BIGLARI HOLDINGS INC 
By 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
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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
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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
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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
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SOURCE The Steak n Shake Company
