Landrys Restaurants (LNY) 8-K Other Events

Exhibit 99.1

ITEM 6. SELECTED FINANCIAL DATA

The following table sets forth our selected consolidated financial data as of and for the years ended December 31, 2008, 2007, 2006, 2005, and 2004 which are derived from our consolidated financial statements which have been audited by Grant Thornton LLP. Our earnings per share information has been retroactively adjusted for all periods presented to reflect the adoption of the Financial Accounting Standards Board issued Staff Position No. EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (the “FSP”). In accordance with the FSP, unvested equity-based awards that contain non-forfeitable rights to dividends are now included in the weighted-average common shares outstanding in the calculation of earnings per common share.

Discontinued Operations

During 2006, as part of a strategic review of our operations, we initiated a plan to divest certain restaurants, including 136 Joe’s Crab Shack units. Subsequently, several additional locations were added to our disposal plan. The results of operations for all units included in the disposal plan have been reclassified as discontinued operations in the statements of income for all periods presented.

The data set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors” and our Consolidated Financial Statements and Notes. All amounts are in thousands, except per share data.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

	Year Ended December 31,
	2008			2007			2006			2005			2004
REVENUES	$	1,143,889		$	1,160,368		$	1,101,994		$	864,156		$	769,280
OPERATING COSTS AND EXPENSES:
Cost of revenues		245,381			256,336			249,575			223,864			214,966
Labor		366,395			375,144			357,748			258,469			221,059
Other operating expenses		288,090			292,298			278,172			213,697			189,945
General and administrative expense		51,294			55,756			57,977			47,443			48,446
Depreciation and amortization		70,292			65,287			55,857			43,262			37,616
Asset impairment expense (1)		2,409			—			2,966			—			1,709
Loss (gain) on disposal of assets		(59	)		(18,918	)		(2,295	)		(524	)		(100	)
Pre-opening expenses		2,266			3,477			5,214			3,030			2,990
Total operating costs and expenses		1,026,068			1,029,380			1,005,214			789,241			716,631
OPERATING INCOME		117,821			130,988			96,780			74,915			52,649
OTHER EXPENSE (INCOME):
Interest expense, net (2)		79,817			72,322			49,139			31,208			10,482
Other, net (3)		17,300			16,690			(128	)		530			13,566
Total other expense		97,117			89,012			49,011			31,738			24,048
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		20,704			41,976			47,769			43,177			28,601
PROVISION (BENEFIT) FOR INCOME TAXES (4)		7,227			14,238			13,393			13,556			(10,392	)
INCOME FROM CONTINUING OPERATIONS		13,477			27,738			34,376			29,621			38,993
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES (1)		(10,569	)		(9,626	)		(56,146	)		15,194			27,528
NET INCOME (LOSS)	$	2,908		$	18,112		$	(21,770	)	$	44,815		$	66,521
EARNINGS PER SHARE INFORMATION:
BASIC
Income from continuing operations	$	0.84		$	1.41		$	1.55		$	1.31		$	1.43
Income (loss) from discontinued operations		(0.66	)		(0.49	)		(2.53	)		0.67			1.02
Net income (loss)	$	0.18		$	0.92		$	(0.98	)	$	1.98		$	2.45
Weighted average number of common shares outstanding		16,140			19,740			22,120			22,600			27,200

	Year Ended December 31,
	2008			2007			2006			2005		2004
DILUTED
Income from continuing operations	$	0.82		$	1.37		$	1.51		$	1.27	$	1.39
Income (loss) from discontinued operations		(0.64	)		(0.48	)		(2.47	)		0.65		0.99
Net income (loss)	$	0.18		$	0.89		$	(0.96	)	$	1.92	$	2.38
Weighted average number of common and common share equivalents outstanding		16,350			20,240			22,790			23,285		28,000
EBITDA
Net Income (loss)	$	2,908		$	18,112		$	(21,770	)	$	44,815	$	66,521
Add back:
Provision (benefit) for income tax		7,227			14,238			13,393			13,556		(10,392	)
Interest expense, net		79,817			72,322			49,139			31,208		10,482
Depreciation and amortization		70,292			65,287			55,857			43,262		37,616
Asset impairment expense		2,409			—			2,966			—		1,709
EBITDA	$	162,653		$	169,959		$	99,585		$	132,841	$	105,936
BALANCE SHEET DATA (AT END OF PERIOD)
Working capital (deficit)	$	(86,036	)	$	(149,883	)	$	(50,056	)	$	217,461	$	161,515
Total assets	$	1,515,324		$	1,502,983		$	1,464,912		$	1,612,579	$	1,344,952
Short-term notes payable and current portion of notes and other obligations	$	8,753		$	87,243		$	748		$	1,852	$	1,700
Long term notes and other obligations, net of current portion	$	862,375		$	801,428		$	710,456		$	816,044	$	559,545
Stockholders’ equity (1)	$	294,477		$	316,899		$	494,707		$	516,770	$	600,897

(1) In 2008, 2006 and 2004, we recorded asset impairment charges related to continuing operations of $2.4 million ($1.6 million after tax), $3.0 million ($2.0 million after tax) and $1.7 million ($1.2 million after tax), respectively, related to the adjustment to estimated fair value of certain restaurant properties and assets. In 2007 and 2006, we also recorded asset impairment charges and other losses totaling $9.9 million ($6.5 million after tax) and $79.8 million ($51.8 million after-tax), respectively, related to discontinued operations.

(2) In 2007, we recognized an $8.0 million ($5.3 million after-tax) charge for deferred loan costs previously being amortized over the term of the 7.5% Senior Notes.

(3) In 2008, we recognized $14.3 million in non-cash charges associated with interest rate swaps not designated as hedges. In 2007, we recorded expenses associated with exchanging the 7.5% Senior Notes for 9.5% Senior Notes of approximately $5.0 million ($3.3 million after tax) and incurred approximately $6.3 million ($4.2 million after tax) in call premiums and expenses associated with refinancing the Golden Nugget debt. We also recorded $5.4 million ($3.5 million after tax) reflecting a non-cash expense for the change in fair value of interest rate swaps related to the new Golden Nugget financing. In 2004, we recorded prepayment penalty expense and other costs related to the refinancing of our long-term debt of approximately $16.6 million ($11.3 million after tax).

(4) In 2004, we recognized $18.5 million in income tax benefits for a reduction of the valuation allowance and deferred tax liabilities attributable to tax benefits deemed realizable and reduced accruals.

EBITDA is not a generally accepted accounting principles (“GAAP”) measurement and is presented solely as a supplemental disclosure because we believe that it is a widely used measure of operating performance. EBITDA is not intended to be viewed as a source of liquidity or as a cash flow measure as used in the statement of cash flows. EBITDA is simply shown above as it is a commonly used non-GAAP valuation statistic. EBITDA as shown differs from that used in our credit agreements primarily due to non-guarantor subsidiaries and other specifically defined calculations.