 36 ---
Net Earnings $ 429 $ (66)
Earnings Per Common Share $ 0.12 $ (0.02)
Weighted Average Common Shares Outstanding 3,614 3,000
CONTACT: Colonial Downs Holdings Inc. Herb Jones, 804/966-9004 Director of Investor Relations Investor relations The process by which the corporation communicates with its investors. |
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