Colonial Downs Holdings, Inc. Announces 3rd Quarter Results.NEW KENT, Va.--(BUSINESS WIRE)--Nov. 15, 1999-- 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. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NMS See NetWare Management System. : CDWN) which, through its subsidiaries, holds the only licenses to own and operate a 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. horseracing course and satellite racing centers ("Racing Centers") 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 third quarter ended September September: see month. 30, 1999. For the nine months ended September 30, 1999, the Company reported a net loss of $1,163,000 or $0.16 per share compared with a net loss of $4,420,000, or $.61 per share for the same period in 1998, an improvement of 74%. Revenues for the first nine months of 1999 were $22,037,000 compared with $22,287,000 for the same period in 1998. The Company reported a net loss for the third quarter of 1999 of $647,000 or $0.09 per share compared to a loss of $1,541,000 or $.21 per share for the same period in 1998, an improvement of 58%. Total revenue in the third quarter of 1999 was $7,781,000 compared to $7,747,000 in the third quarter of 1998. The Company's Racing Center business continues to be profitable and, for the first nine months of 1999, has been more profitable than the same period a year ago. Net income at the racing centers increased by $1.0 million and $3.5 million for the three and nine month periods ended September 30, 1999. Revenues at the Racing Centers increased $.1 million and $.9 million for the three months and nine months ended September 30, 1999, respectively, compared to the corresponding periods of 1998. Purse PURSE. In Turkey the sum of five hundred dollars is called a purse. Merch. Dict. h.t. expenses charged to the Racing Centers decreased $.7 million and $1.7 million for the three months and nine months ended September 30, 1999, respectively compared to the corresponding periods in 1998. The Company continues to reduce costs in personnel, printing and other expenses which resulted in savings of $.2 million and $.9 million for the three months and nine months ended September 30, 1999. Colonial Downs' third 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 concluded on October October: see month. 11, 1999. Live racing and track operations lost $3.2 million for the nine month period ended September 30, 1999 versus $4.2 million in 1998. The $1 million improvement is due to cost savings resulting from the revised Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). Jockey
In sport, a jockey is one who rides horses in thoroughbred horse racing or steeplechase racing, primarily as a profession. Club agreement and a reduction in the number of harness harness, comprehensive term for the gear of a draft animal, excluding the yoke, by which it is attached to the load that it pulls. Although harnesses are used on dogs (for drawing travois and dogsleds), on goats, and sometimes on oxen, the typical harness is for race days from 1998. In addition, the 1999 thoroughbred meet generated over $19 million in export simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. handle. This demonstration of nationwide interest in racing on Colonial Downs' unique turf turf: see lawn. turf In horticulture, the surface layer of soil with its matted, dense vegetation, usually grasses grown for ornamental or recreational use. course is something that can be built on in the future. On November November: see month. 9, 1999 the Dumfries Dumfries, town, Scotland Dumfries (dəmfrēs`), town (1991 pop. 31,307), Dumfries and Galloway, SW Scotland, on the Nith River. The chief manufactures include hosiery, knitwear, rubber goods, and canned milk. Town Council rejected the Company's rezoning and conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. use permit application. As a result, Colonial Downs is unlikely to receive licenses from the Virginia Racing Commission for a racetrack in Dumfries. The costs associated with the Dumfries development, approximately $100,000 through September 30, 1999, were expensed in the third quarter. In addition, the third quarter results were adversely affected by Hurricane Floyd This article is about the 1999 hurricane. For other storms of the same name, see Tropical Storm Floyd (disambiguation). Hurricane Floyd was the sixth named storm, fourth hurricane, and third major hurricane in the 1999 Atlantic hurricane season. which required the Company to suspend operations for two days in September. The Company estimates the impact on net income to be $126,000, a portion of which the Company believes is recoverable from its insurance carrier. Any insurance recovery will be recorded when the amount is determined by the carrier. Ian M. Stewart Stewart, river, Canada Stewart, river, 331 mi (533 km) long, rising in the Mackenzie Mts., central Yukon Territory, Canada, and flowing generally W to the Yukon River S of Dawson. , President of the Company said, "Overall, I am pleased with our third quarter operating results in light of the hurricane hurricane, tropical cyclone in which winds attain