The Steak n Shake Company Reports Fiscal First Quarter 2007 Results
January 24 2007 - 3:00PM
PR Newswire (US)
- First Quarter Total Revenues Grew 6.1% - INDIANAPOLIS, Jan. 24
/PRNewswire-FirstCall/ -- The Steak n Shake Company (NYSE:SNS)
today announced its revenues and earnings for the first quarter
2007 ended December 20, 2006. (Logo:
http://www.newscom.com/cgi-bin/prnh/20000606/STEAKLOGO ) Highlights
for Fiscal First Quarter Include: - Total revenues increased 6.1%
to $147.3 million - Net earnings were $4.2 million and diluted
earnings per share were $0.15 - Six new restaurants opened during
the first quarter Fiscal First Quarter 2007 Results Total revenues
for the fiscal first quarter 2007 grew 6.1% to $147.3 million from
$138.7 million in the same quarter last year. Same-store sales
during the first quarter declined 1.7%, improving from a decline of
3.4% in the fourth quarter of fiscal 2006. Net earnings for the
fiscal first quarter 2007 were $4.2 million, or $0.15 per diluted
share, compared to $4.7 million, or $0.17 per diluted share, in the
prior year period. During the quarter the Company opened five new
Company-owned restaurants and one new franchise unit. Peter Dunn,
President and Chief Executive Officer commented, "During the first
quarter we continued to focus on our top priority of executing
initiatives to create sustainable same store sales momentum through
improved store execution, new product innovation, and optimization
of the Steak n Shake concept. Although same store sales remained
negative during the quarter, we are encouraged by the improvement
since the fourth quarter of fiscal 2006. We believe the current
initiatives will enable us to make progress on the fundamentals and
accelerate positive same store sales momentum over time, which will
allow us to perform more consistently in all market conditions, and
unlock the long-term growth potential of the Steak n Shake brand."
As of December 20, 2006, there were 483 Steak n Shake restaurants
operating in 19 states, including 434 Company-owned restaurants and
49 franchise units. Fiscal 2007 Guidance The Company reiterate its
previously communicated guidance for fiscal year 2007. The Company
anticipates diluted earnings per share in the range of $0.90 to
$1.00. This is based on expected same store sales growth of
positive 1% to down 3%. The Company anticipates opening
approximately 15 Company-owned restaurants and at least 7 franchise
units in fiscal 2007. During the year, the Company will review all
aspects of the current organization and will take any necessary
actions to ensure sales and earnings momentum going forward. Any
actions which would affect cash flow have been estimated and are
included in the earnings per share guidance above. In addition, the
Company will continue reviewing all underperforming stores and will
develop a plan to improve each store's performance or dispose of
the assets. Investor Conference Call and Webcast The Steak n Shake
Company will broadcast its investor conference call live over the
Internet at 5:00 p.m. Eastern Time, 4:00 p.m. Central Time today.
Hosting the call will be Peter M. Dunn, President and Chief
Executive Officer, and Jeffrey A. Blade, Senior Vice President and
Chief Financial Officer. Interested investors and other parties may
listen to a simultaneous webcast of the conference call by logging
onto the Company's website at http://www.steaknshake.com/. The
on-line replay will be available for a limited time immediately
following the call. The call can also be accessed live over the
phone by dialing (877) 704-5381, or for international callers,
(913) 312-1295. A replay will be available one hour after the call
and can be accessed by dialing (888) 203-1112, or for international
callers, (719) 457-0820. The passcode for the replay is 1567941.
The replay will be available until January 31, 2007. About Steak n
Shake Steak n Shake is a full service, casual dining restaurant
serving a core menu of its famous STEAKBURGER(TM) sandwiches, thin
'n crispy french fries, old fashioned hand-dipped milk shakes,
chili, home style soups, fresh salads, a variety of desserts and
breakfast. All of the food is prepared to the guest's order and
served by friendly, well-trained associates. Steak n Shake
restaurants feature full-service dining areas, counter service and
drive-thru windows and are open 24 hours a day, seven days a week.
This press release contains forward-looking information. In
general, forward-looking statements include estimates of future
revenues, cash flows, capital expenditures, or other financial
items, and assumptions underlying any of the foregoing.
