WICHITA, Kan., Dec. 22, 2003 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. ("Lone Star" or "the Company") (Nasdaq:STAR) announced today that it has entered into a definitive sales agreement that will result in the divestiture and discontinuance of its Australian operations. Under the terms of the agreement, Lone Star will sell the majority of its restaurant assets to a new company owned by Robert Lapointe and Tim Smith, current management of the Australian operations. The sale is expected to close prior to the end of fiscal 2003.
The Company will record a non-cash charge to discontinued operations of approximately $9.0 to $10.0 million ($.43 to $.48 per share) in the fourth quarter of fiscal 2003, with an additional charge to discontinued operations of approximately $0.5 million ($.02 per share) for windup expenditures anticipated in fiscal 2004. The 2003 charge includes the realization of the foreign currency translation adjustment previously recorded as reductions in shareholders' equity.
Jamie B. Coulter, the Company's Chief Executive Officer, stated that, "we are pleased to have entered into this agreement with our Australian partners. The sale of our Australian operations will allow us to continue to concentrate on the growth of our domestic operations."
Lone Star owns and operates 249 domestic and 19 international Lone Star Steakhouse & Saloon restaurants; 15 Sullivan's Steakhouse restaurants; five Del Frisco's Double Eagle Steak House restaurants and one Frankie's Italian Grille restaurant. Licensees operate three domestic and one international Lone Star restaurants, and one domestic Del Frisco's Double Eagle Steak House restaurant. More information can be found at 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, are reasonable, any of the assumptions could be inaccurate and there is no assurance that the sale will be concluded or that the impact on Lone Star's results of operations or financial condition will not vary, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate.