Lakes Entertainment Inc. (LACO, Financial) filed Quarterly Report for the period ended 2010-10-03.
Lakes Entertainment Inc. has a market cap of $59.3 million; its shares were traded at around $2.25 with a P/E ratio of 9.4 and P/S ratio of 2.3. LACO is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Mario Gabelli of GAMCO Investors.
general and administrative expenses consisted primarily of payroll and related expenses (including share-based compensation) of $1.8 million, travel expenses of $0.5 million and professional fees of $1.0 million including costs associated with the application for a gaming site in the State of Kansas of $0.2 million.
Net unrealized gains on notes receivable. Net unrealized gains on notes receivable relate primarily to our notes receivable from Indian tribes for casino projects that are not yet open, which are adjusted to estimated fair value, based upon the current status of the related tribal casino projects and evolving market conditions. In the third quarter of 2010, net unrealized gains on notes receivable were $0.5 million, compared to net unrealized gains of $0.9 million in the prior year period. The net unrealized gain in the third quarter of 2010 related to the Jamul Indian Village (Jamul Tribe) near San Diego, California due primarily to improvement in the credit markets. The net unrealized gains in the third quarter of 2009 consisted of $0.7 million related to the Jamul Casino project with the Jamul Tribe and $0.2 million related to the Iowa Tribes Ioway Casino project due primarily to improvement in the credit markets.
Income taxes (benefit). The income tax provision for the third quarter of 2010 was $11.0 million compared to an income tax benefit of $0.4 million for the third quarter of 2009. Our estimated effective tax rates were 42% and (23%) for the third quarter of 2010 and the third quarter of 2009, respectively. The effective tax rate differs from the federal tax rate of 35% due to state income taxes, valuation allowance, and provisions for interest charges on uncertain tax positions. Lakes income tax provision in the current year period consists primarily of current income tax provision of $10.9 million and a current provision of approximately $0.1 million of interest on a Louisiana tax audit matter (Note 13 to the unaudited consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q).
Selling, general and administrative expenses. Selling, general and administrative expenses for the nine months ended October 3, 2010 were $9.4 million compared to $11.3 million in the prior year period. For the first nine months of 2010, Lakes selling, general and administrative expenses consisted primarily of payroll and related expenses (including share-based compensation) of $5.3 million, travel expenses of $1.6 million and professional fees of $1.3 million. For the first nine months of 2009, Lakes selling, general and administrative expenses consisted primarily of payroll and related expenses (including share-based compensation) of $5.8 million, travel expenses of $2.2 million and professional fees of $2.3 million including costs associated with the application for a gaming site in the State of Kansas of $0.5 million.
Net unrealized gains on notes receivable. In the first nine months of 2010, net unrealized gains on notes receivable were $0.8 million, compared to net unrealized gains of $3.2 million in the prior year period. The net unrealized gains in the current year period consisted primarily of gains related to the Iowa Tribe of $0.9 million which resulted from the previously announced Termination Agreement with the Iowa Tribe in May 2010. Partially offsetting these gains were net losses related to the Jamul Tribe of $0.1 million, due primarily to ongoing issues in the credit markets. The net unrealized gains in the prior year period were related to the project with the Jamul Tribe and the Iowa Tribe due primarily to improvements in the credit markets during that period.
Read the The complete Report
Lakes Entertainment Inc. has a market cap of $59.3 million; its shares were traded at around $2.25 with a P/E ratio of 9.4 and P/S ratio of 2.3. LACO is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:
Selling, general and administrative expenses. Selling, general and administrative expenses were $2.9 million in the third quarter of 2010 compared to $3.5 million for the third quarter of 2009. For the third quarter of 2010, Lakes selling, general and administrative expenses consisted primarily of payroll and related expenses (including share-based compensation) of $1.7 million, travel expenses of $0.5 million, and professional fees of $0.4 million. The decrease was primarily due to a decrease in professional fees. For the third quarter of 2009, Lakes selling,general and administrative expenses consisted primarily of payroll and related expenses (including share-based compensation) of $1.8 million, travel expenses of $0.5 million and professional fees of $1.0 million including costs associated with the application for a gaming site in the State of Kansas of $0.2 million.
Net unrealized gains on notes receivable. Net unrealized gains on notes receivable relate primarily to our notes receivable from Indian tribes for casino projects that are not yet open, which are adjusted to estimated fair value, based upon the current status of the related tribal casino projects and evolving market conditions. In the third quarter of 2010, net unrealized gains on notes receivable were $0.5 million, compared to net unrealized gains of $0.9 million in the prior year period. The net unrealized gain in the third quarter of 2010 related to the Jamul Indian Village (Jamul Tribe) near San Diego, California due primarily to improvement in the credit markets. The net unrealized gains in the third quarter of 2009 consisted of $0.7 million related to the Jamul Casino project with the Jamul Tribe and $0.2 million related to the Iowa Tribes Ioway Casino project due primarily to improvement in the credit markets.
Income taxes (benefit). The income tax provision for the third quarter of 2010 was $11.0 million compared to an income tax benefit of $0.4 million for the third quarter of 2009. Our estimated effective tax rates were 42% and (23%) for the third quarter of 2010 and the third quarter of 2009, respectively. The effective tax rate differs from the federal tax rate of 35% due to state income taxes, valuation allowance, and provisions for interest charges on uncertain tax positions. Lakes income tax provision in the current year period consists primarily of current income tax provision of $10.9 million and a current provision of approximately $0.1 million of interest on a Louisiana tax audit matter (Note 13 to the unaudited consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q).
Selling, general and administrative expenses. Selling, general and administrative expenses for the nine months ended October 3, 2010 were $9.4 million compared to $11.3 million in the prior year period. For the first nine months of 2010, Lakes selling, general and administrative expenses consisted primarily of payroll and related expenses (including share-based compensation) of $5.3 million, travel expenses of $1.6 million and professional fees of $1.3 million. For the first nine months of 2009, Lakes selling, general and administrative expenses consisted primarily of payroll and related expenses (including share-based compensation) of $5.8 million, travel expenses of $2.2 million and professional fees of $2.3 million including costs associated with the application for a gaming site in the State of Kansas of $0.5 million.
Net unrealized gains on notes receivable. In the first nine months of 2010, net unrealized gains on notes receivable were $0.8 million, compared to net unrealized gains of $3.2 million in the prior year period. The net unrealized gains in the current year period consisted primarily of gains related to the Iowa Tribe of $0.9 million which resulted from the previously announced Termination Agreement with the Iowa Tribe in May 2010. Partially offsetting these gains were net losses related to the Jamul Tribe of $0.1 million, due primarily to ongoing issues in the credit markets. The net unrealized gains in the prior year period were related to the project with the Jamul Tribe and the Iowa Tribe due primarily to improvements in the credit markets during that period.
Read the The complete Report
