8
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 4, 2004
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THE STEAK n SHAKE COMPANY
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(Exact name of registrant as specified in its charter)
Indiana. . . . . . . . . . . . . . . . . 000-08445 37-0684070
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(State or other jurisdiction . . . . . . (IRS Employer
of incorporation). . . . . . . . . . . . (Commission File Number) Identification Number)
36 S. Pennsylvania St., Suite 500
Indianapolis, Indiana. . . . . . . . . . 46204
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (317) 633-4100
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ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 4, 2004, The Steak n Shake Company (the "Registrant" or "Company") issued
a Press Release announcing its fiscal year 2004 second quarter results. The
information in the Press Release is attached hereto as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE STEAK N SHAKE COMPANY
By: /s/ Jeffrey A. Blade
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Jeffrey A. Blade, Senior Vice President and
Chief Financial Officer
Dated: May 4, 2004
Exhibit Index
Number assigned
in Regulation S-K
Item Description of Exhibits
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(X) 99.1 Press Release dated May 4, 2004, announcing fiscal year 2004
second quarter results.
Exhibit 99.1
THE STEAK N SHAKE COMPANY REPORTS FISCAL SECOND QUARTER 2004 RESULTS
EARNINGS PER SHARE INCREASE 16.0%, SAME STORE SALES UP 8.7%
INDIANAPOLIS, May 4, 2004 /PRNewswire -- The Steak n Shake Company
(NYSE:SNS) today announced its revenues and earnings for the fiscal second
quarter ended April 7, 2004.
Highlights of the second quarter include:
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- Total revenues increased 9.4% to $163.8 million compared to $149.7 million
last year
- Same store sales for Company-owned restaurants increased 8.7% over last
year
- Net earnings increased 17.1% to $8.0 million from $6.8 million last year
- Diluted earnings per share grew 16.0% to $0.29 from $0.25 last year
Net sales for the fiscal second quarter grew 9.4% to $162.5 million versus
$148.5 million in the same quarter last year. Same-store sales for
Company-owned restaurants increased 8.7% from the same period a year ago. The
same-store sales increase marked the fifth consecutive quarter that Steak n
Shake has reported positive same store sales for Company-owned restaurants.
The Company continues to focus on five key fundamentals that are linked in a
Virtuous Cycle which 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 continue to be
encouraged by progress being made implementing the Virtuous Cycle. During the
second quarter we continued to invest in manager training to better support and
enable our leaders and continued to focus on increasing associate satisfaction,
including progress on training initiatives and reducing turnover. These
efforts, coupled with strong marketing initiatives, including better consumer
insight, new product news, local marketing and the continuing addition of new
television markets, drove increases in guest counts. The resulting strength of
same store sales drove labor efficiencies that generated lower restaurant
operating costs as a percent of sales."
Net income for the fiscal second quarter was $8.0 million, or $0.29 per diluted
share, as compared to $6.8 million, or $0.25 per diluted share in the prior year
period.
For the first half of fiscal year 2004, total revenues increased 10.5% to
$278.3 million compared to $251.7 million in the prior year. Same store sales
for Company-owned units increased 9.7% over last year. Net earnings for the
first half of the year totaled $12.6 million, a 23.0% increase over the
prior year net earnings of $10.2 million. Diluted earnings per share for the
first half of the year rose 21.1% to $0.46, versus $0.38 in the prior year.
As of April 7, 2004, there are 415 Steak n Shake restaurants operating in 18
states, of which 59 are franchised. During the quarter, the Company opened four
new restaurants in the Dallas, Chicago, Rockford, IL and Columbus, OH markets.
For the first half of the year, Steak n Shake opened nine new
restaurants, including two franchised units. As previously reported, the
Company anticipates opening a total of 15-20 new stores in fiscal 2004,
including franchised locations.
As a result of the strong same store sales, the Company will raise its guidance
for the full year, increasing its estimate of diluted earnings per share range
to $1.00 to $1.04 from the previously issued range of $0.98 to $1.02.
Investor Conference Call and Webcast
The Steak n Shake Company will broadcast its investor conference call live over
the Internet at 11:00 a.m. Eastern Time, 10:00 a.m. Central Time on Wednesday,
May 5, 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
www.steaknshake.com. The on-line replay will be available for a limited time
immediately following the call.
