Maxxam, the parent company of Sam Houston Race Park, more than doubled its earnings for the fourth quarter of 2000, but still saw its earnings for the year fall 53% to $4.91 per share.
Net sales for the company's racing operations for the quarter increased to $8.5 million, up from $7.6 million for the same period a year ago. For the year, net sales rose 13% to $30.9 million from $27.3 million for 1999. Operating income for racing operations fell to $100,000 for the quarter, down from $1.3 million for the fourth quarter of 1999. For the year, operating income for racing operations fell 45% to $2.1 million. The increases in sales and operating expenses were caused by the purchase of Valley Race Park greyhound track in Harlingen, Texas.
Escalating losses in the company's real estate division also contributed to lower earnings for the entire company. Maxxam (AMEX:MXM) reported lower sales at its Fountain Hills development in Arizona. Besides land development and racing, the company is involved in the aluminum and timber industries.
As of 2:30 p.m. Wednesday, Maxxam was trading 0.33% lower for the day at $15.20. The company's 52-week range is $13.94 to $34.75.