INDIANAPOLIS, Dec. 14 /PRNewswire-FirstCall/ -- The Steak n Shake Company announces the following:
Fiscal 2009 Results
Net earnings for fiscal year 2009 were $6.0 million, or $0.21 per diluted share, contrasted to a net loss of ($23.0 million), or ($0.81) per diluted share for the same period a year ago. The Company's fiscal year 2009 included 53 weeks where as fiscal year 2008 included 52 weeks. Fiscal year 2009 results included $2.6 million of charges ($1.6 million, or $0.06 per diluted share, net of tax) primarily related to the write down of real estate values. In comparison, fiscal year 2008 results included $14.9 million ($9.2 million, or $0.33 per diluted share, net of tax) of non cash impairment charges, store closure costs, and an early lease termination fee. For the full year but excluding the impact of the 53rd week, customer traffic and same-store sales increased 10.1% and 4.1%, respectively, over prior year.
Fourth Quarter Fiscal 2009 Results
Net earnings for fiscal 2009 fourth quarter were $3.4 million, or $0.12 per diluted share as contrasted with a net loss of ($9.2 million), or ($0.32) per diluted share in the fourth quarter of the prior year. The Company's fiscal 2009 fourth quarter included 13 weeks while fiscal 2008 fourth quarter included 12 weeks. In the fourth quarter, excluding the impact of the 53rd week, customer traffic and same-store sales increased 20% and 10%, respectively, over prior year.
2009 Annual Report and Chairman's Letter
The Steak n Shake Company's 2009 Annual Report, which includes Form 10-K filed today with the SEC, will be posted on the Internet, where it can be accessed at http://www.steaknshake.com/. The report includes Sardar Biglari's annual letter to shareholders. We urge all shareholders to read the Annual Report in its entirety because there is limited information in this press release.
1-For-20 Reverse Stock Split
The Steak n Shake Company announced a 1-for-20 reverse stock split effective at the close of business on Friday, December 18, 2009. The rationale behind the decision to initiate a reverse stock split is explained in the Chairman's Letter.
About Steak n Shake
The Steak n Shake Company is a diversified holding company. Its most significant operating subsidiary is Steak n Shake Operations Inc., a classic American brand founded in 1934. The chain of 485 restaurants serves premium burgers and milkshakes.
Risks Associated with Forward-Looking Statements
This news release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These statements which may concern anticipated future results are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ markedly from those projected or discussed here. Steak n Shake cautions readers not to place undue reliance upon any such forward-looking statements, for actual results may differ materially from expectations. Steak n Shake does not undertake to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. Further information on the types of factors that could affect Steak n Shake and its business can be found in the company's filings with the SEC.
Condensed Consolidated Statements of Operations ----------------------------------------------- The Steak n Shake Company (Amounts in $000s, except share and per share data) Thirteen Twelve Fifty-Three Fifty-Two Weeks Ended Weeks Ended Weeks Ended Weeks Ended ----------- ----------- ----------- ----------- September 30, September 24, September 30, September 24, 2009 2008 2009 2008 (Unaudited) (Unaudited) (Unaudited) ----------- ----------- ----------- ----------- Revenues Net sales $158,602 $138,005 $622,944 $606,076 Franchise fees 1,385 880 4,098 3,985 ----- --- ----- ----- Total revenues 159,987 138,885 627,042 610,061 ------- ------- ------- ------- Costs and expenses Cost of sales 41,467 38,737 164,974 165,115 Restaurant operating costs 81,580 75,489 323,617 323,859 General and administrative 9,400 11,741 36,671 47,287 Depreciation and amortization 7,527 7,774 31,369 33,659 Marketing 7,658 5,657 33,304 28,700 Interest 2,738 3,195 13,736 14,011 Rent 4,128 3,610 15,929 14,717 Pre-opening costs - 29 - 1,272 Asset impairments and provision for restaurant closings 1,665 769 2,645 14,858 Loss on sale or abandonment of assets 189 3,510 151 3,138 Other income, net (1,585) (548) (2,546) (1,771) ------ ---- ------ ------ Total costs and expenses 154,767 149,963 619,850 644,845 ------- ------- ------- ------- Earnings (loss) before income taxes and minority interest 5,220 (11,078) 7,192 (34,784) Income taxes 1,807 (1,893) 1,163 (11,805) Noncontrolling interest 31 - 31 - Net earnings (loss) $3,382 $(9,185) $5,998 $(22,979) ====== ======= ====== ======== Basic earnings (loss) per common and common equivalent share $0.12 $(0.32) $0.21 $(0.81) Diluted earnings (loss) per common and common equivalent share $0.12 $(0.32) $0.21 $(0.81) Weighted average shares and equivalents Basic 28,594,844 28,295,615 28,483,551 28,254,129 Diluted 28,781,785 28,295,615 28,590,986 28,254,129 Condensed Consolidated Statements of Financial Position ------------------------------------------------------- The Steak n Shake Company (Amounts in $000s, except share and per share data) September 30, September 24, 2009 2008 (Unaudited) ----------- ----------- Assets Current assets: Cash and cash equivalents $51,395 $6,855 Investments 3,001 - Receivables, net of allowance of $538 and $341, respectively 7,660 15,622 Inventories 6,595 6,795 Deferred income taxes 3,910 3,260 Assets held for sale 13,733 25,395 Other current assets 4,421 3,009 ----- ----- Total current assets 90,715 60,936 Property and equipment, net 399,635 432,690 Goodwill 14,503 14,503 Other intangible assets, net 1,567 1,765 Other assets 8,076 10,242 ----- ------ Total assets $514,496 $520,136 ======== ======== Liabilities and shareholders' equity Liabilities Current liabilities: Accounts payable $22,293 $25,302 Accrued expenses 30,381 31,685 Revolving credit 18,500 14,180 Current portion of obligations under leases 4,339 4,417 Current portion of long-term debt 20 733 --- --- Total current liabilities 75,533 76,317 Deferred income taxes 9,388 2,209 Other long-term liabilities 7,404 7,439 Obligations under leases 130,076 134,809 Long-term debt 48 15,783 --- ------ Total liabilities 222,449 236,557 ------- ------- Commitments and contingencies Noncontrolling interest 186 - Shareholders' equity Common stock -$0.50 stated value, 50,000,000 shares authorized -shares issued: 30,332,839 15,166 15,166 Additional paid-in capital 129,282 128,526 Retained earnings 167,731 161,733 Accumulated other comprehensive income 112 - Treasury stock -at cost: 1,555,938 shares in 2009; 1,760,531 shares in 2008 (20,430) (21,846) ------- ------- Total shareholders' equity 291,861 283,579 ------- ------- Total liabilities and shareholders' equity $514,496 $520,136 ======= ======= Condensed Consolidated Statements of Cash Flows ----------------------------------------------- The Steak n Shake Company (Amounts in $000s) Fifty-Three Fifty-Two Weeks Ended Weeks Ended ----------- ----------- September 30, September 24, 2009 2009 (Unaudited) ----------- ------------ Operating activities Net earnings (loss) $5,998 $(22,979) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation and amortization 31,369 33,659 Provision for deferred income taxes 6,457 (2,193) Asset impairments and provision for restaurant closings 2,645 14,858 Non-cash expense for stock-based compensation and deferred rent 2,881 2,656 Loss on sale or abandonment of assets 151 3,138 Changes in receivables and inventories 8,512 (7,688) Changes in other assets (1,724) 6,844 Changes in accounts payable and accrued expenses (3,980) (3,865) ------ ------ Net cash provided by operating activities 52,309 24,430 ------ ------ Investing activities Additions of property and equipment (5,751) (31,443) Proceeds from property and equipment disposals 13,517 14,851 Purchases of investments (3,047) - Sales of investments 230 - --- --- Net cash provided by (used in) investing activities 4,949 (16,592) ----- ------- Financing activities Net proceeds from (payments on) revolving credit facility 4,320 (13,005) Proceeds from issuance of long-term debt - - Principal payments on long-term debt (16,448) (2,396) Proceeds from equipment and property sale-leasebacks 3,597 15,993 Principal payments on direct financing lease obligations (5,008) (4,213) Proceeds from exercise of stock options 2 138 Excess tax benefits from stock-based awards 40 10 Repurchase of employee shares for tax withholding (203) (11) Proceeds from employee stock purchase plan 855 1,004 Proceeds from noncontrolling interest 150 - Distributions to noncontrolling interest (23) - --- --- Net cash (used in) provided by financing activities (12,718) (2,480) ------- ------ Increase (decrease) in cash and cash equivalents 44,540 5,358 Cash and cash equivalents at beginning of year 6,855 1,497 ----- ----- Cash and cash equivalents at end of year $51,395 $6,855 ====== =====
The Steak n Shake Company
CONTACT: Duane Geiger, +1-317-633-4100
Web Site: http://www.steaknshake.com/
