Reply #66: Ryan's 3rd-quarter profit drops by more than half (no $$ to eat out) [View All]

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-10-19T152502Z_01_N19431543_RTRIDST_0_LEISURE-RYANS-EARNS-UPDATE-1.XML

NEW YORK, Oct 19 (Reuters) - Ryan's Restaurant Group Inc. (RYAN.O: Quote, Profile, Research) on Wednesday said quarterly profit fell by more than half as high energy costs cut into spending by its customers and hurricanes forced it to close restaurants for a period.

The company also said it did not meet financial requirements in its debt covenants for the second consecutive quarter and is in discussion with lenders to amend its debt agreements.

Ryan's earned $4.2 million, or 10 cents a share, in the third quarter, ended Sept. 28, compared with $9.2 million, or 22 cents a share, a year earlier.

Analysts on average had forecast 10 cents a share, according to Reuters Estimates.

Shares of Ryan's were halted ahead of the company's announcement. After they began trading on Wednesday, were down more than 7 percent at a 52-week low of $10.27.

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