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
TheStreet Open House

Lakes Entertainment Announces Results For Third Quarter 2011

Further commenting, Tim Cope, President and Chief Financial Officer of Lakes stated, "In August we made an additional $7.4 million investment in Rock Ohio Ventures, LLC and its casino developments in Cincinnati and Cleveland. As a result, our total investment in Rock Ohio is now approximately $15.7 million and we look forward to continuing our involvement with these casino projects as they progress.” Mr. Cope continued, “We remain focused on the results of the Red Hawk Casino and we continue to work with the Jamul Indian Village on development efforts for a casino operation near San Diego.”

About Lakes Entertainment

Lakes Entertainment, Inc. currently has development and management or financing agreements with two separate Bands for casino operations in California, for a total of two separate casino sites. Lakes is currently managing the Red Hawk Casino for the Shingle Springs Band of Miwok Indians.

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)
           
 
 
            October 2, 2011     January 2, 2011
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 44,296 $ 45,233
Accounts receivable 12 1,696
Current portion of notes receivable from Indian casino projects 694 2,405
Deposit 2,100 -
Income taxes receivable 1,253 -
  Other         940       1,983
Total current assets       49,295       51,317
Property and equipment, net       5,098       5,103
Long-term assets related to Indian casino projects:
Notes and interest receivable, net of current portion and allowance 33,575 31,192
Notes receivable at fair value 9,641 11,129
Intangible assets 4,448 15,873
  Management fee receivable and other       7,467       6,155
Total long-term assets related to Indian casino projects       55,131       64,349
Other assets:
Investment in unconsolidated investee 15,706 2,367
Land held for development 170 3,470
Land held for sale 3,000 -
  Other         454       40
Total other assets       19,330       5,877
Total assets     $ 128,854     $ 126,646
 
Liabilities and shareholders' equity
Current liabilities:
Current portion of contract acquisition costs payable, net $ 1,008 $ 1,326
Income taxes payable - 7,822
  Other         1,541       1,683
Total current liabilities 2,549 10,831
Long-term contract acquisition costs payable, net       4,850       5,830
Total liabilities       7,399       16,661
Total Lakes Entertainment shareholders' equity 121,268 109,985
  Noncontrolling interest       187       -
Total equity       121,455       109,985
Total liabilities and shareholders' equity     $ 128,854     $ 126,646

 

 

 
 
LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Earnings (Loss)
(In thousands, except per share data)
               
 
Three months ended Nine months ended
October 2, 2011   October 3, 2010 October 2, 2011   October 3, 2010
Revenues:
Management fees $ 222 $ 8,155 $ 34,142 $ 19,876
  License fees and other       28       17     158       52  
    Total revenues       250       8,172     34,300       19,928  
 
Costs and expenses:
Selling, general and administrative 2,537 2,936 7,479 9,425
Loss on convertible note receivable 4,000 - 4,000 -
Impairments and other losses 1,102 632 2,611 4,002
Amortization of intangible assets related to operating casinos 264 2,785 11,424 8,355
Loss on disposal of property and equipment 76 - 76 -
  Depreciation       52       65     164       196  
    Total costs and expenses       8,031       6,418     25,754       21,978  
 
Net unrealized gains (losses) on notes receivable       (2,709 )     450     (2,091 )     762  
 
Earnings (loss) from operations       (10,490 )     2,204     6,455       (1,288 )
 
Other income (expense):
Gain on divestiture of cost method investment - 23,100 - 23,100
Interest income 1,439 1,682 4,420 5,776
Interest expense (273 ) (446 ) (915 ) (1,678 )
Equity in loss of unconsolidated investee - - - (64 )
  Other       119       (508 )   359       (20 )
    Total other income, net       1,285       23,828     3,864       27,114  
 
Earnings (loss) before income taxes (9,205 ) 26,032 10,319 25,826
  Income taxes (benefit)       (9,149 )     10,976     (490 )     11,548  
Net earnings (loss) including noncontrolling interest (56 ) 15,056 10,809 14,278
  Net loss attributable to noncontrolling interest       18       -     18       -  
 
Net earnings (loss) attributable to Lakes Entertainment, Inc.     $ (38 )   $ 15,056   $ 10,827     $ 14,278  
 
Weighted-average common shares outstanding
Basic 26,406 26,369 26,402 26,369
  Diluted       26,406       26,426     26,427       26,425  
Earnings (loss) per share
Basic $ 0.00 $ 0.57 $ 0.41 $ 0.54
Diluted $ 0.00 $ 0.57 $ 0.41 $ 0.54
 




6 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs