- Published: 24 April 2009
- Written by Editor
The Steak n Shake Company Reports Fiscal Second Quarter 2009 Results
The Steak n Shake Company (NYSE: SNS) today announced its results for its second fiscal quarter 2009, which ended April 8, 2009.
Fiscal Second Quarter 2009 Results
Net earnings for the second quarter of fiscal year 2009 were $2.3 million, or $0.08 per diluted share, contrasted to a net loss of ($2.8 million), or ($0.10) per diluted share in the second quarter of fiscal year 2008. Quarterly same-store sales increased 2.4% due to an increase in guest traffic of 7.8%, offset by a 5.4% contraction in the average guest check.
Net sales decreased 0.7% from $189.3 million to $188.0 million in the current quarter because Steak n Shake operated 21 fewer company-owned restaurants following the closure and refranchising of certain units after the same period in the previous year.
At the end of the second quarter, cash and cash equivalents stood at $35.0 million. The revolving line of credit and senior note balances totaled $29.0 million at the end of the quarter. Steak n Shake owns the land and buildings for 145 operating Steak n Shake restaurants and has an additional 31 properties for sale. In the current quarter, Steak n Shake operated 415 company-owned restaurants and a franchisee closed one restaurant, bringing the total number of franchised units to 74.
Management's long-term goal is to sustain increases in customer traffic along with maximizing free cash flow -- to attain its ultimate objective, maximizing the per-share intrinsic value of the company.
Fiscal Year 2009 Results (Year-to-date)
Year-to-date net loss through the second quarter of fiscal year 2009 was ($1.2 million), or $(0.04) per diluted share, contrasted to a net loss of ($4.0 million), or ($0.14) per diluted share for the same period a year ago. Year-to-date same-store sales increased 0.9%. Net sales decreased 1.9% from $324.8 million to $318.7 million in the current year because Steak n Shake operated fewer company-owned restaurants following the closure and refranchising of certain units after the same period in the previous year.
Annual Meeting of Shareholders
The company plans to communicate the aforementioned information with shareholders today at its Annual Meeting of Shareholders at 1:30 p.m. E.S.T. The meeting will take place in the Vienna Ballroom at the Conrad Hotel, 50 West Washington Street, Indianapolis, Indiana.
About Steak n Shake
Steak n Shake, founded in 1934, is a classic American brand, serving premium burgers and milkshakes through its chain of 489 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.
Condensed Consolidated Statements of Operations
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The Steak n Shake Company
(Amounts in $000s except share and per share data)
Sixteen Weeks Ended Twenty-Eight Weeks Ended
------------------- ------------------------
April 8, April 9, April 8, April 9,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
Revenues:
Net sales $187,975 $189,272 $318,694 $324,768
Franchise fees 1,054 1,215 2,012 2,115
----- ----- ----- -----
Total revenues 189,029 190,487 320,706 326,883
Costs and Expenses:
Cost of sales 45,611 47,447 77,642 80,131
Restaurant operating
costs 101,526 104,039 176,208 179,849
General and
administrative 10,799 14,072 19,444 24,490
Depreciation and
amortization 9,537 10,455 16,929 18,113
Marketing 9,873 10,376 17,416 16,377
Interest 4,049 4,240 7,651 7,553
Rent 4,659 4,520 8,224 7,728
Pre-opening costs - 677 - 1,131
Asset impairments
and provision for
restaurant closing 741 - 917 -
Loss (gain) on
disposal of property 47 297 (12) 13
Other income, net (419) (524) (338) (975)
---- ---- ---- ----
Total costs and
expenses 186,423 195,599 324,081 334,410
------- ------- ------- -------
Earnings (Loss)
Before Income Taxes 2,606 (5,112) (3,375) (7,527)
Income Taxes 353 (2,302) (2,188) (3,530)
------ ------- ------- -------
