HOUSTON Landry’s Restaurants Inc. reported July 30 that it had completed its internal review of stock option granting practices and that it will have to take a charge greater than the expected $8.6 million to correct past accounting errors.
The company did not reveal how much the charge would be, and only said that the aggregate after-tax charge “will need to be increased” from the $8.6 million it predicted in April.
Landry’s special committee of independent directors found no “intentional misconduct” surrounding option granting practices by current or former management, the company said. Although Landry’s hadn’t issued any stock options since 2004, the company amended its option granting policies and certain senior management have agreed to repay the differences between the exercise price and the lower, revised measurement date of their formerly granted stock options.
Landry’s, which operates about 200 restaurants under various brands, as well as gaming and retail interests, also said it would “shortly” become current with its financial filings. At press time, the company had yet to file its annual financial statement for the year ended December 2006. The late filings had caused the company’s note holders to prematurely call in $400 million in bonds, and Landry’s said it is seeking to refinance that debt.