This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Lakes Entertainment Announces Results For Fourth Quarter And Full Year 2011

Lakes Entertainment, Inc. (NASDAQ: LACO) today announced results for the three and twelve months ended January 1, 2012.

Fourth Quarter Results

Net losses for the fourth quarter of 2011 were $12.7 million, compared to $28.1 million in the fourth quarter of 2010. Losses from operations were $16.8 million for the fourth quarter of 2011, compared to losses of $39.5 million for the fourth quarter of 2010. Basic and diluted losses were $0.48 per share for the fourth quarter of 2011 compared to losses of $1.07 per share for the fourth quarter of 2010.

Lakes Entertainment reported fourth quarter 2011 revenues of $1.3 million, compared to fourth quarter 2010 revenues of $4.7 million. This decline was due to the elimination of management fees from the Four Winds Casino Resort as a result of the early buy-out of the management agreement for that property during the second quarter of 2011.

For the fourth quarter of 2011, Lakes’ selling, general and administrative expenses were $2.0 million compared to $2.3 million in the fourth quarter of 2010. Selling, general and administrative expenses consisted primarily of payroll and related expenses, travel expenses and professional fees. This decline resulted primarily from decreases in payroll and related expenses and travel expenses during the fourth quarter of 2011 compared to the fourth quarter of 2010.

At the end of 2010, Lakes concluded that the notes receivable from the Shingle Springs Tribal Gaming Authority were impaired, resulting in an impairment charge on notes receivable of $21.0 million during the fourth quarter of 2010. This impairment was taken because it was estimated that substantial amounts due would not be repaid within the contract terms due to various factors which negatively impacted cash flows for the property. No additional impairment charges were recorded during 2011.

Lakes recognized impairments and other losses of $5.9 million during the fourth quarter of 2011 and $18.8 million during the fourth quarter of 2010. Impairment losses for the fourth quarter of 2011 included losses of $3.3 million related to the early termination of the Company’s airplane lease. Also included were impairments of $1.3 million during the fourth quarter of 2011, and $1.6 million during the fourth quarter of 2010, due to declines in the estimated fair value of land owned by Lakes in Vicksburg, Mississippi. Fourth quarter 2011 impairment losses of $1.3 million in 2011, and $0.5 million in 2010, were due to the continued uncertainty surrounding the completion of the project with the Jamul Indian Village (“Jamul Tribe”) near San Diego, California. As previously announced, due to Lakes’ corporate strategic objectives, during March 2012, Lakes determined that it would not continue to move forward with the Jamul casino project and terminated its agreement with the Jamul Tribe. In addition, the fourth quarter 2010 impairment losses included $16.7 million related to intangible assets associated with the Shingle Springs project. These intangible assets were impaired because their carrying value exceeded estimated future cash flows. There were no additional impairment charges taken on these intangible assets during 2011.

1 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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

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