Canterbury Park Reports Q3 Results

Canterbury Park Holding Corporation today announced financial results for the third quarter and nine months ended September 30, 2005.

The Company earned net income of $688,372 on revenues of $16,485,467 for the three months ended September 30, 2005, compared to net income of $1,064,204 on revenues of $17,279,804 for the same period in 2004. Diluted earnings per share for the third quarter of 2005 were $.16 compared to $.26 for the third quarter of 2004. Further results for the first nine months of 2005 are presented in the accompanying table.

Revenues for the third quarter decreased approximately $794,000, a 5% decrease compared to the third quarter ended September 30, 2004. The decrease in third quarter revenues is primarily due to a 9.4% decrease in pari-mutuel revenues when compared to the same quarter in 2004, reflecting a significant increase in competition from Internet pari-mutuel wagering. In addition, third quarter Card Club revenues decreased approximately 3% when compared to the same period in 2004 reflecting increased poker revenues offset by decreasing revenues in the casino games room due to increased competition from local Native American casinos. Operating expenses decreased slightly in the three months ended September 30, 2005 compared to the third quarter last year. The decrease in operating expense is primarily attributable to a decrease in statutory purses and Minnesota Breeders Fund expenses, related to the reduction in pari-mutuel revenues, which were partially offset by an increase in depreciation expense caused by recent major building and backside improvements.

Commenting on results, Randy Sampson, Canterbury Park's President stated, "The decline in pari-mutuel revenues was not unexpected as this reflects the experience of racetracks around the country. Internet wagering on horse racing continues to grow at a rapid pace and has had a negative impact on our simulcast operations. In addition, the decrease in Card Club revenues is disappointing to us and demonstrates the effects of expanded gaming offerings at Native American casinos in Minnesota. Ten of the eleven tribes now offer unbanked card games in direct competition with our Card Club."

"As we look to the future, we are confident the Company has exciting growth opportunities," continued Mr. Sampson. "We will continue to seek legislative approval for expanded gaming options at the Racetrack. In addition, we are starting to plan for the potential development of our 380-acre site in Shakopee. We believe this property, located in one of the fastest growing areas in the region, has the potential to be developed into a unique entertainment complex over the next five to ten years, and provides additional opportunities to grow our revenues and enhance shareholder value."