Biglari 8-K The Steak N Shake Company Reports Fiscal

EXHIBIT 99.1

 

THE STEAK N SHAKE COMPANY REPORTS FISCAL

THIRD QUARTER 2009 RESULTS

INDIANAPOLIS, August 10, 2009 /PRNewswire-FirstCall/ -- The Steak n Shake Company (NYSE: SNS) announces its results for its third fiscal quarter 2009, which ended July 1, 2009.  Net earnings for the third quarter of fiscal year 2009 were $3.8 million, or $0.13 per diluted share, contrasted to a net loss of ($9.8 million), or ($0.35) per diluted share in the third quarter of fiscal year 2008.  Last year's third quarter loss included $8.7 million, or $0.31 per diluted share, net of tax impairment charges related to underperforming restaurants.  

Steak n Shake now operates as a holding company with its primary business activities conducted through Steak n Shake Operations, Inc. The company’s prime objective centers on maximizing its per-share intrinsic value. Thus, the company may pursue investments in the form of acquisitions, joint ventures, and partnerships either related or unrelated to its ongoing business activities. All investment and capital allocation decisions are made by Sardar Biglari, the company’s Chairman and Chief Executive Officer. 

Fiscal Year 2009 Results (Year-to-date)

Year-to-date net earnings through the third quarter of fiscal year 2009 was $2.6 million, or $0.09 per diluted share, contrasted to a net loss of ($13.8 million), or ($0.49) per diluted share for the same period a year ago.  Last year's third quarter year to date loss included $8.7 million, or $0.31 per diluted share, net of tax impairment charges related to underperforming restaurants.

About The Steak n Shake Company

Steak n Shake is a holding company. Its primary restaurant operation is conducted through Steak n Shake Operations, Inc. The Steak n Shake restaurant chain, founded in 1934, is a classic American brand serving premium burgers and milkshakes through its chain of 486 restaurants.

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.

Contact:	Duane Geiger
	(317) 633-4100

Condensed Consolidated Statements of Operations (Unaudited)
The Steak n Shake Company
(Amounts in $000s except share and per share data)
	Twelve Weeks Ended						Forty Weeks Ended
	July 1,			July 2,			July 1,			July 2,
	2009			2008			2009			2008
Revenues:
Net sales	$	145,648		$	143,303		$	464,342		$	468,071
Franchise fees		701			990			2,713			3,105
Total revenues		146,349			144,293			467,055			471,176
Costs and expenses:
Cost of sales		34,814			35,527			112,456			115,658
Restaurant operating costs		76,880			79,241			253,088			259,090
General and administrative		7,886			11,056			27,330			35,546
Depreciation and amortization		6,913			7,812			23,842			25,925
Marketing		8,230			6,666			25,646			23,043
Interest		3,347			3,263			10,998			10,816
Rent		3,577			3,379			11,801			11,107
Pre-opening costs		7			112			7			1,243
Asset impairments and provision for restaurant closing		63			14,089			980			14,089
Gain on disposal of property		(85	)		(385	)		(97	)		(372	)
Other income, net		(630	)		(288	)		(968	)		(1,263	)
Total costs and expenses		141,002			160,472			465,083			494,882
Earnings (loss) before income taxes		5,347			(16,179	)		1,972			(23,706	)
Income taxes		1,544			(6,382	)		(644	)		(9,912	)
Net earnings (loss)	$	3,803		$	(9,797	)	$	2,616		$	(13,794	)
Basic earnings (loss) per common and   common equivalent share	$	0.13		$	(0.35	)	$	0.09		$	(0.49	)
Diluted earnings (loss) per common and   common equivalent share	$	0.13		$	(0.35	)	$	0.09		$	(0.49	)
Weighted average shares and equivalents:
Basic		28,551,669			28,288,330			28,447,380			28,274,193
Diluted		28,663,007			28,288,330			28,538,960			28,274,193

Condensed Consolidated Statements of Financial Position
The Steak n Shake Company
(Amounts in $000s except share and per share data)
	July 1,			September 24,
	2009			2008
	(Unaudited)
Assets:
Current assets
Cash and cash equivalents	$	37,843		$	6,855
Receivables, net of allowances of $539 (2009) and $341 (2008)		8,011			15,622
Inventories		7,131			6,795
Deferred income taxes		5,674			3,260
Assets held for sale		18,479			25,395
Other current assets		5,488			3,009
Total current assets		82,626			60,936
Net property and equipment		406,197			432,690
Goodwill		14,503			14,503
Other intangible assets, net		1,616			1,765
Other assets		8,180			10,242
Total assets	$	513,122		$	520,136
Liabilities and shareholders' equity:
Current liabilities
Accounts payable	$	25,495		$	25,302
Accrued expenses		32,018			31,685
Current portion of long-term debt		20			733
Revolving credit		13,680			14,180
Current portion of obligations under leases		4,424			4,417
Total current liabilities		75,637			76,317
Deferred income taxes		9,858			2,209
Other long-term liabilities		6,792			7,439
Obligations under leases		132,035			134,809
Long-term debt		53			15,783
Commitments and contingencies
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		129,268			128,526
Retained earnings		164,349			161,733
Treasury stock - at cost: 1,519,905 shares as of July 1, 2009;   1,760,531 shares as of September 24, 2008		(20,036	)		(21,846	)
Total shareholders' equity		288,747			283,579
Total liabilities and shareholders' equity	$	513,122		$	520,136

Condensed Consolidated Statements of Cash Flows (Unaudited)
The Steak n Shake Company
(Amounts in $000s)
	Forty Weeks Ended
	July 1,			July 2,
	2009			2008
Operating activities:
Net earnings (loss)	$	2,616		$	(13,794	)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		23,842			25,925
Provision for deferred income taxes		5,235			(4,714	)
Asset impairments and provision for restaurant closing		980			14,089
Non-cash expense for stock-based compensation and deferred rent		2,422			2,676
Gain on disposal of property		(97	)		(372	)
Changes in receivables and inventories		7,581			1,720
Changes in other assets		(3,016	)		(3,299	)
Changes in accounts payable and accrued expenses		1,552			1,340
Net cash provided by operating activities		41,115			23,571
Investing activities:
Additions of property and equipment		(3,145	)		(28,512	)
Proceeds from property and equipment disposals		9,277			11,531
Net cash provided by (used in) investing activities		6,132			(16,981	)
Financing activities:
Net proceeds from revolving credit facility		(500	)		(18,005	)
Principal payments on long-term debt		(16,443	)		(1,080	)
Proceeds from equipment and property sale-leasebacks		3,597			14,817
Principal payments on direct financing lease obligations		(3,606	)		(3,336	)
Proceeds from exercise of stock options		—			132
Excess tax benefits from stock-based awards		40			10
Repurchase of employee shares for tax withholding		(202	)		(8	)
Proceeds from employee stock purchase plan		855			1,004
Net cash used in financing activities		(16,259	)		(6,466	)
Increase in cash and cash equivalents		30,988			124
Cash and cash equivalents at beginning of period		6,855			1,497
Cash and cash equivalents at end of period	$	37,843		$	1,621