Landry's Restaurants, Inc. ('LNY'/NYSE) Announces Restaurant Closures Due to Hurricane Ike and Interim Financial Results
September 17 2008 - 12:37PM
PR Newswire (US)
HOUSTON, Sept. 17 /PRNewswire-FirstCall/ -- Landry's Restaurants,
Inc., announced that 14 Houston area restaurants remain closed as a
result of Hurricane Ike and will re-open as soon as power is
restored to each of the units. Moreover, all of the Company's Kemah
and Galveston restaurants are closed. Only one restaurant in
Galveston sustained significant damage, as did two restaurants at
the Kemah Boardwalk. In addition, the amusement rides, the
boardwalk itself and some infrastructure at the Kemah Boardwalk
incurred significant damage. Once power and water are restored in
Galveston, the Company anticipates that the majority of its
Galveston restaurants will re-open, and that some of the
restaurants at the Kemah Boardwalk may re-open within the next 45
to 60 days, with additional restaurants and some amusement rides
opening monthly thereafter. For the combined months of July and
August 2008 and 2007, the Company's revenues were approximately
$215.0 million and $213.0 million, respectively. Unit level cash
flows for the two month periods in 2008 and 2007 were $48.0 million
and $45.0 million, respectively. Tilman J. Fertitta, Chairman of
the Board, President and CEO stated, "I am committed to reopening
our operations in both Kemah and Galveston as soon as possible.
After our rebuilding, we will have even newer and better facilities
than before. The city officials of Galveston, Kemah and Houston,
with the assistance of the federal government, are working
diligently to restore utility services as soon as possible. We are
very pleased with the progress made to date and are happy to be
working closely with government officials to do our part to help
our community rebound." According to Rick Liem, Executive Vice
President and CFO, "While the final effect of the property damage
and earnings impact resulting from the storm has not yet been
finally determined, we are comfortable that the majority of our
property losses and cash flow are expected to be covered by
property and business interruption insurance." The Company's
continuing operations include restaurants primarily under the trade
names Landry's Seafood House, Chart House, Rainforest Cafe,
Saltgrass Steak House and the Signature Group as well as other
businesses including hotels, marinas, amusements, retail and the
Golden Nugget Hotels and Casinos in Las Vegas and Laughlin, Nevada.
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by safe harbors created thereby.
Stockholders are cautioned that all forward-looking statements are
based largely on the Company's expectations and involve risks and
uncertainties, some of which cannot be predicted or are beyond the
Company's control. Some factors that could realistically cause
results to differ materially from those projected in the
forward-looking statements include the occurrence of any event,
change or other circumstances that could give rise to the
termination of the merger agreement with Fertitta Holdings, Inc.;
the outcome of any legal proceedings that have been, or may be,
instituted against the Company related to the merger agreement; the
inability to complete the merger due to the failure to obtain
stockholder approval for the merger or the failure to satisfy other
conditions to completion of the merger, including the receipt of
all regulatory approvals related to the merger; the failure to
obtain the necessary financing arrangements set forth in the debt
and equity commitment letters delivered pursuant to the merger
agreement; risks that the proposed transaction disrupts current
plans and operations and the potential difficulties in employee
retention as a result of the merger; the ability to recognize the
benefits of the merger; the effects of local and national economic,
credit and capital market conditions on the economy in general, and
on the gaming, restaurant and hotel industries in particular;
whether the final property and business interruption losses
resulting from Hurricane Ike will be in accordance with the
Company's current estimates; changes in laws, including increased
tax rates, regulations or accounting standards, third-party
relations and approvals, and decisions of courts, regulators and
governmental bodies; litigation outcomes and judicial actions; acts
of war or terrorist incidents or natural disasters; the effects of
competition, including locations of competitors and operating and
market competition; ineffective marketing or promotions, weather,
management turnover, higher interest rates and gas prices,
construction at the Golden Nugget properties, negative same store
sales, or the Company's inability to continue its expansion
strategy and other risks described in the filings of the Company
with the Securities and Exchange Commission, including but not
limited to, the Company's Annual Report on Form 10-K for the year
ended December 31, 2007. The Company may not update or revise any
forward-looking statements made in this press release. DATASOURCE:
Landry's Restaurants, Inc. CONTACT: Tilman J. Fertitta, Chairman,
President & C.E.O., or Rick H. Liem, Executive Vice President
& C.F.O., both of Landry's Restaurants, Inc., +1-713-850-1010
Web site: http://www.landrysrestaurants.com/
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