Friday May 9, 01:35 PM
Landry's Restaurants 1Q profit falls; new hotel tower to cost about $160 million
BOSTON (Thomson Financial) - Landry's Restaurants Inc. Friday reported first-quarter income from continuing operations of $2.2 million, or 14 cents a share, compared with income of $22.8 million, or $1.04 a share, a year earlier.
Included in the latest quarterly results is a non-cash expense of $3 million after-tax, or 20 cents a share, related to interest rate swaps not designated as hedges.
The mean estimate of analysts polled by Thomson Reuters (TRI.TO - news) was for earnings of 36 cents a share.
Revenue for the three months ended March 31 rose to $294.8 million from $283.6 million in the year-ago quarter. Three Wall Street analysts were, on average, forecasting sales of $291.8 million.
The Houston-based restaurant and hospitality company said that though credit markets remain unsettled, it continues to believe it will obtain long-term financing, however at a higher interest rate and with more restrictive terms than its existing agreements.
Landry's also said it has signed a contract for the construction of a new hotel tower at the Golden Nugget, which it expects to be completed by the end of 2009 or early 2010 and cost about $160 million.
The stock closed Thursday at $15.74.
Greg Saulnier
gs/vj
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