HOUSTON, Sept. 17 TX-LNY-Ike-Closures
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.
SOURCE Landry's Restaurants, Inc.
