CDWN Earnings ! .07 vs. (.04) ....Revenues up 187% for 6 months
NEW KENT, Va.--(BUSINESS WIRE)--Aug. 7, 1997--Colonial Downs Holdings, Inc. (NASDAQ/NMS:CDWN) which
holds the only unlimited licenses to own and operate a pari-mutuel horse racing course and satellite wagering facilities in
Virginia, today reported results of operations for the second quarter of 1997.
Net earnings for the second quarter ended June 30, 1997, were $473,000 or $.07 per share compared with a net loss of
$.04 per share for the second quarter of 1996. Revenues for the second quarter were $5,044,000 compared with $
2,337,000 in the second quarter of 1996. Net earnings for the six months ended June 30, 1997, improved by $1,097,000 to
$902,000 or $.17 per share compared with a loss of $195,000 or a loss of $.07 per share in 1996.
Revenues for the first six months of 1997 were $10,461,000, up 187% from $3,642,000 in 1996. Per share calculations are
based upon the weighted average of common shares outstanding as of the end of each quarter. Prior to its initial public
offering, the Company had an equivalent of 3,000,000 shares.
The increase in revenue and earnings during these periods as compared with the same periods a year ago result from the
operation of two racing centers for the entire first half of 1997 as compared to 1996 when only the Chesapeake Racing
Center, which opened on February 17, 1996, was operational. At the end of the second quarter of 1997, the Company had
7,250,000 common shares outstanding as a result of the completion of its initial public offering of 4,250,000 shares effective
March 17, 1997.
Revenues have remained steady at both the Chesapeake and Richmond racing centers through the spring and early summer in
spite of increased competition from other more established summer entertainment venues such as Kings Dominion, Busch
Gardens, Water Country USA, Williamsburg, and triple A minor league professional baseball teams located in these areas.
Commenting on the results for the first half of 1997, Chairman and Chief Executive Officer Jeff Jacobs said: "We are pleased
that our fan support and revenue have remained relatively constant throughout the first half of 1997, and we look forward a
more productive second half when live racing begins in Virginia. We expect to have a very challenging and exciting period
ahead of us with the inaugural race meet, the opening of new racing centers this fall in Brunswick and Hampton, and
referendums in three localities in November."
Construction of the racetrack and grandstand facility in New Kent County, Virginia is almost complete and on schedule to
open on September 1, 1997. Thirty days of thoroughbred racing are scheduled from September 1, 1997 through October 12,
1997. In 1998, the harness season will begin on April 23 and run through the July 4th weekend.
Construction of the Hampton and Brunswick satellite facilities is well underway and they are scheduled for completion in
September 1997. Referendums are planned for localities around the state in November to seek approval for two additional
racing centers to be opened in 1998. Localities that are being studied are Roanoke, Fredericksburg, and Martinsville.
In June, the Company signed a $10,000,000 construction loan and a $5,000,000 revolving line of credit with PNC Bank.
Proceeds from these loans will be used to finance completion of construction at the race track and provide working capital for
other corporate purposes. Statements regarding additional racing center opening dates, referendums and certain other
statements contained in this news release are forward-looking statements and, as such, involve known and unknown risks,
uncertainties and other factors which may cause the actual results of the Company to be materially different from any future
results performance or achievements expressed or implied by such forward-looking statements.
Such potential risks, uncertainties and factors include but are not limited to the risk of construction delays including unforeseen
environmental, engineering or geological problems, governmental regulation, including licensing of additional racing centers
and, approvals by the Virginia Racing Commission, competition with other sporting events and forms of entertainment, and the
success of planned marketing and advertising and promotional efforts. Investors are also directed to consider other risks and
uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission.
Colonial Downs Holdings, Inc. is a Virginia corporation organized in November 1996 to pursue opportunities for horse racing
wagering in Virginia. The Company, through its two wholly-owned subsidiaries Colonial Downs, L.P. and Stansley Racing
Corporation, holds the only unlimited licenses to own and operate a pari-mutuel horse racing course and satellite wagering
facilities/racing centers in Virginia. Colonial Downs Holdings, Inc. became a publicly-held company in March of 1997 and
trades on the NASDAQ National market System under the symbol CDWN. |
