WICHITA, Kansas, Sept. 30, 1999 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (Nasdaq:STAR) announced results for the twelve week quarter ended September 7, 1999.
The Company recorded a net loss of $5,316,000 or $0.15 per share compared with income of $4,304,000 or $0.11 per share for the same period last year. Third quarter 1999 results include an impairment charge under FAS 121 to write down the assets of certain underperforming restaurants in the amount of $12,103,000 net of income tax or $0.34 per share. Third quarter revenues decreased 5.2 percent to $134,801,000 from $142,157,000 last year. Year to date earnings are $9,549,000 or $0.26 per share compared to $22,004,000 or $0.54 per share in 1998. Year to date earnings for 1998 have been restated and reduced by $3,468,000 or $0.09 per share from previously reported results for the effects of the change in accounting for preopening costs. Year to date revenues are $409,492,000, down 6.2 percent from the same period last year. Excluding the FAS 121 impairment charge, quarterly and year to date earnings would have been $6,787,000 ($0.19 per share) and $21,652,000 ($0.60 per share).
Comparable store sales growth (decline) was (11.1 percent), 2.2 percent, 3.3 percent and 6.0 percent for domestic Lone Star, Australian Lone Star, Sullivan's and Del Frisco's Double Eagle restaurants, respectively, bringing year to date comparable store sales to (11.2 percent), 3.3 percent, 5.1 percent and 5.3 percent.
During the third quarter, the Company repurchased 1,294,000 shares of its common stock bringing year to date repurchases to 4,093,000 shares.
One Sullivan's Steakhouse restaurant was opened during the quarter. Development plans for the remainder of 1999 include opening two domestic Lone Star restaurants.
Lone Star owns and operates 264 domestic and 40 international Lone Star Steakhouse & Saloon restaurants; fourteen Sullivan's Steakhouse restaurants; and three Del Frisco's Double Eagle Steak House restaurants. The Company licenses four Lone Star Steakhouse & Saloon restaurants and one Del Frisco's Double Eagle Steak House restaurant.
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, future sales levels, and operating costs 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 Third Quarter 1999
(dollars in thousands except for per share amounts)
CONDENSED BALANCE SHEETS
Sept. 7, Dec. 29,
1999 1998
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Current Assets:
Cash and cash equivalents $ 71,389 $ 89,847
Other current assets 16,834 22,459
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88,223 112,306
Property and equipment, net 449,679 461,065
Intangibles and other assets 33,034 35,212
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$ 570,936 $ 608,583
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Total current liabilities $ 38,819 $ 44,713
Noncurrent liabilities 4,662 10,429
Stockholders' equity 527,455 553,441
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$ 570,936 $ 608,583
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CONDENSED INCOME STATEMENTS
For the twelve weeks ended
Sept. 7, 1999 Sept. 8, 1998
$ Pct $ Pct
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Net sales $134,801 - $142,157 -
Costs and expenses:
Costs of sales 47,314 35.1 54,329 38.2
Restaurant operating expenses 62,418 46.3 68,208 48.0
Depreciation and amortization 7,483 5.5 5,973 4.2
Asset impairment charge 19,365 14.4 - -
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Restaurant costs and expenses 136,580 101.3 128,510 90.4
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Restaurant operating income (1,779) (1.3) 13,647 9.6
General and administrative
expenses 7,651 5.7 8,113 5.7
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Income from operations (9,430)(7.0) 5,534 3.9
Other 639 0.5 861 0.6
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Income before income taxes and
change in accounting method (8,791)(6.5) 6,395 4.5
Provision for income taxes (3,475)(2.6) 2,091 1.5
Cumulative effect of change in
accounting method - - - -
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Net income $ (5,316)(3.9) $ 4,304 3.0
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Basic earnings per share $ (0.15) $ 0.11
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Diluted earnings per share $ (0.15) $ 0.11
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Avg. shares outstanding-(in thousands)
- Basic 35,395 39,236
- Diluted 35,501 39,255
Restaurants open at end of period 324 317
Comparable store sales growth (8.6)Pct (7.7)Pct
For the thirty-six weeks ended
Sept. 7, 1999 Sept. 8, 1998
$ Pct $ Pct
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Net sales $409,492 - $436,694 -
Costs and expenses:
Costs of sales 145,504 35.5 164,992 37.8
Restaurant operating expenses 185,135 45.2 192,622 44.1
Depreciation and amortization 21,535 5.3 17,567 4.0
Asset impairment charge 19,365 4.7 - -
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Restaurant costs and expenses 371,539 90.7 375,181 85.9
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Restaurant operating income 37,953 9.3 61,513 14.1
General and administrative
expenses 24,040 5.9 21,144 4.8
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Income from operations 13,913 3.4 40,369 9.2
Other 1,219 0.3 3,689 0.8
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Income before income taxes and
change in accounting method 15,132 3.7 44,058 10.1
Provision for income taxes 5,583 1.4 15,150 3.5
Cumulative effect of change in
accounting method - - 6,904 1.6
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Net income $ 9,549 2.3 $ 22,004 5.0
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Basic earnings per share $ 0.26 $ 0.54
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Diluted earnings per share $ 0.26 $ 0.54
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Avg. shares outstanding - (in thousands)
- Basic 36,241 40,394
- Diluted 36,394 40,430
Restaurants open at end of period 324 317
Comparable store sales growth (8.7)pct (8.2)pct
CONTACT: John D. White
316/264-8899
Lone Star Steakhouse & Saloon, Inc.