Track owner makes new run at Hollywood Park; Hubbard, chair of AFG Industries, owns two tracks.

Track owner makes new run at Hollywood Park

Hubbard, chair of AFG Industries, owns two tracks

The owner of race tracks in New Mexico and Missouri has acquired a 9.9 percent stake in companies that own and operate Hollywood Park in Inglewood and may launch an attempt to place

According to documents filed with the Securities and Exchange Commission last week, R.D. Hubbard said he had acquired an interest in the two companies and that he may launch a proxy fight for control of the track, which has had financial troubles but recently said it has returned to profitability.

Four years ago, Hubbard, who is chairman of AFG Industries, and Denver investor Thomas Gamel, tried to buy the track for $133 million, but their offer was rejected. Last year Gamel threatened a proxy fight but withdrew his slate of board candidates when he was made a director of the track.

Hubbard, who owns Ruidoso Downs in Ruidoso, N.M., and Woodlands Race Track in Kansas City, paid $1.1 million for his shares in Hollywood Park Realty Enterprises Inc. and Hollywood Park operating Co. between June 19 and July 31.

Hubbard, a partner in the Los Alamitos race track that Hollywood Park sold last year, said in the filing that he plans to seek representation on the boards of both companies and "possibly" try to gain control. The statement also said Hubbard may solicit proxies for the elections to the boards.

In a statement, Hollywood Park said, "It makes no sense to turn control of the company over to someone with no experience managing a major thoroughbred race track."

Charles Perkins, a spokesman for both companies and the race track, said, "We have instituted many new marketing programs like night racing and simulcasting that have helped us turn the track around.

"Our net income for the second quarter has gone up 87 percent, so it is unlikely that we would be interested in giving up control when we have shown such improvement," he said.

Perkins said Hubbard has not indicated to either of the firms that he plans a takeover attempt.

"The only thing we have is the statement where he said he might try to seek representation on the board."

The Hollywood Park companies have lost more than $24 million over the past three years, due mainly to the debt load of financing the purchase of the Los Alamitos track in Orange County. The development plans were scrapped and the track was sold when the companies were unable to get local approvals for the project.

Recently, however, Hollywood Park Operating Co., which operates the race track, and Hollywood Realty, owner of the facility, appear to be improving their financial performance.

In their latest financial report, for the second quarter that ended on June 30, the firms said net income rose to $6.15 million, or $1.55 per share, compared to $3.28 million, or 83 cents a share for the same 1989 period. The company paid its first dividend in three years in June.

For the six months period that ended on June 30, the companies reported income of $3.32 million, or 84 cents per share, compared with a net loss of $3.2 million, or 81 cents a share, in the prior year.