HOUSTON, Nov. 9 /PRNewswire-FirstCall/ -- Landry's Restaurants,
Inc. (NYSE: LNY; the "Company"), one of the nation's largest casual
dining and entertainment companies announced its earnings for the
third quarter ended September 30, 2006. Revenues from continuing
operations for the three months ended September 30, 2006, totaled
$290.4 million, as compared to $220.9 million a year earlier. Net
interest expense, primarily associated with the Company's Golden
Nugget acquisition and subsequent renovation was $12.8 million in
the third quarter of 2006, compared to $7.3 million in the third
quarter of 2005. As previously announced, the Company recorded
impairment charges approximating $5.9 million, net of tax or $0.27
per share - diluted in the third quarter of 2006 for Joe's Crab
Shack locations held for conversion to another Landry's concept.
Stock compensation expense recorded in the third quarter of 2006
increased approximately $0.04 per share - diluted compared to the
prior year. Net income from continuing operations for the quarter
was $3.4 million, compared to $9.1 million reported last year.
Earnings per share - diluted from continuing operations for the
quarter were $0.15, compared to $0.42 reported last year. Excluding
the incremental impairment and stock compensation charges, earnings
per share - diluted from continuing operations were $0.46 for the
third quarter of 2006 as compared to $0.42 in the prior year. Same
store sales for the Company's restaurants increased approximately
1.0% for the quarter. Revenues from continuing operations for the
nine months ended September 30, 2006, totaled $859.7 million, as
compared to $640.5 million a year earlier. Net interest expense for
the nine months ended September 30, 2006 was $37.5 million,
compared to $19.5 million for the same period in 2005. Net earnings
from continuing operations for the nine months were $27.7 million,
compared to $25.1 million reported last year. Earnings per share -
diluted from continuing operations for the nine months were $1.26,
compared to $1.07 in the prior year. Tilman J. Fertitta, Chairman,
President and Chief Executive Officer stated, "The Golden Nugget
renovations are substantially completed, and I am extremely pleased
with the improvements. With the pending sale of Joe's, we will
sharpen our focus on our higher end restaurants, hospitality and
gaming assets." As a result of our previously announced agreement
to sell 120 Joe's Crab Shack restaurants and close certain
additional Joe's locations, the results of operations for these
restaurants are reflected as discontinued operations in the
Company's financial statements. The loss from discontinued
operations, net of taxes, for the quarter was $33.3 million or
$1.51 per share - diluted compared to income of $6.9 million in the
prior year. The 2006 loss includes impairment and store closing
charges of $34.6 million, after tax. Therefore, the consolidated
net loss for the quarter was $30.0 million or $1.36 per share -
diluted, compared to net income of $16.0 million or $0.73 per share
- diluted in 2005. The loss from discontinued operations, net of
taxes, was $41.1 million for the nine months ended September 30,
2006 as compared to income of $15.8 million for the prior year.
Included in the 2006 loss for the nine months is impairment and
store closing charges of $40.6 million, net of tax. Loss per share
- diluted for the nine months ended September 30, 2006 were $0.61
as compared to earnings per share - diluted of $1.75 in the prior
year. Rick H. Liem, Senior Vice President and Chief Financial
Officer stated, "Our higher-end restaurant concepts and our
hospitality and gaming businesses performed well in the third
quarter, despite a difficult operating environment. We look forward
to implementing our strategy of concentrating on these businesses."
The Company's continuing operations include restaurants primarily
under the trade names Landry's Seafood House, Chart House,
Rainforest Cafe, Saltgrass Steak House and the Signature Group as
well as other businesses including hotels, marinas, amusements,
retail and the Golden Nugget Hotels and Casinos in Las Vegas and
Laughlin, Nevada at September 30, 2006. This press release contains
certain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended, which are intended to be covered
by safe harbors created thereby. Stockholders are cautioned that
all forward- looking statements are based largely on the Company's
expectations and involve risks and uncertainties, some of which
cannot be predicted or are beyond the Company's control. A
statement containing a projection of revenues, income, earnings per
share, same store sales, capital expenditures, or future economic
performance are just a few examples of forward-looking statements.
Some factors that could realistically cause results to differ
materially from those projected in the forward-looking statements
include ineffective marketing or promotions, competition, weather,
store management turnover, a weak economy, higher interest rates
and gas prices, construction at the Golden Nugget properties,
negative same store sales, or the Company's inability to continue
its expansion strategy. The Company may not update or revise any
forward- looking statements made in this press release. LANDRY'S
RESTAURANTS, INC. CONSOLIDATED INCOME STATEMENTS (000's except per
share amounts) FOR THE QUARTER FOR THE QUARTER ENDED ENDED
September 30, 2006 September 30, 2005 REVENUES $290,369 100.0%
$220,876 100.0% COST OF REVENUES 68,078 23.4% 59,603 27.0% LABOR
95,224 32.9% 64,131 29.0% OTHER OPERATING EXPENSES 74,762 25.7%
53,496 24.2% UNIT LEVEL PROFIT 52,305 18.0% 43,646 19.8% GENERAL
& ADMINISTRATIVE 13,558 4.7% 12,015 5.4% PRE-OPENING COSTS
1,799 0.6% 1,012 0.5% DEPRECIATION & AMORTIZATION 14,917 5.1%
10,987 5.0% ASSET IMPAIRMENT EXPENSE 8,636 3.0% - 0.0% TOTAL
OPERATING INCOME 13,395 4.6% 19,632 8.9% OTHER EXPENSE (INCOME)
12,776 7,191 INCOME FROM CONTINUING OPERATIONS BEFORE TAXES 619
12,441 TAX PROVISION (BENEFIT) (2,768) 3,318 INCOME FROM CONTINUING
OPERATIONS 3,387 9,123 INCOME (LOSS) FROM DISCONTINUED OPERATIONS,
NET OF TAXES (33,337) 6,855 NET INCOME (LOSS) $(29,950) $15,978
EARNINGS (LOSS) PER SHARE - BASIC: INCOME FROM CONTINUING
OPERATIONS $0.16 $0.43 INCOME (LOSS) FROM DISCONTINUED OPERATIONS
(1.56) 0.32 NET INCOME (LOSS) $(1.40) $0.75 AVERAGE SHARES 21,350
21,275 EARNINGS (LOSS) PER SHARE - DILUTED: INCOME FROM CONTINUING
OPERATIONS $0.15 $0.42 INCOME (LOSS) FROM DISCONTINUED OPERATIONS
(1.51) 0.31 NET INCOME (LOSS) $(1.36) $0.73 AVERAGE SHARES 22,000
21,900 EBITDA from continuing operations (earnings before interest,
taxes, depreciation and amortization): Net income (29,950) 15,978
Add back: Income (loss) from discontinued operations 33,337 (6,855)
Tax provision (benefit) (2,768) 3,318 Other expense (income) 12,776
7,191 Depreciation and amortization 14,917 10,987 Asset impairment
expense 8,636 - EBITDA 36,948 30,619 FOR THE NINE MONTHS FOR THE
NINE MONTHS ENDED ENDED September 30, 2006 September 30, 2005
REVENUES $859,710 100.0% $640,462 100.0% COST OF REVENUES 197,853
23.0% 176,185 27.5% LABOR 279,033 32.5% 185,642 29.0% OTHER
OPERATING EXPENSES 212,737 24.7% 155,305 24.2% UNIT LEVEL PROFIT
170,087 19.8% 123,330 19.3% GENERAL & ADMINISTRATIVE 41,397
4.8% 35,391 5.5% PRE-OPENING COSTS 5,051 0.6% 1,766 0.3%
DEPRECIATION & AMORTIZATION 42,707 5.0% 31,748 5.0% ASSET
IMPAIRMENT EXPENSE 8,636 1.0% - 0.0% TOTAL OPERATING INCOME 72,296
8.4% 54,425 8.5% OTHER EXPENSE (INCOME) 36,379 19,793 INCOME FROM
CONTINUING OPERATIONS BEFORE TAXES 35,917 34,632 TAX PROVISION
(BENEFIT) 8,228 9,552 INCOME FROM CONTINUING OPERATIONS 27,689
25,080 INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES
(41,094) 15,818 NET INCOME (LOSS) $(13,405) $40,898 EARNINGS (LOSS)
PER SHARE - BASIC: INCOME FROM CONTINUING OPERATIONS $1.30 $1.11
INCOME (LOSS) FROM DISCONTINUED OPERATIONS (1.93) 0.70 NET INCOME
(LOSS) $(0.63) $1.81 AVERAGE SHARES 21,350 22,575 EARNINGS (LOSS)
PER SHARE - DILUTED: INCOME FROM CONTINUING OPERATIONS $1.26 $1.07
INCOME (LOSS) FROM DISCONTINUED OPERATIONS (1.87) 0.68 NET INCOME
(LOSS) $(0.61) $1.75 AVERAGE SHARES 22,000 23,300 EBITDA from
continuing operations (earnings before interest, taxes,
depreciation and amortization): Net income (13,405) 40,898 Add
back: Income (loss) from discontinued operations 41,094 (15,818)
Tax provision (benefit) 8,228 9,552 Other expense (income) 36,379
19,793 Depreciation and amortization 42,707 31,748 Asset impairment
expense 8,636 - EBITDA 123,639 86,173 EBITDA is not a generally
accepted accounting principles ("GAAP") measurement and is
presented solely as a supplemental disclosure because the Company
believes that it is a widely used measure of operating performance
in the restaurant industry. EBITDA is not intended to be viewed as
a source of liquidity or as a cash flow measure as used in the
statement of cash flows. EBITDA is simply shown above as it is a
commonly used non-GAAP valuation statistic. LANDRY'S RESTAURANTS,
INC. CONDENSED UNAUDITED BALANCE SHEETS ($ in Millions except per
share amounts) September 30, 2006 December 31, 2005 (unaudited)
Cash & equivalents $23.2 $38.9 Assets related to discontinued
operations 215.3 275.5 Other current assets 96.8 101.5 Total
current assets 335.3 415.9 Property & equipment, net 1,213.3
1,112.2 Other assets 99.6 84.5 Total assets $1,648.2 $1,612.6
Current liabilities $202.8 $204.0 Liabilities related to
discontinued operations 31.9 22.6 Long-term debt 860.4 816.0 Other
non-current 49.3 53.2 Total liabilities 1,144.4 1,095.8 Total
stockholders' equity 503.8 516.8 Total liabilities & equity
$1,648.2 $1,612.6 Net book value per share $22.76 $23.93
DATASOURCE: Landry's Restaurants, Inc. CONTACT: Tilman J. Fertitta,
Chairman, President and CEO, or Rick H. Liem, Senior Vice President
and CFO, both of Landry's Restaurants, Inc., +1-713-850-1010 Web
site: http://www.landrysrestaurants.com/
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