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Canterbury Park Holding Corporation Reports Q3 Results

After net non-operating revenues of $5,951 and income tax expense of $353,900, the Company earned net income for the quarter of $480,098 compared to net income of $17,464 for the third quarter in 1999. Net income for the first nine months of 2000 was $405,977 compared to net income of $282,679 for the same period in 1999.

The $4.8 million or 68.9% increase in revenues for the quarter was largely attributable to the operations of the Company's Card Club which commenced operations on April 19, 2000. Card Club revenues were $4,066,769 for the quarter.

Commenting on results, Randy Sampson, Canterbury's President stated, ``Any questions we may have had about the ability of our new Card Club to strengthen the operations of Canterbury Park and benefit the horse industry in Minnesota have been answered. This additional revenue stream has improved our bottom line and allowed us to implement two 10% purse increases during our 2000 live racing meet. The full impact of the Card Club will be demonstrated in 2001 when we expect purse payments to reach unprecedented levels for live racing in Minnesota.''

As reported at the conclusion of the 2000 live meet, Canterbury enjoyed double digit increases in overall attendance and total on-track live handle during its 60-day meet this year. Attendance increased 11.12 % compared to the 56-day 1999 meet and live on-track wagering increased 12.78%.

Operating expenses increased $3.9 million or 56.7% for the three months ended September 30, 2000 compared to the third quarter last year. The increase was primarily due to costs of operating the Card Club as well as increased costs associated with hosting the live race meet. The most significant operating expense increase was salaries and benefits expense, which increased 149% due primarily to the staffing levels required for the 24-hour per day card club operation.

Sampson said, ``We are extremely pleased with the operating results for this quarter, particularly in light of the fact that the third quarter has historically produced break-even results due to operating expenses related to conducting live racing. While the 68.9% increase in total revenue was primarily due to the new Card Club, we are also very encouraged by the 7.9% increase in pari-mutuel revenue compared to the third quarter of 1999.''

Sampson added, ``The fourth quarter has historically been profitable for Canterbury Park and the Company expects a strong finish to the year 2000.'' The Company currently anticipates fourth quarter revenues in the range of $7 million to $8 million, which would bring full-year 2000 revenues to the range of $32 million to $33 million. Fourth quarter earnings are currently anticipated in the range of $.10 to $.15 per diluted share, which would bring full-year earnings to the range of $.21 to $.26 per diluted share.

Canterbury Park Holding Corporation owns and operates Canterbury Park Racetrack, Minnesota's only pari-mutuel horse racing facility. The Company's 60-day 2000 live race meet began on May 20 and ended September 4, 2000. The Company also operates Canterbury Card Club, the only facility in Minnesota given legislative authority to host unbanked card playing operations. Canterbury Card Club operates 24 hours a day, seven days a week conducting a variety of unbanked card games. In addition, the Company conducts year-round simulcast horse racing and hosts a variety of other entertainment events at its facility in Shakopee, Minn.

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