And the bad news (if you're Lakes Entertainment) keeps on pouring in.
If you happen to be opposed to the Jamul Casino (as I am), this is great news!
The layman's summary: Lakes Entertainment had to acknowledge an additional $1.5 million in losses for the past quarter. Given that their total operating expenses outside of such losses were $3.2 million, that's a significant number – their CFO must be looking forward to the day when they've completely written off their investment in the Jamul Casino. I don't have a balance sheet, and I haven't tabulated the ongoing stream of losses – but I think they must be within a year or so of zeroing out that account.
Unless the Jamul Indian Tribe secures other financing somehow, the casino project looks pretty much moribund...
Of interest:
ReplyDeleteDuring the teleconference, Lyle brought up Class III gaming conversion again. This is probably due to the loss of both Kansas and Iowa, and they have to do *something* to raise to perceived value of their other (dwindling) pipeline projects.
Also, if you dig into the numbers, they continue to spend an awful lot on design (I suspect a working relationship with the design company) - 466K in 1Q 2010 and some more on construction 41K in 1Q 2010, but not a lot on the Environmental Impact Report (4K in 1Q 2010 as opposed to 22K in 4Q of 2009 and 24K in 3Q of 2009).
Compared to the activity for the EIR leading up to the blow up with the State in 2007 (51K, 67K, 189K, 261K - over the 06 2Q, 3Q, 4Q and 07 1Q timeframe), I am not seeing the same level of activity.
I am a little worried about the continued design costs and especially the construction costs.