-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LRY6viiGKvK5hDrziXJLJyFRs8tqV6ebfmURVbdoxAQ+moA2vCA79t5Ywn5KCwl4 loaJlGMq2BTEJF64GRdrgg== 0000950137-01-502442.txt : 20010723 0000950137-01-502442.hdr.sgml : 20010723 ACCESSION NUMBER: 0000950137-01-502442 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010719 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LAKES GAMING INC CENTRAL INDEX KEY: 0001071255 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 411913991 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-24993 FILM NUMBER: 1685223 BUSINESS ADDRESS: STREET 1: 130 CHESHIERE LANE CITY: MINNETONKA STATE: MN ZIP: 55305 BUSINESS PHONE: 6124499092 MAIL ADDRESS: STREET 1: 130 CHESHIRE LANE CITY: MINNETONKA STATE: MN ZIP: 55305 8-K 1 c63904e8-k.txt CURRENT REPORT 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 19, 2001 ------------- LAKES GAMING, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) MINNESOTA 0-24993 41-1913991 - ---------------------------- ---------------- ------------------- (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 130 CHESHIRE LANE, MINNETONKA, MINNESOTA 55305 ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (952) 449-9092 -------------- NOT APPLICABLE ------------------------------------------------------------- (Former name or former address, if changed since last report) ================================================================================ 2 ITEM 5. OTHER EVENTS. The Press Release dated July 19, 2001, issued by the Registrant has been filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) Exhibits 99.1 Press Release dated July 19, 2001. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LAKES GAMING, INC. (Registrant) Date: July 20, 2001 By: /s/ Timothy J. Cope -------------------------------------- Name: Timothy J. Cope Title: Chief Financial Officer -2- 3 EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 Press Release dated July 19, 2001.
-3- EX-99.1 2 c63904ex99-1.txt PRESS RELEASE 1 EXHIBIT 99.1 [LAKES LOGO] NEWS RELEASE LAKES GAMING, INC. LAKES GAMING, INC. 130 CHESHIRE LANE MINNETONKA, MN 55305 952-449-9092 952-449-9353 (FAX) WWW.LAKESGAMING.COM TRADED: NASDAQ "LACO" - -------------------------------------------------------------------------------- FOR FURTHER INFORMATION CONTACT: Timothy J. Cope 952-449-7030 - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE: Thursday, July 19, 2001 LAKES GAMING ANNOUNCES SECOND QUARTER DILUTED EARNINGS OF $.39 MINNEAPOLIS, THURSDAY, JULY 19, 2001 - LAKES GAMING, INC. (NASDAQ "LACO") today announced results for the second quarter ended July 1, 2001. Revenues for the quarter totaled $9.6 million, compared to $10.7 million in the same quarter in the prior year. Net earnings were $4.2 million or $.39 per share, compared to a net loss of $5.3 million or $.50 per share in the comparable period in the prior year. The prior year quarter included a provision for litigation loss of $10.6 million net of tax, or $1.00 per share. Revenues for the quarter were derived from fees related to the management of Grand Casino Coushatta. As previously announced, the existing contract with the Coushatta Tribe of Louisiana for management of Grand Casino Coushatta is due to expire on January 16, 2002 and will not be renewed. Revenue for the quarter declined approximately $1.1 million compared to the same quarter in the prior year due to a general decline in operating income at Grand Casino Coushatta. Lakes' second quarter net earnings also decreased approximately $1.1 million compared to prior year second quarter net earnings of $5.3 million before the provision for litigation loss. Selling, general and administrative expenses increased slightly during the quarter compared to the same prior year period due to costs associated with planned casino developments. In addition, in June 2001 Lakes entered into an agreement with New Horizon Kids Quest (NHKQ), pursuant to which NHKQ will acquire Lakes' interest in NHKQ. As a result of this transaction, Lakes incurred a one time write-down charge of $.7 million before tax, during the quarter. -4- 2 Lyle Berman, Chairman of the Board, and Chief Executive Officer stated, "The Coushatta revenue for the quarter was negatively affected by the adverse weather conditions in the area including the overwhelming impact our customers suffered at the hands of tropical storm Allison. Grand Casino Coushatta however, continues to outperform the market and has in fact increased its market share in the second quarter from the first quarter of this year." Mr. Berman continued, "Although the Coushatta contract expires in January, 2002, we are excited about our participation in five other Indian owned casino resort projects, which are currently in the development phase, including our recently announced Development and Management Agreement with the Nipmuc Nation." Lakes Gaming, Inc. currently manages Grand Casino Coushatta, which is the largest casino resort in Louisiana, under a management contract that expires in January, 2002. The company has also entered into 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. In addition, the Company 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. - -------------------------------------------------------------------------------- -5- 3 LAKES GAMING, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
JULY 1, 2001 DECEMBER 31, 2000 - ----------------------------------------------------------------------------------------------------------------- ASSETS Current Assets: Cash and cash equivalents $9,038 $10,469 Short-term investments 10,406 32,477 Current installments of notes receivable 13,402 16,679 Accounts receivable 7,109 2,373 Deferred tax asset 13,747 13,674 Other current assets 4,930 2,383 - ----------------------------------------------------------------------------------------------------------------- Total Current Assets 58,632 78,055 - ----------------------------------------------------------------------------------------------------------------- Property and Equipment-Net 1,880 1,414 - ----------------------------------------------------------------------------------------------------------------- Other Assets: Land held for development 70,853 58,671 Notes receivable-less current installments 51,388 35,337 Cash and cash equivalents-restricted 33,210 30,270 Investments in and notes