CDI, nevertheless, reported record third-quarter revenues of $121.2million (B135m) - an increase of 16.8 percent on the $103.8m (B116m) in revenues for the same period last year. Net earnings for the quarter were $7.1m (B8m), compared with $7.3m (B8.2m) in 2000.
"Although we maintained a solid level of profitability for the quarter, our earnings were modestly below published analyst estimates due to the impact of the attacks of September 11 and the subsequent economic slowdown,” said Thomas Meeker, CDI's president and chief executive officer.
“The appropriate decision to close our live racing and off-track betting operations for two days after the incidents obviously had a direct impact on earnings. For the most part, we also experienced a slower pace of activity in on-track attendance and handle after we re-opened our facilities that were conducting live racing, a trend that continues at most of our racetracks."
Meeker noted that the Company's year-to-year comparisons in net revenues and operating income for the third quarter were aided significantly by the incremental contribution from Arlington Park in excess of the management fees earned in 2000.
Meeker stressed the importance to the fourth quarter of autumn meets at Churchill Downs and Hollywood Park, in addition to the continuation of live race meets at Calder and Hoosier Park.
“We continue to expect to report higher revenues and earnings for the quarter versus a year ago, and we anticipate the full-year results will mark new annual records for CDI in revenues and net income,” said Meeker.
Meeker concluded: "Our experience with the economic slowdown this year and the tumultuous events related to September 11 reassures us of the stability of demand for our racing-related products and services.”
