Colonial Downs Holdings, Inc. Announces 3rd Quarter Results
NEW KENT, Va.--(BUSINESS WIRE)--Nov. 15, 1999--Colonial
Downs Holdings, Inc. (NASDAQ NMS: CDWN) which, through its
subsidiaries, holds the only licenses to own and operate a pari-mutuel
horseracing course and satellite racing centers ("Racing Centers") in
Virginia, today reported results of operations for the third quarter
ended September 30, 1999.
For the nine months ended September 30, 1999, the Company
reported a net loss of $1,163,000 or $0.16 per share compared with a
net loss of $4,420,000, or $.61 per share for the same period
in 1998, an improvement of 74%. Revenues for the first nine months of
1999 were $22,037,000 compared with $22,287,000 for the same period in
1998. The Company reported a net loss for the third quarter of 1999 of
$647,000 or $0.09 per share compared to a loss of $1,541,000 or $.21
per share for the same period in 1998, an improvement of 58%. Total
revenue in the third quarter of 1999 was $7,781,000 compared to
$7,747,000 in the third quarter of 1998.
The Company's Racing Center business continues to be profitable
and, for the first nine months of 1999, has been more profitable than
the same period a year ago. Net income at the racing centers increased
by $1.0 million and $3.5 million for the three and nine month periods
ended September 30, 1999. Revenues at the Racing Centers increased $.1
million and $.9 million for the three months and nine months ended
September 30, 1999, respectively, compared to the corresponding
periods of 1998. Purse expenses charged to the Racing Centers
decreased $.7 million and $1.7 million for the three months and nine
months ended September 30, 1999, respectively compared to the
corresponding periods in 1998. The Company continues to reduce costs
in personnel, printing and other expenses which resulted in savings of
$.2 million and $.9 million for the three months and nine months ended
September 30, 1999.
Colonial Downs' third thoroughbred meet concluded on October 11,
1999. Live racing and track operations lost $3.2 million for the nine
month period ended September 30, 1999 versus $4.2 million in 1998. The
$1 million improvement is due to cost savings resulting from the
revised Maryland Jockey Club agreement and a reduction in the number
of harness race days from 1998. In addition, the 1999 thoroughbred
meet generated over $19 million in export simulcast handle. This
demonstration of nationwide interest in racing on Colonial Downs'
unique turf course is something that can be built on in the future.
On November 9, 1999 the Dumfries Town Council rejected the
Company's rezoning and conditional use permit application. As a
result, Colonial Downs is unlikely to receive licenses from the
Virginia Racing Commission for a racetrack in Dumfries. The costs
associated with the Dumfries development, approximately $100,000
through September 30, 1999, were expensed in the third quarter. In
addition, the third quarter results were adversely affected by
Hurricane Floyd which required the Company to suspend operations for
two days in September. The Company estimates the impact on net income
to be $126,000, a portion of which the Company believes is recoverable
from its insurance carrier. Any insurance recovery will be recorded
when the amount is determined by the carrier.
Ian M. Stewart, President of the Company said, "Overall, I am
pleased with our third quarter operating results in light of the
hurricane. The Company's operations have significantly improved over a
year ago. Our racing center network continues to grow in
profitability. Dumfries was a setback. However, we have overcome
setbacks before and will do so again. Expansion of our racing center
network continues to be our highest priority; however, we also are
exploring other alternatives to increase stockholder value." |
