Revenues from continuing operations for the three months ended September 30, 2009, totaled $276.6 million, as compared to $289.7 million a year earlier. Revenues from the restaurant and hospitality group were $224.2 million and $229.1 million for the third quarter of 2009 and 2008, respectively and $52.4 million and $60.6 million for the same periods from the Golden Nugget properties.
Landry's Restaurants, Inc. (NYSE: LNY; the "Company"), today announced its results for the third quarter ended September 30, 2009.
Revenues from continuing operations for the three months ended September 30, 2009, totaled $276.6 million, as compared to $289.7 million a year earlier. Revenues from the restaurant and hospitality group were $224.2 million and $229.1 million for the third quarter of 2009 and 2008, respectively and $52.4 million and $60.6 million for the same periods from the Golden Nugget properties.
Interest expense for the third quarter of 2009 was $29.3 million compared to $19.5 million in the third quarter of 2008 primarily due to higher interest rates resulting from the Company's refinancing in 2009 and higher borrowings associated with construction of the new tower at the Golden Nugget.
Income from continuing operations for the quarter was $8.9 million, compared to a loss of $7.6 million reported last year. On a pre-tax basis, results for the third quarter of 2009 include a $19.4 million gain on debt extinguishment, while the comparable period in the prior year included an $18.5 million impairment loss primarily from Hurricane Ike. In addition, the 2009 third quarter includes a $6.2 million non-cash pre-tax loss on the value of interest rate swaps not designated as hedges as compared to a loss of $1.8 million during the same period in 2008. Earnings per share-diluted from continuing operations for the quarter were $0.55, compared to a loss of $0.47 last year. Excluding the effect of the above items, earnings per share-diluted from continuing operations for the quarter would have been $.02 for 2009, as compared to $0.35 for 2008. Same store sales for the Company's restaurants were negative 6.5% while gaming operations were negative 13.1% for the quarter.
Excluding the non-recurring items described above, Adjusted EBITDA, as defined below, for the quarter was $49.4 million as compared to $48.8 million in the same period in the prior year. Restaurant and hospitality contributed $42.0 million compared to $36.5 million in the prior year while gaming operations contributed $7.3 million in the third quarter of 2009 versus $12.4 million in the third quarter of 2008.
Revenues from continuing operations for the nine months ended September 30, 2009, totaled $814.9 million, as compared to $890.2 million a year earlier. For the same periods, restaurant and hospitality revenues were $650.0 million and $693.2 million, respectively, while gaming operations revenues totaled $164.9 million and $196.9 million, respectively. Net earnings from continuing operations for the nine months were $24.3 million, compared to $8.9 million reported last year. Earnings per share-diluted from continuing operations for the nine months were $1.50, compared to $0.55 in 2008.
Rick Liem, Executive Vice President and CFO stated, "Operating income from the restaurant and hospitality group held up well in a very difficult economic environment. Results from the gaming operations reflect lower traffic compounded by heightened competitive pressure, particularly on room rates. We expect to open the new tower at the Golden Nugget at the end of November 2009, slightly in advance of the approximately 6,000 rooms opening in December at City Center."
As a result of the Company's 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 the Company's financial statements. The loss from discontinued operations, net of taxes, for the quarter ended September 30, 2009 was $0.1 million or $0.01 per share-diluted compared to a loss of $9.5 million or $0.59 per share-diluted in the prior year. For the nine months ended September 30, 2009, the loss from discontinued operations, net of tax was $0.2 million or $0.01 per share-diluted as compared to a loss of $10.5 million or $0.65 per share-diluted in the prior year. Therefore, the consolidated net income for the current year quarter was $8.8 million or $0.54 per share-diluted, compared to net loss of $17.1 million or $1.06 per share - diluted in the comparable period in 2008. Consolidated, net income for the nine months ended September 30, 2009 was $1.49 per share-diluted compared to a net loss of $0.10 per share-diluted for the comparable period in the prior year.
Net income available to the Company's common stockholders for the three and nine months ended September 30, 2009 was $6.7 million and $19.3 million or $0.41 and $1.19 per share diluted, respectively as compared to a $17.1 million loss and $1.7 million loss or ($1.06) and ($0.10) per share diluted for the prior year.
The Company has determined that it did not properly consider the accreted value of its redeemable non-controlling interests in its T-Rex subsidiary in its determination of net income available to Landry's common stockholders in the first and second quarter of 2009. The Company will amend its quarterly filings on Form 10-Q. Such amendment will have no effect on the Company's cash flows or financial position. The amended filings will reflect the following.
Three Months Ended Three Months Ended
March 31, 2009 June 30, 2009
-------------- -------------
As reported As restated As reported As restated
----------- ----------- ----------- -----------
Net income
(loss)
attributable
to Landry's 7,073,246 7,073,246 8,265,312 8,265,312
Redeemable
noncontrolling
interest - (1,064,763) - (1,660,878)
--- ---------- --- ----------
Net income
available to
Landry's common
stockholders $7,073,246 $6,008,483 $8,265,312 $6,604,434
========== ========== ========== ==========
EARNINGS (LOSS)
PER SHARE
INFORMATION:
Amounts
attributable to
Landry's:
BASIC
Net income
(loss)
attributable
to Landry's $0.44 $0.44 $0.51 $0.51
Redeemable
noncontrolling
interest $- $(0.07) $- $(0.10)
--- ------ --- ------
Net income
available to
Landry's
common
stockholders $0.44 $0.37 $0.51 $0.41
===== ===== ===== =====
Weighted
average
number of
common
shares
outstanding 16,140,000 16,140,000 16,140,000 16,140,000
DILUTED
Net income
(loss)
attributable
to Landry's $0.44 $0.44 $0.50 $0.50
Redeemable
noncontrolling
interest $- $(0.07) $- $(0.09)
--- ------ --- ------
Net income
available to
Landry's
common
stockholders $0.44 $0.37 $0.50 $0.41
===== ===== ===== =====
Weighted
average
number of
common and
common
share
equivalents
outstanding 16,155,000 16,155,000 16,205,000 16,205,000
Six Months Ended
June 30, 2009
-------------
As reported As restated
----------- -----------
Net income
(loss)
attributable
to Landry's 15,338,558 15,338,558
Redeemable
noncontrolling
interest - (2,725,641)
--- ----------
Net income
available to
Landry's common
stockholders $15,338,558 $12,612,917
=========== ===========
EARNINGS (LOSS)
PER SHARE
INFORMATION:
Amounts
attributable to
Landry's:
BASIC
Net income
(loss)
attributable
to Landry's $0.95 $0.95
Redeemable
noncontrolling
interest $- $(0.17)
--- ------
Net income
available to
Landry's
common
stockholders $0.95 $0.78
===== =====
Weighted
average
number of
common
shares
outstanding 16,140,000 16,140,000
DILUTED
Net income
(loss)
attributable
to Landry's $0.95 $0.95
Redeemable
noncontrolling
interest $- $(0.17)
--- ------
Net income
available to
Landry's
common
stockholders $0.95 $0.78
===== =====
Weighted
average
number of
common and
common
share
equivalents
outstanding 16,180,000 16,180,000
