WICHITA, Kan., Feb. 6, 2001 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (Nasdaq:STAR) announced earnings and revenue for the fiscal year ended December 26, 2000. For fiscal year 2000, after-tax earnings before unusual charges were $18,962,000 or $0.72 per share compared to $29,808,000 or $0.85 per share in 1999. After-tax charges for asset impairment and store closings were $2,832,000 ($0.11 per share) in 2000 and $24,407,000 ($0.70 per share) in 1999, resulting in net earnings of $16,130,000 or $0.62 per share ($0.61 diluted) for fiscal 2000 compared to $5,401,000 or $0.15 per share in 1999.
For the sixteen-week fourth quarter, after-tax earnings before unusual charges were $3,102,000 ($0.13 per share) compared to $8,156,000 ($0.25 per share) in 1999. After-tax provisions for asset impairment and store closings were $2,480,000 ($0.10 per share) in 2000 compared to $12,304,000 ($0.38 per share) in 1999, resulting in net earnings of $622,000 ($0.03 per share) in 2000 compared to a loss of $4,148,000 ($0.13 per share) in 1999. All of the unusual charges in 2000 were related to the Australian operations. Nine Australian Lone Star restaurants were closed in the third quarter of 2000. In December 2000, the Company made a provision for impairment and store closing costs related to an additional five Australian restaurants, which were closed in January 2001. The unusual charges in 1999 included the effect of the January 2000 closing of twenty-five domestic restaurants.
Fourth quarter restaurant operating income before unusual charges was negatively impacted by increased advertising of $2.7 million and continued increases in labor expenses in domestic operations. In addition, lower sales in Australia resulted in a decline of $1.9 million in their restaurant margin.
Fourth quarter revenues decreased 2.7% to $171,468,000 from $176,263,000 in the prior year. For the year, revenues declined 1.7% to $575,863,000 from $585,755,000 in 1999. Consolidated domestic revenues were up 1.3% for the fourth quarter and 0.5% for the fiscal year although store weeks of operation declined 8.2% and 8.0%, respectively, due to the closing of 25 restaurants in January of 2000.
Fourth quarter comparable store sales growth (decline) was (0.5%) for domestic Lone Star Steakhouse & Saloon restaurants, 13.4% for Sullivan's Steakhouse restaurants and 2.8% for Del Frisco's Double Eagle Steak House restaurants bringing the year-to-date comparable store sales growth (decline) to (0.2%), 12.0%, 7.3%, respectively. Australian comparable store sales declined (24.1%) for the fourth quarter and (13.8%) for the year.
During the fourth quarter, the Company re-purchased 1,402,600 shares of its common stock bringing repurchases for fiscal year 2000 to 5,605,075 shares.
The Company opened its fifteenth Sullivan's Steakhouse restaurant in Tucson, Ariz. in December 2000. The Company also opened a domestic Lone Star Steakhouse & Saloon restaurant in Tulsa, Okla. in January 2001.
The Company's quarterly cash dividend of $.125 per share was paid January 26, 2001 to shareholders of record on January 12, 2001.
Lone Star owns and operates 241 domestic and 26 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 two international Lone Star restaurants, and one domestic Del Frisco's Steak House restaurant.
For interested parties, there will be a conference call with management at 9 a.m. Central Time on Friday, February 9, 2001 to discuss this fourth quarter earnings release. The call in number is (719) 457-2633 and the confirmation code is 754069. A recorded replay of the conference call will be available from 12 p.m. on February 9, 2001 through midnight February 23, 2001. The replay call in number is (719) 457-0820 and the confirmation code is 754069. A listen only connection to the conference call, as well as the replay, will be available on the Internet through the Company's Website, www.lonestarsteakhouse.com.
