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          2009
                                                 (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
                                                   ======           =====

SOURCE The Steak n Shake Company

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http://www.steaknshake.com