HOUSTON Landry’s Restaurants Inc. swung to a fourth-quarter profit from a year-earlier net loss on gains from insurance proceeds that helped offset sluggish sales at the casual-dining and gaming company.
For the quarter ended Dec. 31, Landry’s earned $4.6 million, or 30 cents per share, compared with a net loss of $6.6 million, or 41 cents per share, in the same quarter a year earlier. Latest-quarter results included $11.5 million in after-tax proceeds from insurance claims covering Hurricane Ike, which hit the Houston area in September 2008. The storm shuttered numerous Landry’s-operated restaurants and the company's Kemah Boardwalk property, all of which have since reopened.
Latest-quarter corporate revenue fell 8.7 percent to $253.7 million. Same-store sales for Landry’s restaurants fell 4.7 percent. Total gaming revenue from Landry’s Golden Nugget properties fell 14.5 percent to $56.4 million.
The Houston-based company spent much of last year attempting to close on a buyout by its founder and chief executive Tilman Fertitta. The deal fell through amid financing troubles, and in February Landry’s entered into a $215.6 million amended credit agreement and issued $295.5 million in senior secured notes to repay $400 million of the company’s formerly outstanding senior notes.
The company said it would focus this year on conserving cash to repay debt obligations, which total about $862 million.
“In response to the current economic conditions, the company has taken measures to increase efficiencies and reduce its cost structure across its businesses,” Landry’s said in a statement. “As a result of the higher interest costs, the need to refinance by 2011 and dramatic economic turmoil, the company expects to reduce its unit growth and conserve capital for debt repayment.”
It did not provide details.
For all of fiscal 2008, Landry’s earned $2.9 million, or 19 cents per share, versus year-earlier profit of $18.1 million, or 93 cents per share. The latest year included $10.6 million in losses from discontinued operations.
Fiscal 2008 revenue fell 1.5 percent to $1.14 billion.
Landry’s restaurant brands include Landry’s Seafood House, Chart House, Rainforest Cafe and Saltgrass Steak House. It also operates other venues including hotels, marinas, amusements, retail and the Golden Nugget Hotels and Casinos.
Contact Sarah E. Lockyer at [email protected].