Landry's Restaurants, Inc. ('LNY'/NYSE) Reports First Quarter 2009 Results
07 May 2009 - 10:24PM
PR Newswire (US)
HOUSTON, May 7 /PRNewswire-FirstCall/ -- Landry's Restaurants, Inc.
(NYSE: LNY; the "Company"), today announced its results for the
first quarter ended March 31, 2009. Revenues from continuing
operations for the three months ended March 31, 2009, totaled
$256.3 million, as compared to $292.3 million a year earlier.
Revenues from the restaurant and hospitality group were $200.3
million and $222.5 million for the first quarter of 2009 and 2008,
respectively and $56.0 million and $69.8 million for the same
periods from the Golden Nugget properties. The prior year results
included an additional day due to leap year. Income from continuing
operations for the quarter was $7.1 million, compared to $2.5
million reported last year. On a pre-tax basis, results for the
first quarter included $7.5 million in reduced rent expense from a
lease termination payment received to exit one location, $3.5
million representing a gain on insurance proceeds in excess of the
book value of the damaged assets, a gain on the sale of property of
$0.6 million partially offset by a $4.0 million expense for call
premiums arising from the Company's successful refinancing in
February 2009 and $0.8 million in costs associated with the
terminated going private transaction. In addition, the first
quarter included a $0.4 million non-cash pre-tax gain on the value
of interest rate swaps not designated as hedges as compared to a
loss of $4.7 million during the same period in 2008. Same store
sales for the Company's restaurants were negative 9% for the
quarter. Earnings per share-diluted from continuing operations for
the quarter were $0.44, compared to $0.15 reported last year.
Interest expense for the first quarter of 2009 was $24.6 million
compared to $20.8 million in the first quarter of 2008 primarily
due to higher borrowings associated with construction of the new
tower at the Golden Nugget and higher interest rates resulting from
the refinancing in 2009. Adjusted EBITDA for the first quarter of
2009 was $52.4 million comprised of $39.9 million for the
restaurant and hospitality group and $12.5 million from gaming
operations compared to $46.7 million in the comparable prior year
period with $28.5 million from restaurant and hospitality and $18.2
million from gaming. Excluding the non recurring items described
above, adjusted EBITDA for the quarter would have been $45.5
million as compared to $46.7 million in the same period in the
prior year. Restaurant and hospitality would have contributed $33.0
million compared to $28.5 million in the prior year while gaming
operations contributed $12.5 million in the first quarter 2009
versus $18.2 million in the first quarter of 2008. Rick Liem,
Executive Vice President and CFO stated, "Operating income from the
restaurants and hospitality group held up well in the face of
declining sales in a very difficult economic environment. Results
from the gaming operations reflect lower traffic compounded by
heightened competitive pressure, particularly on room rates. We
will continue to manage our cost structure as we weather the
current recessionary period." As a result of our 2006 sale of the
Joe's Crab Shack concept and closure of certain additional
locations, the results of operations for these restaurants are
reflected as discontinued operations in our financial statements.
The loss from discontinued operations, net of taxes, for the
quarter ended March 31, 2009 was $0.1 million or $0.00 per share -
diluted compared to a loss of $0.9 million or $0.06 per share -
diluted in the prior year. Therefore, the consolidated net income
for the quarter was $7.1 million or $0.44 per share - diluted,
compared to net income of $1.5 million or $.09 per share - diluted
in the comparable period in 2008. 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. Adjusted
EBITDA is not a generally accepted accounting principles ("GAAP")
measurement. The Company defines adjusted EBITDA as earnings before
interest income and expense, taxes, depreciation, amortization,
non-cash gain or loss on interest rate swaps not deemed hedges and
non-cash stock based compensation expenses, 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
and gaming industry. Adjusted 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. Adjusted EBITDA is simply shown above as
it is a commonly used non-GAAP valuation statistic. In addition,
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.
Readers 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. Some factors that could realistically cause
results to differ materially from those projected in the
forward-looking statements are the effects of local and national
economic, credit and capital market conditions on the economy in
general, and on the gaming, restaurant and hotel industries in
particular; changes in laws, including increased tax rates,
regulations or accounting standards, third-party relations and
approvals, and decisions of courts, regulators and governmental
bodies; litigation outcomes and judicial actions; acts of war or
terrorist incidents or natural disasters; the effects of
competition, including locations of competitors and operating and
market competition; ineffective marketing or promotions, weather,
management turnover, higher interest rates and gas prices,
construction at the Golden Nugget properties, continued negative
same store sales and other risks described in the filings of the
Company with the Securities and Exchange Commission, including but
not limited to, the Company's Annual Report on Form 10-K for the
year ended December 31, 2008. The Company may not update or revise
any forward-looking statements made in this press release. LANDRY'S
RESTAURANTS, INC. CONSOLIDATED UNAUDITED INCOME STATEMENTS (000's
except per share amounts)
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FOR THE QUARTER ENDED FOR THE QUARTER ENDED March 31, 2009 March
31, 2008 --------------------- --------------------- REVENUES
$256,290 100.0% $292,321 100.0% -------- ------ -------- ------
COST OF REVENUES 52,761 20.5% 62,663 21.4% LABOR 82,811 32.3%
95,137 32.5% OTHER OPERATING EXPENSES 56,257 22.0% 73,951 25.4%
------ ----- ------ ----- UNIT LEVEL PROFIT 64,461 25.2% 60,570
20.7% GENERAL & ADMINISTRATIVE 12,058 4.7% 12,790 4.4%
PRE-OPENING COSTS 256 0.1% 468 0.2% DEPRECIATION & AMORTIZATION
17,760 6.9% 17,665 6.0% GAIN ON INSURANCE CLAIMS (3,483) -1.4% -
0.0% LOSS (GAIN) ON DISPOSAL OF ASSETS (622) -0.1% - 0.0% -----
----- --- ---- TOTAL OPERATING INCOME 38,492 15.0% 29,647 10.1%
OTHER EXPENSE (INCOME) 28,980 26,135 ------ ------ INCOME FROM
CONTINUING OPERATIONS BEFORE TAXES 9,512 3,512 TAX PROVISION
(BENEFIT) 2,388 1,061 ----- ----- INCOME FROM CONTINUING OPERATIONS
7,124 2,451 INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF
TAXES (51) (929) ---- ----- NET INCOME (LOSS) $7,073 $1,522 ======
====== EARNINGS (LOSS) PER SHARE - BASIC: INCOME FROM CONTINUING
OPERATIONS $0.44 $0.15 INCOME (LOSS) FROM DISCONTINUED OPERATIONS -
(0.06) --- ---- NET INCOME (LOSS) $0.44 $0.09 ===== ===== AVERAGE
SHARES 16,140 16,145 EARNINGS (LOSS) PER SHARE - DILUTED: INCOME
FROM CONTINUING OPERATIONS $0.44 $0.15 INCOME (LOSS) FROM
DISCONTINUED OPERATIONS - (0.06) --- ---- NET INCOME (LOSS) $0.44
$0.09 ===== ===== AVERAGE SHARES 16,155 16,395
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Adjusted EBITDA: Net income $7,073 $1,522 Add back: Tax provision
(benefit) 2,388 1,061 Interest expense, net 24,615 20,760
Depreciation and amortization 17,760 17,665 Interest rate swaps
(425) 4,682 Stock based compensation 948 1,012 --- ----- Adjusted
EBITDA $52,359 $46,702 Adjusted EBITDA is not a generally accepted
accounting principles ("GAAP") measurement. We define adjusted
EBITDA as earnings before interest income and expense, income
taxes, depreciation and amortization, non-cash expenses associated
with interest rate swaps not designated as hedges and non-cash
stock based compensation. Adjusted EBITDA is presented solely as a
supplemental disclosure because the Company believes that it is a
widely used measure of operating performance in the restaurant
industry. Adjusted EBITDA is not intended to be viewed as a source
of liquidity or as a cash flow measure as used in the statement of
cash flows. Adjusted EBITDA is simply shown above as it is a
commonly used non-GAAP valuation statistic. LANDRY'S RESTAURANTS,
INC. CONDENSED BALANCE SHEETS ($ in Millions except per share
amounts) March 31, 2009 December 31, 2008 --------------
----------------- (Unaudited) Cash and equivalents $73.0 $51.1
Assets related to discontinued operations 3.0 3.0 Other current
assets 76.0 81.2 ---- ---- Total current assets 152.0 135.3
Property & equipment, net 1,282.8 1,259.2 Other assets 132.0
120.8 ----- ----- Total assets $1,566.8 $1,515.3 ======== ========
Current liabilities $206.9 $216.3 Liabilities related to
discontinued operations 4.8 5.1 Long-term debt 921.6 862.3 Other
non-current 128.6 136.1 ----- ----- Total liabilities 1,261.9
1,219.8 Total stockholders' equity 304.9 295.5 ----- ----- Total
liabilities & equity $1,566.8 $1,515.3 ======== ======== Net
book value per share $18.89 $18.30 ====== ====== DATASOURCE:
Landry's Restaurants, Inc. CONTACT: Tilman J. Fertitta, Chairman,
President & C.E.O., or Rick H. Liem, Executive Vice President
& C.F.O., both of Landry's Restaurants, Inc., +1-713-850-1010
Web Site: http://www.landrysrestaurants.com/
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