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TheStreet Open House

Lakes Entertainment Announces Results For Second Quarter 2013

Stocks in this article: LACO

About Lakes Entertainment

Lakes Entertainment, Inc. currently owns the Rocky Gap Casino 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 and racino developments in Ohio, and an investment in Dania Entertainment Center, LLC’s Dania Jai Alai fronton in Dania Beach, Florida.

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)
      June 30, 2013     December 30, 2012
Assets
Current assets:
Cash and cash equivalents $ 26,753 $ 32,480
Management fees receivable 2,131 -
Income taxes receivable 2,166 2,161
Prepaids 1,092 186
Other       2,166       1,069
Total current assets       34,308       35,896
Property and equipment, net       28,238       13,279
Long-term assets related to Indian casino projects:
Notes and interest receivable, net of current portion and allowance 40,661 38,247
Intangible assets 2,599 3,127
Management fees receivable and other       553       4,786
Total long-term assets related to Indian casino projects       43,813       46,160
Other assets:
Investment in unconsolidated investee 20,997 20,161
License fee 2,085 2,100
Land held for development 1,130 1,130
Other       955       996
Total other assets       25,167       24,387
Total assets     $ 131,526     $ 119,722
 
Liabilities and shareholders' equity
Current liabilities:
Current portion of contract acquisition costs payable, net $ 1,391 $ 1,265
Current portion of Long-term debt 475 -
Other       3,926       2,978
Total current liabilities 5,792 4,243
Long-term debt, net 10,813 -
Long-term contract acquisition costs payable, net       2,550       3,302
Total long-term liabilities 13,363 3,302
Total liabilities       19,155       7,545
Total shareholders' equity       112,371       112,177
Total liabilities and shareholders' equity     $ 131,526    

$

119,722
 
 
LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
           
 
Three months ended Six months ended
June 30, 2013   July 1, 2012 June 30, 2013   July 1, 2012
Revenues:
Management fees $ 3,650 $ 2,503 $ 6,378 $ 4,446
Gaming 3,188 - 3,188 -
Room 615 - 879 -
Food and beverage 703 - 901 -
Other operating 410 - 507 -
License fees and other       23       16     40       36  
Gross revenues       8,589       2,519     11,893       4,482  
Less promotional allowances       40       -     40       -  
Net revenues       8,549       2,519     11,853       4,482  
 
Costs and expenses:
Gaming 2,018 - 2,018 -
Room 214 - 325 -
Food and beverage 759 - 1,062 -
Other operating 418 - 633 -
Selling, general and administrative 4,613 1,905 8,380 4,208
Impairments and other losses - 1,399 - 2,328
Preopening expenses 902 - 1,167 -
Amortization of intangible assets related to Indian casino projects 265 265 529 528
Loss on disposal of property and equipment 143 143
Depreciation and amortization       460       51     717       106  
Total costs and expenses       9,792       3,620     14,974       7,170  
 
Loss from operations       (1,243 )     (1,101 )   (3,121 )     (2,688 )
 
Other income (expense):
Interest income 1,741 1,578 3,494 3,161
Interest expense (264 ) (242 ) (472 ) (494 )
Other       10       44     10       58  
Total other income, net       1,487       1,380     3,032       2,725  
 
Earnings (loss) before income taxes 244 279 (89 ) 37
Income tax benefit       -       (145 )   -       (2,142 )
Net earnings (loss) including noncontrolling interest 244 424 (89 ) 2,179
Net loss attributable to noncontrolling interest       -       1     -       61  
 
Net earnings (loss) attributable to Lakes Entertainment, Inc.     $ 244     $ 425   $ (89 )   $ 2,240  
 
Weighted-average common shares outstanding
Basic 26,441 26,441 26,441 26,436
Diluted       26,643       26,441     26,441       26,436  
Earnings (loss) per share
Basic $ 0.01 $ 0.02 $ 0.00 $ 0.08
Diluted $ 0.01 $ 0.02 $ 0.00 $ 0.08
 




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