|Canterbury Park Provides Further Information Regarding Possible Suspension of Operations Due to Pending Minnesota State Government Shutdown|
SHAKOPEE, Minn., Jun 17, 2011 (BUSINESS WIRE) --
On June 14, 2011, Canterbury Park Holding Corporation (NASDAQ:CPHC) reported that it may be forced to suspend all or substantially all of its operations on July 1, 2011 if the current budget impasse between Minnesota's Governor and Legislature continues into July and if layoff notices recently sent to employees of the Minnesota Racing Commission (the "MRC"), which regulates Canterbury Park's gaming operations, remain in effect on July 1, 2011. Today, Randy Sampson, Canterbury Park's President and CEO, provided additional information about steps being taken to avoid a suspension of operations, as well as what the impact on the Company could be if substantially all operations were suspended beginning July 1.
"We are working with the MRC to evaluate various options that might allow the Company to keep all or part of its gaming operations open even if the budget impasse continues into July," began Mr. Sampson. "However, at this time, we can provide no assurance that we will be able to avoid a complete suspension of operations on July 1."
Mr. Sampson continued: "If we were forced to suspend all horse racing, simulcasting and Card Casino operations, the result would be a significant, adverse impact on the Company. We would lose gaming and concession revenues in excess of $1 million per week but would continue to incur substantial operating expenses, including expenses to support our backside horse population. Without any revenues coming in, we would be forced to lay off substantially all of our 1,000 full time and part time employees causing hardship for them and their families. The shutdown would have a particularly severe impact on Canterbury over the Fourth of July weekend, which is typically the busiest weekend of the year."
Mr. Sampson added: "Unless there is a quick end to the budget impasse, another concern is that owners and trainers will likely start moving their horses from Canterbury to other racetracks within a week or two of July 1, and once they leave it is unlikely they will return. Clearly, if the budget impasse continues beyond early to mid-July the impact could be devastating for Canterbury and the horse industry. We could lose the entire remainder of the racing season."
Mr. Sampson concluded: "Although the MRC is among the state agencies that are slated to be closed in the event of a government shutdown, we believe Canterbury should be permitted to operate even if the budget impasse continues into July. Canterbury pays all of the costs incurred to regulate our operations, which in 2010 represented roughly $1 million in total fees. We are exploring this common sense solution with the MRC so that unnecessary harm to Canterbury, its employees and the horse industry can be avoided."
About Canterbury Park:
SOURCE: Canterbury Park Holding Corporation
|"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Canterbury Park Holding's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.|