from unconsolidated affiliates 2,477 3,209 Other long-term assets 5,683 5,853 - ----------------------------------------------------------------------------------------------------------------- Total Other Assets 163,611 133,340 - ----------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $224,123 $212,809 ================================================================================================================= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $166 $79 Current maturities of long-term debt 525 525 Income taxes payable 8,578 5,479 Litigation and claims accrual 24,752 25,078 Other accrued expenses 4,183 4,521 - ----------------------------------------------------------------------------------------------------------------- Total Current Liabilities 38,204 35,682 - ----------------------------------------------------------------------------------------------------------------- Long-term Liabilities: Long-term debt-less current installments 1,325 1,325 - ----------------------------------------------------------------------------------------------------------------- Total Long-Term Liabilities 1,325 1,325 - ----------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 39,529 37,007 - ----------------------------------------------------------------------------------------------------------------- COMMITMENTS AND CONTINGENCIES Shareholders' Equity: Capital stock, $.01 par value; authorized 100,000 shares; 10,638 common shares issued and outstanding at July 1, 2001, and December 31, 2000 106 106 Additional paid-in-capital 131,525 131,525 Retained Earnings 53,401 44,504 Accumulated other comprehensive earnings (loss) (438) (333) - ----------------------------------------------------------------------------------------------------------------- Total Shareholders' Equity 184,594 175,802 - ----------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $224,123 $212,809 =================================================================================================================
-6- 4 LAKES GAMING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
THREE MONTHS ENDED ---------------------------------- JULY 1, 2001 JULY 2, 2000 ------------ ------------ REVENUES: Management fee income $9,599 $10,655 COSTS AND EXPENSES: Selling, general and administrative 2,940 2,747 Depreciation and amortization 329 328 - ------------------------------------------------------------------------------------------------------- Total Costs and Expenses 3,269 3,075 - ------------------------------------------------------------------------------------------------------- EARNINGS FROM OPERATIONS 6,330 7,580 - ------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSE): Interest income 1,599 2,116 Interest expense (24) (24) Equity in loss of unconsolidated affiliates (153) (397) Provision for litigation loss -- (18,000) Write-down of unconsolidated affiliates (666) -- - ------------------------------------------------------------------------------------------------------- Total other income (expense), net 756 (16,305) - ------------------------------------------------------------------------------------------------------- Earnings before income taxes 7,086 (8,725) Provision for income taxes 2,906 (3,414) - ------------------------------------------------------------------------------------------------------- NET EARNINGS $4,180 ($5,311) ======================================================================================================= BASIC EARNINGS PER SHARE $0.39 ($0.50) ======================================================================================================= DILUTED EARNINGS PER SHARE $0.39 ($0.50) ======================================================================================================= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 10,638 10,632 DILUTIVE EFFECT OF STOCK COMPENSATION PROGRAMS 120 10 - ------------------------------------------------------------------------------------------------------- WEIGHTED AVERAGE COMMON AND DILUTED SHARES OUTSTANDING 10,758 10,642 =======================================================================================================
-7- 5 LAKES GAMING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
SIX MONTHS ENDED ---------------------------------- JULY 1, 2001 JULY 2, 2000 ------------ ------------ REVENUES: Management fee income $18,822 $41,708 COSTS AND EXPENSES: Selling, general and administrative 5,520 4,800 Depreciation and amortization 660 2,249 - ------------------------------------------------------------------------------------------------------- Total Costs and Expenses 6,180 7,049 - ------------------------------------------------------------------------------------------------------- EARNINGS FROM OPERATIONS 12,642 34,659 - ------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSE): Interest income 3,414 3,746 Interest expense (49) (49) Equity in loss of unconsolidated affiliates (260) (1,205) Provision for litigation loss -- (18,000) Write-down of unconsolidated affiliates (666) -- - ------------------------------------------------------------------------------------------------------- Total other income (expense), net 2,439 (15,508) - ------------------------------------------------------------------------------------------------------- Earnings before income taxes 15,081 19,151 Provision for income taxes 6,184 8,347 - ------------------------------------------------------------------------------------------------------- NET EARNINGS $8,897 $10,804 ======================================================================================================= BASIC EARNINGS PER SHARE $0.84 $1.02 ======================================================================================================= DILUTED EARNINGS PER SHARE $0.83 $1.02 ======================================================================================================= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 10,638 10,631 DILUTIVE EFFECT OF STOCK COMPENSATION PROGRAMS 132 4 - ------------------------------------------------------------------------------------------------------- WEIGHTED AVERAGE COMMON AND DILUTED SHARES OUTSTANDING 10,770 10,635 =======================================================================================================
-8- -----END PRIVACY-ENHANCED MESSAGE-----