WICHITA, Kan., Sept. 28, 2000 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (Nasdaq:STAR) "Lone Star" announced third quarter earnings and revenues for the twelve week quarter ended September 5, 2000.
Earnings per share, compared to the same period last year, increased to $.10 ($.10 diluted) per share from a loss of $(.15) ($(.15) diluted) per share.
Comparable store sales for the quarter, by concept, increased (decreased) (1.0%) for domestic Lone Star Steakhouse and Saloon restaurants, 13.7% for Sullivan's Steakhouse restaurants, and 9.7% for Del Frisco's Double Eagle Steak House restaurants from the same period in fiscal 1999.
With thirty-two fewer restaurants in operation at the end of the third quarter this year compared with last year, revenues decreased (2.9%) to $130,953,000 compared with $134,801,000 last year. Net income in the third quarter increased to $2,547,000 from a loss of $(5,316,000) the same period last year. The third quarter of 1999 included a FAS 121 impairment charge of $12,103,000 net of income taxes or $0.34 per share. This year's quarterly earnings were negatively impacted by a $3,651,000 increase in advertising expenditures from the third quarter last year and a charge of $541,000 for store closing costs relative to nine Australian Lone Star Steakhouse & Saloon restaurants closed in August 2000. Higher average wage rates, beef costs and general and administrative expenses were offset by improved operating controls in the restaurants.
Year-to-date net income is $15,508,000 up $5,959,000 from $9,549,000 in 1999. Year-to-date earnings per share rose to $.58 per share ($.57 diluted) from $.26 ($.26 diluted) per share. Year-to-date revenues were $404,395,000 down $5,097,000, (1.2%) from $409,492,000 last year.
Australian Lone Star restaurants comparable store sales declined (16.7%) for the quarter.
During the third quarter the Company repurchased 67,875 shares of its common stock.
The Board of Directors declared the Company's quarterly cash dividend of $.125 per share payable October 13, 2000 to shareholders of record on September 29, 2000.
Lone Star owns and operates 240 domestic and 31 international Lone Star Steakhouse & Saloon restaurants; fourteen Sullivan's Steakhouse restaurants; and five Del Frisco's Double Eagle Steak House restaurants. Licensees operate three domestic and two international Lone Star restaurants, and one domestic Del Frisco's Steak House.
For interested parties, there will be a conference call with management at 9:30 AM Central Time on Monday, October 2, 2000 to discuss this third quarter earnings release. The call in number is (719)-457-2617 and the confirmation code is 606770. A recorded replay of the conference call will be available from 1:00 PM on October 2, thru midnight October 20, 2000. The replay call in number is (719)-457-0820 and the confirmation code is 606770.
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 Third Quarter 2000
( $ in thousands except for per share amounts )
Sept. 5, Dec. 28,
2000 1999
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Current Assets:
Cash and cash equivalents $ 27,960 $ 50,673
Other current assets 19,364 18,696
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47,324 69,369
Property and equipment, net 420,191 430,482
Intangibles and other assets 33,869 33,682
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$ 501,384 $ 533,533
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Total current liabilities $ 50,484 $ 49,154
Noncurrent liabilities
Stockholders' equity 450,900 484,379
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$ 501,384 $ 533,533
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For the twelve weeks ended
Sept. 5, 2000 Sept. 7, 1999
$ % $ %
------- ---- ------- -----
Net Sales $130,953 $134,801
Costs and expenses:
Costs of sales 46,904 35.8 47,314 35.1
Restaurant operating
expenses 64,504 49.3 62,418 46.3
Depreciation and
amortization 6,589 5.0 7,483 5.5
Impairment and restaurant
closing charge 541 0.4 19,365 14.4
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Restaurant costs
and expenses 118,538 90.5 136,580 101.3
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Restaurant operating
income (loss) 12,415 9.5 (1,779) (1.3)
General and
administrative expenses 8,747 6.7 7,651 5.7
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Income (loss) from
operations 3,668 2.8 (9,430) (7.0)
Other 271 0.2 639 0.5
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Income (loss) before taxes 3,939 3.0 (8,791) (6.5)
Provision for income taxes 1,392 1.1 (3,475) (2.6)
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Net income (loss) $ 2,547 1.9 $ (5,316) (3.9)
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Basic earnings (loss)
per share $ 0.10 $ (0.15)
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Diluted earnings (loss)
per share $ 0.10 $ (0.15)
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Average shares
outstanding - Basic 25,680 35,395
Average shares
outstanding - Diluted 26,227 35,501
Restaurants included
at end of period 292 324
Comparable sales growth (0.8)% (8.6)%
For the thirty-six weeks ended
Sept. 5, 2000 Sept. 7, 1999
$ % $ %
------- ---- ------- ----
Net Sales $404,395 $409,492
Costs and expenses:
Costs of sales 141,790 35.1 145,504 35.5
Restaurant operating expenses 190,275 47.0 185,135 45.2
Depreciation and amortization 19,749 4.9 21,535 5.3
Impairment and restaurant
closing charge 541 0.1 19,365 4.7
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Restaurant costs and expenses 352,355 87.1 371,539 90.7
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Restaurant operating
income (loss) 52,040 12.9 37,953 9.3
General and administrative
expenses 29,102 7.2 24,040 5.9
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Income (loss) from operations 22,938 5.7 13,913 3.4
Other 1,080 0.2 1,219 0.3
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Income (loss) before taxes 24,018 5.9 15,132 3.7
Provision for income taxes 8,510 2.1 5,583 1.4
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Net income (loss) $ 15,508 3.8 $ 9,549 2.3
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Basic earnings (loss)
per share $ 0.58 $ 0.26
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Diluted earnings (loss)
per share $ 0.57 $ 0.26
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Average shares
outstanding - Basic 26,763 36,241
Average shares
outstanding - Diluted 27,299 36,394
Restaurants included
at end of period 292 324
Comparable sales growth 0.2% (8.7)%