Other income, net, was $2.7 million for the six months ended July 1, 2012 compared to $2.6 million for the six months ended July 3, 2011, a significant portion of which relates to non-cash accretion of interest on the Company’s notes receivable.
The income tax benefit for the six months ended July 1, 2012 was $2.1 million compared to a tax provision of $8.7 million for the prior year period. Lakes’ income tax benefit in the current year period was primarily due to the Company’s ability to carry back its estimated 2012 taxable loss to a prior year and receive a refund of taxes previously paid. Lakes’ income tax provision in the prior year period consisted primarily of current income tax provision.
Tim Cope, President and Chief Financial Officer of Lakes stated, "We are pleased that second quarter 2012 results showed improvements over second quarter 2011 at the Red Hawk Casino and we continue to work closely with the property’s executive team, as well as the Shingle Springs Tribal Gaming Authority, to manage this property as efficiently as possible with the goal of continuing this positive trend.” Mr. Cope continued, “As previously announced, we purchased the Rocky Gap Lodge & Golf Resort near Cumberland, Maryland earlier this month. We are very excited to proceed with developing a casino on this property, which we currently expect to open mid-2013. The existing hotel and golf course will remain open throughout the development timeframe.”
Further commenting, Lyle Berman, Chief Executive Officer of Lakes stated, “We continue to maintain a 10% ownership interest in Rock Ohio Ventures, LLC and its casino developments in Cincinnati and Cleveland, Ohio, and we made an additional investment of $4.5 million during the second quarter, bringing our current cash investment to $20.2 million. In May of 2012, the Horseshoe Casino Cleveland opened and we look forward to the opening of the casino in Cincinnati during 2013.” Mr. Berman continued, “Our focus remains on achieving increased shareholder value by maximizing returns from existing operations and investments, as well as evaluating potential new projects.”