Gas Storage Tanks Leak, Malibu Grand Prix Says

Malibu Grand Prix, a Woodland Hills operator of amusement centers that feature amateur auto racing, said it has found leaks in underground gasoline tanks at four centers in Florida and Southern California.

The company said it has created a $185,000 reserve for any cleanup and repairs it may have to make at the two California sites. Malibu said it expects that in Florida it would be reimbursed from a state fund should any cleanup or repairs be needed.

The announcement came as Malibu disclosed it earned $1.5 million, or 8 cents a share, in the third quarter ended Sept. 25, up 15% from $1.3 million, or 7 cents a share, a year earlier. Revenue climbed 13% to $10.9 million.

Results in the most recent quarter included a $470,000 extraordinary gain from net operating loss carry-forwards, which are accounting adjustments that allow a company to offset taxable income using tax credits from past losses.

For the 9 months, Malibu’s earnings fell 29% to $2.4 million, or 14 cents a share, from $3.3 million, or 20 cents a share, in the year-earlier period, when the company had a one-time $1.6-million gain from the restructuring of its debt. Revenue rose 7% to $26.2 million.

As previously reported, Malibu Chairman Ira L. Young has offered 95 cents a share, or about $5 million, for the 41% of the company he does not own.