Landry's Posts 3Q Profit; Will Restate 1Q, 2Q

HOUSTON (AP) — Landry's Restaurants Inc., which is being taken private by its CEO, said Friday it moved to a profit in the third quarter on lower costs compared with a year-earlier period hurt by big writedowns.

The restaurant operator also said it must restate its results for the first and second quarters because it did not appropriately record the value of its stake in its T-Rex subsidiary.

In the quarter that ended Sept. 30, the Houston company earned $6.7 million, or 41 cents per share, compared to a loss of $17.1 million, or $1.06 per share,in the same quarter a year earlier.

The latest quarter included a $19.4 million gain on debt extinguishment and a $6.2 million cost on the value of interest rate swaps. The year-ago quarter included an $18.5 million writedown primarily due to Hurricane Ike damage and a $1.8 million charge from interest rate swaps.

Excluding those items, profit in the latest quarter was 2 cents per share, down from 35 cents per share in the 2008 quarter.