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Lakes Entertainment Announces Results For Fourth Quarter And Full Year 2012

Stocks in this article: LACO

About Lakes Entertainment

Lakes Entertainment, Inc. currently owns the Rocky Gap Lodge & Golf Resort near Cumberland, Maryland. Lakes has a management agreement with the Shingle Springs Band of Miwok Indians to manage the Red Hawk Casino. Lakes has an investment in Rock Ohio Ventures, LLC’s casino developments in Ohio.

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, 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; risks of entry into new businesses; reliance on Lakes' management and litigation costs. 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)
     
 
(Unaudited)
      December 30, 2012   January 1, 2012
Assets
Current assets:
Cash and cash equivalents $ 32,480 $ 38,557
Current portion of notes receivable from Indian casino projects - 1,076
Deposits - 2,250
Income taxes receivable 2,161 3,472
Other       1,255       1,130  
Total current assets       35,896       46,485  
Property and equipment, net       13,279       5,063  
Long-term assets related to Indian casino projects:
Notes and interest receivable, net of current portion and allowance 38,247 34,160
Intangible assets 3,127 4,184
Management fees receivable and other       4,786       8,275  
Total long-term assets related to Indian casino projects       46,160       46,619  
Other assets:
Investment in unconsolidated investee 20,161 15,706
License fee 2,100 -
Land held for development 1,130 170
Land held for sale 15 1,729
Other       981       228  
Total other assets       24,387       17,833  
Total assets     $ 119,722     $ 116,000  
 
Liabilities and shareholders' equity
Current liabilities:
Current portion of contract acquisition costs payable, net $ 1,265 $ 1,055
Other       2,978       1,288  
Total current liabilities 4,243 2,343
Long-term contract acquisition costs payable, net       3,302       4,568  
Total liabilities       7,545       6,911  
Total Lakes Entertainment shareholders' equity 112,177 108,739
Noncontrolling interest       -       350  
Total equity       112,177       109,089  
Total liabilities and shareholders' equity     $ 119,722     $ 116,000  
 
 
LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
               
 
Three months ended Twelve months ended
December 30, 2012     January 1, 2012 December 30, 2012     January 1, 2012
Revenues:
Management fees $ 1,395 $ 1,255 $ 7,726 $ 35,397
Room 620 - 1,383 -
Food and beverage 663 - 1,281 -
Other operating 140 - 498 -
License fees and other       13         18     64         176  
Total revenues       2,831         1,273     10,952         35,573  
 
Costs and expenses:
Room 150 - 296 -
Food and beverage 484 - 955 -
Other operating 199 - 415 -
Selling, general and administrative 3,137 1,979 10,191 9,458
Loss on convertible note receivable - - - 4,000
Impairments and other losses 139 5,938 4,453 8,549
Amortization of intangible assets related to operating casinos 264 264 1,056 11,688
Depreciation and amortization       340         57     675         297  
Total costs and expenses       4,713         8,238     18,041         33,992  
 
Net unrealized losses on notes receivable       -         (9,801 )   -         (11,892 )
 
Loss from operations       (1,882 )       (16,766 )   (7,089 )       (10,311 )
 
Other income (expense):
Interest income 1,667 1,517 6,442 5,937
Interest expense (218 ) (267 ) (940 ) (1,182 )
Legal settlement 2,160 - 2,160 -
Other       10         81     123         440  
Total other income, net       3,619         1,331     7,785         5,195  
 
Earnings (loss) before income taxes 1,737 (15,435 ) 696 (5,116 )
Income tax benefit       (235 )       (2,744 )   (2,464 )       (3,234 )
Net earnings (loss) including noncontrolling interest 1,972 (12,691 ) 3,160 (1,882 )
Net loss attributable to noncontrolling interest       -         19     61         37  
 
Net earnings (loss) attributable to Lakes Entertainment, Inc.     $ 1,972       $ (12,672 ) $ 3,221       $ (1,845 )
 
Weighted-average common shares outstanding
Basic 26,441 26,406 26,438 26,403
Diluted       26,480         26,406     26,439         26,403  
Earnings (loss) per share
Basic $ 0.07 $ (0.48 ) $ 0.12 $ (0.07 )
Diluted $ 0.07 $ (0.48 ) $ 0.12 $ (0.07 )
 




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