EXHIBIT 99.1
NEWS RELEASE
LAKES ENTERTAINMENT, INC.
[LAKES ENTERTAINMENT, INC. LOGO] 130 CHESHIRE LANE
MINNETONKA, MN 55305
952-449-9092
952-449-9353 (fax)
WWW.LAKESENTERTAINMENT.COM
TRADED: NASDAQ "LACO"
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FOR FURTHER INFORMATION CONTACT:
Timothy J. Cope 952-449-7030
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FOR IMMEDIATE RELEASE:
Thursday, April 24, 2003
LAKES ENTERTAINMENT, INC. ANNOUNCES RESULTS FOR
FIRST QUARTER 2003
MINNEAPOLIS, APRIL 24, 2003 -- LAKES ENTERTAINMENT, INC. (NASDAQ "LACO") today
announced results for the first quarter ended March 30, 2003. The net loss for
the quarter was $1.3 million and basic and diluted losses were $0.12 per share.
This compares with a net loss of $0.1 million and basic and diluted losses of
$0.01 per share for the quarter ended March 31, 2002. Revenue for the quarter
totaled $0.6 million, compared to $1.5 million in the prior year period.
Revenues for the current year quarter were derived from license fees related to
the World Poker Tour (WPT) series. WPT, a subsidiary company of Lakes, has an
agreement with the Travel Channel, LLC (TRV) granting TRV the right to broadcast
the first season of the WPT series. WPT receives a series of fixed license
payments from TRV, subject in each case to satisfaction of production milestones
and other conditions. The Company's revenues for the prior year quarter were
derived entirely from management fees from the management of Grand Casino
Coushatta. The management contract with the Coushatta Tribe of Louisiana for
Grand Casino Coushatta expired on January 16, 2002. The Company's revenues have
not included contributions from the Coushatta operation since January 16, 2002.
The Company currently has no other management contracts from which it will
derive revenues in 2003.
Selling, general and administrative expenses increased from $2.1 million for the
three months ended March 31, 2002 to $3.0 million for the three months ended
March 30, 2003. This increase is primarily due to an increase in costs incurred
associated with World Poker Tour.
Lyle Berman, Chairman, CEO and President of Lakes, stated, "We are very excited
about the World Poker Tour's national television debut which occurred in March.
Early rating results have been very positive." Berman also stated, "We continue
to focus on
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obtaining regulatory and development approvals for our new Native American-owned
casino projects."
Lakes Entertainment, Inc. currently has development and management agreements
with four separate Tribes for four new casino operations, one in Michigan, two
in California and one with the Nipmuc Nation on the East Coast. Lakes
Entertainment also has agreements for the development of one additional casino
on Indian-owned land in California through a joint venture with MRD Gaming,
which is currently being disputed by the Tribe. Additionally, the Company owns
approximately 80% of World Poker Tour, LLC, a joint venture formed to film and
produce poker tournaments for television broadcast.
Lakes Entertainment, Inc. common shares are traded on the Nasdaq National Market
under the trading symbol "LACO".
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The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Certain information included in this press
release (as well as information included in oral statements or other written
statements made or to be made by Lakes Entertainment, Inc.) contains statements
that are forward-looking, such as statements relating to 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, possible delays
in completion of Lakes' casino projects, including various regulatory approvals
and numerous other conditions which must be satisfied before completion of these
projects; possible termination or adverse modification of management contracts;
continued indemnification obligations to Grand Casinos; highly competitive
industry; possible changes in regulations; reliance on continued positive
relationships with Indian tribes and repayment of amounts owned to Lakes by
Indian tribes; possible need for future financing to meet Lakes' expansion
goals; risks of entry into new businesses; and reliance on Lakes' management.
For more information, review the Company's filings with the Securities and
Exchange Commission.
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LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
MARCH 30, 2003 DECEMBER 29, 2002
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ASSETS
Current Assets:
Cash and cash equivalents $5,500 $14,106
Accounts receivable, net 764 116
Deferred tax asset 6,771 6,771
Other current assets 1,115 547
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Total Current Assets 14,151 21,540
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Property and Equipment-Net 6,825 6,962
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Other Assets:
Land held under contract for sale 29,053 28,832
Land held for development 29,224 27,791
Notes receivable-less current installments 72,470 70,955
Cash and cash equivalents-restricted 8,313 8,300
Investments in and notes from unconsolidated affiliates 1,248 1,013
Deferred tax asset 4,165 3,835
Other long-term assets 8,754 6,657
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Total Other Assets 153,227 147,383
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TOTAL ASSETS $174,203 $175,885
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $108 $226
Income taxes payable 5,517 5,564
Litigation and claims accrual 5,809 5,847
Accrued payroll and related 343 252
Other accrued expenses 3,242 3,486
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Total Current Liabilities 15,019 15,375
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TOTAL LIABILITIES 15,019 15,375
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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 March 30, 2003, and December 29, 2002 106 106
Additional paid-in-capital 131,526 131,525
Retained Earnings 27,552 28,879
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Total Shareholders' Equity 159,184 160,510
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $174,203 $175,885
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LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
(UNAUDITED)
THREE MONTHS ENDED
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MARCH 30, 2003 MARCH 31, 2002
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REVENUES:
Management fee income $ - $1,502
License fee income 550 -
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Total Revenues 550 1,502
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COSTS AND EXPENSES:
Selling, general and administrative 2,979 2,100
Depreciation and amortization 128 99
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Total Costs and Expenses 3,107 2,199
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LOSS FROM OPERATIONS (2,557) (697)
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OTHER INCOME (EXPENSE):
Interest income 237 736
Interest expense - (23)
Equity in loss of unconsolidated affiliates (87) (123)
Other 159 -
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Total other income, net 309 590
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Loss before income taxes (2,248) (107)
Benefit for income taxes (921) (44)
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NET LOSS ($1,327) ($63)
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BASIC LOSS PER SHARE ($0.12) ($0.01)
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Diluted Loss per Share ($0.12) ($0.01)
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 10,638 10,638
DILUTIVE EFFECT OF STOCK COMPENSATION PROGRAMS - -
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WEIGHTED AVERAGE COMMON AND DILUTED
SHARES OUTSTANDING 10,638 10,638
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