Twelve Month ResultsNet earnings for the twelve months ended December 30, 2012 (“2012”) were $3.2 million, compared to net losses of $1.8 million for the twelve months ended January 1, 2012 (“2011”). Loss from operations was $7.1 million for 2012 compared to $10.3 million for 2011. Basic and diluted earnings were $0.12 per share for 2012 compared to losses of $0.07 per share for 2011.
Lakes Entertainment reported revenues of $11.0 million for 2012, compared to revenues of $35.6 million in the prior year. The decrease in revenues was primarily due to the buy-out of the management agreement for the Four Winds Casino Resort during June of 2011. Pursuant to the buy-out agreement, the Pokagon Band of Potawatomi Indians paid Lakes a buy-out fee of approximately $24.5 million. The decrease was partially offset by an increase in fees earned from the management of the Red Hawk Casino during 2012, compared to 2011, as well as the addition of $3.2 million in revenues associated with the operation of Rocky Gap.
During 2012, property operating expenses for Rocky Gap which related primarily to rooms, food and beverage and golf were $1.7 million. Rocky Gap was acquired on August 3, 2012, therefore, there were no such expenses for 2011.
For 2012, Lakes’ selling, general and administrative expenses were $10.2 million compared to $9.5 million for 2011. Included in these amounts were Lakes corporate selling, general and administrative expenses of $7.8 million and $9.2 million, during fiscal 2012 and fiscal 2011, respectively, and Rocky Gap selling, general and administrative expenses of $2.4 million during 2012 and administrative costs associated with the acquisition of Rocky Gap of $0.3 million, during fiscal 2011. The increase resulted from the addition of administrative costs and professional fees associated with the acquisition and operation of Rocky Gap which were partially offset by decreases in corporate travel and related expenses due to the termination of Lakes’ aircraft lease during the fourth quarter of 2011, as well as decreases in corporate payroll and related expenses.