The income tax benefit for the fourth quarter of 2010 was $10.4 million compared to a provision of $1.5 million for the fourth quarter of 2009. On March 17, 2011, Lakes and the Louisiana Department of Revenue entered into a Settlement Agreement whereby Lakes agreed to pay the Louisiana Department of Revenue $9.0 million in full and final payment related to a tax litigation matter. In return, the Louisiana Department of Revenue agreed to dismiss the suit and discharge Lakes from all proceedings and liabilities relating to this matter. The current-period tax benefit consists primarily of an $8.5 million tax benefit related to the adjustment to reduce the liability previously recorded for this matter to the $9.0 million settlement amount.
Twelve Month 2010 Results
Net losses for the twelve months ended January 2, 2011 were $13.8 million, compared to net earnings of $3.7 million for the twelve months ended January 3, 2010. Losses from operations were $40.8 million for 2010, compared to $1.0 million for 2009. Basic and diluted losses were $0.52 per share for the twelve months ended January 2, 2011 compared to earnings per share of $0.14 for the twelve months ended January 3, 2010.
Lakes Entertainment reported revenues of $24.6 million for the twelve months ended January 2, 2011, compared to prior-year year revenues of $26.2 million. This decrease was primarily due to a reduction in management fees earned from the Cimarron Casino project, as a result of the termination of that agreement in May 2010, as well as a decrease in management fees earned from the Red Hawk Casino. Partially offsetting the decline was an increase in management fees earned in 2010 from the Four Winds Casino Resort.During 2010, Lakes’ selling, general and administrative expenses were $11.8 million compared to $14.2 million during 2009. Selling, general and administrative expenses consisted primarily of payroll and related expenses, travel expenses and professional fees, all of which decreased compared to the prior year.