EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm
THE STEAK N SHAKE COMPANY

 
NEWS RELEASE

 

San Antonio, TX, January 29 -- The Steak n Shake Company (NYSE: SNS) 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 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.
 
 
 
 
 
 
           
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
  common equivalent share*
$
3.84
  
$
(2.43
)
             
Diluted earnings (loss) per common and
  common equivalent share*
$
3.82
  
$
(2.43
)
             
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