Maxxam, the parent company of Sam Houston Race Park, suffered huge losses in the first quarter because its aluminum operation filed for bankruptcy.
The Houston-based industry conglomerate posed a net loss of $54.2 million, $8.30 per share, compared with a net income of $65.3 million, $8.81 per share, for the first quarter of 2001. Net sales for the quarter were $240.3 million compared with $544.4 million a year ago.
Losses were attributed to the Chapter 11 reorganization of Kaiser Aluminum, of which Maxxam owns 62%. The mining and aluminum fabrication company filed for bankruptcy on Feb. 12. Fallout from the reorganization is not expected to affect employees, vendors, or customers of Sam Houston Race Park or Maxxam's forest products and real estate businesses.
Net sales for the northwest Houston racetrack increased 4.3% to $9.8 million for the quarter. The track reported a 6% increase in average daily attendance to 3,131 and a 1.4% increase in average daily total handle to $2,551,562 for its 82-day winter/spring meet. Operating income dropped 15% to $1.1 million due to increases in marketing and administrative expenses. Sam Houston Race Park also owns and operates Valley Race Park, a pari-mutuel Greyhound track in Harlingen, Texas.