Lakes Entertainment, Inc. Announces Results For First Quarter 2003.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--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 di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 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 For the PBS network with the same abbreviation, see . The World Poker Tour (Abbreviated WPT) is a series of international poker tournaments featuring most of the world's professional players. (WPT WPT World Poker Tour WPT Waypoint WPT Wisconsin Public Television WPT Watson Poker Tour WPT Wonderlic Personnel Test WPT Wavelet Packet Transform WPT Wireless Power Transmission WPT Windfall Profit WPT Wireless Personal Terminal WPT Word Processing Technician ) series. WPT, a subsidiary company of Lakes, has an agreement with the Travel Channel, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (TRV TRV Technical Remote Viewing TRV Tobacco Rattle Virus TRV Temporary Resident Visa (Canada) TRV Thermostatic Radiator Valve TRV Transient Recovery Voltage TRV Toxicity Reference Value (ecology) ) 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 casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. Coushatta. The management contract with the Coushatta Tribe tribe [Lat., tribus: the tripartite division of Romans into Latins, Sabines, and Etruscans], a social group bound by common ancestry and ties of consanguinity and affinity; a common language and territory; and characterized by a political and economic of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. for Grand Casino Coushatta expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. 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 Lyle Berman (born August 6, 1941 in Minneapolis, Minnesota) is a professional poker player and business executive. Business Berman grew up in Minnesota and attended the University of Minnesota where he graduated in 1964 with a degree in business administration. , Chairman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President of Lakes, stated, "We are very excited about the World Poker poker, card game, believed to have originated in Asia and first played in the United States in the 19th cent. A traditional cutthroat gambling game at first, it is now also an internationally popular social pastime. Tour's national television debut which occurred in March. Early rating results have been very positive." Berman also stated, "We continue to focus on 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 Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). , two in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). 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 MRD or mrd abbr. minimal reacting dose 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 A poker tournament is a tournament in which the winners are decided by playing poker, usually a particular style of poker. Contrast this to a ring game, where the game is ongoing with no formal structure to determine a single winner in a certain length of time. for television broadcast. Lakes Entertainment, Inc. common shares are traded on the Nasdaq National Market under the trading symbol Trading symbol See: Ticker symbol "LACO". The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc plan for future expansion and other business development activities as well as other capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , 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 Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from obligations to Grand Casinos Grand Casinos NYSE: GND was a casino operator that started out managing several casinos in Minnesota in 1990. The company ceased to exist when it was purchased by Hilton Hotels which then merged it with its other gaming properties to form Park Place Entertainment in ; highly competitive industry; possible changes in regulations; reliance on continued positive relationships with Indian tribes INDIAN TRIBE. A separate and distinct community or body of the aboriginal Indian race of men found in the United States. 2. Such a tribe, situated within the boundaries of a state, and exercising the powers of government and, sovereignty, under the national 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.
LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 30, December 29,
2003 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
-----------------------------
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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