Canterbury Park Holding Corporation Reports Third Quarter Financial Results.SHAKOPEE, Minn. -- Canterbury Park Canterbury Park is a horse racing track located in Shakopee, Minnesota, USA. It runs a meet that consists of 69 racing days from early May to Labor Day, generally holding scheduled races Thursday through Sunday, with racing added on several holidays throughout the meet. Holding Corporation (AMEX AMEX See: American Stock Exchange :ECP (Enhanced Capabilities Port) See IEEE 1284. 1. ECP - Engineering Change Proposal. 2. ECP - Enhanced Capabilities Port. 3. ECP - Extended Capabilities Port. 4. ECP - Extended Concurrent Prolog. ) today announced financial results for the third quarter and nine months ended September 30, 2005. The Company earned net income of $688,372 on revenues of $16,485,467 for the three months ended September 30, 2005, compared to net income of $1,064,204 on revenues of $17,279,804 for the same period in 2004. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the third quarter of 2005 were $.16 compared to $.26 for the third quarter of 2004. Further results for the first nine months of 2005 are presented in the accompanying table. Revenues for the third quarter decreased approximately $794,000, a 5% decrease compared to the third quarter ended September 30, 2004. The decrease in third quarter revenues is primarily due to a 9.4% decrease in pari-mutuel revenues when compared to the same quarter in 2004, reflecting a significant increase in competition from Internet pari-mutuel 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. . In addition, third quarter Card Club revenues decreased approximately 3% when compared to the same period in 2004 reflecting increased poker revenues offset by decreasing revenues in the casino games Games available in most casinos are commonly called casino games. In a casino game, the players gamble casino chips on various possible random outcomes or combinations of outcomes. Casino games are available in online casinos, where permitted by law. room due to increased competition from local Native American casinos American Casino is a current American reality television series. The show originally aired on the Discovery Channel, but in June 2005, it was moved to The Travel Channel. . Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased slightly in the three months ended September 30, 2005 compared to the third quarter last year. The decrease in operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. is primarily attributable to a decrease in statutory purses and Minnesota Breeders Fund expenses, related to the reduction in pari-mutuel revenues, which were partially offset by an increase in depreciation expense caused by recent major building and backside BACKSIDE, estates. In England this term was formerly used in conveyances and even in pleadings, and is still, adhered to with reference to ancient descriptions in deeds, in continuing the transfer of the same. property. improvements. Commenting on results, Randy Sampson, Canterbury Park's President stated, "The decline in pari-mutuel revenues was not unexpected as this reflects the experience of racetracks around the country. Internet wagering on 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 continues to grow at a rapid pace and has had a negative impact on our simulcast operations. In addition, the decrease in Card Club revenues is disappointing to us and demonstrates the effects of expanded gaming offerings at Native American casinos in Minnesota. Ten of the eleven tribes now offer unbanked card games in direct competition with our Card Club." "As we look to the future, we are confident the Company has exciting growth opportunities," continued Mr. Sampson. "We will continue to seek legislative approval for expanded gaming options at the Racetrack. In addition, we are starting to plan for the potential development of our 380-acre site in Shakopee. We believe this property, located in one of the fastest growing areas in the region, has the potential to be developed into a unique entertainment complex over the next five to ten years, and provides additional opportunities to grow our revenues and enhance shareholder value." 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 2005 live race meet began on May 7 and ended on September 5, 2005. In addition, the Company is authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: 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 revenue from 31 poker tables A poker table is a table specifically designed for playing card games, usually poker. It is often covered with baize which is a type of felt, or speed cloth, a teflon-coated fabric that helps the cards slide easily across the surface. and 19 tables offering a variety of unbanked 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 Shakopee is a city in Scott County, Minnesota, United States. The population was 20,568 in the 2000 census, with an estimated 2004 population of just short of 30,000, representing a growth of around 43 percent. It is the county seat of Scott County6. . 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 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. 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, the Company claims the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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 cause actual performance, activities or plans to differ significantly 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 legislative and regulatory decisions and changes, the impact of wagering products and technologies introduced by competitors; increases in the percentage of revenues allocated for purse fund payments, increases in compensation and employee benefit costs; the general health of the gaming sector; 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.
NOTE: Financial Summary follows:
CANTERBURY PARK HOLDING CORPORATION'S
SUMMARY OF OPERATING RESULTS
(UNAUDITED)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2005 2004 2005 2004
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Operating
Revenues $16,485,467 $17,279,804 $43,114,941 $43,088,418
Operating
Expenses $15,331,438 $15,393,116 $39,127,115 $37,893,565
Income from
Operations $1,154,029 $1,886,688 $3,987,826 $5,194,853
Non-Operating
Income $34,545 $7,423 $76,743 $23,824
Income Tax
Expense ($500,202) ($829,907) ($1,841,620) ($2,313,435)
Net Income $688,372 $1,064,204 $2,222,949 $2,905,242
Basic Net
Income Per
Common Share $0.18 $0.28 $0.57 $0.77
Diluted Net
Income Per
Common Share $0.16 $0.26 $0.53 $0.70
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