The Steak n Shake Company Reports Fiscal Third Quarter 2004 Results
Same Store Sales Increase 6.3%, Net Earnings Increase 4.6%
INDIANAPOLIS, July 28 /PRNewswire-FirstCall/ -- The Steak n Shake
Company (NYSE:SNS) today announced its revenues and earnings for
the fiscal third quarter ended June 30, 2004. (Logo:
http://www.newscom.com/cgi-bin/prnh/20000606/STEAKLOGO ) Highlights
of the third quarter include: * Total revenues increased 7.7% to
$130.6 million versus $121.3 million * Same store sales for
Company-owned restaurants increased 6.3% * Net earnings increased
4.6% to $7.4 million from $7.1 million last year * Diluted earnings
per share were $0.27 compared to $0.26 Net sales for the fiscal
third quarter grew 7.6% to $129.6 million versus $120.3 million in
the same quarter last year, while same-store sales increased 6.3%
from the same period a year ago. Net earnings for the fiscal third
quarter 2004 were $7.4 million, or $0.27 per diluted share compared
to $7.1 million, or $0.26 per diluted share in the prior year
period. The Company continues to focus on five key fundamentals
which are linked in a Virtuous Cycle. These include: developing
effective field leaders, improving associate satisfaction and
training, growing guest counts, improving margins, and expanding
the brand. Peter Dunn, President and Chief Executive Officer
commented, "We are encouraged by consumer acceptance of our new
Side by Side(TM) milk shakes, which helped contribute to our sixth
consecutive quarter of positive same store sales. This trend is
notable considering the strong comparison to third quarter results
from the prior year. We invested in training and staffing to launch
this new product successfully and this is already paying dividends
in strong sales momentum." Mr. Dunn continued, "In the third
quarter we continued to face significant increases in food
commodity costs, primarily beef and dairy, that resulted in a
higher cost of sales. These costs were partially offset by strong
expense control." For the first three quarters of fiscal year 2004,
total revenues increased 9.6% to $408.9 million compared to $373.0
million in the prior year, driven by a same store sales increase
for Company-owned units of 8.7%. Diluted earnings per share for the
first three quarters of the year rose 12.5% to $0.72 versus $0.64
in the prior year. As of June 30, 2004, there were 416 Steak n
Shake restaurants operating in 18 states, including 357
Company-owned restaurants and 59 franchised units. During the
quarter, the Company opened one new restaurant in the St. Louis,
Missouri market. Subsequent to June 30, 2004, the Company has
opened three new restaurants in Peoria, Illinois, Dallas, Texas,
and St. Louis, Missouri. During the current fiscal year, the
Company has opened thirteen new restaurants, including two
franchised units, consistent with previous guidance of opening
15-20 new stores in fiscal 2004, including franchised locations.
Based on results through the first three quarters of fiscal 2004,
the Company is reaffirming its guidance for the full year of
diluted earnings per share in the range of $1.00 to $1.04. This
guidance is predicated on commodity costs remaining stable at
current price levels and continued same store sales momentum.
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, Wednesday,
July 28, 2004. Hosting the call will be Peter 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/ or by dialing 1-877-297-4509. 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 various forward-looking
statements that reflect management's expectations or beliefs
regarding future events. Investors are cautioned that reliance on
these forward-looking statements involves risks and uncertainties.
Although the Company believes that the assumptions used in the
forward-looking statements are reasonable, any of these assumptions
could prove to be inaccurate and, as a result, the outcome of the
forward-looking statements could differ materially. A list of the
factors that could cause actual results to differ materially from
those expressed in the forward-looking statements are contained in
the Company's filings with the Securities and Exchange Commission,
such as its annual and quarterly reports. THE STEAK N SHAKE COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS TWELVE FORTY WEEKS
ENDED WEEKS ENDED 6/30/2004 7/2/2003 6/30/2004 7/2/2003 (UNAUDITED)
(UNAUDITED) (UNAUDITED) (UNAUDITED) Revenues Net sales $129,554,552
$120,348,440 $405,554,148 $370,168,267 Franchise fees 1,072,392
920,086 3,335,778 2,827,188 130,626,944 121,268,526 408,889,926
372,995,455 Costs and Expenses Cost of sales 31,078,420 27,535,883
95,022,327 84,116,836 Restaurant operating costs 63,097,306
58,454,340 199,530,025 183,472,715 General and administrative
9,401,563 9,250,148 32,022,576 29,280,217 Depreciation and
amortization 5,686,004 5,689,377 18,632,401 18,370,086 Marketing
5,365,982 4,270,375 16,766,903 14,135,871 Interest 2,942,780
3,127,195 9,925,948 10,351,655 Rent 2,152,591 1,936,308 6,686,627
6,307,498 Provision for store closings (394,369) 0 (394,369) 0
Pre-opening costs 345,035 375,196 1,323,956 1,462,376 Other income,
net (390,687) (429,662) (1,415,508) (1,505,893) 119,284,625
110,209,160 378,100,886 345,991,361 Earnings Before Income Taxes
11,342,319 11,059,366 30,789,040 27,004,094 Income Taxes 3,925,000
3,970,000 10,775,000 9,674,000 Net Earnings $7,417,319 $7,089,366
$20,014,040 $17,330,094 Net Earnings Per Common and Common
Equivalent Share: Basic $0.27 $0.26 $0.73 $0.64 Diluted $0.27 $0.26
$0.72 $0.64 Weighted Average Shares and Equivalents: Basic
27,462,379 27,030,336 27,356,558 26,997,199 Diluted 27,778,480
27,178,997 27,704,779 27,059,148 CONDENSED CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION 6/30/2004 (UNAUDITED) 9/24/2003 Assets
Current assets $60,889,752 $39,255,997 Property and equipment - net
368,716,677 360,878,710 Leased property - net 3,690,258 3,721,063
Other assets 4,910,103 10,779,813 Total assets $438,206,790
$414,635,583 Liabilities and Shareholders' Equity Current
liabilities $65,835,849 $61,795,680 Deferred income taxes and
credits 2,721,135 2,897,887 Obligations under capital leases
143,025,993 145,124,559 Senior note 15,203,175 16,203,175
Shareholders' equity 211,420,638 188,614,282 Total liabilities and
shareholders' equity $438,206,790 $414,635,583
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, Web site: http://www.steaknshake.com/
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