Lakes gets OK to file ’04 annual report

Dec 6, 2005 3:47 AM

After months of discussions with representatives of the Securities and Exchange Commission over the method used to recognize certain revenues, Lakes Entertainment Inc. (LACO) announced that it has finally filed its annual report for the fiscal year that ended on Jan. 2, 2005.

Also, the company said it expected to file its quarterly reports for the periods ending on April 3, July 3 and Oct. 2 during the current month.

In a statement, the company explained that "historically, Lakes recorded its advances to Indian tribes as notes receivable and deferred recognition of interest income due to the contingent repayment terms of the notes. Lakes has now determined that as advances are made to a tribe pursuant to the development relationship it should have given separate recognition to the contractual notes receivable."

For the fiscal year that ended in Jan, Lakes reported revenues of $17.6 million compared to $4.3 million for the previous year. The loss for the period was $12.9 million, up substantially from the previous year’s $2.3 million.

Basic diluted losses per common share were $0.18 for this reporting year and $0.08 for the previous fiscal year.

Tim Cope, president and chief financial officer stated, "We are extremely pleased to have satisfactorily resolved this accounting issue, and to have filed out Form 10-K for 2004. We look forward to filing form 10-Qs for 2005 and once again becoming a ”˜current filer.’ The next step is to apply to the Nasdaq for relisting which we expect to be completed within two to three weeks of filing the 10-Qs."

Nevada Gold

Acquisitions helped Nevada Gold & Casinos Inc. (UWN) increase its revenue for the second quarter of fiscal 2006 but they also resulted in boosting the operating expenses for the period. Net income for the quarter fell slightly to $1 million from the comparable $1.1 million.

Per share earnings, however, amounted to the same for both periods, $0.08 per share. The reason, the company said, was a repurchase of 109,000 shares of company stock in the open market during the second fiscal quarter.

Net revenue for the period was $3.3 million, a major jump from last year’s $1.1 million. Included in the number were $1.4 million in casino revenues and $478,000 in food and beverage revenue recorded at the company’s Colorado Grande Casino in Cripple Creek, Colo.

Also boosting revenue was $670,000 in credit enhancement fees from the company’s River Rock project.

Chairman and CEO Tom Winn commented on the company’s "progress" in making a transition to an operating company and the formation of American Racing and Entertainment L.L.C. to develop and operate racetracks and video lottery terminal operations in New York. The company hopes to acquire the troubled Vernon Downs harness track.

Multimedia Games

Gaming machine manufacturer Multimedia Games Inc. (MGAM) reported its net income fell sharply during the fourth quarter of fiscal 2005 primarily due to fewer-than-expected installations of its products during the period that ended on Sept. 30.

Income for the quarter slid to $2.9 million or $0.10 per share compared to last year’s $7.2 million or $0.24 per share.

And the outlook for the next quarter also was disappointing, the company said, with earnings per share to be in the $0.08 to $0.09 range.

Quarterly income for the period fell to $2.9 million on revenues of $36.9 million. In the corresponding period, revenues were $42.7 million.

For the year, the company reported net income of nearly half what it was in the previous year. Income totaled $17.6 million or $0.60 per share whereas in the previous year income was $32.8 million or $1.07 per share.

A bright spot, explained Clifton Lind, president and CEO, was the outlook in New York "where we operate the central system for the lottery. We believe the announced expansion at one facility and the expected opening of three new facilities prior to the end of fiscal 2006 will bring more than 7,000 incremental video lottery devices online, and once operational, benefit our bottom line."