speeds greater than 74 mi (119 km) per hr. Wind speeds reach over 190 mi (289 km) per hr in some hurricanes. . The Company's operations have significantly improved over a year ago. Our racing center network continues to grow in profitability. Dumfries was a setback setback In architecture, a steplike recession in the profile of a high-rise building. Usually dictated by building codes to allow sunlight to reach streets and lower floors, the building must take another step back from the street for every specified added height interval. . However, we have overcome setbacks before and will do so again. Expansion of our racing center network continues to be our highest priority; however, we also are exploring other alternatives to increase stockholder value." Colonial Downs Holdings, Inc. is a Virginia corporation organized in November 1996 to pursue opportunities for pari-mutuel horseracing and 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 Virginia. The Company, through its subsidiaries, holds the only unlimited licenses to own and operate a pari-mutuel horseracing course and satellite wagering facilities/racing centers in Virginia. Colonial Downs Holdings, Inc. became a publicly-held company in March 1997 and trades on the NASDAQ Small Cap System under the symbol CDWN. This earnings release contains certain 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. that inherently involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors. Statements regarding results of operations, cultivation cultivation, tilling or manipulation of the soil, done primarily to eliminate weeds that compete with crops for water and nutrients. Cultivation may be used in crusted soils to increase soil aeration and infiltration of water; it may also be used to move soil to or of racing center networks, and certain other statements contained in this release are forward-looking statements and, as such, involve known and unknown risks, and 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, acts by parties outside the control of the Company, including the Maryland Jockey Club and the Virginia Racing Commission, political trends, the effects of adverse general economic conditions, and governmental regulation, including licensing of additional Racing Centers. The forward-looking statements contained herein speak only as of the date of this release. -0-
COLONIAL DOWNS HOLDINGS, INC.
STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Revenues
Pari-mutuel and simulcasting
commissions 7,107 6,941 20,428 20,218
Other 674 806 1,609 2,069
Total revenues 7,781 7,747 22,037 22,287
Operating expenses
Direct operating expenses
Purses, fees, and pari-
mutuel taxes 2,397 3,331 7,048 9,704
Simulcast and other direct
expenses 3,532 3,714 8,745 10,389
Total direct operating
expenses 5,929 7,045 15,793 20,093
Selling, general and
administrative expenses 1,496 1,348 3,989 3,998
Depreciation and amortization 416 359 1,230 1,062
Total operating expenses 7,841 8,752 21,012 25,153
25,15
Earnings (loss) from
operations (60) (1,005) 1,025 (2,866)
Interest expense, net (587) (536) (2,188) (1,554)
Loss before income taxes (647) (1,541) (1,163) (4,420)
Provision for (benefit from)
income taxes - - - -
Net loss $ (647) $(1,541) $(1,163) $(4,420)
Earnings (loss) per share data:
Basic and diluted loss per
share $(0.09) $ (0.21) $ (0.16) $ (0.61)
Weighted average number of
shares outstanding 7,268 7,268 7,268 7,268
7,268
COLONIAL DOWNS HOLDINGS, INC.
BALANCE SHEETS
(In Thousands, Except Per Share Data)
(Unaudited)
ASSETS Sept. 30, Dec. 31,
1999 1998
Current assets:
Cash and cash equivalents $ 1,364 $ 1,155
Horsemen's deposits 2,363 600
Accounts receivable 641 296
Prepaid expenses and other assets 364 227
Total current assets 4,732 2,278
Property, plant and equipment
Land and improvements 15,449 15,581
Buildings and improvements 48,685 47,363
Equipment, furnishings, and fixtures 2,754 3,444
Leasehold improvements 1,122 1,122
68,010 67,510
Less accumulated depreciation 3,379 2,186
Property, plant and equipment, net 64,631 65,324
Licensing and organization costs, net of
accumulated amortization
of $300 and $266, respectively 742 772
Other assets 211 207
Total assets $70,316 $68,581
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,527 $ 6,417
Purses due horsemen 1,523 608
Accrued liabilities and other 1,989 730
Current maturities of long-term debt and
capital lease obligations 16,420 9,184
Current maturities of long-term debt -
related parties 8,825 --
-
Total current liabilities 32,284 16,939
Long-term debt and capital lease obligations 2,530 8,508
Notes payable - related parties -- 6,500
Total liabilities 34,814 31,947
Commitments and contingencies
Stockholders' equity
Class A, common stock, $0.01 par value;
12,000 shares authorized; 5,025 shares
issued and outstanding 50 50
Class B, common stock, $0.01 par value;
3,000 shares authorized; 2,242 shares issued
and outstanding 23 23
Additional paid-in capital 42,873 42,842
Accumulated deficit (7,444) (6,281)
Total stockholders' equity 35,502 36,634
Total liabilities and
stockholders' equity $ 70,316 $ 68,581
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