Tough Third Quarter for Colonial Downs

Colonial Downs' third quarter results show the Virginia track continues to struggle. Earnings per share dropped to a loss of 11 cents per share for the three-month period ending Sept. 30 compared with a loss of 9 cents per share reported during the same period a year ago. For the previous nine months, earnings per share dropped to a loss of 19 cents compared with a 16 cents per share loss reported for the first nine months of 1999.

Third quarter revenue dropped to $7.66 million from $7.78 million during the same quarter of 1999. Track president Ian Stewart attributed the lower revenues to a later harness meet, which reduced the number of live racing days reported this quarter. Stewart said the Colonial Downs Holdings (Nasdaq: CHLD.OB) will address its revenue losses by diversifying. The company is moving forward with plans to manage video poker machines at Louisiana truck stops. Jalou, an affiliate owned by Colonial Downs' chairman and chief executive officer Jeffrey Jacobs, has an option to acquire seven truck stops in Louisiana. The deal is expected to close in January.