Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 29, 2015 | 4-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LAKES ENTERTAINMENT INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -2 | |
Entity Common Stock, Shares Outstanding | 13,391,578 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1071255 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | 29-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $33,967 | $35,416 |
Short-term investments | 46,145 | 46,638 |
Other | 2,301 | 1,807 |
Total current assets | 82,413 | 83,861 |
Property and equipment | 35,666 | 41,433 |
Accumulated depreciation | -7,374 | -8,694 |
Property and equipment, net | 28,292 | 32,739 |
Other assets: | ||
Property held for sale | 4,407 | |
Gaming license | 1,840 | 1,875 |
Land held for development | 960 | 960 |
Income taxes receivable | 2,000 | 2,155 |
Other | 437 | 439 |
Total other assets | 9,644 | 5,429 |
Total assets | 120,349 | 122,029 |
Current liabilities: | ||
Current portion of long-term debt, net of discount | 1,350 | 1,368 |
Accounts payable | 457 | 482 |
Accrued taxes, other than income taxes | 607 | 439 |
Accrued payroll and related | 1,437 | 1,573 |
Other accrued expenses | 1,903 | 1,610 |
Total current liabilities | 5,754 | 5,472 |
Long-term debt, net of current portion and discount | 8,630 | 8,941 |
Total liabilities | 14,384 | 14,413 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, $.01 par value; authorized 100,000 shares; 13,392 and 13,389 common shares issued and outstanding | 268 | 268 |
Additional paid-in capital | 205,690 | 205,615 |
Deficit | -99,970 | -98,245 |
Accumulated other comprehensive loss | -23 | -22 |
Total shareholders' equity | 105,965 | 107,616 |
Total liabilities and shareholders' equity | $120,349 | $122,029 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 13,392 | 13,389 |
Common stock, shares outstanding | 13,392 | 13,389 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Revenues: | ||
Gaming | $10,600 | $10,320 |
Room | 1,207 | 1,314 |
Food and beverage | 1,348 | 1,259 |
Other operating | 331 | 335 |
License fees and other | 44 | 33 |
Gross revenues | 13,530 | 13,261 |
Less promotional allowances | 764 | 951 |
Net revenues | 12,766 | 12,310 |
Costs and expenses: | ||
Gaming | 6,065 | 5,954 |
Room | 158 | 110 |
Food and beverage | 1,065 | 1,033 |
Other operating | 226 | 242 |
Selling, general and administrative | 6,135 | 5,740 |
Gain on sale of cost method investment | -750 | |
Impairments and other losses | 331 | |
(Gain) loss on disposal of property and equipment | -2 | 25 |
Depreciation and amortization | 879 | 853 |
Total costs and expenses | 14,107 | 13,957 |
Loss from operations | -1,341 | -1,647 |
Other income (expense): | ||
Interest income | 45 | 33 |
Interest expense | -274 | -318 |
Other | 164 | |
Total other income (expense), net | -229 | -121 |
Loss before income taxes | -1,570 | -1,768 |
Income tax provision | 155 | 0 |
Net loss | -1,725 | -1,768 |
Other comprehensive loss | -1 | -14 |
Comprehensive loss | ($1,726) | ($1,782) |
Weighted-average common shares outstanding | ||
Basic and diluted (in Shares) | 13,391 | 13,364 |
Loss per share | ||
Basic and diluted (in Dollars per share) | ($0.13) | ($0.13) |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
OPERATING ACTIVITIES: | ||
Net loss | ($1,725) | ($1,768) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 879 | 853 |
Amortization of debt issuance costs, accretion of debt discount | 113 | 132 |
Accretion and amortization of discounts and premiums on short-term investments | 105 | 93 |
Share-based compensation | 59 | 72 |
(Gain) loss on disposal of property and equipment | -2 | 25 |
Gain on sale of cost method investment | -750 | |
Impairments and other losses | 331 | |
Changes in operating assets and liabilities: | ||
Other current assets | -446 | -155 |
Income taxes receivable | 155 | |
Accrued taxes, other than income taxes | 168 | 108 |
Accounts payable and accrued expenses | 132 | 51 |
Net cash used in operating activities | -981 | -589 |
INVESTING ACTIVITIES: | ||
Purchase of short-term investments | -24,141 | -41,875 |
Sales and maturities of short-term investments | 24,480 | 42,325 |
Purchase of property and equipment | -1,130 | -717 |
Proceeds from disposal of property and equipment | 2 | 16 |
Proceeds from sale of cost method investment | 750 | |
Changes in other assets | -3 | 21 |
Net cash used in investing activities | -42 | -230 |
FINANCING ACTIVITIES: | ||
Repayments of borrowings | -442 | -429 |
Proceeds from issuance of common stock | 16 | 13 |
Net cash used in financing activities | -426 | -416 |
Net decrease in cash and cash equivalents | -1,449 | -1,235 |
Cash and cash equivalents - beginning of period | 35,416 | 37,897 |
Cash and cash equivalents - end of period | 33,967 | 36,662 |
Cash paid during the period for: | ||
Interest | 159 | 181 |
Noncash investing activities: | ||
Capital expenditures in accounts payable and accrued expenses | $110 | $266 |
Note_1_Nature_of_Business_and_
Note 1 - Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 29, 2015 | |
Disclosure Text Block [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 1. Nature of Business and Basis of Presentation |
Basis of Presentation | |
The unaudited consolidated financial statements of Lakes Entertainment, Inc., a Minnesota corporation, and subsidiaries (individually and collectively “Lakes” or the “Company”), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial information. Accordingly, certain information normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States has been condensed and/or omitted. For further information, please refer to the annual audited consolidated financial statements of the Company, and the related notes included within the Company’s Annual Report on Form 10-K, for the year ended December 28, 2014, previously filed with the SEC, from which the balance sheet information as of that date is derived. In the opinion of management, all adjustments considered necessary for a fair presentation have been included (consisting of normal recurring adjustments). The results for the current interim period are not necessarily indicative of the results to be expected for the full year. | |
All material intercompany accounts and transactions have been eliminated in consolidation. | |
Investments in unconsolidated investees, which were 20% or less owned and the Company did not have the ability to significantly influence the operating or financial decisions of the entity, were accounted for under the cost method. See note 6, Investment in Rock Ohio Ventures, LLC and note 7, Investment in Dania Entertainment Holdings, LLC. | |
Effective September 10, 2014, the Company implemented a 1-for-2 reverse split of its common stock where each two shares of issued and outstanding common stock were converted into one share of common stock. The reverse split reduced the number of shares of the Company’s common stock outstanding from approximately 26.8 million to 13.4 million. The par value of the common stock remains at $0.01 per share and the number of authorized shares of common stock decreased from 200 million to 100 million. Proportional adjustments were also made to the company’s outstanding stock options. All share information presented in this Quarterly Report on Form 10-Q gives effect to the reverse stock split. | |
Rocky Gap Casino Resort | |
Lakes owns and operates the Rocky Gap Casino Resort in Allegany County, Maryland (“Rocky Gap”) which it acquired on August 3, 2012. In connection with the acquisition of Rocky Gap, Lakes entered into a 40-year operating ground lease with the Maryland Department of Natural Resources for approximately 268 acres in the Rocky Gap State Park on which Rocky Gap is situated (see note 15, Commitments and Contingencies). After acquiring Rocky Gap, which included a hotel, convention center, spa, two restaurants and the only Jack Nicklaus signature golf course in Maryland, the Company converted the then-existing convention center into a gaming facility which opened to the public on May 22, 2013. The gaming facility features 577 video lottery terminals (“VLTs”), 16 table games, two poker tables, a casino bar and a lobby food and beverage outlet. The AAA Four Diamond Award® winning resort also includes an event and conference center that opened during the fourth quarter of 2013, which is able to accommodate large groups and features flexible use meeting rooms. The total cost of the Rocky Gap project was approximately $35.0 million, which included the initial acquisition cost. | |
Pending Merger with Sartini Gaming, Inc. | |
On January 25, 2015, Lakes entered into an agreement and plan of merger (the "Merger Agreement") with Sartini Gaming, Inc. (“Golden Gaming”), which owns and operates Golden Gaming, LLC. Golden Gaming is a leading owner and operator of distributed gaming, taverns and casinos, all of which are focused on the Nevada local gaming market. At closing, Golden Gaming will combine with a wholly-owned subsidiary of Lakes with Golden Gaming surviving as a wholly-owned subsidiary of Lakes (the “Merger”). Lakes will remain publicly traded and be renamed Golden Entertainment, Inc. upon closing. The legacy Golden Gaming shareholder will be issued shares of Lakes common stock under the Merger Agreement. Lakes’ shareholders at the time of the Merger closing will retain the existing Lakes common stock. | |
Under the terms of the Merger Agreement, Lakes is valued at $9.57 per share, subject to working capital and various other adjustments under the Merger Agreement. The value of Golden Gaming under the Merger Agreement will be determined by multiplying 7.5 times Golden Gaming’s trailing twelve-month consolidated earnings before interest, taxes, depreciation and amortization (adjusted for non-cash or non-recurring expenses, losses and charges and certain other expenses), less the aggregate principal amount of Golden Gaming’s indebtedness, subject to working capital and various other adjustments under the Merger Agreement. Based on September 30, 2015 financial estimates and assumptions (as of the date of the Merger Agreement), the legacy Golden Gaming shareholder would be issued 7,858,145 shares of Lakes common stock under the Merger Agreement, which would represent approximately 35.7% of the total fully diluted post-merger shares of common stock. The Company’s current shareholders (assuming the exercise of all outstanding options to acquire Lakes common stock) would retain approximately 64.3% of the total post-merger shares of Lakes common stock. | |