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 Financial Data for the Fourth Quarter 2000
(In thousands except for per share amounts)
Dec. 26, Dec. 28,
2000 1999
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Current Assets:
Cash and cash equivalents $ 29,029 $ 50,673
Other current assets 18,119 18,696
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47,148 69,369
Property and equipment, net 406,761 430,482
Intangibles and other assets 35,014 33,682
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$488,923 $533,533
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Current liabilities $ 48,864 $ 49,154
Noncurrent liabilities 2,276
Stockholders' equity 437,783 484,379
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$488,923 $533,533
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For the fourth quarter ended
Dec. 26, 2000 Dec. 28, 1999
16 Weeks 16 Weeks
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$ % $ %
------- ---- ------- ----
Net Sales $171,468 $176,263
Costs and expenses:
Costs of sales 60,554 35.3 62,191 35.3
Restaurant operating expenses 86,699 50.6 78,805 44.7
Depreciation and amortization 8,825 5.1 9,435 5.4
Provision for asset impairment
and store closings 3,769 2.2 19,566 11.1
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Restaurant costs and expenses 159,847 93.2 169,997 96.5
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Restaurant operating income 11,621 6.8 6,266 3.5
General and administrative expenses 13,369 7.8 14,017 8.0
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Earnings (loss) from operations (1,748)(1.0) (7,751)(4.5)
Other Income 1,451 0.8 971 0.6
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Earnings (loss) before income taxes (297)(0.2) (6,780)(3.9)
Provision (benefit) for income taxes (919)(0.5) (2,632)(1.5)
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Net earnings (loss) $ 622 0.3 $(4,148)(2.4)
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Basic earnings (loss) per share $ 0.03 $(0.13)
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Diluted earnings (loss) per share $ 0.03 $(0.13)
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Average shares outstanding-Basic 24,900 32,498
Average shares outstanding-Diluted 24,914 32,498
Restaurants included at
end of period 292 325
Comparable sales growth (0.6)% (5.1)%
For the fiscal year ended
Dec. 26, 2000 Dec. 28, 1999
52 Weeks 52 Weeks
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$ % $ %
------- ---- ------- ----
Net Sales $575,863 $585,755
Costs and expenses:
Costs of sales 202,343 35.1 207,696 35.5
Restaurant operating expenses 276,974 48.1 263,940 45.1
Depreciation and amortization 28,574 5.0 30,970 5.3
Provision for asset impairment
and store closings 4,310 0.7 38,931 6.6
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Restaurant costs and expenses 512,201 88.9 541,537 92.5
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Restaurant operating income 63,662 11.1 44,218 7.5
General and
administrative expenses 42,472 7.4 38,057 6.5
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Earnings (loss) from operations 21,190 3.7 6,161 1.0
Other Income 2,531 0.4 2,190 0.4
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Earnings (loss) before
income taxes 23,721 4.1 8,351 1.4
Provision (benefit)
for income taxes 7,591 1.3 2,950 0.5
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Net earnings (loss) $16,130 2.8 $ 5,401 0.9
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Basic earnings (loss) per share $ 0.62 $ 0.15
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Diluted earnings (loss) per share $ 0.61 $ 0.15
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Average shares outstanding-Basic 26,190 35,089
Average shares outstanding-Diluted 26,486 35,190
Restaurants included
at end of period 292 325
Comparable sales growth (0.1)% (7.6)%
Analysis of components of net earnings and
basic per share amounts
For the fourth quarter ended
Dec. 26, 2000 Dec. 28, 1999
Per Per
$Amt. Share $Amt. Share
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Net earnings excluding
unusual charges $ 3,102 $0.13 $ 8,156 $0.25
Provision for asset impairment
- net of tax (1,980) (0.08)(10,361) (0.32)
Provision for store closing
costs - net of tax (500) (0.02) (1,943) (0.06)
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Net earnings (loss) $ 622 $0.03 $(4,148)($0.13)
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For the fiscal year ended
Dec. 26, 2000 Dec. 28, 1999
Per Per
$ Amt. Share $Amt. Share
------- ----- ------- -----
Net earnings excluding
unusual charges $18,962 $0.72 $29,808 $0.85
Provision for asset impairment
- net of tax (1,980) (0.07)(22,464) (0.64)
Provision for store closing
costs - net of tax (852) (0.03) (1,943) (0.06)
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Net earnings (loss) $16,130 $0.62 $5,401 $0.15
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