Biglari 8-K The Steak n Shake Company Reports Full Year and Fiscal Fourth Quarter 2009 Results

The Steak n Shake Company Reports Full Year and Fiscal Fourth Quarter 2009 Results

INDIANAPOLIS, Dec. 14 /PRNewswire-FirstCall/ -- The Steak n Shake Company (NYSE: SNS) 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 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			2008
		(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

CONTACT: Duane Geiger, +1-317-633-4100