Canterbury Park Holding Corp. Friday announced financial results for the third quarter and nine months ended September 30.
The company earned net income of $575,547 on revenues of $14,981,550 for the three months ended September 30, 2003, compared to net income of $234,679 on revenues of $12,110,549 for the same period in 2002. Diluted earnings per share for the third quarter of 2003 were $.14 compared to $.06 for the third quarter of 2002.
For the nine-months ended September 30, 2003, the company earned net income of $2,008,186 on revenues of $37,339,183, compared to net income of $1,778,722 on revenues of $32,988,522 for the same period in 2002. Year-to-date diluted earnings per share for 2003 were $.50 compared to $.46 for the same period in 2002.
Revenues for the third quarter increased approximately $2.8 million, a 24% increase compared to the third quarter of 2002. The increase in third quarter revenues is primarily due to a 36% increase in Card Club revenues when compared to the same quarter in 2002. In addition, third quarter pari-mutuel revenues increased approximately 11% when compared to the same period in 2002, which reflected increased on-track wagering on live racing.
Operating expenses increased approximately 17% from last year's corresponding quarter. The increase was primarily attributable to three factors: an increase in salaries and benefits associated with the increased level of Card Club operations, an increase in insurance costs and utilities expenses, and an increase in costs related to the Company's legislative efforts to obtain additional gaming authorizations.
Commenting on results, Randy Sampson, Canterbury Park's president stated, "We are extremely pleased with our results for the third quarter which is traditionally our weakest quarter. The increasing popularity of our card games has led to yet another record quarter in the Card Club. In addition, we are proud of the double digit increase in pari-mutuel revenue due to strong growth in our on-track live racing product, reflecting our enhanced marketing programs, favorable summer weather and the return of the nationally recognized Claiming Crown racing event in July."
"Our best opportunity, however, for long term growth still lies with our plan to seek state legislation to authorize additional gaming," Sampson continued. "Our racino legislation will be before the Minnesota Senate in the 2004 session, having already passed the full House by a 71-60 margin. We believe that enacting this bill would enhance horse racing, provide growth opportunities for the company, and generate significant new tax revenues for state and local governments."