Lakes Entertainment, Inc. (NASDAQ: LACO) today announced results for the three months and six months ended July 3, 2011.
Second Quarter ResultsNet earnings for the second quarter of 2011 were $9.5 million, compared to $3.9 million in the second quarter of 2010. Earnings from operations were $15.8 million for the second quarter of 2011 compared to a loss from operations of $3.5 million for the second quarter of 2010. Basic and diluted earnings were $0.36 per share for the second quarter of 2011 compared to $0.15 per share for the second quarter of 2010.
Lakes Entertainment reported second quarter 2011 revenues of $28.2 million, compared to prior-year second quarter revenues of $4.8 million. During the second quarter of 2011, the Pokagon Band of Potawatomi Indians (“Pokagon Band”) exercised its right to buy out the remaining term of the Third Amended and Restated Management Agreement (“Management Agreement”) between the Pokagon Band and Lakes for the management of the Four Winds Casino Resort, which was scheduled to expire on August 1, 2012. Pursuant to the Buy-Out and Termination Agreement (“Buy-Out Agreement”), on June 30, 2011, the Pokagon Band paid to Lakes a buy-out fee of approximately $24.5 million. The Buy-Out Agreement terminated the Management Agreement resulting in Lakes having no further obligations or responsibilities with respect to the Four Winds Casino Resort. The Buy-Out Agreement was the primary reason for the increase in revenues and net earnings during the second quarter of 2011 compared to the second quarter of 2010.
For the second quarter of 2011, Lakes’ selling, general and administrative expenses decreased in comparison to the second quarter of 2010 by approximately $1.0 million to $2.3 million. 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 period.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV