WICHITA, Kan.,July 8,1999 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (NASDAQ: STAR) announced second quarter earnings and revenues for the twelve week quarter ended June 15, 1999. Net income decreased 16.4% for the second quarter to $7,083,000 or $ .20 per share compared with $8,477,000 or $ .21 per share for the same period last year. Year-to-date earnings are down 16.0% to $14,865,000 or $.40 per share compared with $17,700,000 or $.43 per share for the same period last year. Year-to-date earnings for 1998 were reduced by $4,038,000 ($.10 per share), from previously reported results for the effects of the change in accounting for preopening costs. Second quarter revenue decreased 4.4% to $134,753,000 compared with $141,023,000 in 1998, and year-to-date revenues have decreased 6.7% to $274,691,000. Comparable store sales growth (decline) was (9.8%), 6.6%, 3.7% and 4.8% for domestic Lone Star restaurants, Australian Lone Star restaurants, Sullivan's restaurants and Del Frisco's restaurants, respectively, bringing year-to-date comparable store sales to (11.3%), 4.1%, 6.6% and 5.0%.
During the second quarter, two domestic Lone Star Steakhouse & Saloon restaurants were closed. Development plans for the remainder of 1999 call for up to ten domestic Lone Star Steakhouse & Saloon restaurants, two Sullivan's Steakhouse restaurants, and two Del Frisco's Double Eagle Steak House restaurants. This will bring to twenty the total number of upscale steakhouses operated by the Company.
Lone Star owns and operates 264 domestic and 40 international Lone Star Steakhouse & Saloon restaurants; thirteen Sullivan's Steakhouse restaurants; and three Del Frisco's Double Eagle Steak House restaurants.
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.
Lone Star Steakhouse & Saloon, Inc.
Unaudited Summary Proforma Data for the Second Quarter 1999
( $ in thousands except for per share amounts )
CONDENSED BALANCE SHEETS
Jun. 15, Dec. 29,
1999 1998
_______ _______
Current Assets:
Cash and cash equivalents $ 64,152 $ 89,847
Other current assets 19,119 22,459
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83,271 112,306
Property and equipment, net 474,047 461,065
Intangibles and other assets 34,387 35,212
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$ 591,705 $ 608,583
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Total current liabilities $ 36,296 $ 44,713
Noncurrent liabilities 12,406 10,429
Stockholders' equity 543,003 553,441
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$ 591,705 $ 608,583
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CONDENSED INCOME STATEMENTS
For the twelve weeks ended
Jun. 15, 1999 Jun. 16, 1998
$ % $ %
_______ ____ _______ ____
Net Sales $134,753 $141,023
Costs and expenses:
Costs of sales 47,805 35.5 53,448 37.9
Restaurant operating expenses 61,087 45.3 62,713 44.5
Depreciation and amortization 6,819 5.1 5,882 4.2
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Restaurant costs and expenses 115,711 85.9 122,043 86.5
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Restaurant operating income 19,042 14.1 18,980 13.5
General and administrative expenses 8,101 6.0 7,589 5.4
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Income from operations 10,941 8.1 11,391 8.1
Other 333 0.3 1,373 1.0
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Income before income taxes and
change in accounting method 11,274 8.4 12,764 9.1
Provision for income taxes 4,191 3.1 4,287 3.0
Cumulative effect of change in
accounting method
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Net income $ 7,083 5.3 $ 8,477 6.0
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Basic earnings per share $ 0.20 $ 0.21
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Diluted earnings per share $ 0.20 $ 0.21
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Avg. shares outstanding-(in thousands)
- Basic 35,813 40,780
- Diluted 36,078 41,060
Restaurants open at end of period 322 315
Comparable store sales growth (7.3)% (11.2)%
For the twenty-four weeks ended
Jun. 15, 1999 Jun. 16, 1998
$ % $ %
_______ ____ _______ ____
Net Sales $274,691 $294,537
Costs and expenses:
Costs of sales 98,191 35.7 110,663 37.6
Restaurant operating expenses 122,717 44.7 124,414 42.2
Depreciation and amortization 14,051 5.1 11,594 3.9
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Restaurant costs and expenses 234,959 85.5 246,671 83.7
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Restaurant operating income 39,732 14.5 47,886 16.3
General and administrative expenses 16,390 6.0 13,031 4.4
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Income from operations 23,342 8.5 34,835 11.8
Other 580 0.2 2,828 1.0
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Income before income taxes and
change in accounting method 23,922 8.7 37,663 12.8
Provision for income taxes 9,057 3.3 13,059 4.4
Cumulative effect of change in
accounting method 6,904 2.3
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Net income $ 14,865 5.4 $ 17,700 6.0
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Basic earnings per share $ 0.41 $ 0.43
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Diluted earnings per share $ 0.40 $ 0.43
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Avg. shares outstanding - (in thousands)
- Basic 36,663 40,973
- Diluted 36,845 41,323
Restaurants open at end of period 322 315
Comparable store sales growth (8.8)% (8.2)%
Contact: Lone Star Steakhouse & Saloon, Inc.
John D. White
(316) 264-8899