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EXHIBIT 99.1
THURSDAY APRIL 19, 4:31 P.M. EASTERN TIME
PRESS RELEASE
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LAKES GAMING ANNOUNCES FIRST QUARTER DILUTED EARNINGS OF $.44
MINNEAPOLIS--(BUSINESS WIRE)--April 19, 2001--Lakes Gaming, Inc. (Nasdaq:LACO -
news) today announced results for the first quarter ended April 1, 2001.
Revenues for the quarter totaled $9.2 million, compared to $31.1 million in the
comparable period in the prior year. Net earnings were $4.7 million or $.44 per
share, compared to $16.1 million or $1.52 per share in the comparable period in
the prior year.
Revenues for the quarter were derived from fees related to the management of
Grand Casino Coushatta. Revenue and earnings for the quarter were less than the
same period last year primarily due to the early buyout of the Company's
management contract for Grand Casino Avoyelles by the Tunica-Biloxi Tribe of
Louisiana at the end of the first quarter 2000, pursuant to the terms of the
contract. Revenues from Grand Casino Avoyelles contributed $19.8 million in the
first quarter of 2000, including approximately $16.0 million in management fee
income recognized due to the buyout of the management contract. Excluding
results from Grand Casino Avoyelles, Lakes' first quarter earnings before taxes
decreased approximately $1.7 million compared to the first quarter in the prior
year. The decrease in earnings relates primarily to a decline in management fees
of $2.0 million from Grand Casino Coushatta due to construction interruption on
the main roads leading to the casino along with increased competition from the
Lake Charles riverboats.
Lyle Berman, Chairman of the Board, Chief Executive Officer and President of
Lakes stated, "The first quarter decline in business at the Coushatta Casino
reflects the adverse road conditions leading to the property which should be
temporary in nature. In addition, Harrahs' marketing promotions supporting their
takeover and grand opening of the Players' riverboat affected the Coushatta
Casino's operations. The Coushatta Casino is currently experiencing a return to
its prior business levels and we expect another good year at the casino."
Mr. Berman also stated "during the quarter, we announced that the Federal Court
decided that Lakes was released from any obligations asserted against the
Company by the Trustee representing Stratosphere Bondholders. We feel this is
very good news as we continue to move forward with our casino development
projects."
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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 one additional casino on
Indian owned land in California through a joint venture with MRD Gaming, 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)
April 1, Dec. 31,
2001 2000
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Assets
Current Assets:
Cash and cash equivalents $ 7,872 $ 10,469
Short-term investments 13,007 32,477
Current installments of notes receivable 13,302 16,679
Accounts receivable 7,056 2,373
Deferred tax asset 13,591 13,674
Other current assets 4,124 2,383
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Total Current Assets 58,952 78,055
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Property and Equipment-Net 1,390 1,414
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Other Assets:
Land held for development 70,400 58,671
Notes receivable-less current installments 46,880 35,337
Cash and cash equivalents-restricted 33,073 30,270
Investments in and notes from unconsolidated
affiliates 3,096 3,209
Other long-term assets 5,887 5,853
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Total Other Assets 159,336 133,340
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Total Assets $219,678 212,809
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Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 142 $ 79
Current maturities of long-term debt 525 525
Income taxes payable 8,381 5,479
Litigation and claims accrual 24,842 25,078
Other accrued expenses 3,824 4,521
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Total Current Liabilities 37,714 35,682
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Long-term Liabilities:
Long-term debt-less current installments 1,325 1,325
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Total Long-Term Liabilities 1,325 1,325
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Total Liabilities 39,039 37,007
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Commitments and Contingencies
Shareholders' Equity:
Capital stock, $.01 par value; authorized 100,000
shares; 10,638 common shares issued and
outstanding at April 1, 2001, and December 31, 2000, respectively 106 106
Additional paid-in-capital 131,525 131,525
Retained Earnings 49,221 44,504
Accumulated other comprehensive earnings (loss) (213) (333)
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Total Shareholders' Equity 180,639 175,802
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Total Liabilities and Shareholders' Equity $219,678 212,809
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LAKES GAMING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except earnings per share)
Three Months Ended
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April 1, April 2,
2001 2000
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Revenues:
Management fee income $ 9,223 $31,053
Costs and Expenses:
Selling, general and administrative 2,580 2,054
Depreciation and amortization 331 1,921
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Total Costs and Expenses 2,911 3,975
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Earnings From Operations 6,312 27,078
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Other income (expense):
Interest income 1,814 1,630
Interest expense (24) (24)
Equity in loss of unconsolidated affiliates (109) (808)
Other 2 --
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Total other income (expense), net 1,683 798
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Earnings before income taxes 7,995 27,876
Provision for income taxes 3,278 11,761
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Net Earnings $ 4,717 $16,115
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Basic Earnings per Share $ 0.44 $ 1.52
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Diluted Earnings per Share $ 0.44 $ 1.52
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Weighted Average Common Shares Outstanding 10,638 10,630
Dilutive Effect of Stock Compensation Programs 144 2
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Weighted Average Common and Diluted Shares Outstanding 10,782 10,632
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Contact:
Lakes Gaming, Inc., Minneapolis
Timothy J. Cope: 952-449-7030
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