WICHITA, Kan., March 31, 1999 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (NASDAQ: STAR) announced first quarter earnings and revenues for the twelve week quarter ended March 23, 1999. Net income declined 15.6% for the first quarter to $7,781,000 or $ .21 per share ($.21 diluted) compared with $9,223,000 or $ .22 ($.22 diluted) per share for the same period last year. First quarter 1998 results were reduced by $5,488,000 ($.13 per share), from previously reported results for the effects of the change in accounting for preopening costs. First quarter revenues decreased 8.8% to $139,938,000 compared with $153,514,000 for the same period last year. Comparable store sales growth (decline) was (12.7%), 1.4%, 10.0% and 5.2% for domestic Lone Star's, Australian Lone Star's, Sullivan's and Del Frisco's, respectively.
The Company opened two domestic Sullivan's Steakhouse restaurants in the first quarter. Development plans for 1999 call for three more domestic Sullivan's Steakhouse restaurants, and two domestic Del Frisco's Steak House restaurants. This will bring to twenty the total number of upscale steakhouses operated by the Company.
Lone Star owns and operates 266 domestic and 40 international Lone Star Steakhouse & Saloon restaurants; twelve 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 First Quarter 1999
( $ in thousands except for per share amounts )
March 23, Dec. 29,
1999 1998
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Current Assets:
Cash and cash equivalents $ 64,933 $ 89,847
Other current assets 19,985 22,459
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84,918 112,306
Property and equipment, net 472,959 461,065
Intangibles and other assets 34,171 35,212
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$ 592,048 $ 608,583
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Total current liabilities $ 44,562 $ 44,713
Noncurrent liabilities 12,182 10,429
Stockholders' equity 535,304 553,441
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$ 592,048 $ 608,583
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For the twelve weeks ended
Mar. 23, 1999 Mar. 24, 1998
12 Weeks 12 Weeks
$ % $ %
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Net Sales $ 139,938 $ 153,514
Costs and expenses:
Costs of sales 50,386 36.0 57,215 37.3
Restaurant operating expenses 61,630 44.0 61,234 39.9
Depreciation and amortization 7,232 5.2 5,712 3.7
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Restaurant costs and expenses 119,248 85.2 124,161 80.9
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Restaurant operating income 20,690 14.8 29,353 19.1
General and administrative expenses 8,289 5.9 5,442 3.5
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Income from operations 12,401 8.9 23,911 15.6
Other 247 0.2 1,455 0.9
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Income before taxes and
change in acctg. 12,648 9.1 25,366 16.5
Provision for income taxes 4,867 3.5 9,239 6.0
Minority interest
Cum. Effect of change in acctg. 6,904 4.5
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Net income $ 7,781 5.6 $ 9,223 6.0
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Basic earnings per share $ 0.21 $ 0.22
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Diluted earnings per share $ 0.21 $ 0.22
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Average shares outstanding - Basic 37,514 41,165
Average shares outstanding - Diluted 37,681 42,235
Restaurants included at end of period 324 312
Comparable sales growth (10.3)% (4.0)%
CONTACT: John D. White
Lone Star Steakhouse & Saloon, Inc.
(316) 264-8899