Canterbury Park Holding Corp. earned net income of $593,552 on revenues of $13,128,383 for the three months ended June 30, 2003, compared to net income of $613,005 on revenues of $11,930,749 for the same period in 2002. Diluted earnings per share for the second quarter of 2003 were 15 cents compared to 16 cents a share for the second quarter of 2002.
Revenues for the second quarter were up 10% as compared to the second quarter of 2002. The increase in second quarter revenues is primarily due to an increase in Card Club revenues to $5.7 million, a 25.9% increase when compared to the same quarter in 2002, and reflects the increased awareness of the Casino Games room and the renewed popularity of the Poker room.
Second quarter pari-mutuel revenues were $5.1 million, a 1.2% increase when compared to the same period in 2002. On-track wagering on live racing increased but it was partially offset by a reduction in simulcast wagering. Operating expenses for the quarter increased approximately $1.2 million, or 11%, compared to last year's corresponding dates.
The increase was primarily attributable to an increase in salaries and benefits associated with the increased level of Card Club operations, and an increase in other expenses including insurance costs, utilities expenses, and professional fees related to the company's legislative efforts to obtain additional gaming authorizations.
Commenting on results, Randy Sampson, Canterbury Park's president stated, "We are very pleased with the continued revenue growth in our Card Club compared to last year and the first quarter of this year. The increasing popularity of our card games has led to the Card Club's best quarter since opening in May of 2000.
"While our pari-mutuel revenue showed a modest increase, we are encouraged by the fact that on-track live handle increased during the quarter by nearly 7%, which reflects the positive response from our racing fans to our promotions and the improvements we have made to our facility. While there was a slight decline in second quarter net income, this was anticipated given the intensive effort at the Minnesota Legislature and related expenses incurred during this period to pursue our racino proposal.
"In recognition of the Company's positive operating results and sound financial position, our Board of Directors declared a special cash dividend of 15 cents per share of common stock on June 5, 2003 which was paid to shareholders on July 11, 2003."