Lakes Entertainment Announces Results For First Quarter 2011

Further commenting, Lyle Berman, Chief Executive Officer of Lakes stated, “During the first quarter, we made additional investments of approximately $6.0 million related to our investment in Rock Ohio Ventures, LLC and its proposed casino developments in Cincinnati and Cleveland. We look forward to the continued progress of these projects which we believe will add value to our company. We also continue to evaluate other potential projects in order to increase shareholder value.”

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
(In thousands)
			April 3, 2011			January 2, 2011
Assets			(Unaudited)
Current assets:
	Cash and cash equivalents		$	31,426		$	45,233
	Accounts receivable			2,864			1,696
	Current portion of notes receivable from Indian casino projects			1,696			2,405
	Income tax receivable			929			-
	Other			1,370			1,983
Total current assets				38,285			51,317
Property and equipment, net				5,051			5,103
Long-term assets related to Indian casino projects:
	Notes and interest receivable, net of current portion and allowance			31,808			31,192
	Notes receivable at fair value			12,122			11,129
	Intangible assets			13,930			15,873
	Management fee receivable and other			6,844			6,155
Total long-term assets related to Indian casino projects				64,704			64,349
Other assets:
	Investment in unconsolidated investees			8,354			2,367
	Land held for development			3,470			3,470
	Other			40			40
Total other assets				11,864			5,877
Total assets			$	119,904		$	126,646
Liabilities and shareholders' equity
Current liabilities:
	Current portion of contract acquisition costs payable		$	1,311		$	1,326
	Income taxes payable			-			7,822
	Other			1,545			1,683
Total current liabilities				2,856			10,831
Long-term contract acquisition costs payable, net of current portion				5,518			5,830
Total liabilities				8,374			16,661
Total shareholders' equity				111,530			109,985
Total liabilities and shareholders' equity			$	119,904		$	126,646

LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Earnings (Loss)
(In thousands, except per share data)
				Three months ended
				April 3, 2011				April 4, 2010
Revenues:
	Management fees			$	5,835			$	6,937
	License fees and other				58				17
		Total revenues			5,893				6,954
Costs and expenses:
	Selling, general and administrative				2,656				3,235
	Impairment losses - other				874				2,664
	Amortization of intangible assets related to operating casinos				1,943				2,785
	Depreciation				57				65
		Total costs and expenses			5,530				8,749
Net unrealized gains on notes receivable					862				1,770
Earnings (loss) from operations					1,225				(25	)
Other income (expense):
	Interest income				1,468				2,247
	Interest expense				(321	)			(687	)
	Equity in loss of unconsolidated investees				-				(27	)
	Other				-				(72	)
		Total other income (expense), net			1,147				1,461
Earnings before income taxes					2,372				1,436
	Income taxes				992				6,123
Net earnings (loss)				$	1,380			$	(4,687	)
Weighted-average common shares outstanding
	Basic				26,398				26,361
	Diluted				26,428				26,361
Earnings (loss) per share
	Basic			$	0.05			$	(0.18	)
	Diluted			$	0.05			$	(0.18	)

« First ‹ Previous 1 2 3 4 Next › Last »