San Antonio, TX, January 29 /PRNewswire-FirstCall/ -- The Steak n Shake Company announces fiscal first quarter 2010 results and change in corporate name:
First Quarter 2010 Results
Net earnings for fiscal first quarter 2010 were $5.5 million, or $3.82 per diluted share, contrasted with a net loss for the first quarter of fiscal year 2009 of ($3.4 million) or ($2.43) per diluted share. In the current quarter, net sales increased 12.9% from $130.7 million to $147.6 million. To become apprised fully of our results, shareholders should carefully study our 10-Q, which has been posted at http://www.steaknshake.com/.
Change in Name of Holding Company
The company's plan is to change its corporate name from The Steak n Shake Company to Biglari Holdings Inc. This adjustment is to delineate more clearly the parent company's new direction as a diversified holding company as well as to eliminate confusion among the activities of the holding company and those of our wholly-owned subsidiary, Steak n Shake Operations Inc. Because a change of the corporate name requires an amendment to the articles of incorporation, we will include a proposal in our proxy statement provided to shareholders in connection with the annual meeting, to be held on Thursday, April 8, 2010 at the St. Regis Hotel in New York City. In addition, we have reserved the trading symbol BH with the NYSE, which will commence trading a day after a majority of shareholders approve the alteration of the name.
About The Steak n Shake Company
The Steak n Shake Company is a diversified holding company. Its most significant operating subsidiary is Steak n Shake Operations Inc. Founded in 1934, the chain of now 485 restaurants serves premium burgers and milkshakes.
The company's long-term objective is to maximize its intrinsic business value. Strategically, the holding company reinvests its cash generated from its operating subsidiaries into investments with the purpose of achieving high risk-adjusted returns. All investment and other capital allocation decisions are made for the company by Sardar Biglari, Chairman and Chief Executive Officer.
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 Financial Position ------------------------------------------------------- The Steak n Shake Company (Amounts in $000s except share and per share data) December 23, September 30, 2009 2009 (Unaudited) (Unaudited) ---------- ---------- Assets Current assets: Cash and cash equivalents $62,191 $51,395 Investments 9,182 3,001 Receivables, net of allowance of $536 and $538, respectively 6,384 7,660 Inventories 7,335 6,595 Deferred income taxes 3,910 3,910 Assets held for sale 12,997 13,733 Other current assets 3,225 4,421 ------- ------- Total current assets 105,224 90,715 Property and equipment, net 394,037 399,635 Goodwill 14,503 14,503 Other intangible assets, net 1,523 1,567 Other assets 8,391 8,076 ------- ------- Total assets $523,678 $514,496 ======= ======= Liabilities and shareholders' equity Liabilities Current liabilities: Accounts payable $26,822 $22,293 Accrued expenses 30,652 30,381 Revolving credit 18,500 18,500 Current portion of obligations under leases 4,267 4,339 Current portion of long-term debt 21 20 ------- ------- Total current liabilities 80,262 75,533 Deferred income taxes 9,678 9,388 Other long-term liabilities 7,589 7,452 Obligations under leases 128,619 130,076 ------- ------- Total liabilities 226,148 222,449 ------- ------- Commitments and contingencies Shareholders' equity Common stock -$0.50 stated value, 2,500,000 shares authorized - 1,514,257 shares issued, 1,436,252 shares outstanding* 757 757 Additional paid-in capital 143,299 143,691 Retained earnings 173,208 167,731 Accumulated other comprehensive income 567 112 Treasury stock -at cost: 78,005 shares as of December 23, 2009; 77,796 shares as of September 30, 2009* (20,479) (20,430) ------- ------- The Steak n Shake Company shareholders' equity 297,352 291,861 Noncontrolling interest 178 186 ------- ------- Total shareholders' equity 297,530 292,047 ------- ------- Total liabilities and shareholders' equity $523,678 $514,496 ======= ======= * Adjusted for 1-for-20 reverse stock split effective December 18, 2009. Condensed Consolidated Statements of Operations ----------------------------------------------- The Steak n Shake Company (Amounts in $000s except share and per share data) Twelve Weeks Ended ------------------ December 23, December 17, 2009 2008 (Unaudited) (Unaudited) ---------- ---------- Revenues Net sales $147,586 $130,719 Franchise fees 919 958 ------- ------- Total revenues 148,505 131,677 ------- ------- Costs and expenses Cost of sales 38,479 35,117 Restaurant operating costs 73,157 71,596 General and administrative 8,785 8,645 Depreciation and amortization 6,923 7,443 Marketing 7,727 7,543 Interest 2,554 3,602 Rent 3,693 3,565 Asset impairments and provision for restaurant closing 171 176 Gain on disposal of assets (23) (59) Other (income) expense, net (827) 30 ------- ------- Total costs and expenses 140,639 137,658 ------- ------- Realized investment gains/losses 312 - ------- ------- Earnings (loss) before income taxes 8,178 (5,981) Income taxes 2,684 (2,541) ------- ------- Net earnings (loss) 5,494 (3,440) Less: Earnings attributable to noncontrolling interest 17 - Net earnings (loss) attributable to The Steak n Shake Company $5,477 $(3,440) ======= ======= Basic earnings (loss) per common and $3.84 $(2.43) common equivalent share* Diluted earnings (loss) per common and $3.82 $(2.43) common equivalent share* Weighted average shares and equivalents* Basic 1,426,684 1,415,089 Diluted 1,433,995 1,415,089 * Adjusted for 1-for-20 reverse stock split effective December 18, 2009. Condensed Consolidated Statements of Cash Flows ----------------------------------------------- The Steak n Shake Company (Amounts in $000s) Twelve Weeks Ended ------------------ December 23, December 17, 2009 2008 (Unaudited) (Unaudited) ----------- ----------- Operating activities Net earnings (loss) $5,494 $(3,440) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation and amortization 6,923 7,443 Provision for deferred income taxes - 733 Asset impairments and provision for restaurant closing 171 176 Stock-based compensation and other non-cash expenses 360 1,230 Gain on disposal of assets (23) (59) Realized investment gains (312) - Changes in receivables and inventories 679 9,570 Changes in other assets 1,107 (1,104) Changes in accounts payable and accrued expenses 5,287 1,043 ------ ------ Net cash provided by operating activities 19,686 15,592 ------ ------ Investing activities Additions of property and equipment (3,068) (1,974) Proceeds from property and equipment disposals 711 5,056 Purchases of investments (8,174) - Sale of investments 3,050 - ------ ----- Net cash (used in) provided by investing activities (7,481) 3,082 ------ ----- Financing activities Net proceeds from line of credit facility - 5,660 Principal payments on long- term debt (5) (4,476) Principal payments on direct financing lease obligations (753) (1,066) Proceeds from exercise of stock options 10 - Proceeds from employee stock purchase plan 118 - Cash paid in lieu of fractional shares (711) - Repurchase of employee shares for tax withholding (15) (11) Distributions to noncontrolling interest (53) - ------ ----- Net cash (used in) provided by financing activities (1,409) 107 ------ ----- Increase in cash and cash equivalents 10,796 18,781 Cash and cash equivalents at beginning of period 51,395 6,855 ------ ----- Cash and cash equivalents at end of period $62,191 $25,636 ======= =======
The Steak n Shake Company
CONTACT: Duane Geiger, +1-317-633-4100
Web Site: http://www.steaknshake.com/
