NEW KENT, Va.--(BUSINESS WIRE)--Nov. 14, 2000--Colonial Holdings, Inc. (NASDAQ: OTC: CHLD) which through its subsidiaries holds the only licenses to own and operate a pari-mutuel horseracing course and satellite racing centers in Virginia, today reported results of operations for the third quarter ended September 30, 2000.
For the nine months ended September 30, 2000, the Company reported a net loss of $1,348,000 or $0.19 per share compared with a net loss of $1,163,000 or $0.16 per share for the same period in 1999. Revenues for the first nine months of 2000 were $21,529,000 compared with $22,037,000 for the same period in 1999. The Company reported a net loss for the third quarter of 2000 of $832,000 or $0.11 per share compared to a loss of $647,000 or $0.09 per share for the corresponding period of 1999. Total revenue in the third quarter of 2000 was $7,656,000 compared to $7,781,000 in the third quarter of 1999.
Results for the three and nine month periods ended September 30, 2000 reflect a reduction in revenues primarily as a result of a later harness meet in 2000 than in 1999 (and hence fewer racing days during the period). Direct operating expenses have increased primarily due to an increase in purse expense resulting from the new agreements with the Virginia Horsemen's Benevolent and Protective Association, Inc. (the ``VaHBPA'') and the Virginia Harness Horse Association (the ``VHHA''). Purse expenses were approximately $609,000 and $1,640,000 higher and other direct expenses were $307,000 and $614,000 lower for the three and nine months ended September 30, 2000, respectively, than for the corresponding periods of the prior year. The decrease in other direct expenses is due to no live harness racing being conducted during the three and nine months ended September 30, 2000 versus 15 days and 30 days of live harness racing during the corresponding period of the prior year.
The Company is moving forward with its plans to manage video poker truck stops in Louisiana for Jalou, an affiliate of the Chairman and CEO of the Company. Jalou has entered into option agreements to acquire seven existing truck stops in Louisiana. It is anticipated that Jalou will close the truck stop acquisitions in January 2001, subject to licensing in Louisiana and financing.
Ian M. Stewart, President of the Company said, ``We are continuing our efforts to diversify the Company into areas outside of pari-mutuel wagering in Virginia. We believe this strategy provides the Company with the best opportunity to increase the value of our shareholders' investment.'' |
