-----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, F6K5hzYDnpjwPtzV3xlOmzbp+tYoxyEOnrHgaLH1JBYQgxjWxiP2A+AnthJBqnip G1At68FTvZO1EDwyrmjkmA== 0000950137-02-002332.txt : 20020419 0000950137-02-002332.hdr.sgml : 20020419 ACCESSION NUMBER: 0000950137-02-002332 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020419 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020419 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: 1934 Act SEC FILE NUMBER: 000-24993 FILM NUMBER: 02616047 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 c69051e8-k.txt CURRENT REPORT 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): April 19, 2002 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) ITEM 5. OTHER EVENTS. The Press Release dated April 19, 2002, 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 April 19, 2002. 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: April 19, 2002 By: /s/Timothy J. Cope ------------------------------------------ Name: Timothy J. Cope Title: Chief Financial Officer -2- EXHIBIT INDEX EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 Press Release dated April 19, 2002. -3- EX-99.1 3 c69051ex99-1.txt PRESS RELEASE DATED 4/19/02 -5- EXHIBIT 99.1 [LAKES GAMING, INC. LOGO] NEWS RELEASE 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: Friday, April 19, 2002 LAKES GAMING ANNOUNCES RESULTS FOR FIRST QUARTER 2002 MINNEAPOLIS, APRIL 19, 2002 - LAKES GAMING, INC. (NASDAQ "LACO") today announced results for the first quarter ended March 31, 2002. Revenue for the quarter totaled $1.5 million, compared to $9.2 million in the prior year period. Net earnings were $0.6 million or $0.05 per share, compared to $4.7 million or $0.44 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 expiration of the management contract with the Coushatta Tribe of Louisiana for Grand Casino Coushatta on January 16, 2002. The Company's revenues and earnings will not include contributions from the Coushatta operation going forward. The Company currently has no other management contracts from which it will derive revenues in 2002. Selling, general and administrative expenses decreased from $2.6 million for the three months ended April 1, 2001 to $2.1 million for the three months ended March 31, 2002. This decrease is partially due to a decline in rent expense resulting from the purchase of the corporate office building in January 2002. Fewer costs relating to travel and payroll also contributed to the decline in selling, general and administrative expenses during the current year period. -4- Lyle Berman, Chairman, CEO and President of Lakes, stated, "Although our contract for the management of Grand Casino Coushatta expired during the first quarter of 2002, our balance sheet remains strong with a book value of over $16.50 per share consisting primarily of cash, cash equivalents and notes receivable. We remain focused on obtaining regulatory and development approvals for our new Native American-owned casino projects. We also continue to actively pursue new business opportunities, and recently signed a letter of intent to invest in a joint venture for the production of televised poker tournaments." The Company 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. In addition, the Company has agreements to finance the construction of one additional casino on Indian-owned land in California through a joint venture with MRD Gaming. 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 plans 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 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. - -------------------------------------------------------------------------------- -5- LAKES GAMING, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
MARCH 31, 2002 DECEMBER 30, 2001 - ------------------------------------------------------------------------------------------------------------------- ASSETS Current Assets: Cash and cash equivalents $34,962 $42,638 Short-term investments 2,016 2,027 Current installments of notes receivable 27,265 28,273 Accounts receivable, net 72 3,601 Deferred tax asset 4,553 4,549 Other current assets 1,601 1,079 - ------------------------------------------------------------------------------------------------------------------- Total Current Assets 70,469 82,167 - ------------------------------------------------------------------------------------------------------------------- Property and Equipment-Net 8,257 7,524 - ------------------------------------------------------------------------------------------------------------------- Other Assets: Land held for development 16,051 16,038 Notes receivable-less current installments 72,250 67,525 Cash and cash equivalents-restricted 9,202 9,175 Investments in and notes from unconsolidated affiliates 951 839 Interest receivable 7,311 6,147 Other long-term assets 7,736 7,527 - ------------------------------------------------------------------------------------------------------------------- Total Other Assets 113,501 107,251 - ------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $192,227 $196,942 =================================================================================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $152 $105 Current maturities of long-term debt 1,325 1,325 Current installments of capital lease obligations - 123 Income taxes payable 4,244 3,906 Litigation and claims accrual 6,309 6,572 Other accrued expenses 3,671 3,341 - ------------------------------------------------------------------------------------------------------------------- Total Current Liabilities 15,701 15,372 - ------------------------------------------------------------------------------------------------------------------- Long-term Liabilities: Capital lease obligations-less current installments - 5,591 Other long-term liabilities 224 225 - ------------------------------------------------------------------------------------------------------------------- Total Long-Term Liabilities 224 5,816 - ------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 15,925 21,188 - ------------------------------------------------------------------------------------------------------------------- COMMITMENTS AND CONTINGENCIES Shareholders' Equity: Capital stock, $.01 par value; authorized 100,000 shares; 10,638 common shares issued and outstanding at March 31, 2002, and December 30, 2001 106 106 Additional paid-in-capital 131,525 131,525 Retained Earnings 44,739 44,183 Accumulated other comprehensive loss (68) (60) - ------------------------------------------------------------------------------------------------------------------- Total Shareholders' Equity 176,302 175,754 - ------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $192,227 $196,942 ===================================================================================================================
-6- LAKES GAMING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
THREE MONTHS ENDED ------------------------------------- MARCH 31, 2002 APRIL 1, 2001 -------------- ------------- REVENUES: Management fee income $1,502 $9,223 COSTS AND EXPENSES: Selling, general and administrative 2,099 2,580 Depreciation and amortization 99 331 - -------------------------------------------------------------------------------------------------------- Total Costs and Expenses 2,198 2,911 - -------------------------------------------------------------------------------------------------------- EARNINGS (LOSS) FROM OPERATIONS (696) 6,312 - -------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSE): Interest income 1,785 1,816 Interest expense (23) (24) Equity in loss of unconsolidated affiliates (123) (109) - -------------------------------------------------------------------------------------------------------- Total other income, net 1,639 1,683 - -------------------------------------------------------------------------------------------------------- Earnings before income taxes 943 7,995 Provision for income taxes 387 3,278 - -------------------------------------------------------------------------------------------------------- NET EARNINGS $556 $4,717 ======================================================================================================== BASIC EARNINGS PER SHARE $0.05 $0.44 ======================================================================================================== DILUTED EARNINGS PER SHARE $0.05 $0.44 ======================================================================================================== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 10,638 10,638 DILUTIVE EFFECT OF STOCK COMPENSATION PROGRAMS 2 144 - -------------------------------------------------------------------------------------------------------- WEIGHTED AVERAGE COMMON AND DILUTED SHARES OUTSTANDING 10,640 10,782 ========================================================================================================
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