Landry’s delays filings
to review options

Apr 3, 2007 5:11 AM

Landry’s Restaurants Inc. (LNY) has advised investors that it probably incurred a loss for fiscal 2006 but will not be able to file its annual report until the completion of a detailed review of its historical stock option grants dating back to 1993.

Previously, the company disclosed it had initiated a voluntary internal review to be conducted by accounting experts and outside legal counsel with the board of directors overseeing the process.

The initial review, the company said, was completed last month and "did not find any intentional backdating of options or fraudulent retroactive documentation regarding options."

Accordingly, the company said, it will not be able to file completed financial statements for the fiscal year ended Dec. 31, 2006, until the completion of the reviews.

However, from information received from the initial review, the company believes the financial impact will approximate $8.6 million, after tax.

Also, the company said that as a result of the loss from discontinued operations primarily resulting from the sale of Joe’s Crab Shack in the fourth quarter of 2006, it anticipates reporting a net loss for 2006.

There was no update given concerning the company’s bid to take over the Smith & Wolensky Restaurant Group.

MTR Gaming

MTR Gaming Group Inc. (MNTG) returned to the profit column, although modestly, in the fourth quarter that ended on Dec. 31, 2006.

Net income for the period was $518,000 or $0.02 per share compared to a break even quarter last year. Revenues during the period increased 5% to $86.7 million from last year’s $82.4 million.

For the year, the company reported net income of $4.4 million or $0.16 per share compared to $7.8 million and $0.27 per share in 2005.

Included among the factors that contributed to the decline, the company said, were a decline of $1 million in net revenues at Binion’s in downtown Las Vegas and costs associated with the opening of Presque Isle Downs in Pennsylvania.

CEO Ted Arneault said he was "excited" over the prospects of the new facility, noting that the 2,000 slot machines were averaging $324 per day for the first 26 days of operation.

Melco PBL Entertainment

Still awaiting the opening of its first Macau casino, Melco PBL Entertainment Ltd. (MPEL) reported a loss of $73.5 million or about $0.12 per basic share for fiscal year 2006.

The loss was substantially below the previous year when it reported a loss of $3.3 million or about break even per basic share.

Revenue from the company’s slots route in Macau rose to $36.1 million from $17.3 million in 2005 but operating costs jumped to $93.8 million from the $21 million reported a year earlier.

Management focused on May 9 when it expects to open its first of three Macau casinos, the Crown Macau. In late 2008, the company said, it expects to open its City of Dreams which will include 600 condominium units. This project will be on the Cotai Strip next to the Venetian Macau.