WICHITA, Kan., July 6, 2000 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (Nasdaq:STAR) ("Lone Star") announced second quarter earnings and revenues for the twelve week quarter ended June 13, 2000.
Earnings per share, compared to the same period last year, increased to $.22 ($.22 diluted) per share from $.20 ($.20 diluted) per share.
Comparable store sales for the quarter, by concept, increased 0.6% for domestic Lone Star Steakhouse and Saloon restaurants, 12.2% for Sullivan's Steakhouse restaurants, and 7.7% for Del Frisco's Double Eagle Steak House restaurants.
With 24 fewer domestic Lone Star restaurants in operation during the second quarter of this year compared with the same quarter last year, revenues decreased (0.4%) to $134,187,000 compared with $134,753,000 for the same period last year. Net income in the second quarter declined to $5,858,000 from $7,083,000 compared to the same period last year. Earnings were negatively impacted by a $2.3 million increase in advertising expenditures in addition to higher distribution costs associated with the switch from AmeriServe as the Company's primary distributor. 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 $12,961,000 down $1,904,000 from $14,865,000 in 1999. Year-to-date earnings per share rose to $.47 per share ($.47 diluted) from $.41 ($.40 diluted) per share. Year-to-date revenues were $273,442,000 down $1,249,000 from $274,691,000 last year on twenty-two fewer restaurants.
Australian Lone Star restaurants comparable store sales declined (8.2%) for the quarter.
During the second quarter the Company repurchased 1,164,000 shares of its common stock.
The Board of Directors declared the Company's quarterly cash dividend of $.125 per share payable August 3, 2000 to shareholders of record on July 18, 2000.
The Company opened a new Lone Star Steakhouse & Saloon restaurant in South Portland, Maine on June 26, 2000.
Lone Star owns and operates 240 domestic and 40 international Lone Star Steakhouse & Saloon restaurants; fourteen Sullivan's Steakhouse restaurants; and four Del Frisco's Double Eagle Steak House restaurants. Licensees operate three domestic and one international Lone Star restaurants, and one domestic Del Frisco's Steak House.
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 Second Quarter 2000
( $ in thousands except for per share amounts )
Jun. 13, Dec. 28,
2000 1999
_______ _______
Current Assets:
Cash and cash equivalents $ 24,965 $ 50,673
Other current assets 20,180 18,696
_______ _______
45,145 69,369
Property and equipment, net 425,838 430,482
Intangibles and other assets 35,272 33,682
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$ 506,255 $ 533,533
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Total current liabilities $ 45,742 $ 49,154
Noncurrent liabilities 6,955
Stockholders' equity 453,558 484,379
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$ 506,255 $ 533,533
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For the quarter ended
Jun. 13, 2000 Jun. 15, 1999
$ % $ %
_______ ____ _______ ____
Net Sales $134,187 $134,753
Costs and expenses:
Costs of sales 47,228 35.2 47,805 35.5
Restaurant operating expenses 62,662 46.7 61,087 45.3
Depreciation and amortization 6,610 4.9 6,819 5.1
_______ ____ _______ ____
Restaurant costs and expenses 116,500 86.8 115,711 85.9
_______ ____ _______ ____
Restaurant operating income 17,687 13.2 19,042 14.1
General and administrative expenses 9,014 6.7 8,101 6.0
_______ ____ _______ ____
Income from operations 8,673 6.5 10,941 8.1
Other 393 0.3 333 0.3
_______ ____ _______ ____
Income before taxes 9,066 6.8 11,274 8.4
Provision for income taxes 3,208 2.4 4,191 3.1
_______ ____ _______ ____
Net income $ 5,858 4.4 $ 7,083 5.3
_______ ____ _______ ____
_______ ____ _______ ____
Basic earnings per share $ 0.22 $ 0.20
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Diluted earnings per share $ 0.22 $ 0.20
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Average shares outstanding - Basic 26,232 35,813
Average shares outstanding - Diluted 27,148 36,078
Restaurants included at end of period 300 322
Comparable store sales growth 0.9 % (7.3)%
For the twenty-four weeks ended
Jun. 13, 2000 Jun. 15, 1999
$ % $ %
_______ ____ _______ ____
Net Sales $273,442 $274,691
Costs and expenses:
Costs of sales 94,885 34.7 98,191 35.7
Restaurant operating expenses 125,772 46.0 122,717 44.7
Depreciation and amortization 13,160 4.8 14,051 5.1
_______ ____ _______ ____
Restaurant costs and expenses 233,817 85.5 234,959 85.5
_______ ____ _______ ____
Restaurant operating income 39,625 14.5 39,732 14.5
General and administrative expenses 20,355 7.5 16,390 6.0
_______ ____ _______ ____
Income from operations 19,270 7.0 23,342 8.5
Other 809 0.3 580 0.2
_______ ____ _______ ____
Income before taxes 20,079 7.3 23,922 8.7
Provision for income taxes 7,118 2.6 9,057 3.3
_______ ____ _______ ____
Net income $ 12,961 4.7 $ 14,865 5.4
_______ ____ _______ ____
_______ ____ _______ ____
Basic earnings per share $ 0.47 $ 0.41
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Diluted earnings per share $ 0.47 $ 0.40
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_____ _____
Average shares outstanding - Basic 27,304 36,663
Average shares outstanding - Diluted 27,834 36,845
Restaurants included at end of period 300 324
Comparable store sales growth 0.7 % (8.8)%
CONTACT: John D. White
Lone Star Steakhouse & Saloon, Inc.
(316) 264-8899