WICHITA, Kan., September 10, 2002 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (Nasdaq:STAR) announced preliminary operating results for the twelve week quarter ended September 3, 2002. Earnings before unusual items are now expected to be in the range of $.30 to $.32 per share on a diluted basis versus $.20 for the same period last year. Net earnings for the quarter will be $.23 per share higher due to a non-cash stock option compensation benefit of approximately $5.8 million. For the quarter, weighted average outstanding shares were 22.3 million on a primary basis and 24.6 million on a diluted basis. Adjusted EBITDA for the quarter is expected to be in the $17.8 to $18.2 million range, versus $14.4 million for the third quarter of 2001.
Comparable store sales for the quarter were down 1.7% for domestic Lone Stars, down 7.6% for Sullivan's and up .9% for Del Frisco's for a combined domestic comparable store sales decline of 2.4%.
Jamie B. Coulter, the Company's CEO, commented, "We are pleased to announce significant year-over-year increases in earnings and EBITDA. While we continued to benefit from operational efficiencies and cost controls, we were negatively impacted by a modest decrease in comparable store sales. Based on our current sales trends and the overall operating environment, the Company now expects full year fiscal 2002 sales of $605 to $615 million, adjusted EBITDA of $92 to $97 million and adjusted earnings per share of $1.63 to $1.70."
The Company plans to release final results for the third quarter on September 19, 2002 and have a conference call to discuss the results on September 24, 2002. The Company's fiscal 2002 will include 53 weeks, compared to 52 weeks for fiscal 2001, and end on December 31, 2002.
Lone Star owns and operates 249 domestic and 24 international Lone Star Steakhouse & Saloon restaurants; 15 Sullivan's Steakhouse restaurants; and five Del Frisco's Double Eagle Steak House restaurants. Licensees operate three domestic and one international Lone Star restaurants, and one domestic 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 are reasonable, any of the assumptions including future performance 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.