Completion of the Merger is subject to various customary closing conditions, including, but not limited to, (i) approval by Lakes’ shareholders of the issuance of shares of Lakes common stock under the Merger Agreement, (ii) the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (if applicable), (iii) certain gaming approvals having been obtained from the relevant gaming authorities, (iv) the absence of any order or injunction prohibiting the consummation of the Merger, (v) no material adverse effect or other specified adverse events occurring with respect to Lakes or Golden Gaming, (vi) the refinancing of certain indebtedness of Golden Gaming, (vii) subject to certain exceptions, the accuracy of the representations and warranties of the parties, and (viii) performance and compliance in all material respects with agreements and covenants contained in the Merger Agreement. | |
The Merger Agreement also contains certain termination rights for each of Lakes and Golden Gaming, including if the Merger is not consummated by November 3, 2015 (subject to automatic extension to February 1, 2016 if all conditions to closing other than specified gaming approvals have been satisfied or waived). The Merger Agreement further provides that, upon termination of the Merger Agreement, under specified circumstances, Lakes is required to pay Golden Gaming a cash termination fee of $5.0 million or reimburse Golden Gaming’s transaction expenses up to $0.5 million. In addition, the Merger Agreement provides that, upon termination of the Merger Agreement, under specified circumstances, Golden Gaming will be required to reimburse Lakes’ transaction expenses up to $0.5 million. | |
Contemporaneous with entering into the Merger Agreement, Lakes has also amended and restated its Rights Agreement dated as of December 12, 2013, to preserve its ability to utilize approximately $89.0 million of federal net operating tax loss carryforwards by, among other things, lowering the voting securities ownership threshold of an acquiring person from 15% to 4.99%, and making such other changes which Lakes deemed necessary to effectuate the purposes of the Rights Agreement in light of the transactions contemplated by the Merger Agreement. |
Note_2_New_Accounting_Standard
Note 2 - New Accounting Standard | 3 Months Ended |
Mar. 29, 2015 | |
Disclosure Text Block [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 2. New Accounting Standards |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in this ASU are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. ASU 2015-03 will be effective for the Company’s first quarter of 2016. Lakes does not expect the adoption of ASU 2015-03 to have an impact on its consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue from the transfer of goods or services to customers in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. ASU 2014-09 will be effective for the Company’s first quarter of 2017. Lakes is evaluating the impact this new standard will have on its financial statements. |
Note_3_ShortTerm_Investments
Note 3 - Short-Term Investments | 3 Months Ended | ||||||||||||
Mar. 29, 2015 | |||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 3. Short-Term Investments | ||||||||||||
Short-term investments consist of commercial paper, corporate bonds and certificates of deposit which are classified as available-for-sale securities and are carried at current fair market value, with the resulting unrealized gains and losses, if any, excluded from earnings and reported, net of tax, as a separate component of shareholders' equity until realized. If the carrying value of an investment is in excess of its fair market value, an impairment charge to adjust the carrying value to the fair market value is recorded if the impairment is considered other-than-temporary. There were no other-than-temporary impairments related to declines in fair market value of short-term investments during the three months ended March 29, 2015. All short-term investments held as of March 29, 2015 have original maturity dates of twelve months or less and are classified as current assets. Short-term investments consisted of the following as of March 29, 2015 and December 28, 2014 (in thousands): | |||||||||||||
Amortized | Fair | Unrealized | |||||||||||
Cost | Value | Gain/(Loss) | |||||||||||
29-Mar-15 | |||||||||||||
Commercial paper | $ | 11,984 | $ | 11,984 | $ | — | |||||||
Corporate bonds | 33,704 | 33,681 | (23 | ) | |||||||||
Certificates of deposit | 480 | 480 | — | ||||||||||
Balances at March 29, 2015 | $ | 46,168 | $ | 46,145 | $ | (23 | ) | ||||||
28-Dec-14 | |||||||||||||
Commercial paper | $ | 23,982 | $ | 23,984 | $ | 2 | |||||||
Corporate bonds | 21,717 | 21,693 | (24 | ) | |||||||||
Certificates of deposit | 961 | 961 | — | ||||||||||
Balances at December 28, 2014 | $ | 46,660 | $ | 46,638 | $ | (22 | ) | ||||||
See note 14, Financial Instruments and Fair Value Measurements, for further discussion of the fair value of these investments. |
Note_4_Property_and_Equipment_
Note 4 - Property and Equipment, Net | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and Equipment, net | ||||||||
The following table summarizes the components of property and equipment, at cost (in thousands): | |||||||||
March 29, | December 28, | ||||||||
2015 | 2014 | ||||||||
Building and site improvements | $ | 21,421 | $ | 27,905 | |||||
Furniture and equipment | 13,667 | 13,445 | |||||||
Construction in process | 578 | 83 | |||||||
Property and equipment | 35,666 | 41,433 | |||||||
Less accumulated depreciation | (7,374 | ) | (8,694 | ) | |||||
Property and equipment, net | $ | 28,292 | $ | 32,739 | |||||
In connection with entering into the Merger Agreement with Golden Gaming, Lakes implemented a plan to sell its corporate headquarters office building in Minnetonka, Minnesota during January 2015. As a result, this asset is classified as held for sale as of March 29, 2015. | |||||||||
On March 26, 2015, Lakes entered into an agreement to sell its corporate headquarters office building at a price of approximately $4.7 million, less approximate fees and closing costs of $0.3 million. Lakes currently expects the sale of the corporate headquarters office building to close during the second quarter of 2015. The corporate headquarters office building was carried at $4.7 million, net of accumulated depreciation, on Lakes’ consolidated balance sheet as of the date of the sale agreement, resulting in the recognition of an impairment charge of $0.3 million during the first quarter of 2015. |
Note_5_Gaming_License
Note 5 - Gaming License (Licensing Agreements [Member]) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Licensing Agreements [Member] | |||||||||
Note 5 - Gaming License [Line Items] | |||||||||
Intangible Assets Disclosure [Text Block] | 5. Gaming License | ||||||||
In April 2012, the State of Maryland Video Lottery Facility Location Commission awarded a video lottery operation license (“Gaming License”) to the Company for Rocky Gap. Amortization of the Gaming License began on May 22, 2013, the date the gaming facility opened for public play. The Gaming License is being amortized over its 15 year term. Amortization expense related to the Gaming License was less than $0.1 million for each of the three months ended March 29, 2015 and March 30, 2014. | |||||||||
Information with respect to the Gaming License is as follows (in thousands): | |||||||||
March 29, | December 28, | ||||||||
2015 | 2014 | ||||||||
Original cost | $ | 2,100 | $ | 2,100 | |||||
Accumulated amortization | (260 | ) | (225 | ) | |||||
$ | 1,840 | $ | 1,875 | ||||||
Note_6_Investment_in_Rock_Ohio
Note 6 - Investment in Rock Ohio Ventures, LLC | 3 Months Ended |
Mar. 29, 2015 | |
Rock Ohio Ventures [Member] | |
Note 6 - Investment in Rock Ohio Ventures, LLC [Line Items] | |
Cost-method Investments, Description [Text Block] | 6. Investment in Rock Ohio Ventures, LLC |
As of December 28, 2014, Lakes had a 10% ownership interest in Rock Ohio Ventures, LLC (“Rock Ohio Ventures”), a privately-held company, that owned 80% of the Horseshoe Casino Cleveland in Cleveland, Ohio; the Horseshoe Casino Cincinnati in Cincinnati, Ohio; the Thistledown Racino in North Randall, Ohio; and Turfway Park, a thoroughbred horseracing track located in Florence, Kentucky. This investment was accounted for using the cost method since Lakes owned less than 20% of Rock Ohio Ventures and did not have the ability to significantly influence the operating and financial decisions of the entity. Lakes invested a total of $21.0 million in Rock Ohio Ventures. This investment was determined to have experienced an other-than-temporary impairment and was reduced to its estimated fair value of zero during the third quarter of 2014. As a result, Lakes recognized an impairment loss of $21.0 million during the third quarter of 2014. Effective January 25, 2015, Lakes sold all of its interest in Rock Ohio Ventures to DG Ohio Ventures, LLC for approximately $0.8 million. Because this investment had been written down to zero, Lakes recognized a gain on sale of cost method investment of approximately $0.8 million in the consolidated statement of operations for the three months ended March 29, 2015. | |
This cost method investment was evaluated, on at least a quarterly basis, for potential other-than-temporary impairment, or when an event or change in circumstances occurred that may have had a significant adverse effect on the fair value of the investment. Lakes monitored this investment for impairment by considering all information available to the Company including the economic environment of the markets served by the properties Rock Ohio Ventures owns; market conditions including existing and potential future competition; recent or expected changes in the regulatory environment; operational performance and financial results; known changes in the objectives of Rock Ohio Venture’s management; known or expected changes in ownership of Rock Ohio Ventures; and any other known significant factors relating to the business underlying the investment. | |
