Canterbury Park Holding Corp. reported a net loss of $173,099 for the second quarter of 2009 but said reduced costs and improved operating efficiencies should help moving forward.
The company, which released its earnings report Aug. 12, owns Canterbury Park in Minnesota. It offers live racing, full-card simulcasts, and poker and other casino-style card games.
The net loss compares with a net loss of $35,419 for the same period in 2008. Revenue of $11.16 million was down 19.2% compared with $13.8 million last year.
The company said card club revenue was down 23.1% for the quarter, pari-mutuel wagering revenue was down 18.6%, and concession revenues decreased 18%. Meanwhile, operating expenses were down 17.5%.
“A number of factors converged to substantially reduce our revenues in the second quarter,” Canterbury president and chief executive officer Randy Sampson said in a statement. “The decrease in operating revenues is attributable to a steep decline in discretionary spending on entertainment resulting from the economic recession that began in 2008, and that has continued throughout the first half of 2009.
“In addition, the company now faces direct competition from Running Aces Harness Park, a harness track and card club in Anoka County that began offering pari-mutuel wagering in April 2008 and opened a card room June 30, 2008. The company believes wagering at Running Aces has had a direct negative effect on both the company’s pari-mutuel and card club revenue.
“To minimize the impact of the revenue decline, we have implemented various expense control measures. These efforts have enabled us to generate positive cash flow, and position the company to benefit when economic conditions improve.”