WICHITA, Kan., May 6, 2002 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (Nasdaq:STAR) today announced that the non-binding Letter of Intent it had signed with Bruckmann, Rosser, Sherrill & Co. LLC ("BRS") with respect to the proposed sale and merger of the Company for $20.50 per share in cash expired on Saturday, May 4, 2002. Lone Star also announced continued improvement in financial results across its restaurant concepts and guidance for remainder of the year. Finally, the Company announced its intention to continue to explore strategic and financial alternatives to enhance shareholder value, including but not limited to a potential share repurchase.
Lone Star signed the Letter of Intent with BRS on March 28, 2002, which provided for a 30-day exclusive negotiation period and which was later extended for one week. The parties however were not able to agree on the terms of a definitive agreement. Clark R. Mandigo, Lone Star's Chairman of the Board, stated: "while we are disappointed that we were unable to sign a definitive agreement with BRS, we are extremely pleased with the continuing improvement in Lone Star's operating results. We believe that the strength of these results, combined with the Company's significant cash position and debt-free balance sheet, give the Company the flexibility to quickly pursue a variety of strategic alternatives which will enhance shareholder value."
The Company had previously reported financial results for the first quarter of 2002, including increases in EBITDA from $18.3 to $27.9 million up 53.0% and Net Income (excluding non-cash charges) from $7.3 to $12.9 million up 75.3%, respectively, versus the same period in 2001. Since then, results have continued to show significant improvement versus last year. Year to date results through April 16, 2002 include Sales of $195.9 million up 3.3% from $189.6 million, adjusted EBITDA of $35.2 million, up 53.4% from $22.9 million and adjusted Net Income of $16.2 million, up 86.2% from $8.7 million versus the comparable period in 2001. Recent results have led the Company to forecast Sales of approximately $596 to $606 million, adjusted EBITDA of $95 to $100 million and Earnings per Share of $1.56 to $1.63 for the fiscal year ending December 31, 2002. These projected results compare with $598 million in Sales, $73.2 million in adjusted EBITDA and Earnings per Share of $1.15 for the fiscal year ended December 26, 2001. All amounts exclude unusual items and non-cash charges and are based on the estimated weighted average diluted shares outstanding for the periods.
For interested parties, there will be a conference call with management today at 3:30 p.m. Central Time on Monday, May 6, 2002 to discuss this release. The call in number is 719-457-2629 and the confirmation code is 151638. A recorded replay of the conference call will be available from 7 p.m. on May 6, 2002 through midnight on May 20, 2002. The replay call in number is 719-457-0820 and the confirmation code is 151638. A listen only connection to the conference call, as well as the replay, will be available on the Internet through the Company's Website, http:/www.lonestarsteakhouse.com.
Lone Star Steakhouse & Saloon, Inc. owns and operates a chain of 249 domestic and 25 international Lone Star Steakhouse & Saloon restaurants. The Company also owns and operates five Del Frisco's Double Eagle Steak Houses and 15 Sullivan's Steakhouses.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate.