Canterbury Park Holding Corporation Announces Dividend Policy and Declares First Quarterly Cash Dividend
16 September 2016 - 2:30AM
Business Wire
Canterbury Park Holding Corporation (the “Company”) (NASDAQ:
CPHC) today announced that as part of the Company's commitment to
maximize shareholder value, the Board of Directors has approved the
initiation of a new dividend policy. Pursuant to its dividend
policy, the Company intends to pay regular quarterly cash dividends
to its shareholders on a record date and in an amount to be
determined quarterly by the Board of Directors. The Company also
announced its Board of Directors has declared its first quarterly
cash dividend which will be in the amount of $0.05 per share and
will be paid on October 14, 2016 to the holders of record on
September 30, 2016. At this quarterly rate, the annual dividend is
equivalent to $.20 per common share.
Randy Sampson, Canterbury Park’s President and CEO commented:
"I’m pleased to announce the initiation of a quarterly dividend
that affords us another avenue to share our successes with our
shareholders. This new dividend policy has been driven by our
strong balance sheet and continuous positive cash flows from our
core businesses. Over the last several years we have used a portion
our cash from operations to make strategic investments to enhance
our Racetrack and Card Casino facilities and to lay the groundwork
for development of our land that is not required for our horse
racing operations. We believe we have sufficient capital and
earnings to continue to make such investments for the foreseeable
future and, at the same time, return a portion of our capital to
shareholders in the form of cash dividends.”
Mr. Sampson added: “It should also be noted that our new policy
builds on our long standing commitment to deliver value to
shareholders in the form of dividends, in that, since 2002, we have
paid special cash dividends to our shareholders totaling $10.6
million. Therefore, with confidence in our financial strength and
long term prospects we will now pay cash dividends quarterly.”
Mr. Sampson concluded: “After the dividend we are announcing
today, we expect to pay dividends approximately in the middle of
January, April, July and October each year. Future dividends are,
however, subject to Board approval and may be adjusted at the
discretion of the Board as business circumstances and needs
change.”
About Canterbury
Park:Canterbury Park Holding Corporation (the
Company) owns and operates Canterbury Park Racetrack and Card
Casino, Minnesota’s only thoroughbred and quarter horse racing
facility. The Company’s 69-day 2016 live race meet began on May
20th and ends September 17th. In addition, Canterbury Park’s Card
Casino hosts “unbanked” card games 24 hours a day, seven days a
week, offering both poker and table games. The Company also
conducts year-round wagering on simulcast horse racing and hosts a
variety of other entertainment and special events at its facility
in Shakopee, Minnesota. For more information about the Company,
please visit us at www.canterburypark.com.
The Company was incorporated as a Minnesota corporation in
October 2015. The Company is a successor corporation to another
corporation, also named Canterbury Park Holding Corporation, that
was incorporated in 1994 (“CPHC”). Effective June 30, 2016 CPHC’s
business and operations were reorganized into a holding company
structure (the “Reorganization”) pursuant to an Agreement and Plan
of Merger dated as of March 1, 2016 that was approved by CPHC’s
shareholders on June 28, 2016. Pursuant to the Reorganization: The
details of the Reorganization have been the subject of previous
public announcements and filings with the Securities and Exchange
Commission. For purposes of this press release, when the term
“Company” is used with reference to information covering or related
to periods up to and including June 30, 2016, such term refers to
the operations of CPHC prior to the Reorganization.
Cautionary
Statement:From time to time, in press releases
and in other communications to shareholders or the investing
public, Canterbury Park Holding Corporation may make
forward-looking statements concerning possible or anticipated
future financial performance, business activities or plans based on
management’s beliefs and assumptions. These forward looking
statements are typically preceded by the words such as "believes,"
"expects," "anticipates," "intends" or similar expressions.
Shareholders and the investing public should understand that these
forward-looking statements are subject to risks and uncertainties,
including those disclosed in our periodic filings with the
Securities and Exchange Commission, which could cause actual
performance, activities or plans after the date the statements are
made to differ significantly from those indicated in the
forward-looking statements when made.
The Board of Directors will evaluate on a regular basis factors
such as cash flow, earnings, cash and cash equivalents on the
Company’s balance sheet, overall financial position, and other
relevant matters in its determination of whether to pay a regular
quarterly cash dividend and the amount of such dividend. In the
event the Board of directors determines it is not in the best
interests of the Company to pay a cash dividend, the Board may
decide to postpone, reduce or cancel such regular quarterly cash
dividend.
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version on businesswire.com: http://www.businesswire.com/news/home/20160915006028/en/
Canterbury Park Holding CorporationRandy Sampson,
952-445-7223
Canterbury Park (NASDAQ:CPHC)
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