Landry's Restaurants Q3 Revenues Decline

Revenues for the first nine months of 2009 decline to $814.9m

Landry's Restaurants has reported revenues from continuing operations of $276.6m for the third quarter of 2009 compared to $289.7m in the year ago quarter. Revenues from the restaurant and hospitality group were $224.2m for the third quarter compared to $229.1m for the third quarter of 2008. Revenues from Golden Nugget properties were $52.4m compared to $60.6m for the same period prior year.

Revenues from continuing operations for the first nine months of 2009, totaled $814.9m compared to $890.2m in the year ago period. For the same period, restaurant and hospitality revenues were $650m compared to $693.2m in the same period of the previous year.

Income from continuing operations for the quarter was $8.9m compared to a loss of $7.6m reported in the same quarter last year. Net earnings from continuing operations for the nine months were $24.3m compared to $8.9m reported in the same period last year.

On a pre-tax basis, results for the third quarter of 2009 include a $19.4m gain on debt extinguishment, while the comparable period in the prior year included an $18.5m impairment loss primarily from Hurricane Ike.

In addition, the third quarter includes a $6.2m non-cash pre-tax loss on the value of interest rate swaps not designated as hedges as compared to a loss of $1.8m during the same period in 2008.

Rick Liem, executive vice president and CFO of Landry's Restaurants, said: 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.