On Nov. 9, Landry's Restaurants (NYSE:LNY) released third-quarter earnings for the period ending Sept. 30, 2006.

  • An increase in restaurant and hospitality revenues and the acquisition of the Golden Nugget led to a 31.5% increase in net sales.
  • Gross margin improved by 350 bps. Unfortunately, the company couldn't make the improvement move down the income statement, as the operating margin fell.
  • There's not much activity for Landry's in our new ratings service, CAPS. Only eight people have rated the stock. If you've got an opinion, get it in CAPS!

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$290.4

$220.9

31.5%

Net Profit*

$3.4

$9.1

(62.9%)

EPS

$0.15

$0.42

(64.3%)

Diluted Shares

22.0

21.9

0.5%

*Includes income from continued operations.

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

76.6%

73.0%

3.5

Operating Margin

4.6%

8.9%

(4.3)

Net Margin

1.2%

4.1%

(3.0)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$23.2

$47.9

(51.6%)

Accounts Rec.

$25.3

$20.9

21.2%

Inventory

$48.9

$56.7

(13.8%)



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$78.3

$78.6

(0.4%)

Long-Term Debt

$860.4

$814.1

5.7%



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$110.0

$124.7

(11.8%)

Capital Expenditures

$164.9

$81.9

101.4%

Free Cash Flow

($54.9)

$42.8

N/A



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Related Companies:

  • CaliforniaPizza Kitchen (NASDAQ:CPKI)
  • Lone Star Steakhouse & Saloon (NASDAQ:STAR)

Related Foolishness:

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