Forward-looking statements reflect management's current
expectations regarding future events and use words such as
"anticipate", "believe", "expect", "may", "will", and other similar
terminology. These statements speak only as of the date they were
made and involve a number of risks and uncertainties that could
cause actual results to differ materially from those expressed in
forward-looking statements. Several factors, many beyond our
control, could cause actual results to differ significantly from
our expectations, such as the following: the effectiveness of our
planned expansion; the poor performance or closing of even a small
number of restaurants; our ability to attract and retain guests;
changes in guest preferences, tastes and dietary habits; minimum
wage rates; the availability and cost of qualified personnel;
fluctuations in food commodity prices and the availability of food
commodities; harsh weather conditions; unfavorable publicity
relating to food safety or food borne illness; our ability to
comply with existing and future governmental regulations; our
ability to adequately protect our trademarks, service marks, and
other components of our brand; and other risks identified in the
Company's periodic reports filed with the SEC. Additional risks and
uncertainties not currently known to the Company or that are
currently deemed immaterial may also become important factors that
may harm the Company's business, financial condition, results of
operations or cash flows. The Company assumes no obligation to
update forward-looking statements except as required in its
periodic reports. THE STEAK N SHAKE COMPANY CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS TWELVE WEEKS ENDED (Amounts in $000's,
except share 12/20/2006 12/21/2005 and per share data) (UNAUDITED)
(UNAUDITED) Revenues Net sales $146,458 99.5% $137,852 99.4%
Franchise fees 808 0.5% 889 0.6% Total Revenue 147,266 100.0%
138,741 100.0% Costs and Expenses Cost of sales (1) 33,070 22.6%
31,520 22.9% Restaurant operating costs (1) 75,468 51.5% 69,791
50.6% General and administrative 13,555 9.2% 12,472 9.0%
Depreciation and amortization 7,226 4.9% 6,397 4.6% Marketing 6,426
4.4% 5,852 4.2% Interest 3,133 2.1% 2,787 2.0% Rent 3,048 2.1%
2,534 1.8% Pre-opening costs 934 0.6% 1,179 0.8% Provision for
restaurant closing (66) 0.0% 0 0.0% Other income, net (405) -0.3%
(656) -0.5% 142,389 96.7% 131,876 95.1% Earnings Before Income
Taxes 4,877 3.3% 6,865 4.9% Income Taxes (2) 712 0.5% 2,206 1.6%
Net Earnings $4,165 2.8% $4,659 3.4% Net Earnings Per Common and
Common Equivalent Share: Basic $0.15 $0.17 Diluted $0.15 $0.17
Weighted Average Shares and Equivalents: Basic 27,907,125
27,631,153 Diluted 28,131,733 27,929,453 (1) Costs of sales and
restaurant operating costs are expressed as a percentage of net
sales. (2) Income taxes for the first quarter of fiscal year 2007
include a $650 benefit related to the Work Opportunity and Welfare
to Work Tax Credits, which were reinstated during the quarter with
retroactive treatment to January 1, 2006. CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION 12/20/2006 09/27/2006 (Amounts in
$000's) (UNAUDITED) (UNAUDITED) Assets Current assets $28,365
$30,920 Property and equipment - net 500,431 490,142 Other assets
25,182 21,459 Total assets $553,978 $542,521 Liabilities and
Shareholders' Equity Current liabilities $90,321 $83,083 Deferred
income taxes and credits 9,749 9,605 Obligations under capital
leases 142,909 143,996 Long-term debt 18,788 18,802 Shareholders'
equity 292,211 287,035 Total liabilities and shareholders' equity
$553,978 $542,521 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
TWELVE WEEKS ENDED 12/20/2006 12/21/2005 (Amounts in $000's)
(UNAUDITED) (UNAUDITED) Net cash provided by operating activities
$15,916 $17,509 Net cash used in investing activities (18,578)
(16,888) Net cash provided by (used) in financing activities 2,994
(201) Increase in Cash and Cash Equivalents $332 $420
http://www.newscom.com/cgi-bin/prnh/20000606/STEAKLOGO
http://photoarchive.ap.org/ DATASOURCE: The Steak n Shake Company
CONTACT: Jeffrey A. Blade of The Steak n Shake Company,
+1-317-633-4100, or Web site: http://www.steaknshake.com/
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