WICHITA, Kan., May 22, 2002 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (the "Company") (Nasdaq:STAR) today announced that Guy W. Adams will resign from its Board of Directors to pursue other opportunities.
Mr. Adams said: "I now wish to devote my time and energy to other opportunities as I may consider. When I ran for election last year, I specified five corporate governance goals. All of those goals have now been satisfied."
Since Mr. Adams joined the Board last year, the Company has adopted many corporate governance proposals, including: (i) the redemption of the Company's "poison pill;" (ii) the addition of three new "independent directors;" (iii) the separation of the offices of Chairman of the Board and Chief Executive Officer; (iv) the retention of UBS Warburg, an independent financial advisor to advise the Board of Directors as to the strategic alternatives available to the Company; and (v) the adoption of a resolution to put to the vote of the stockholders at the 2002 annual meeting of stockholders a proposal to amend the Company's Articles of Incorporation and ByLaws to eliminate the current classified board structure effective as of the date of the 2003 Annual Meeting of Stockholders.
Mr. Adams said: "Today, I look upon the accomplishments achieved by the Company and the Board during my involvement, and feel I have satisfied those objectives I originally set out to accomplish. I also resign my position as a Director of Lone Star Steakhouse & Saloon, Inc. with the satisfaction that the stock price is now over $21.70 and that the Company's stock price has increased about 140% during my involvement with the Company."
The Company's operational improvements are reflected in its recently announced projected EBITDA for 2002 of between $95.0 and $100.0 million, approximately 35% higher than adjusted EBITDA reported for 2001.
Clark Mandigo, Chairman of the Board, commented: "We appreciate Guy's involvement with the Company over the past ten months, particularly with respect to corporate governance and our evaluation of strategic alternatives. Both Guy and the Company believe he has made as great a contribution as he can at this time."
Mr. Adams' resignation will become effective upon the selection of his successor, who will be selected as follows: the Nominating Committee of the Board will select three potential director nominees, none of whom are currently directors of the Company, and all of whom will satisfy the definition of "independent director" pursuant to the Company's Amended and Restated By-Laws. Mr. Adams will recommend one of those nominees as his successor and thereupon, such selection will be approved by the Board.
Mr. Adams said, "In departing, I wish to thank my fellow Board members, the Management and the employees of the Company for their hard work and dedication, and I wish them all continued success in the future."
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. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.