Canterbury Park Holding Corporation (NASDAQ:CPHC) today announced financial results for the fourth quarter and year ended December 31, 2010.
Results for the Quarter Ended December 31, 2010
The Company’s net revenues in the fourth quarter were $8.7 million, up 7.2% from revenues of $8.1 million during the same period in 2009. The Company reported net income of $161,279, or $.04 net earnings per share, for the 2010 fourth quarter, compared to a net loss of $99,100, or a $.02 net loss per share in the same 2009 period.
Results for the Year Ended December 31, 2010
The Company’s net revenues in 2010 were $39.9 million, up $0.3 million, or 0.8%, from 2009 net revenues of $39.6 million. This increase was due to a 9.9% increase in Card Casino revenues that was largely offset by a 10.2% decrease in pari-mutuel revenues and a 1.3% decrease in concession revenues. Operating expenses in 2010 exceeded revenues, increasing 4.7% to $41.2 million in 2010, primarily due to increases in federal and state tax charges related to salaries and benefits, increased expenditures in support of legislation that would authorize electronic gaming devices at the Racetrack, and a one-time charge of $909,540 due to the write-off of assets disposed of in remodeling our Card Casino. The Company experienced a net loss in fiscal 2010 of $992,206, or a net loss of $.25 per share, compared to net income of $60,970 in 2009, or $0.02 earnings per share.
Further financial results for the fourth quarter and year ended December 31, 2010 are presented in the accompanying table, and additional information will be provided in the Company’s Form 10-K Report that will be filed on March 31, 2011 with the Securities and Exchange Commission.
Randy Sampson, Canterbury Park’s President and Chief Executive Officer, commented: “We are encouraged by the increase in revenue from our Card Casino due largely to the extensive remodeling project we completed in April 2010. As a result, the Company finished with a profitable fourth quarter and experienced its best net earnings since the first quarter of 2009. The increase in Card Casino revenues was, however, offset by the decline in revenues from horse racing due to poor economic conditions and the continuing growth in illegal Internet wagering on horse races by Minnesota residents. While we believe our major renovation of the Card Casino was a positive step as demonstrated by the increase in our revenues, this action required the disposal and write-off of card room assets that were not fully depreciated and which had a remaining net book value of $909,540. This resulted in a further and significant negative impact on our year-end results.”