WICHITA, Kansas, Jan. 14, 1999 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (NASDAQ: STAR) announced earnings and revenues for the fiscal year ended December 29, 1998. Year-to-date earnings decreased 62% to $25,707,000 or $.64 ($.64 diluted) per share compared to $66,816,000 or $1.63 ($1.60 diluted) per share in the prior year. Included in the 1998 earnings were charges of $6,904,000 ($.17 per share) for the cumulative effect of a change in accounting for pre-opening costs and $2,927,000 ($.07 per share) for an impairment charge under FAS #121. Fourth quarter revenues for 1998 decreased 3.4% to $179,998,000 compared with $186,440,000 in the prior year. For the year, revenues increased 5.4% to $616,692,000 compared to $585,358,000 in 1997. Comparable store sales declined 12.2% in the fourth quarter, bringing year-to-date comparable store sales to negative 9.3%. Earnings for the fourth quarter of 1998 and 1997 have been re-stated to reflect pro forma adjustments for the change in accounting method. Pro forma earnings for the fourth quarter were $3,512,000 ($.09 per share) including the FAS #121 impairment charge.
During the fourth quarter four Sullivan's Steakhouse restaurants opened in the following cities:
Anchorage, Alaska Naperville, Illinois
King of Prussia, Pennsylvania Dallas, Texas
For the year, the Company opened two domestic and seven international Lone Stars, and six Sullivan's. The Company's licensee opened two Lone Stars, bringing licensed restaurants to two domestic, one international Lone Star Steakhouse & Saloon, and one domestic Del Frisco's Double Eagle Steak House.
During the fourth quarter the Company re-purchased 610,000 shares of its common stock.
The Company owns and operates 267 domestic and 40 international Lone Star Steakhouse & Saloon restaurants, three Del Frisco's Double Eagle Steak House restaurants and ten Sullivan's Steakhouse restaurants.
This press release may contain 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, including the development plans of the Company, future sales levels, and operating costs. 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 Pro forma Data for the Fourth Quarter 1998
( $ in thousands except for per share amounts )
CONDENSED BALANCE SHEETS
Dec. 29, Dec. 30,
1998 1997
_______ _______
Current Assets:
Cash and cash equivalents $ 89,713 $ 135,997
Other current assets 21,757 26,642
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111,470 162,639
Property and equipment, net 459,790 429,733
Intangibles and other assets 37,804 28,440
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$ 609,064 $ 620,812
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Total current liabilities $ 47,555 $ 45,866
Noncurrent liabilities 8,180 8,798
Stockholders' equity 553,329 566,148
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$ 609,064 $ 620,812
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CONDENSED INCOME STATEMENTS
For the fourth quarter ended
Dec. 29, 1998 Dec. 30, 1997
16 Weeks 16 Weeks
$ % $ %
_______ ____ _______ ____
Net Sales $179,998 -- $186,440 --
Costs and expenses:
Costs of sales 67,796 37.1 69,494 37.3
Restaurant operating expenses 77,873 43.3 78,213 42.0
Depreciation and amortization 8,778 4.9 7,171 3.8
Asset impairment charge 4,646 2.6
_______ ____ _______ ____
Restaurant costs and expenses 158,093 87.9 154,878 83.1
_______ ____ _______ ____
Restaurant operating income 21,905 12.1 31,562 16.9
General and administrative expenses 10,925 6.1 7,166 3.8
_______ ____ _______ ____
Income from operations 10,980 6.0 24,396 13.1
Other (785)(0.4) 52
_______ ____ _______ ____
Income before income taxes and
cumulative effect of a
change in accounting method 10,195 5.6 24,448 13.1
Provision for income taxes 6,683 3.7 9,138 4.9
Cumulative effect of change in
accounting method _______ ____ _______ ____
Net income $ 3,512 2.0 $ 15,310 8.2
_______ ____ _______ ____
_______ ____ _______ ____
Basic earnings per share $ 0.09 $ 0.37
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Diluted earnings per share $ 0.09 $ 0.37
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Avg. shares outstanding-(in thousands)
- Basic 39,079 41,124
- Diluted 39,093 41,594
Restaurants open at end of period 323 308
Comparable store sales growth (12.2)% (6.0)%
For the fiscal year ended
Dec. 29, 1998 Dec. 30, 1997
52 Weeks 52 Weeks
$ % $ %
_______ ____ _______ ____
Net Sales $616,692 -- $585,358 --
Costs and expenses:
Costs of sales 231,787 37.6 211,572 36.1
Restaurant operating expenses 270,495 43.9 228,641 39.1
Depreciation and amortization 26,346 4.3 20,916 3.6
Asset impairment charge 4,646 0.8
_______ ____ _______ ____
Restaurant costs and expenses 533,274 86.5 461,129 78.8
_______ ____ _______ ____
Restaurant operating income 83,418 13.5 124,229 21.2
General and administrative expenses 32,070 5.2 21,649 3.7
_______ ____ _______ ____
Income from operations 51,348 8.3 102,580 17.5
Other 2,906 0.5 3,141 0.5
_______ ____ _______ ____
Income before income taxes and
change in accounting 54,254 8.8 105,721 18.0
Provision for income taxes 21,843 3.5 38,905 6.6
Cum. effect of change in acctg. 6,904 1.1
_______ ____ _______ ____
Pro-forma net income $ 25,507 4.2 $ 66,816 11.4
_______ ____ _______ ____
_______ ____ _______ ____
Basic earnings per share $ .64 $ 1.63
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Diluted earnings per share $ .64 $ 1.60
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Avg. shares outstanding - (in thousands)
- Basic 39,989 41,014
- Diluted 40,034 41,762
Restaurants open at end of period 323 308
Comparable store sales growth (9.3)% (6.3)%