2014

The Steak n Shake Company News Release

San Antonio, TX, January 29 /PRNewswire-FirstCall/ -- 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.

    
    
    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
                                          =======            =======

SOURCE The Steak n Shake Company



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http://www.steaknshake.com

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