Colonial Downs Holdings Inc. Reports 4th Quarter and 1999 Results.Business Editors NEW KENT, Va.--(BUSINESS WIRE)--March 30, 2000 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 : SCM (1) (Software Configuration Management, Source Code Management) See configuration management. (2) See supply chain management. : CDWN) which, through its subsidiaries, holds the only unlimited 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. 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 course 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 released results of operations for the fourth quarter and fiscal year ended December December: see month. 31, 1999. The Company announced revenues of $29,351,000 for the year ended December 31, 1999 compared with revenues of $29,447,000 for 1998, a decrease of less than half of one percent. Direct 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 from $25,300,000 in 1998 to $20,982,000 in 1999, a decrease of 17%. Primarily as a result of the decrease in direct operating expenses, the net loss decreased to $1,139,000 compared with a net-loss of $5,288,000 for 1998. Revenues for the fourth quarter were $7,315,000 compared with $7,160,000 for the same period in 1998. Direct operating expenses in the fourth quarter 1999 were $5,190,000 compared with $5,207,000 in the same period in 1998. Net earnings in the fourth quarter of 1999 were $24,000 as compared with a net loss of $868,000 in the same period in 1998 or earnings of $0.01 per share versus a loss of $0.12 per share, respectively. Liquidity continues to be a challenge for the Company. Because of the Company's working capital deficit of $26.6 million and $24.8 million of debt coming due in 2000, the Company has received a going concern opinion from its independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. . The Company has been and will continue to be reliant upon the financial support of its principal stockholder to meet its liquidity needs. However, there are no assurances that such financial support will continue. 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, "I believe we have substantially reduced the losses from the Company's operations and have a foundation to move forward. Our racing center network continues to grow in profitability. Expansion of our racing center network continues to be a high priority; however, we must pursue a strategy that takes into account the political climate for gaming and the potential obstacles. The most pressing challenge is our current debt obligations of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $25 million, which poses a threat to the continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of the Company. With support from the Virginia Racing Commission, the horsemen associations and our principal stockholder, I believe we can position ourselves to grow horse racing in the Commonwealth of Virginia." Colonial Downs Holdings, Inc. is a Virginia corporation organized in November November: see month. 1996 to pursue opportunities for pari-mutuel horseracing and wagering 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, expansion of the racing center network, 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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 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, the Virginia Racing Commission, political trends, the effects of adverse general economic conditions, referenda, changes in laws and governmental regulation, including licensing of additional Racing Centers. The forward-looking statements contained herein speak only as of the date of this release.
Colonial Downs Holdings, Inc. and Subsidiaries
Consolidated Statements of Earnings
Dollars in thousands, except
per share amounts Quarter Ended Year Ended
(unaudited) December 31 December 31
1999 1998 1999 1998
---- ---- ---- ----
Revenues: $7,315 $7,160 $29,351 $29,447
Expenses:
Direct operating expenses 5,190 5,207 20,982 25,300
General and administrative
expenses 997 2,144 4,829 6,142
Depreciation and amortization 450 540 1,839 1,602
Total expenses 6,637 7,891 27,650 33,044
Earnings (loss) from operations 678 (731) 1,701 (3,597)
Interest expense, Net (654) (221) (2,840) (1,775)
Earnings (loss) before income
taxes 24 (952) (1,139) (5,372)
Provision for (benefit from)
income taxes (84) (84)
Net earnings (loss) $24 $(868) $(1,139) $(5,288)
Earnings (loss) per common share
Basic and diluted earnings
(loss) per share $0.01 $(0.12) $(0.16) $(0.73)
Weighted avg. number of shares
outstanding 7,260 7,250 7,260 7,250
Consolidated Balance Sheets:
Dollars in thousands, except per share
amounts (unaudited)
At December 31
1999 1998
---- ----
Assets:
Current assets:
Cash and equivalents $ 1,313 $ 1,155
Other current assets 1,026 1,123
Total current assets 2,339 2,278
Property, plant and
equipment, net 64,186 65,324
Other assets, net 880 979
Total Assets $67,405 $68,581
Liabilities and
Stockholders' Equity
Current Liabilities
Accounts payable $ 2,764 $ 6,417
Accrued expenses 1,184 730
Purses due horsemen 182 608
Long-term debt, current
portion 24,774 9,184
Total current liabilities 28,904 16,939
Long-term debt 1,750 8,508
Notes payable - stockholders 1,225 6,500
Total long-term liabilities 2,975 15,008
Total liabilities 31,879 31,947
Stockholders' equity 35,526 36,634
Total liabilities &
stockholders' equity $67,405 $68,581
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