Landry’s awaits audit; files selected results

Jun 19, 2007 5:27 AM

Revenue gains from existing operations, especially from the Golden Nugget Hotel/Casino in downtown Las Vegas, were reported by Landry’s Restaurants Inc. (LNY) for the first quarter of 2007.

However, the company was only able to give selected financial results for the period because it is conducting an internal review of its historical stock option granting practices and that has not yet been approved by the company’s Audit Committee.

The company said it expects to have completed the audit later this year and at that time it will file its 2006 financial report as well as quarterly reports for 2007.

Revenues from continuing operations were $286.3 million compared to $272.7 million during the first quarter of 2006. Except for the Nevada casinos, the company’s same store sales were essentially flat.

The Golden Nugget properties in Las Vegas and Laughlin generated revenues of $70.7 million compared to $63.4 million during the comparable period.

Also during the quarter, the company experienced an increase in both depreciation and amortization expense and interest expense. The depreciation and amortization expense was $15.5 million as compared to $13.7 million while the interest expense was $13.6 million compared to $11.9 million in the first quarter of 2006.

During the period, the company completed a new $545 million credit facility arranged by Wachovia Capital Markets LLC for its Golden Nugget Inc. subsidiary. The Golden Nugget will expense a tender premium of $8.8 million during the 2007 second quarter.

The company added that it expects to report a net loss from discontinued operations during the first quarter of 2007 primarily resulting from the sale of Joe’s Crab Shack in the fourth quarter of 2006.