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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 21, 1999
LAKES GAMING, INC.
(Exact name of registrant as specified in its charter)
MINNESOTA
(State or other jurisdiction
of incorporation)
0-24993
(Commission File Number)
41-1913991
(IRS Employer
Identification No.)
130 CHESHIRE LANE, MINNETONKA, MINNESOTA 55305
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (612) 449-9092
NOT APPLICABLE
(Former name or former address, if changed since last report)
Page 1 of 7
Exhibit Index Appears on Page 3
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ITEM 5. OTHER EVENTS.
The Registrant's Press Release dated April 21, 1999, which is filed as
Exhibit 99.1 to this Form 8-K is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENT, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits
99.1 Press Release dated April 21, 1999.
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 23, 1999 By: s/Timothy J. Cope
----------------------------------
Name: Timothy J. Cope
Title: Chief Financial Officer
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EXHIBIT INDEX
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EXHIBIT NO. DESCRIPTION PAGE
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99.1 Press Release................................. 4
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EXHIBIT 99.1
Lakes Gaming, Inc. (ticker: LACO, exchange: NASDAQ) News Release - Wednesday,
April 21, 1999
LAKES GAMING ANNOUNCES FIRST-QUARTER DILUTED EARNINGS OF $0.80
FOR IMMEDIATE RELEASE: WEDNESDAY, APRIL 21, 1999
MINNEAPOLIS, APRIL 21, 1999 - LAKES GAMING, INC. (NASDAQ "LACO") today announced
results for the first quarter ended April 4, 1999. Revenues for the quarter
totaled $15.1 million. Net earnings were $8.6 million and basic and diluted
earnings for the quarter were $0.81 per share and $0.80 per share respectively.
Approximately 10.6 million shares of Lakes common stock are currently
outstanding. Lakes began trading as a separate public company on January 4,
1999, and therefore comparative prior year results are not presented.
Results from managed operations for the quarter were positively impacted from a
25,000-square-foot gaming floor expansion and a 223-room hotel, both of which
opened at Grand Casino Coushatta at the end of 1998. On a combined basis, total
revenue at Grand Casino Avoyelles and Grand Casino Coushatta increased 19
percent while gaming revenue increased 15.6 percent during the first quarter of
1999 as compared with the first quarter of 1998.
Commenting on the company's performance, Lyle Berman, Chairman of the Board and
Chief Executive Officer of Lakes, said, "Performance at both Grand Casino
Avoyelles and Grand Casino Coushatta surpassed operating results from the prior
year's first quarter. Our focus continues to be on providing quality management
services to the casino resorts Lakes manages with the goal of sustaining the
trend of continuous improvement demonstrated during the first quarter."
"Lakes is actively pursuing new development opportunities," commented Berman
regarding the company's strategic growth initiatives. "With total assets in
excess of $175 million, and cash of more than $63 million, Lakes has the balance
sheet strength to support a significant business enterprise."
Lakes operates the Indian casino management business and holds various other
assets previously owned by Grand Casinos, Inc. The company's revenues are
derived from management fees. The casino resorts managed by Lakes are Grand
Casino Avoyelles and Grand Casino Coushatta. The casinos are managed under
separate agreements on behalf of two different Tribes.
Lakes Gaming, Inc. is a publicly held casino management company that was formed
through a distribution to shareholders of Grand Casinos, Inc. effected in
December 1998. The company currently manages the two largest casino resorts in
Louisiana. Grand Casino Avoyelles is located in the central part of the state,
approximately 80 miles northwest of Baton Rouge. Grand Casino Coushatta is
located in southwestern Louisiana, near Interstate 10, approximately 160 miles
east of Houston. Lakes Gaming, Inc. common shares are traded on the Nasdaq Stock
Market under the trading symbol "LACO."
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LAKES GAMING, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
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April 4, 1999 January 3, 1999
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ASSETS
Current Assets:
Cash and cash equivalents $ 63,567 $ 56,774
Current installments of notes receivable 8,917 8,561
Accounts receivable 15,397 15,217
Deferred income taxes 7,370 7,370
Other current assets 1,429 756
Total Current Assets 96,680 88,678
Property and Equipment-Net 1,433 1,265
Other Assets:
Land held for development 35,030 26,647
Notes receivable-less current installments 22,909 25,118
Cash and cash equivalents-restricted 4,992 4,992
Investments in and notes from unconsolidated
affiliates 8,501 8,590
Casino development costs 4,412 4,846
Securities available for sale 1,033 1,033
Other long-term assets 313 200
Total Other Assets 77,190 71,426
TOTAL ASSETS $175,303 $161,369
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 409 $ -
Income taxes payable 16,864 10,811
Litigation and claims accrual 9,633 10,554
Other accrued expenses 4,390 4,625
Total Current Liabilities 31,296 25,990
Long-term Liabilities:
Long-term debt-less current installments 975 975
Deferred income taxes 2,733 2,733
Total Long-Term Liabilities 3,708 3,708
TOTAL LIABILITIES 35,004 29,698
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COMMITMENTS AND CONTINGENCIES
Shareholders' Equity:
Capital stock, $.01 par value; authorized 100,000 shares; 10,576 and
10,584 common shares issued and outstanding at April 4, 1999, and
January 3, 1999,
respectively 106 106
Additional paid-in-capital 130,995 130,929
Accumulated other comprehensive earnings 636 636
Retained Earnings 8,562 --
Total Shareholders' Equity 140,299 131,671
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $175,303 $161,369
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LAKES GAMING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
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Three Months Ended
April 4, 1999
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REVENUES:
Management fee income $ 15,109
COSTS AND EXPENSES:
Selling, general and administrative 1,709
Depreciation and amortization 476
Total Costs and Expenses 2,186
EARNINGS FROM OPERATIONS 12,923
OTHER INCOME (EXPENSE):
Interest income 1,635
Interest expense (24)
Equity in loss of unconsolidated affiliates (255)
Other 411
Total other income, net 1,767
Earnings before income taxes 14,691
Provision for income taxes 6,128
NET EARNINGS $ 8,562
BASIC EARNINGS PER SHARE $ 0.81
DILUTED EARNINGS PER SHARE $ 0.80
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 10,578
WEIGHTED AVERAGE COMMON AND DILUTED
SHARES OUTSTANDING 10,682
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FOR FURTHER INFORMATION CONTACT:
Jaye Snyder 612-449-8556
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding Lakes Gaming, Inc.'s business
which are not historical facts are "forward-looking statements" that involve
risks and uncertainties. For a discussion of such risks and uncertainties, which
could cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for
the most recently ended fiscal year.