As part of the review of operational performance and financial results for considering if there were indications of impairment, the Company utilized financial statements of Rock Ohio Ventures and its owned gaming properties to assess the investee’s ability to operate from a financial standpoint. The Company also analyzed Rock Ohio Ventures’ cash flows and working capital to determine if the Company’s investment in this entity had experienced an other-than-temporary impairment. As part of this process, the Company analyzed actual historical results compared to forecast and had periodic discussions with management of Rock Ohio Ventures to obtain additional information related to the Company’s investment in Rock Ohio Ventures to determine whether any events have occurred that would necessitate further analysis of the Company’s recorded investment in Rock Ohio Ventures for impairment. Based on these procedures, Lakes determined that the Company’s investment in Rock Ohio Ventures experienced an other-than-temporary impairment during the third quarter of 2014. Based on information provided by Rock Ohio Ventures, Lakes determined that there was significant uncertainty surrounding the recovery of Lakes’ investment in Rock Ohio Ventures. The Ohio gaming properties had not performed as expected which led to forecasted potential working capital requirement issues that did not exist prior to the third quarter of 2014, based on information previously available to Lakes. As a result, Lakes determined that an other-than-temporary impairment had occurred and reduced the carrying value of the investment in Rock Ohio Ventures to its estimated fair value of zero during the third quarter of 2014. | |
The fair value of the Company’s cost method investment in Rock Ohio Ventures was estimated to be approximately $0.8 million as of December 28, 2014 based on the January 2015 selling price of this investment. See note 14, Financial Instruments and Fair Value Measurements, for further discussion of the calculation of the fair value of the investment in Rock Ohio Ventures as of December 28, 2014. | |
Dania Entertainment Holdings [Member] | |
Note 6 - Investment in Rock Ohio Ventures, LLC [Line Items] | |
Cost-method Investments, Description [Text Block] | 7. Investment in Dania Entertainment Holdings, LLC |
On May 22, 2013, Dania Entertainment Center, LLC (“DEC”) purchased the Dania Jai Alai property located in Dania Beach, Florida, from Boyd Gaming Corporation, for $65.5 million. | |
As part of a previous plan to purchase the property, during 2011 Lakes loaned $4.0 million to DEC (the “Loan”) which was written down to zero during the third quarter of 2011 when the acquisition did not close. During 2013, the Loan was exchanged for a 20% ownership interest in Dania Entertainment Holdings, LLC (“DEH”). | |
The Company accounted for its investment in DEH as a cost method investment. At the time the Loan was exchanged for an equity investment in DEH, Lakes determined its value remained at zero due to the negative cash flows of the existing operations of the Dania Jai Alai property as well as uncertainty surrounding completion of the project. Therefore, there was no value recorded for this investment at the time the Loan was exchanged for an equity investment in DEH. On April 21, 2014, Lakes entered into a redemption agreement with DEH that resulted in DEH redeeming Lakes’ 20% ownership in DEH in exchange for DEH granting to Lakes 5% ownership in DEC. Concurrently, Lakes entered into an agreement with ONDISS Corp. (“ONDISS”) to sell its ownership in DEC for approximately $2.6 million. Lakes received $1.0 million on April 21, 2014 in exchange for 40% of its ownership. On October 17, 2014, ONDISS paid the entire remaining amount due to Lakes at a discounted amount of approximately $1.4 million. Upon receipt of such payment, Lakes transferred its remaining ownership in DEC to ONDISS. As a result, Lakes recognized a gain on sale of cost method investment of $2.4 million during the year ended December 28, 2014. |
Note_8_Land
Note 8 - Land | 3 Months Ended |
Mar. 29, 2015 | |
Real Estate [Abstract] | |
Real Estate Disclosure [Text Block] | 8. Land |
Lakes owns parcels of undeveloped land related to its previous involvement in a potential casino project with the Jamul Indian Village (the “Jamul Tribe”) near San Diego, California. During the third quarter of 2012, Lakes entered into a ten-year option agreement (“Original Option Agreement”) with Penn National Gaming, Inc. (“Penn National”) that granted Penn National the right to purchase this land for $7.0 million, increasing 1% each year, but Penn National had no obligation to purchase the land. The Original Option Agreement was amended on May 15, 2014 to reduce the purchase price of the land to $5.5 million but requires Penn National to purchase the land within ten days after the Jamul Tribe opens a casino on its reservation. Annual option payments of less than $0.1 million are required to be made by Penn National to Lakes. As of March 29, 2015 and December 28, 2014, this land is carried at approximately $1.0 million on the accompanying consolidated balance sheets. | |
The Company performs an impairment analysis on the land it owns at least quarterly and determined that no impairment had occurred as of March 29, 2015 and December 28, 2014. |
Note_9_Debt
Note 9 - Debt | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt Disclosure [Text Block] | 9. Debt | ||||||||
Loan Agreement | |||||||||
Lakes had a two-year interest-only $8.0 million revolving line of credit loan agreement (the “Loan Agreement”) with Centennial Bank that expired on October, 28 2014. The Loan Agreement was collateralized by primarily all of Lakes’ interest in the real property it owns in Minnetonka, Minnesota. Lakes’ Chief Executive Officer, Lyle Berman, personally guaranteed the Loan Agreement on behalf of Lakes. The Loan Agreement allowed for an interest rate of 8.95% on any amounts borrowed. No amounts were ever borrowed under the Loan Agreement. | |||||||||
Financing Facility | |||||||||
In December 2012, Lakes closed on a $17.5 million financing facility with Centennial Bank (the “Financing Facility”) to finance a portion of Rocky Gap project costs. Approximately $13.4 million has been drawn on the Financing Facility, which is collateralized by the leasehold estate and the furniture, fixtures and equipment of Rocky Gap. In addition, Lakes guaranteed repayment of the loan and granted a second mortgage on its real property located in Minnetonka, Minnesota. Effective November 1, 2013, Lakes amended the Financing Facility with Centennial Bank to reduce the interest rate from 10.5% to 5.5%. Monthly payments of principal and interest began on December 1, 2013 and continue for 84 months. Although Lakes does not currently plan to make further draws on the Financing Facility, Lakes has the ability to draw the remaining $4.1 million on the Financing Facility through December 31, 2018. As of March 29, 2015 and December 28, 2014, $11.3 million and $11.7 million of principal was outstanding under the Financing Facility, respectively. | |||||||||
As a result of the amendment of the Financing Facility with Centennial Bank effective November 1, 2013, Lakes recorded a $1.7 million gain on modification of debt during the fourth quarter of 2013. This amount included $2.0 million recorded as a discount to the principal amount of the Financing Facility, which is being accreted to interest expense over the term of the Financing Facility using the effective interest method, and $0.3 million of original debt issuance costs expensed at the time of the amendment. Accretion of the discount to interest expense was approximately $0.1 million for each of the three months ended March 29, 2015 and March 30, 2014. | |||||||||
Summary of Outstanding Debt | |||||||||
Long-term debt, net of current maturities and discount, is comprised of the following (in thousands): | |||||||||
March 29, | December 28, | ||||||||
2015 | 2014 | ||||||||
Financing Facility | $ | 11,269 | $ | 11,691 | |||||
Capital lease obligations | 30 | 50 | |||||||
Total debt | 11,299 | 11,741 | |||||||
Less: current maturities, net of discount | (1,350 | ) | (1,368 | ) | |||||
Less: unamortized debt discount | (1,319 | ) | (1,432 | ) | |||||
Long-term debt, net of current maturities and discount | $ | 8,630 | $ | 8,941 | |||||
Note_10_Promotional_Allowances
Note 10 - Promotional Allowances | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Promotional Allowances [Abstract] | |||||||||
Promotional Allowances [Text Block] | 10. Promotional Allowances | ||||||||
The retail value of rooms, food and beverage, and other services furnished to guests without charge, including coupons for discounts when redeemed, is included in gross revenues and then deducted as promotional allowances. The estimated retail value of the promotional allowances is as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
29-Mar-15 | 30-Mar-14 | ||||||||
Food and beverage | $ | 159 | $ | 107 | |||||
Rooms | 552 | 808 | |||||||
Other | 53 | 36 | |||||||
Total promotional allowances | $ | 764 | $ | 951 | |||||
The estimated cost of providing these promotional allowances, which are included in gaming costs and expenses, is as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
29-Mar-15 | 30-Mar-14 | ||||||||
Food and beverage | $ | 78 | $ | 53 | |||||
Rooms | 169 | 194 | |||||||
Other | 34 | 42 | |||||||
Total promotional allowances | $ | 281 | $ | 289 | |||||
Note_11_Sharebased_Compensatio
Note 11 - Share-based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. Share-Based Compensation | ||||||||||||||||
Share-based compensation expense related to stock options was $0.1 million for each of the three months ended March 29, 2015 and March 30, 2014. | |||||||||||||||||
The Company uses the Black Scholes option pricing model to estimate the fair value and compensation cost associated with employee incentive stock options which requires the consideration of historical employee exercise behavior data and the use of a number of assumptions including volatility of the Company’s stock price, the weighted average risk-free interest rate and the weighted average expected life of the options. There were zero and 5,000 options granted during the three months ended March 29, 2015 and March 30, 2014, respectively. The weighted-average grant-date fair value of the stock options issued during the three months ended March 30, 2014 was $4.96. | |||||||||||||||||
The following table summarizes Lakes’ stock option activity during the three months ended March 29, 2015 and March 30, 2014: | |||||||||||||||||
Number of Common Shares | |||||||||||||||||
Options | Exercisable | Available | Weighted-Average | ||||||||||||||
Outstanding | for Grant | Exercise | |||||||||||||||
Price | |||||||||||||||||
2015 | |||||||||||||||||
Balance at December 28, 2014 | 755,617 | 616,792 | 276,635 | $ | 6.09 | ||||||||||||
Exercised | (2,500 | ) | — | 6.14 | |||||||||||||
Balance at March 29, 2015 | 753,117 | 677,870 | 276,635 | 6.09 | |||||||||||||
2014 | |||||||||||||||||
Balance at December 29, 2013 | 798,171 | 585,769 | 263,424 | $ | 5.97 | ||||||||||||
Forfeited/cancelled/expired | (18,211 | ) | 17,211 | 4.85 | |||||||||||||
Exercised | (3,500 | ) | — | 3.78 | |||||||||||||
Granted | 5,000 | (5,000 | ) | 9.16 | |||||||||||||
Balance at March 30, 2014 | 781,460 | 629,483 | 275,635 | 5.88 | |||||||||||||
As of March 29, 2015, the options outstanding had a weighted average remaining contractual life of 5.6 years, weighted average exercise price of $6.09 and aggregate intrinsic value of $2.0 million. The options exercisable have a weighted average exercise price of $6.03, a weighted average remaining contractual life of 5.3 years and aggregate intrinsic value of $1.9 million as of March 29, 2015. | |||||||||||||||||
There were 2,500 and 3,500 options exercised during the three months ended March 29, 2015 and March 30, 2014, respectively. The total intrinsic value of options exercised during each of the three months ended March 29, 2015 and March 30, 2014 was less than $0.1 million. Lakes’ unrecognized share-based compensation expense related to stock options was approximately $0.2 million as of March 29, 2015, which is expected to be recognized over a weighted-average period of 1.1 years. | |||||||||||||||||
Lakes issues new shares of common stock upon the exercise of options. |
Note_12_Earnings_Loss_Per_Shar
Note 12 - Earnings (Loss) Per Share | 3 Months Ended |
Mar. 29, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 12. Earnings (Loss) per Share |
For all periods, basic earnings (loss) per share (“EPS”) is calculated by dividing net earnings (loss) by the weighted-average common shares outstanding. Diluted EPS in profitable periods reflects the effect of all potentially dilutive common shares outstanding by dividing net earnings by the weighted-average of all common and potentially dilutive shares outstanding. Potentially dilutive stock options of 753,117 and 781,460 for the three months ended March 29, 2015 and March 30, 2014, respectively, were not used to compute diluted earnings (loss) per share because the effects would have been anti-dilutive. |
Note_13_Income_Taxes
Note 13 - Income Taxes | 3 Months Ended |
Mar. 29, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 13. Income Taxes |
Income tax expense was $0.2 million for the three months ended March 29, 2015, which was attributed entirely to alternative minimum tax. There was no income tax benefit for the first quarter of 2014 because there is no remaining potential to carry back losses to prior years and future realization of the benefit is uncertain. The Company’s effective tax rate was (9.9)% and 0% for the three months ended March 29, 2015 and March 30, 2014, respectively. For the three months ended March 29, 2015, the effective tax rate differs from the federal tax rate of 35% due to the alternative minimum tax, permanent differences and the limitation of the income tax benefit due to the uncertainty of its future realization. For the three months ended March 30, 2014, the effective tax rate differs from the federal tax rate of 35% primarily due to the limitation of the income tax benefit due to the uncertainty of its future realization. | |
Lakes has recorded income taxes receivable of $2.0 million and $2.2 million as of March 29, 2015 and December 28, 2014, respectively, related to the Company’s ability to carry back 2012 taxable losses to a prior year and receive a refund of taxes previously paid. | |
Deferred tax assets are evaluated by considering historical levels of income, estimates of future taxable income and the impact of tax planning strategies. Management has evaluated all available evidence and has determined that negative evidence continues to outweigh positive evidence for the realization of deferred tax assets and as a result continues to provide a full valuation allowance against its deferred tax assets as of March 29, 2015. | |
The Company is currently under IRS audit for the 2009-2013 tax years and the IRS has proposed certain adjustments to the 2009-2011 tax filings. However, Lakes believes it is more likely than not that it will prevail in challenging the proposed adjustments and maintains that the positions taken were proper and supported by applicable laws and regulations. Lakes does not believe, when resolved, that this dispute will have a material effect on its consolidated financial statements. However, an unexpected adverse resolution could have a material effect on the consolidated financial statements in a particular quarter or fiscal year. | |
The Company is currently under audit by the State of California for the 2010 tax year. No adjustments have been made as a result of the State of California audit. However, there is no assurance that the taxing authority will not propose adjustments that are different from the Company’s expected outcome and that may impact the provision for income taxes. |
Note_14_Financial_Instruments_
Note 14 - Financial Instruments and Fair Value Measurements | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Fair Value Disclosures [Text Block] | 14. Financial Instruments and Fair Value Measurements | ||||||||
Overview | |||||||||
Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value, and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: | |||||||||
● | Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||
● | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | ||||||||
● | Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. | ||||||||
The Company’s financial instruments consist of cash and cash equivalents, short-term investments, cost method investments, accounts payable and debt. | |||||||||
For the Company’s cash and cash equivalents, accounts payable and current portion of debt, the carrying amounts approximate fair value because of the short duration of these financial instruments. As of March 29, 2015 and December 28, 2014, the fair value of the Company’s long-term debt approximates the carrying value based upon the Company’s expected borrowing rate for debt with similar remaining maturities and comparable risk. | |||||||||
Balances Measured at Fair Value on a Recurring Basis | |||||||||
The following table (in thousands) shows certain of the Company’s financial instruments measured at fair value on a recurring basis using Level 2 inputs, as they are priced principally by independent pricing services using observable inputs: | |||||||||
29-Mar-15 | 28-Dec-14 | ||||||||
Short-Term Investments | |||||||||
Commercial paper | $ | 11,984 | $ | 23,984 | |||||
Corporate bonds | 33,681 | 21,693 | |||||||
Certificates of deposit | 480 | 961 | |||||||
Balances Measured at Fair Value on a Nonrecurring Basis | |||||||||
Corporate Headquarters Office Building - On March 26, 2015, Lakes entered into an agreement to sell its corporate headquarters office building at a price of approximately $4.7 million, less fees and closing costs of $0.3 million. As a result, using Level 3 inputs, this asset is recorded at its fair value less costs to sell of $4.4 million in the consolidated balance sheet as of March 29, 2015. | |||||||||
Balances Disclosed at Fair Value | |||||||||
Cost Method Investment – Investment in Rock Ohio Ventures, LLC - The fair value of the Company’s cost method investment in Rock Ohio Ventures was estimated to be approximately $0.8 million as of December 28, 2014 based on the negotiated selling price of this investment. Effective January 25, 2015, Lakes sold its investment in Rock Ohio Ventures for approximately $0.8 million (see note 6, Investment in Rock Ohio Ventures, LLC). |
Note_15_Commitments_and_Contin
Note 15 - Commitments and Contingencies | 3 Months Ended | ||||||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | 15. Commitments and Contingencies | ||||||||||||||||||||||||
Operating Lease with the Maryland Department of Natural ResourcesRelated to Rocky Gap | |||||||||||||||||||||||||
In connection with the closing of the acquisition of Rocky Gap, Lakes entered into a 40-year operating ground lease (the “Lease Agreement”) with the Maryland Department of Natural Resources for approximately 268 acres in the Rocky Gap State Park on which Rocky Gap is situated. The Lease Agreement contains an option to renew for 20 years after the initial 40-year term. | |||||||||||||||||||||||||
From August 3, 2012 and until the casino opened for public play on May 22, 2013, rent in the form of surcharges was due and payable with a minimum annual payment of $150,000. From May 22, 2013 through the remaining term of the Lease Agreement, rent payments are due and payable annually in the amount of $275,000 plus 0.9% of any gross operator share of gaming revenue (as defined in the Lease Agreement) in excess of $275,000, and $150,000 plus any surcharge revenue in excess of $150,000. Surcharge revenue consists of amounts billed to and collected from guests and are $3.00 per room per night and $1.00 per round of golf. Rent expense associated with the Lease Agreement was $0.1 million, net of surcharge revenues, for each of the three months ended March 29, 2015 and March 30, 2014. | |||||||||||||||||||||||||