Net Earnings (Loss) $2,253 $(2,810) $(1,187) $(3,997)
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Basic Earnings
(Loss) Per Common
and Common Equivalent
Share $0.08 $(0.10) $(0.04) $(0.14)
Diluted Earnings
(Loss) Per Common and
Common Equivalent
Share $0.08 $(0.10) $(0.04) $(0.14)
Weighted Average
Shares and
Equivalents:
Basic 28,478,365 28,269,538 28,402,685 28,221,692
Diluted 28,554,395 28,269,538 28,402,685 28,221,692
Condensed Consolidated Statements of Financial Position
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The Steak n Shake Company
(Amounts in $000s except share and per share data)
April 8, September 24,
2009 2008
(Unaudited) (Unaudited)
----------- -----------
Assets:
Current Assets
Cash and cash equivalents $35,010 $6,855
Receivables, net 6,110 15,622
Inventories 7,302 6,795
Deferred income taxes 2,902 3,260
Assets held for sale 21,055 25,395
Other current assets 4,581 3,009
----- -----
Total current assets 76,960 60,936
Net property and equipment 413,045 432,690
Goodwill 14,503 14,503
Other intangible assets, net 1,660 1,765
Other assets 7,673 10,242
----- ------
Total assets $513,841 $520,136
======== ========
Liabilities and Shareholders' Equity:
Current Liabilities
Accounts payable $22,667 $25,302
Accrued expenses 31,515 31,685
Current portion of long-term debt 5,732 733
Line of credit 17,000 14,180
Current portion of obligations under
leases 4,452 4,417
----- -----
Total current liabilities 81,366 76,317
Deferred income taxes 3,599 2,209
Other long-term liabilities 6,657 7,439
Obligations under leases 131,634 134,809
Long-term debt 6,302 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 128,779 128,526
Retained earnings 160,546 161,733
Treasury stock - at cost:
1,549,517 shares as of April 8,
2009; 1,760,531 shares as of
September 24, 2008 (20,208) (21,846)
------- -------
Total shareholders' equity 284,283 283,579
------- -------
Total liabilities and shareholders'
equity $513,841 $520,136
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Condensed Consolidated Statements of Cash Flows
------------------------------------------------
The Steak n Shake Company
(Amounts in $000s)
Twenty-Eight Weeks Ended
------------------------
April 8, April 9,
2009 2008
(Unaudited) (Unaudited)
----------- -----------
Operating Activities:
Net loss $(1,187) $(3,997)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Depreciation and amortization 16,929 18,113
Provision for deferred income taxes 1,748 257
Asset impairments and provision for
restaurant closing 917 -
Non-cash expense for stock-based
compensation and deferred rent 1,942 1,584
(Gain) loss on disposal of property (12) 13
Changes in receivables and inventories 9,312 1,515
Changes in other assets (2,098) (2,354)
Changes in accounts payable and accrued
expenses (1,748) (1,244)
------ ------
Net cash provided by operating
activities 25,803 13,887
------ ------
Investing Activities:
Additions of property and equipment (2,612) (23,858)
Proceeds from property and equipment
disposals 6,590 9,872
----- -----
Net cash provided by (used in) investing
activities 3,978 (13,986)
----- -------
Financing Activities:
Net proceeds from line of credit facility 2,820 2,355
Principal payments on long-term debt (4,482) (1,055)
Proceeds from equipment and property
sale-leasebacks 2,005 -
Principal payments on direct financing
lease obligations (2,407) (2,272)
Proceeds from exercise of stock options - 140
Excess tax benefits from stock-based
awards - 10
Repurchase of employee shares for tax
withholding (128) -
Proceeds from employee stock purchase
plan 566 1,004
--- -----
Net cash (used in) provided by financing
activities (1,626) 182
------ ---
Increase in Cash and Cash Equivalents 28,155 83
Cash and Cash Equivalents at Beginning
of Period 6,855 1,497
----- -----
Cash and Cash Equivalents at End of
Period $35,010 $1,580
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