About Steak n Shake
Steak n Shake is a full service, casual dining restaurant serving a core menu of
its famous Steakburger 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.
Contact: Jeffrey A. Blade
Jeff.blade@steaknshake.com
www.steaknshake.com
(317) 633-4100
THE STEAK N SHAKE COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
SIXTEEN TWENTY-EIGHT
WEEKS ENDED WEEKS ENDED
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4/7/2004 4/9/2003 4/7/2004 4/9/2003
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
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REVENUES
Net sales. . . . . . . . . . . . . . . . . . . . . . $162,483,948 $148,535,098 $275,999,596 $249,819,827
Franchise fees . . . . . . . . . . . . . . . . . . . 1,306,221 1,137,072 2,263,386 1,907,102
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163,790,169 149,672,170 278,262,982 251,726,929
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COSTS AND EXPENSES
Cost of sales. . . . . . . . . . . . . . . . . . . . 37,372,509 33,828,675 63,943,907 56,580,953
Restaurant operating costs . . . . . . . . . . . . . 79,299,359 73,276,094 136,432,719 125,018,375
General and administrative . . . . . . . . . . . . . 13,486,168 11,817,301 22,621,013 20,030,069
Depreciation and amortization. . . . . . . . . . . . 7,393,649 7,362,835 12,946,397 12,680,709
Marketing. . . . . . . . . . . . . . . . . . . . . . 7,176,769 6,209,846 11,400,921 9,865,496
Interest . . . . . . . . . . . . . . . . . . . . . . 3,976,727 4,184,531 6,983,168 7,224,459
Rent . . . . . . . . . . . . . . . . . . . . . . . . 2,637,510 2,471,877 4,534,036 4,371,191
Pre-opening costs. . . . . . . . . . . . . . . . . . 599,033 459,157 978,921 1,087,180
Other income, net. . . . . . . . . . . . . . . . . . (511,135) (592,818) (1,024,821) (1,076,231)
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151,430,589 139,017,498 258,816,261 235,782,201
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EARNINGS BEFORE INCOME TAXES . . . . . . . . . . . . . . 12,359,580 10,654,672 19,446,721 15,944,728
INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . 4,353,000 3,816,000 6,850,000 5,704,000
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NET EARNINGS . . . . . . . . . . . . . . . . . . . . . . $ 8,006,580 $ 6,838,672 $ 12,596,721 $ 10,240,728
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NET EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE:
Basic. . . . . . . . . . . . . . . . . . . . . . . . $ 0.29 $ 0.25 $ 0.46 $ 0.38
Diluted. . . . . . . . . . . . . . . . . . . . . . . $ 0.29 $ 0.25 $ 0.46 $ 0.38
WEIGHTED AVERAGE SHARES
AND EQUIVALENTS:
Basic. . . . . . . . . . . . . . . . . . . . . . . . 27,401,944 27,011,227 27,311,206 26,928,998
Diluted. . . . . . . . . . . . . . . . . . . . . . . 27,804,115 27,019,027 27,673,192 27,007,785
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
4/7/2004
(UNAUDITED) 9/23/2003
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ASSETS
Current assets . . . . . . . . . . . . . . . . . . . $ 45,355,311 $ 39,255,997
Property and equipment - net . . . . . . . . . . . . 362,898,227 360,878,710
Leased property - net . . . . . . . . . . . . . . . 3,772,840 3,721,063
Other assets . . . . . . . . . . . . . . . . . . . . 10,088,433 10,779,813
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Total assets . . . . . . . . . . . . . . . . . . . . $422,114,811 $414,635,583
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities. . . . . . . . . . . . . . . . . $ 56,577,094 $ 61,795,680
Deferred income taxes and credits. . . . . . . . . . 2,721,687 2,897,887
Obligations under capital leases . . . . . . . . . . 143,977,564 145,124,559
Senior note. . . . . . . . . . . . . . . . . . . . . 15,203,175 16,203,175
Shareholders' equity . . . . . . . . . . . . . . . . 203,635,291 188,614,282
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Total liabilities and shareholders' equity . . . . . $422,114,811 $414,635,583
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