Future minimum lease payments under the Lease Agreement at March 29, 2015 are as follows (in thousands): | |||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||
Minimum lease payment | $ | 425 | $ | 425 | $ | 425 | $ | 425 | $ | 425 | $ | 13,600 | |||||||||||||
Jerry Argovitz Litigation | |||||||||||||||||||||||||
On March 12, 2014, Lakes received a demand for arbitration from Jerry Argovitz (“Argovitz”) relating to a Consent and Agreement to Buyout and Release by and between Argovitz and Lakes KAR Shingle Springs, LLC (“LKAR”), Lakes Entertainment, Inc., and Lakes Shingle Springs, Inc. dated January 30, 2003 (“Buyout Agreement”). The Buyout Agreement provided that LKAR was to make certain payments to Argovitz for so long as LKAR was managing the Red Hawk Casino for the Shingle Springs Tribe. Lakes made the payments required under the Buyout Agreement while it was managing the Red Hawk Casino, and discontinued the payments after its management contract to manage the Red Hawk Casino was terminated. Argovitz asserted claims for breach of the Buyout Agreement and the implied covenant of good faith and fair dealing relating to the payments he alleged he was entitled to receive after the management agreement was terminated. He sought damages of approximately $2.7 million, plus interest, costs, and attorney fees. | |||||||||||||||||||||||||
On September 9, 2014, Argovitz was awarded approximately $2.4 million related to the arbitration action brought by Argovitz against Lakes. As a result, Lakes recognized charges related to arbitration award in its consolidated statement of operations of approximately $2.5 million during the third quarter of 2014, which included the $2.4 million award and $0.1 million of legal fees. The action is now closed and no further claims can be made by Argovitz related to this matter. | |||||||||||||||||||||||||
Quest Media Group, LLC Litigation | |||||||||||||||||||||||||
On May 17, 2012, Lakes received service of a breach of contract lawsuit filed in the Franklin County Court of Common Pleas, Franklin County, Ohio by Quest Media Group, LLC (“Quest”) with respect to an agreement (the “Agreement”) entered into between Lakes Ohio Development, LLC (a wholly owned subsidiary of Lakes) (“Lakes Ohio Development”) and Quest on March 9, 2010. The Agreement relates to Quest assisting Lakes Ohio Development in partnering with Rock Ohio Ventures, LLC and Penn Ventures, LLC (“Penn Ventures”) with respect to funding the proposed citizen-initiated referendum in November 2009 to amend the Ohio constitution to permit one casino each in Cleveland, Cincinnati, Toledo and Columbus, Ohio. The lawsuit alleged, among other things, that Lakes breached the Agreement by selling Lakes Ohio Development’s interest in the Toledo and Columbus, Ohio casino projects to Penn Ventures, failing to pay the proper fee to Quest as a result of such sale, and incorrectly calculating the costs that are to be offset against Quest’s fee. The lawsuit sought unspecified compensatory damages in excess of $25,000, punitive damages, declaratory and injunctive relief. The lawsuit named as defendants Lakes Entertainment, Inc., Lakes Ohio Development, LLC and Lyle Berman, Chairman and CEO of Lakes. Lakes removed the case to federal court, answered the pleadings and filed a motion to dismiss the claims against all defendants. Prior to the judge’s ruling on the motion to dismiss, the parties settled all but one of Quest’s claims (including obtaining a dismissal of Lyle Berman from the lawsuit) at no out-of-pocket expense to Lakes. The judge granted Lakes’ motion to dismiss and dismissed the remaining claims against Lakes. Quest subsequently appealed the dismissal to the Sixth Circuit Court of Appeals. The matter has been fully briefed by both parties and oral arguments were held on March 3, 2015. A decision is expected in mid-2015. Lakes continues to believe that the suit is without merit and will continue to vigorously defend the matter. | |||||||||||||||||||||||||
Employment Agreements | |||||||||||||||||||||||||
Lakes has entered into employment agreements with certain key employees of the Company. The agreements provide for certain benefits to the employee as well as severance if the employee is terminated without cause or due to a “constructive termination” as defined in the agreements. The severance amounts depend upon the term of the agreement and can be up to two years of base salary and two years of bonus calculated as the average bonus earned in the previous two years. If such termination occurs within three years of a change of control as defined in the agreements by the Company without cause or due to a constructive termination, the employee will receive a lump sum payment equal to two times the annual base salary and bonus/incentive compensation along with insurance costs, 401(k) matching contributions and certain other benefits. In the event the employee’s employment terminates for any reason, including death, disability, expiration of an initial term, non-renewal by the Company with or without cause, by the employee with notice, or due to constructive termination, all unvested stock options vest at the date of termination and remain exercisable for three years. The Company is expected to perform on these agreements if the pending Merger with Golden Gaming closes. The agreements provide for a base salary, bonus, stock options and other customary benefits. | |||||||||||||||||||||||||
Retention Bonus and Severance Agreements | |||||||||||||||||||||||||
On March 30, 2015, Lakes provided Retention Bonus and Severance Agreements (“Severance Agreements”) to 14 of its employees. These Severance Agreements are contingent upon closing of the Merger. Pursuant to these Severance Agreements, Lakes estimates that it will recognize an estimated charge of $2.8 million, representing cash payments and non-cash expenses related to stock vesting acceleration. All of the payments due under these agreements are anticipated to be paid within 30 days after closing of the Merger. | |||||||||||||||||||||||||
Merger Costs | |||||||||||||||||||||||||
Lakes expects to incur a total of approximately $10.0 million in costs associated with the proposed Merger, the majority of which are contingent upon the closing of the Merger. The $10.0 million includes the employment, retention bonus and severance agreements discussed above in addition to legal, financial advisor, accounting and consulting costs. Lakes has incurred approximately $1.3 million of the expected $10.0 million total transaction related costs as of March 29, 2015, of which approximately $0.8 million was incurred during the first quarter of 2015. | |||||||||||||||||||||||||
Shareholder Class Action Lawsuits | |||||||||||||||||||||||||
On February 6, 2015, Lakes, the members of the Lakes’ Board of Directors, LG Acquisition Corporation, Sartini Gaming, Inc., and the Blake L. Sartini and Delise F. Sartini Family Trust were named as defendants in three complaints filed in the District Court of the State of Minnesota, Fourth Judicial District in Hennepin County. The cases are captioned James Orr, individually and on behalf of all others similarly situated, as Plaintiff, vs. Lakes Entertainment, Inc., LG Acquisition Corporation, Sartini Gaming, Inc., Lyle A. Berman, Timothy J. Cope, Larry C. Barenbaum, Neil I. Sell, Ray M. Moberg, and the Blake L. Sartini and Delise F. Sartini Family Trust, as Defendants; Anthony Dacquisito, on behalf of himself and all others similarly situated, as Plaintiff vs. Larry Barenbaum, Lyle Berman, Neil Sell, Ray Moberg, Timothy Cope, LG Acquisition Corporation, Sartini Gaming, Inc., and the Blake L. Sartini and Delise F. Sartini Family Trust, as Defendants; and David Lehr and Pamela Lehr, as Plaintiffs, individually and on behalf of all others similarly situated vs. Larry Barenbaum, Lyle Berman, Neil Sell, Ray Moberg, Timothy Cope, LG Acquisition Corporation, Sartini Gaming, Inc., and the Blake L. Sartini and Delise F. Sartini Family Trust, as Defendants. These are purported shareholder class action lawsuits brought by certain of Lakes’ shareholders on behalf of themselves and others similarly situated, alleging that in entering into the proposed transaction with Golden Gaming, the Defendants have breached their fiduciary duties of good faith, loyalty and due care, and/or have aided and abetted such breaches. The Plaintiffs seek, among other things, to enjoin the transactions contemplated by the Merger Agreement and attorney’s fees. An unfavorable outcome in these lawsuits could prevent or delay the consummation of the Merger, result in substantial costs to Lakes, or both. It is also possible that other lawsuits may yet be filed and Lakes cannot estimate any possible loss from this or future litigation at this time. | |||||||||||||||||||||||||
Miscellaneous Legal Matters | |||||||||||||||||||||||||
Lakes and its subsidiaries are involved in various other inquiries, administrative proceedings, and litigation relating to contracts and other matters arising in the normal course of business. While any proceeding or litigation has an element of uncertainty, and although unable to estimate the minimum costs, if any, to be incurred in connection with these matters, management currently believes that the likelihood of an unfavorable outcome is remote, and is not likely to have a material adverse effect upon Lakes’ unaudited consolidated financial statements. Accordingly, no provision has been made with regard to these matters. |
Note_16_Segment_Information
Note 16 - Segment Information | 3 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting Disclosure [Text Block] | 16. Segment Information | ||||||||||||||||
Lakes’ segments reported below (in millions) are the segments of the Company for which separate financial information is available and for which operating results are evaluated by the chief operating decision-maker in deciding how to allocate resources and in assessing performance. | |||||||||||||||||
The Rocky Gap segment includes results of operations and assets related to the Rocky Gap Casino Resort near Cumberland, Maryland. The Other segment includes Lakes’ cash and cash equivalents, short-term investments, Lakes corporate overhead and the investment in Rock Ohio Ventures. Costs in Other have not been allocated to the other segments because these costs are not easily allocable and to do so would not be practical. Amounts in Eliminations represent the intercompany management fee for Rocky Gap. | |||||||||||||||||
Rocky Gap | Other | Eliminations | Consolidated | ||||||||||||||
Three months ended March 29, 2015 | |||||||||||||||||
Net revenue | $ | 12.7 | $ | 0.4 | $ | (0.3 | ) | $ | 12.8 | ||||||||
Management fee revenue – Rocky Gap | — | 0.3 | (0.3 | ) | — | ||||||||||||
Management fee expense – Rocky Gap | (0.3 | ) | — | 0.3 | — | ||||||||||||
Gain on sale of cost method investment | — | 0.8 | — | 0.8 | |||||||||||||
Impairments and other losses | — | (0.3 | ) | — | (0.3 | ) | |||||||||||
Depreciation and amortization expense | (0.9 | ) | — | — | (0.9 | ) | |||||||||||
Earnings (loss) from operations | 0.3 | (1.6 | ) | — | (1.3 | ) | |||||||||||
Interest expense | (0.3 | ) | — | — | (0.3 | ) | |||||||||||
Three months ended March 30, 2014 | |||||||||||||||||
Net revenue | $ | 12.3 | $ | 0.3 | $ | (0.3 | ) | $ | 12.3 | ||||||||
Management fee revenue – Rocky Gap | — | 0.3 | (0.3 | ) | — | ||||||||||||
Management fee expense – Rocky Gap | (0.3 | ) | — | 0.3 | — | ||||||||||||
Depreciation and amortization expense | (0.8 | ) | (0.1 | ) | — | (0.9 | ) | ||||||||||
Earnings (loss) from operations | 0.2 | (1.8 | ) | — | (1.6 | ) | |||||||||||
Interest expense | (0.3 | ) | — | — | (0.3 | ) | |||||||||||
As of March 29, 2015 | |||||||||||||||||
Total assets | $ | 36.8 | $ | 83.5 | $ | — | $ | 120.3 | |||||||||
Capital expenditures | 1 | 0.1 | — | 1.1 | |||||||||||||
As of December 28, 2014 | |||||||||||||||||
Total assets | $ | 35.7 | $ | 86.3 | $ | — | $ | 122 | |||||||||
Capital expenditures | 4.3 | 0.2 | — | 4.5 | |||||||||||||
Note_3_ShortTerm_Investments_T
Note 3 - Short-Term Investments (Tables) | 3 Months Ended | ||||||||||||
Mar. 29, 2015 | |||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Amortized | Fair | Unrealized | ||||||||||
Cost | Value | Gain/(Loss) | |||||||||||
29-Mar-15 | |||||||||||||
Commercial paper | $ | 11,984 | $ | 11,984 | $ | — | |||||||
Corporate bonds | 33,704 | 33,681 | (23 | ) | |||||||||
Certificates of deposit | 480 | 480 | — | ||||||||||
Balances at March 29, 2015 | $ | 46,168 | $ | 46,145 | $ | (23 | ) | ||||||
28-Dec-14 | |||||||||||||
Commercial paper | $ | 23,982 | $ | 23,984 | $ | 2 | |||||||
Corporate bonds | 21,717 | 21,693 | (24 | ) | |||||||||
Certificates of deposit | 961 | 961 | — | ||||||||||
Balances at December 28, 2014 | $ | 46,660 | $ | 46,638 | $ | (22 | ) |
Note_4_Property_and_Equipment_1
Note 4 - Property and Equipment, Net (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | March 29, | December 28, | |||||||
2015 | 2014 | ||||||||
Building and site improvements | $ | 21,421 | $ | 27,905 | |||||
Furniture and equipment | 13,667 | 13,445 | |||||||
Construction in process | 578 | 83 | |||||||
Property and equipment | 35,666 | 41,433 | |||||||
Less accumulated depreciation | (7,374 | ) | (8,694 | ) | |||||
Property and equipment, net | $ | 28,292 | $ | 32,739 |
Note_5_Gaming_License_Tables
Note 5 - Gaming License (Tables) (Licensing Agreements [Member]) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Licensing Agreements [Member] | |||||||||
Note 5 - Gaming License (Tables) [Line Items] | |||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 29, | December 28, | |||||||
2015 | 2014 | ||||||||
Original cost | $ | 2,100 | $ | 2,100 | |||||
Accumulated amortization | (260 | ) | (225 | ) | |||||
$ | 1,840 | $ | 1,875 |
Note_9_Debt_Tables
Note 9 - Debt (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | March 29, | December 28, | |||||||
2015 | 2014 | ||||||||
Financing Facility | $ | 11,269 | $ | 11,691 | |||||
Capital lease obligations | 30 | 50 | |||||||
Total debt | 11,299 | 11,741 | |||||||
Less: current maturities, net of discount | (1,350 | ) | (1,368 | ) | |||||
Less: unamortized debt discount | (1,319 | ) | (1,432 | ) | |||||
Long-term debt, net of current maturities and discount | $ | 8,630 | $ | 8,941 |
Note_10_Promotional_Allowances1
Note 10 - Promotional Allowances (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Promotional Allowances [Abstract] | |||||||||
Estimated Retail Value for Promotional Allowances [Table Text Block] | Three Months Ended | ||||||||
29-Mar-15 | 30-Mar-14 | ||||||||
Food and beverage | $ | 159 | $ | 107 | |||||
Rooms | 552 | 808 | |||||||
Other | 53 | 36 | |||||||
Total promotional allowances | $ | 764 | $ | 951 | |||||
Cost of Promotional Allowances [Table Text Block] | Three Months Ended | ||||||||
29-Mar-15 | 30-Mar-14 | ||||||||
Food and beverage | $ | 78 | $ | 53 | |||||
Rooms | 169 | 194 | |||||||
Other | 34 | 42 | |||||||
Total promotional allowances | $ | 281 | $ | 289 |
Note_11_Sharebased_Compensatio1
Note 11 - Share-based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Common Shares | ||||||||||||||||
Options | Exercisable | Available | Weighted-Average | ||||||||||||||
Outstanding | for Grant | Exercise | |||||||||||||||
Price | |||||||||||||||||
2015 | |||||||||||||||||
Balance at December 28, 2014 | 755,617 | 616,792 | 276,635 | $ | 6.09 | ||||||||||||
Exercised | (2,500 | ) | — | 6.14 | |||||||||||||
Balance at March 29, 2015 | 753,117 | 677,870 | 276,635 | 6.09 | |||||||||||||
2014 | |||||||||||||||||
Balance at December 29, 2013 | 798,171 | 585,769 | 263,424 | $ | 5.97 | ||||||||||||
Forfeited/cancelled/expired | (18,211 | ) | 17,211 | 4.85 | |||||||||||||
Exercised | (3,500 | ) | — | 3.78 | |||||||||||||
Granted | 5,000 | (5,000 | ) | 9.16 | |||||||||||||
Balance at March 30, 2014 | 781,460 | 629,483 | 275,635 | 5.88 |
Note_14_Financial_Instruments_1
Note 14 - Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 29-Mar-15 | 28-Dec-14 | |||||||
Short-Term Investments | |||||||||
Commercial paper | $ | 11,984 | $ | 23,984 | |||||
Corporate bonds | 33,681 | 21,693 | |||||||
Certificates of deposit | 480 | 961 |
Note_15_Commitments_and_Contin1
Note 15 - Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||
Minimum lease payment | $ | 425 | $ | 425 | $ | 425 | $ | 425 | $ | 425 | $ | 13,600 |
Note_16_Segment_Information_Ta
Note 16 - Segment Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Rocky Gap | Other | Eliminations | Consolidated | |||||||||||||
Three months ended March 29, 2015 | |||||||||||||||||
Net revenue | $ | 12.7 | $ | 0.4 | $ | (0.3 | ) | $ | 12.8 | ||||||||
Management fee revenue – Rocky Gap | — | 0.3 | (0.3 | ) | — | ||||||||||||
Management fee expense – Rocky Gap | (0.3 | ) | — | 0.3 | — | ||||||||||||
Gain on sale of cost method investment | — | 0.8 | — | 0.8 | |||||||||||||
Impairments and other losses | — | (0.3 | ) | — | (0.3 | ) | |||||||||||
Depreciation and amortization expense | (0.9 | ) | — | — | (0.9 | ) | |||||||||||
Earnings (loss) from operations | 0.3 | (1.6 | ) | — | (1.3 | ) | |||||||||||
Interest expense | (0.3 | ) | — | — | (0.3 | ) | |||||||||||
Three months ended March 30, 2014 | |||||||||||||||||
Net revenue | $ | 12.3 | $ | 0.3 | $ | (0.3 | ) | $ | 12.3 | ||||||||
Management fee revenue – Rocky Gap | — | 0.3 | (0.3 | ) | — | ||||||||||||
Management fee expense – Rocky Gap | (0.3 | ) | — | 0.3 | — | ||||||||||||
Depreciation and amortization expense | (0.8 | ) | (0.1 | ) | — | (0.9 | ) | ||||||||||
Earnings (loss) from operations | 0.2 | (1.8 | ) | — | (1.6 | ) | |||||||||||
Interest expense | (0.3 | ) | — | — | (0.3 | ) | |||||||||||
As of March 29, 2015 | |||||||||||||||||
Total assets | $ | 36.8 | $ | 83.5 | $ | — | $ | 120.3 | |||||||||
Capital expenditures | 1 | 0.1 | — | 1.1 | |||||||||||||
As of December 28, 2014 | |||||||||||||||||
Total assets | $ | 35.7 | $ | 86.3 | $ | — | $ | 122 | |||||||||
Capital expenditures | 4.3 | 0.2 | — | 4.5 |
Note_1_Nature_of_Business_and_1
Note 1 - Nature of Business and Basis of Presentation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 8 Months Ended | 12 Months Ended | 5 Months Ended | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 12, 2013 | Dec. 11, 2013 | Mar. 29, 2015 | Jan. 25, 2015 | Sep. 30, 2015 | Dec. 28, 2014 | Dec. 30, 2012 | Sep. 10, 2014 | Sep. 09, 2014 |
Note 1 - Nature of Business and Basis of Presentation (Details) [Line Items] | |||||||||
Common Stock, Shares, Outstanding (in Shares) | 13,392,000 | 13,389,000 | 13,400,000 | 26,800,000 | |||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $0.01 | 0.01 | 0.01 | ||||||
Common Stock, Shares Authorized (in Shares) | 100,000,000 | 100,000,000 | 100,000,000 | 200,000,000 | |||||
Voting Securities Ownership Threshold, Percent | 4.99% | 15.00% | |||||||
Merger Agreement [Member] | Golden Gaming [Member] | |||||||||
Note 1 - Nature of Business and Basis of Presentation (Details) [Line Items] | |||||||||
Maximum Reimburse Transaction Expenses (in Dollars) | $0.50 | ||||||||
Rocky Gap State Park [Member] | Maryland DNR [Member] | |||||||||
Note 1 - Nature of Business and Basis of Presentation (Details) [Line Items] | |||||||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 40 years | ||||||||
Area of Real Estate Property (in Acres) | 268 | ||||||||
Golden Gaming [Member] | |||||||||
Note 1 - Nature of Business and Basis of Presentation (Details) [Line Items] | |||||||||
Merger Agreement Share Price (in Dollars per share) | $9.57 | ||||||||
Merger Agreement, Multiplier | 7.5 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 7,858,145 | ||||||||
Percentage of Total Fully Diluted Post-merger Shares | 35.70% | ||||||||
Current Shareholders, Percentage | 64.30% | ||||||||
Cash Termination Fee (in Dollars) | 5 | ||||||||
Operating Tax Loss Carryforwards Preserved upon Acquisition Close (in Dollars) | 89 | ||||||||
Rocky Gap Resort [Member] | |||||||||
Note 1 - Nature of Business and Basis of Presentation (Details) [Line Items] | |||||||||
Construction and Development Costs (in Dollars) | $35 | ||||||||
Reverse Stock Split [Member] | |||||||||
Note 1 - Nature of Business and Basis of Presentation (Details) [Line Items] | |||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 |
Note_3_ShortTerm_Investments_D
Note 3 - Short-Term Investments (Details) (Short-term Investments [Member], USD $) | 3 Months Ended |
Mar. 29, 2015 | |
Short-term Investments [Member] | |
Note 3 - Short-Term Investments (Details) [Line Items] | |
Other than Temporary Impairment Losses, Investments | $0 |
Note_3_ShortTerm_Investments_D1
Note 3 - Short-Term Investments (Details) - Short-Term Investments (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Dec. 28, 2014 |
Note 3 - Short-Term Investments (Details) - Short-Term Investments [Line Items] | ||
Amortized Cost | $46,168 | $46,660 |
Fair Value | 46,145 | 46,638 |
Unrealized Gain (Loss) | -23 | -22 |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ||
Note 3 - Short-Term Investments (Details) - Short-Term Investments [Line Items] | ||
Amortized Cost | 11,984 | 23,982 |
Fair Value | 11,984 | 23,984 |
Unrealized Gain (Loss) | 0 | 2 |
Corporate Bond Securities [Member] | ||
Note 3 - Short-Term Investments (Details) - Short-Term Investments [Line Items] | ||
Amortized Cost | 33,704 | 21,717 |
Fair Value | 33,681 | 21,693 |
Unrealized Gain (Loss) | -23 | -24 |
Certificates of Deposit [Member] | ||
Note 3 - Short-Term Investments (Details) - Short-Term Investments [Line Items] | ||
Amortized Cost | 480 | 961 |
Fair Value | 480 | 961 |
Unrealized Gain (Loss) | $0 | $0 |
Note_4_Property_and_Equipment_2
Note 4 - Property and Equipment, Net (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 29, 2015 | Mar. 26, 2015 | Dec. 28, 2014 | |
Note 4 - Property and Equipment, Net (Details) [Line Items] | |||
Property, Plant and Equipment, Net | $28,292,000 | $32,739,000 | |
Office Facility Located in Minnetonka, Minnesota [Member] | |||
Note 4 - Property and Equipment, Net (Details) [Line Items] | |||
Property, Plant and Equipment, Net | 4,700,000 | ||
Impairment of Long-Lived Assets to be Disposed of | 300,000 | ||
Office Facility Located in Minnetonka, Minnesota [Member] | |||
Note 4 - Property and Equipment, Net (Details) [Line Items] | |||
Disposal Group, Including Discontinued Operation, Consideration | 4,700,000 | ||
Purchase and Sale Agreement, Fees and Closing Costs | 300,000 | ||
Property, Plant and Equipment, Net | $4,400,000 |
Note_4_Property_and_Equipment_3
Note 4 - Property and Equipment, Net (Details) - Property, Plant and Equipment, at Cost (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $35,666 | $41,433 |
Less accumulated depreciation | -7,374 | -8,694 |
Property and equipment, net | 28,292 | 32,739 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 21,421 | 27,905 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 13,667 | 13,445 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $578 | $83 |
Note_5_Gaming_License_Details
Note 5 - Gaming License (Details) (Licensing Agreements [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Licensing Agreements [Member] | ||
Note 5 - Gaming License (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Amortization of Intangible Assets | $0.10 | $0.10 |
Note_5_Gaming_License_Details_
Note 5 - Gaming License (Details) - Gaming License (Licensing Agreements [Member], USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original cost | $2,100 | $2,100 |
Accumulated amortization | -260 | -225 |
$1,840 | $1,875 |
Note_6_Investment_in_Rock_Ohio1
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Mar. 29, 2015 | Mar. 30, 2014 | Jan. 25, 2015 | Sep. 28, 2014 | Dec. 28, 2014 | Jan. 01, 2012 | 22-May-13 | Apr. 21, 2014 | Dec. 29, 2013 | Oct. 17, 2014 | Oct. 02, 2011 | |
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Payments to Acquire Property, Plant, and Equipment | $1,130,000 | $717,000 | |||||||||
Ownership Transfered [Member] | Dania Entertainment Center [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Investment Owned, Percent of Net Assets | 40.00% | ||||||||||
Rock Ohio Ventures [Member] | Horseshoe Casino [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Cost-method Investments, Investee Ownership Percentage | 80.00% | ||||||||||
Rock Ohio Ventures [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 10.00% | ||||||||||
Cost Method Investments | 21,000,000 | ||||||||||
Cost Method Investments, Fair Value Disclosure | 0 | 800,000 | |||||||||
Cost-method Investments, Other than Temporary Impairment | 21,000,000 | ||||||||||
Payments for (Proceeds from) Investments | -800,000 | ||||||||||
Gain on Sale of Investments | 800,000 | ||||||||||
Dania Entertainment Holdings [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Cost Method Investments | 0 | ||||||||||
Ownership Redemmed [Member] | Dania Entertainment Center [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Investment Owned, Percent of Net Assets | 5.00% | ||||||||||
Ownership Redemmed [Member] | Dania Entertainment Holdings [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Investment Owned, Percent of Net Assets | 20.00% | ||||||||||
Investment Sold [Member] | Dania Entertainment Center [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Cost Method Investments | 2,600,000 | ||||||||||
Payments Received [Member] | Dania Entertainment Center [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Cost Method Investments | 1,000,000 | 1,400,000 | |||||||||
Gain on Sale of Investments | 2,400,000 | ||||||||||
Dania Entertainment Center [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Advances on Notes Receivable | 4,000,000 | ||||||||||
Notes, Loans and Financing Receivable, Net, Current | 0 | ||||||||||
Dania Entertainment Holdings [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Investment Owned, Percent of Net Assets | 20.00% | ||||||||||
Dania Entertainment Center [Member] | |||||||||||
Note 6 - Investment in Rock Ohio Ventures, LLC (Details) [Line Items] | |||||||||||
Payments to Acquire Property, Plant, and Equipment | $65,500,000 |
Note_8_Land_Details
Note 8 - Land (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 29, 2015 | Dec. 28, 2014 | Sep. 30, 2012 | 15-May-14 | |
Note 8 - Land (Details) [Line Items] | ||||
Land Available for Development | $960,000 | $960,000 | ||
Option Agreement [Member] | Penn National [Member] | ||||
Note 8 - Land (Details) [Line Items] | ||||
Land Available for Development | 7,000,000 | |||
Land Available for Development, Inflation, Percent | 1.00% | |||
Purchase Obligation | 0 | |||
Annual Payment Option, Land Available for Development | 100,000 | |||
Amended Option Agreement [Member] | Penn National [Member] | ||||
Note 8 - Land (Details) [Line Items] | ||||
Land Available for Development | 5,500,000 | |||
Land [Member] | ||||
Note 8 - Land (Details) [Line Items] | ||||
Asset Impairment Charges | $0 | $0 |
Note_9_Debt_Details
Note 9 - Debt (Details) (USD $) | 0 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | 13 Months Ended | 14 Months Ended | ||||
Oct. 28, 2014 | Mar. 29, 2015 | Mar. 30, 2014 | Dec. 29, 2013 | Dec. 29, 2013 | Oct. 31, 2013 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 30, 2012 | |
Note 9 - Debt (Details) [Line Items] | ||||||||||
Long-term Line of Credit | $11,269,000 | $11,691,000 | $11,691,000 | $11,691,000 | ||||||
Centennial Bank [Member] | Revolving Credit Facility [Member] | ||||||||||
Note 9 - Debt (Details) [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 8,000,000 | |||||||||
Line of Credit Facility, Interest Rate at Period End | 8.95% | |||||||||
Proceeds from Lines of Credit | 0 | |||||||||
Centennial Bank [Member] | Financing Facility [Member] | ||||||||||
Note 9 - Debt (Details) [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 17,500,000 | |||||||||
Proceeds from Lines of Credit | 13,400,000 | |||||||||
Line of Credit Facility, Interest Rate During Period | 10.50% | 5.50% | ||||||||
Line of Credit Facility, Expiration Period | 84 months | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 4,100,000 | |||||||||
Long-term Line of Credit | 11,300,000 | 11,700,000 | 11,700,000 | 11,700,000 | ||||||
Gains (Losses) on Restructuring of Debt | 1,700,000 | |||||||||
Fair Value of Debt Instrument, Unamortized Discount | 2,000,000 | 2,000,000 | ||||||||
Debt Issuance Cost | 300,000 | |||||||||
Accretion of Discount | $100,000 | $100,000 |
Note_9_Debt_Details_Longterm_D
Note 9 - Debt (Details) - Long-term Debt (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Long-term Debt, Unclassified [Abstract] | ||
Financing Facility | $11,269 | $11,691 |
Capital lease obligations | 30 | 50 |
Total debt | 11,299 | 11,741 |
Less: current maturities, net of discount | -1,350 | -1,368 |
Less: unamortized debt discount | -1,319 | -1,432 |
Long-term debt, net of current maturities and discount | $8,630 | $8,941 |
Note_10_Promotional_Allowances2
Note 10 - Promotional Allowances (Details) - Estimated Retail Value of Promotional Allowance (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Note 10 - Promotional Allowances (Details) - Estimated Retail Value of Promotional Allowance [Line Items] | ||
Promotional Allowances | $764 | $951 |
Food and Beverage [Member] | ||
Note 10 - Promotional Allowances (Details) - Estimated Retail Value of Promotional Allowance [Line Items] | ||
Promotional Allowances | 159 | 107 |
Rooms [Member] | ||
Note 10 - Promotional Allowances (Details) - Estimated Retail Value of Promotional Allowance [Line Items] | ||
Promotional Allowances | 552 | 808 |
Other [Member] | ||
Note 10 - Promotional Allowances (Details) - Estimated Retail Value of Promotional Allowance [Line Items] | ||
Promotional Allowances | $53 | $36 |
Note_10_Promotional_Allowances3
Note 10 - Promotional Allowances (Details) - Estimated Cost of Providing Promotional Allowances (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Note 10 - Promotional Allowances (Details) - Estimated Cost of Providing Promotional Allowances [Line Items] | ||
Food and beverage | $1,065 | $1,033 |
Rooms | 158 | 110 |
Casino Expenses [Member] | ||
Note 10 - Promotional Allowances (Details) - Estimated Cost of Providing Promotional Allowances [Line Items] | ||
Food and beverage | 78 | 53 |
Rooms | 169 | 194 |
Other | 34 | 42 |
Total promotional allowances | $281 | $289 |
Note_11_Sharebased_Compensatio2
Note 11 - Share-based Compensation (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | Dec. 29, 2013 |
Note 11 - Share-based Compensation (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 0 | 5,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $4.96 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 219 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $6.09 | $5.88 | $6.09 | $5.97 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $2 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in Dollars per share) | $6.03 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 109 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 1.9 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 2,500 | 3,500 | 3,500 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 0.2 | |||
Employee Stock Option [Member] | ||||
Note 11 - Share-based Compensation (Details) [Line Items] | ||||
Allocated Share-based Compensation Expense | 0.1 | 0.1 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 36 days | |||
Less Than [Member] | ||||
Note 11 - Share-based Compensation (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $0.10 | $0.10 |
Note_11_Sharebased_Compensatio3
Note 11 - Share-based Compensation (Details) - Stock Option Activity (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | |
2015 | |||
Options Outstanding | 755,617 | 798,171 | 798,171 |
Exercisable | 616,792 | 585,769 | 585,769 |
Available for Grant | 276,635 | 263,424 | 263,424 |
Weighted-Average Exercise Price (in Dollars per share) | $6.09 | $5.97 | $5.97 |
Options Outstanding | 753,117 | 781,460 | 755,617 |
Exercisable | 677,870 | 629,483 | 616,792 |
Available for Grant | 276,635 | 275,635 | 276,635 |
Weighted-Average Exercise Price (in Dollars per share) | $6.09 | $5.88 | $6.09 |
Forfeited/cancelled/expired | -18,211 | ||
Forfeited/cancelled/expired | 17,211 | ||
Forfeited/cancelled/expired (in Dollars per share) | $4.85 | ||
Options Outstanding, Exercised | -2,500 | -3,500 | -3,500 |
Weighted-Average Exercise Price, Exercised (in Dollars per share) | $6.14 | $3.78 | |
Available for Grant, Exercised | 0 | 0 | |
Granted | 0 | 5,000 | |
Granted | -5,000 | ||
Granted (in Dollars per share) | $9.16 |
Note_12_Earnings_Loss_Per_Shar1
Note 12 - Earnings (Loss) Per Share (Details) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 753,117 | 781,460 |
Note_13_Income_Taxes_Details
Note 13 - Income Taxes (Details) (USD $) | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | |
Note 13 - Income Taxes (Details) [Line Items] | |||
Income Tax Expense (Benefit) | $155,000 | $0 | |
Effective Income Tax Rate Reconciliation, Percent | -9.90% | 0.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | |
Income Taxes Receivable | $2,000,000 | $2,200,000 | |
Earliest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Note 13 - Income Taxes (Details) [Line Items] | |||
Income Tax Examination, Year under Examination | 2009 | ||
Latest Tax Year [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Note 13 - Income Taxes (Details) [Line Items] | |||
Income Tax Examination, Year under Examination | 2013 | ||
Tax Year 2010 [Member] | State and Local Jurisdiction [Member] | California Franchise Tax Board [Member] | |||
Note 13 - Income Taxes (Details) [Line Items] | |||
Income Tax Examination, Year under Examination | 2010 |
Note_14_Financial_Instruments_2
Note 14 - Financial Instruments and Fair Value Measurements (Details) (USD $) | 0 Months Ended | ||||
Jan. 25, 2015 | Mar. 26, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | |
Note 14 - Financial Instruments and Fair Value Measurements (Details) [Line Items] | |||||
Property, Plant and Equipment, Net | $28,292,000 | $32,739,000 | |||
Rock Ohio Ventures [Member] | |||||
Note 14 - Financial Instruments and Fair Value Measurements (Details) [Line Items] | |||||
Cost Method Investments, Fair Value Disclosure | 800,000 | 0 | |||
Payments for (Proceeds from) Investments | -800,000 | ||||
Office Facility Located in Minnetonka, Minnesota [Member] | |||||
Note 14 - Financial Instruments and Fair Value Measurements (Details) [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | 4,700,000 | ||||
Purchase and Sale Agreement, Fees and Closing Costs | 300,000 | ||||
Property, Plant and Equipment, Net | $4,400,000 |
Note_14_Financial_Instruments_3
Note 14 - Financial Instruments and Fair Value Measurements (Details) - Estimated Fair Value of Financial Instruments, Current Year (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Short-Term Investments | ||
Available for Sale Securities | $46,145 | $46,638 |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-Term Investments | ||
Available for Sale Securities | 11,984 | 23,984 |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ||
Short-Term Investments | ||
Available for Sale Securities | 11,984 | 23,984 |
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-Term Investments | ||
Available for Sale Securities | 33,681 | 21,693 |
Corporate Bond Securities [Member] | ||
Short-Term Investments | ||
Available for Sale Securities | 33,681 | 21,693 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-Term Investments | ||
Available for Sale Securities | 480 | 961 |
Certificates of Deposit [Member] | ||
Short-Term Investments | ||
Available for Sale Securities | $480 | $961 |
Note_15_Commitments_and_Contin2
Note 15 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 0 Months Ended | 9 Months Ended | 22 Months Ended | 12 Months Ended | 3 Months Ended | 10 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | |
7-May-15 | Mar. 30, 2015 | Nov. 03, 2015 | Mar. 29, 2015 | Dec. 29, 2013 | Mar. 29, 2015 | 22-May-13 | Sep. 09, 2014 | Mar. 12, 2014 | Sep. 28, 2014 | Jul. 01, 2012 | |
acre | |||||||||||
Subsequent Event [Member] | Golden Gaming [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Business Combination, Acquisition Related Costs | $1,300,000 | ||||||||||
Scenario, Forecast [Member] | Golden Gaming [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Severance Costs | 2,800,000 | ||||||||||
Business Combination, Acquisition Related Costs | 10,000,000 | ||||||||||
Per Room Per Night [Member] | Rocky Gap State Park [Member] | Maryland DNR [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Operating Leases, Surcharge Revenue, Per Unit | 3 | ||||||||||
Per Round of Golf [Member] | Rocky Gap State Park [Member] | Maryland DNR [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Operating Leases, Surcharge Revenue, Per Unit | 1 | ||||||||||
Gaming Revenue [Member] | Rocky Gap State Park [Member] | Maryland DNR [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Operating Leases, Rent Expense | 275,000 | ||||||||||
Operating Leases, Income Statement, Percent Revenue, Percent | 0.90% | ||||||||||
Operating Lease, Lease Terms, Base Revenue | 275,000 | ||||||||||
Surcharge Revenue [Member] | Rocky Gap State Park [Member] | Maryland DNR [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Operating Leases, Rent Expense | 150,000 | ||||||||||
Operating Lease, Lease Terms, Base Revenue | 150,000 | ||||||||||
Surcharge Revenue [Member] | Rocky Gap State Park [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Operating Leases, Rent Expense | 100,000 | ||||||||||
Rocky Gap State Park [Member] | Maryland DNR [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 40 years | ||||||||||
Area of Real Estate Property (in Acres) | 268 | 268 | |||||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 20 years | ||||||||||
Operating Leases, Rent Expense | 150,000 | ||||||||||
Golden Gaming [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Business Combination, Acquisition Related Costs | 800,000 | ||||||||||
Jerry Argovitz Litigation [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Loss Contingency, Damages Sought, Value | 2,700,000 | ||||||||||
Litigation Settlement, Amount | 2,400,000 | ||||||||||
Gain (Loss) Related to Litigation Settlement | -2,500,000 | ||||||||||
Litigation Settlement, Expense | 100,000 | ||||||||||
Quest Media Group, LLC Litigation [Member] | |||||||||||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||||||||||
Loss Contingency, Damages Sought, Value | $25,000 |
Note_15_Commitments_and_Contin3
Note 15 - Commitments and Contingencies (Details) - Future Minimum Payments for Operating Lease (USD $) | Dec. 28, 2014 |
In Thousands, unless otherwise specified | |
Future Minimum Payments for Operating Lease [Abstract] | |
Minimum lease payment | $425 |
Minimum lease payment | 425 |
Minimum lease payment | 425 |
Minimum lease payment | 425 |
Minimum lease payment | 425 |
Minimum lease payment | $13,600 |
Note_16_Segment_Information_De
Note 16 - Segment Information (Details) - Assets and Operations of Report Segments (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | |
Segment Reporting Information [Line Items] | |||
Net revenue | $12,766,000 | $12,310,000 | |
Management fee expense b Rocky Gap | -6,135,000 | -5,740,000 | |
Gain on sale of cost method investment | 750,000 | ||
Impairments and other losses | -300,000 | ||
Depreciation and amortization expense | -879,000 | -853,000 | |
Earnings (loss) from operations | -1,300,000 | -1,600,000 | |
Interest expense | -300,000 | -300,000 | |
As of March 29, 2015 | |||
Total assets | 120,349,000 | 122,029,000 | |
Capital expenditures | 1,100,000 | 4,500,000 | |
Rocky Gap Resort [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 12,700,000 | 12,300,000 | |
Management fee expense b Rocky Gap | -300,000 | -300,000 | |
Depreciation and amortization expense | -900,000 | -800,000 | |
Earnings (loss) from operations | 300,000 | 200,000 | |
Interest expense | -300,000 | -300,000 | |
As of March 29, 2015 | |||
Total assets | 36,800,000 | 35,700,000 | |
Capital expenditures | 1,000,000 | 4,300,000 | |
Other Segments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 400,000 | 300,000 | |
Management fee revenue b Rocky Gap | 300,000 | 300,000 | |
Gain on sale of cost method investment | 800,000 | ||
Impairments and other losses | -300,000 | ||
Depreciation and amortization expense | -100,000 | ||
Earnings (loss) from operations | -1,600,000 | -1,800,000 | |
As of March 29, 2015 | |||
Total assets | 83,500,000 | 86,300,000 | |
Capital expenditures | 100,000 | 200,000 | |
Consolidation, Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenue | -300,000 | -300,000 | |
Management fee revenue b Rocky Gap | -300,000 | -300,000 | |
Management fee expense b Rocky Gap | $300,000 | $300,000 |