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EXHIBIT 99.1
Thursday October 19, 9:02 am Eastern Time
Press Release
Lakes Gaming Announces Third Quarter Diluted
Earnings of $.46
MINNEAPOLIS--(BUSINESS WIRE)--Oct. 19, 2000--Lakes Gaming, Inc. (Nasdaq:LACO -
news) today announced results for the third quarter ended October 1, 2000.
Revenues for the quarter totaled $10.7 million. Net earnings were $5.0 million,
basic and diluted earnings for the quarter were $.47 per share and $.46 per
share respectively.
Revenues for the quarter were derived from fees related to the management of
Grand Casino Coushatta. Operating results at Grand Casino Coushatta continued to
improve in all areas compared to the same quarter last year including total
revenue, gaming revenue and hotel occupancy. Revenue and earnings for the
quarter are less than the same period last year due to the fact that the
Company's management contract for Grand Casino Avoyelles was bought out by the
Tunica-Biloxi Tribe of Louisiana at the end of the first quarter of 2000.
Excluding results from Grand Casino Avoyelles, Lakes' third quarter earnings
before taxes decreased approximately $.4 million compared to the third quarter
in the prior year. The decrease in earnings relates primarily to increased costs
this year due to development costs of new casino projects. Partially offsetting
the expense increase in the current year quarter was an increase in management
fees of $.6 million and a decrease in losses from unconsolidated affiliates of
$.6 million compared to the same period in the prior year.
Lyle Berman, Chairman of the Board, Chief Executive Officer and President of
Lakes commented, "The third quarter was a very positive quarter for our company.
The operating performance of Grand Casino Coushatta, compared to last year,
continued to improve as we concentrated on improving not only revenue but also
improving operating margins. In addition, we continued to grow our company by
announcing a new partnership with a Las Vegas based company for the development
of two new gaming facilities on Indian owned land in California. We now have
five new casino developments, four in California and one in Michigan. We also
announced, during the third quarter, a joint venture with Metroplex LLC to
develop our real estate on the Las Vegas strip. Each of these transactions are
planned to strengthen our company today and in the future."
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Lakes Gaming, Inc. currently manages the largest casino resort in Louisiana and
has entered into development and management agreements with three separate
tribes for three new casino operations, one in Michigan and two in California.
The Company also has agreements for the development of two additional casinos on
Indian owned land in California through a joint venture, and has entered into a
joint venture agreement for the development of land on the Las Vegas strip.
Lakes Gaming, Inc. common shares are traded on the Nasdaq National Market under
the trading symbol "LACO".
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 the Company) contains statements that are
forward-looking, such as statements relating to plan 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 development and
construction activities, dependence on existing management, domestic or global
economic conditions, activities of competitors and the presence of new or
additional competition, fluctuations and changes in customer preferences and
attitudes, changes in federal or state tax laws of the administration of such
laws and changes in gaming laws or regulations (including the legalization of
gaming in certain jurisdictions). For more information, review the Company's
filings with the Securities and Exchange Commission.
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LAKES GAMING, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
Oct. 1, 2000 Jan. 2, 2000
Assets
Current Assets:
Cash and cash equivalents $ 21,295 $ 24,392
Short-term investments 32,549 27,433
Current installments of notes receivable 15,100 15,406
Accounts receivable 4,712 5,613
Other current assets 7,810 7,380
Total Current Assets 81,466 80,224
Property and Equipment-Net 1,102 1,888
Other Assets:
Land held for development 57,639 54,812
Notes receivable-less current
installments 28,133 20,022
Cash and cash equivalents-restricted 30,153 12,149
Investments in and notes from
unconsolidated affiliates 8,823 8,446
Other long-term assets 4,656 5,997
Total Other Assets 129,404 101,426
Total Assets $211,972 $183,538
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 167 $ 488
Income taxes payable 1,830 6,385
Litigation and claims accrual 25,479 8,419
Other accrued expenses 6,532 6,099
Total Current Liabilities 34,008 21,391
Long-term Liabilities:
Long-term debt-less current installments 1,500 1,500
Deferred income taxes 731 786
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Total Long-Term Liabilities 2,231 2,286
Total Liabilities 36,239 23,677
Commitments and Contingencies
Shareholders' Equity:
Capital stock, $.01 par value; authorized
100,000 shares; 10,638 and 10,629 common
shares issued and outstanding at
October 1, 2000, and January 2, 2000,
respectively 106 106
Additional paid-in-capital 131,485 131,406
Accumulated other comprehensive earnings(loss) (466) (478)
Retained Earnings 44,608 28,827
Total Shareholders' Equity 175,733 159,861
Total Liabilities and Shareholders' Equity $211,972 $183,538
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LAKES GAMING, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(In thousands, except earnings per share)
Three Months Ended
Oct. 1, 2000 Oct. 3, 1999
Revenues:
Management fee income $ 10,684 $ 14,440
Costs and Expenses:
Selling, general and administrative 2,647 849
Depreciation and amortization 329 480
Total Costs and Expenses 2,976 1,329
Earnings From Operations 7,708 13,111
Other income (expense):
Interest income 2,040 1,781
Interest expense (24) (24)
Equity in loss of unconsolidated affiliates (797) (1,408)
Other 61 129
Total other income, net 1,280 478
Earnings before income taxes 8,988 13,589
Provision for income taxes 4,012 6,149
Net Earnings $ 4,976 $ 7,440
Basic Earnings per Share $ 0.47 $ 0.70
Diluted Earnings per Share $ 0.46 $ 0.68
Weighted Average Common Shares Outstanding 10,638 10,606
Dilutive Effect of Stock Compensation Programs 74 330
Weighted Average Common and Diluted
Shares Outstanding 10,712 10,936
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LAKES GAMING, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(In thousands, except earnings per share)
Nine Months Ended
Oct. 1, 2000 Oct. 3, 1999
Revenues:
Management fee income $ 52,392 $ 44,441
Costs and Expenses:
Selling, general and administrative 7,447 5,451
Depreciation and amortization 2,578 1,435
Total Costs and Expenses 10,025 6,886
Earnings From Operations 42,367 37,555
Other income (expense):
Interest income 5,786 5,839
Interest expense (73) (73)
Equity in loss of unconsolidated
affiliates (2,003) (1,771)
Other 63 1,417
Provision for litigation loss (18,000) --
Total other income (expense), net (14,227) 5,412
Earnings before income taxes 28,140 42,967
Provision for income taxes 12,359 18,343
Net Earnings $ 15,781 $ 24,624
Basic Earnings per Share $ 1.48 $ 2.33
Diluted Earnings per Share $ 1.48 $ 2.28
Weighted Average Common Shares Outstanding 10,633 10,590
Dilutive Effect of Stock Compensation Programs 25 215
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Weighted Average Common and Diluted
Shares Outstanding 10,658 10,805
Contact:
Lakes Gaming, Inc., Minneapolis
Timothy J. Cope
952-449-7030
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