This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Lakes Entertainment Announces Results For Fourth Quarter And Full Year 2010

Further commenting, Lyle Berman, Chief Executive Officer of Lakes, stated, “We continue to have a balance sheet with no debt, which provides us flexibility when considering potential new business opportunities. Our cash position is strong and we continue to move forward with our investment in Rock Ohio Ventures, LLC and its proposed casino developments in Cincinnati and Cleveland. Since the end of 2010 we have invested an additional $6.0 million in these projects and we look forward to making further investments as development progresses. We also continue to evaluate other projects which we believe will add value to our company.”

About Lakes Entertainment

Lakes Entertainment, Inc. currently has development and management or financing agreements with three separate Tribes for casino operations in Michigan, and California, for a total of three separate casino sites. Lakes is currently managing the Four Winds Casino Resort for the Pokagon Band of Potawatomi Indians and the Red Hawk Casino for the Shingle Springs Band of Miwok Indians. Lakes is also involved in other business activities, including the development of new table games for licensing to Tribal and non-Tribal casinos.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Lakes Entertainment, Inc.) contains statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as other capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and competition. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the company. These risks and uncertainties include, but are not limited to, need for potential future financing to meet Lakes’ development needs; those relating to the inability to complete or possible delays in completion of Lakes' casino projects, including various regulatory approvals and numerous other conditions which must be satisfied before completion of these projects; possible termination or adverse modification of management or development contracts; Lakes operates in a highly competitive industry; possible changes in regulations; reliance on continued positive relationships with Indian tribes and repayment of amounts owed to Lakes by Indian tribes; possible need for future financing to meet Lakes' expansion goals; risks of entry into new businesses; and reliance on Lakes' management. For more information, review the company's filings with the Securities and Exchange Commission.
       
LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
 
 
        January 2, 2011   January 3, 2010
Assets (In thousands)
Current assets:
Cash and cash equivalents $ 45,233 $ 3,751
Accounts receivable 1,696 1,457
Current portion of notes receivable from Indian casino projects 2,405 6,671
Investment securities, including rights - 24,317
Other     1,983     2,478
Total current assets     51,317     38,674
Property and equipment, net     5,103     5,334
 
Long-term assets related to Indian casino projects:
Notes receivable, net of current portion and allowance 30,857 46,100
Notes receivable at fair value 11,129 13,254
Intangible assets 15,873 45,064
Other     6,490     6,137
Total long-term assets related to Indian casino projects     64,349     110,555
Other assets:
Investment in unconsolidated investees 2,367 12,441
Land held for development 3,470 4,900
Deferred taxes and other     40     1,833
Total other assets     5,877     19,174
Total assets   $ 126,646   $ 173,737
 
Liabilities and shareholders' equity
Current liabilities:
Line of credit payable $ - $ 16,346
Non-revolving line of credit payable - 2,000
Current portion of contract acquisition costs payable 1,326 2,232
Income taxes payable 7,822 17,069
Other     1,683     2,454
Total current liabilities 10,831 40,101
 
Long-term contract acquisition costs payable, net of current portion     5,830     10,197
 
Total liabilities     16,661     50,298
             
Total shareholders' equity     109,985     123,439
 
Total liabilities and shareholders' equity   $ 126,646   $ 173,737
 
           
LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (Loss)
 
 
Three months ended Twelve months ended
January 2, 2011   January 3, 2010 January 2, 2011   January 3, 2010
(In thousands, except per share data)
Revenues:
Management fees $ 4,654 $ 5,245 $ 24,530 $ 26,161
License fees     20       16     72      

59
 
Total revenues     4,674       5,261     24,602       26,220  
 
Costs and expenses:
Selling, general and administrative 2,341 2,915 11,766 14,232
Impairment charge on notes receivable 20,975 - 20,975 -
Impairment losses - other 18,832 1,289 22,834 4,166
Amortization of intangible assets related to operating casinos 2,784 2,787 11,139 10,417
Depreciation     64       68     260       279  
Total costs and expenses     44,996       7,059     66,974       29,094  
 
Net unrealized gains (losses) on notes receivable     836       (1,372 )   1,598       1,875  
 
Loss from operations     (39,486 )     (3,170 )   (40,774 )     (999 )
 
Other income (expense):
Gain on divestiture of cost method investment - - 23,100 -
Interest income 1,271 2,749 7,047 8,033
Interest expense (329 ) (322 ) (2,007 ) (2,014 )
Equity in loss of unconsolidated investees - (231 ) (64 ) (248 )
Other     36       -     16       351  
Total other income (expense), net     978       2,196     28,092       6,122  
 
Earnings (loss) before income taxes (benefit) (38,508 ) (974 ) (12,682 ) 5,123
Income taxes (benefit)     (10,394 )     1,456     1,154       1,420  
 
Net earnings (loss)   $ (28,114 )   $ (2,430 ) $ (13,836 )   $ 3,703  
 
Earnings (loss) per share - basic & diluted   $ (1.07 )   $ (0.09 ) $ (0.52 )   $ 0.14  
 
Weighted-average common shares outstanding - basic     26,369       26,328     26,370       26,327  
 
Dilutive effect of common stock equivalents     -       -     -       84  
 
Weighted-average common shares outstanding - diluted     26,369       26,328     26,370       26,411  
 

6 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs