On June 14, 2011, Canterbury Park Holding Corporation (NASDAQ:CPHC) reported that it may be forced to suspend all or substantially all of its operations on July 1, 2011 if the current budget impasse between Minnesota’s Governor and Legislature continues into July and if layoff notices recently sent to employees of the Minnesota Racing Commission (the “MRC”), which regulates Canterbury Park’s gaming operations, remain in effect on July 1, 2011. Today, Randy Sampson, Canterbury Park’s President and CEO, provided additional information about steps being taken to avoid a suspension of operations, as well as what the impact on the Company could be if substantially all operations were suspended beginning July 1.
“We are working with the MRC to evaluate various options that might allow the Company to keep all or part of its gaming operations open even if the budget impasse continues into July,” began Mr. Sampson. “However, at this time, we can provide no assurance that we will be able to avoid a complete suspension of operations on July 1.”
Mr. Sampson continued: “If we were forced to suspend all horse racing, simulcasting and Card Casino operations, the result would be a significant, adverse impact on the Company. We would lose gaming and concession revenues in excess of $1 million per week but would continue to incur substantial operating expenses, including expenses to support our backside horse population. Without any revenues coming in, we would be forced to lay off substantially all of our 1,000 full time and part time employees causing hardship for them and their families. The shutdown would have a particularly severe impact on Canterbury over the Fourth of July weekend, which is typically the busiest weekend of the year.”
Mr. Sampson added: “Unless there is a quick end to the budget impasse, another concern is that owners and trainers will likely start moving their horses from Canterbury to other racetracks within a week or two of July 1, and once they leave it is unlikely they will return. Clearly, if the budget impasse continues beyond early to mid-July the impact could be devastating for Canterbury and the horse industry. We could lose the entire remainder of the racing season.”
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV