Biglari Holdings Inc. News Release

Rhea-AI Summary

Biglari Holdings reported its Q3 and first nine months 2024 financial results. The company's Q3 2024 net earnings were $32.1 million, compared to a loss of $56.5 million in Q3 2023. Pre-tax operating earnings decreased to $3.3 million in Q3 2024 from $20.3 million in Q3 2023. For the first nine months, net earnings declined to $6.5 million from $10.3 million year-over-year. The company recorded investment gains of $40.1 million in Q3 2024, contrasting with losses of $94.3 million in Q3 2023.

Positive

• Q3 2024 net earnings improved to $32.1 million from a loss of $56.5 million in Q3 2023
• Investment gains of $40.1 million in Q3 2024 versus losses of $94.3 million in Q3 2023

Negative

• Q3 2024 pre-tax operating earnings declined 83.9% to $3.3 million from $20.3 million in Q3 2023
• First nine months 2024 net earnings decreased 36.8% to $6.5 million from $10.3 million in 2023
• First nine months 2024 pre-tax operating earnings fell 27.2% to $28.7 million from $39.4 million in 2023

Insights

Financial Analyst

The Q3 2024 results reveal significant shifts in Biglari Holdings' performance. Pre-tax operating earnings dropped substantially to $3.27 million from $20.3 million in Q3 2023, marking an 83.9% decline. However, the company achieved a remarkable turnaround in investment performance, recording gains of $40.1 million compared to losses of $94.3 million in the same quarter last year. The year-to-date figures show broader challenges, with nine-month pre-tax operating earnings down 27.2% to $28.7 million. The stark contrast between operating performance and investment results highlights the company's dual nature as both an operating business and an investment vehicle. The significant volatility in investment results, while impacting reported earnings, should be viewed separately from core business performance as management suggests.

San Antonio, TX, Nov. 8, 2024 /PRNewswire/ -- Biglari Holdings Inc. (NYSE: BH.A; BH) announces its results for the third quarter and first nine months of 2024.

Biglari Holdings Inc.'s earnings for the third quarter and first nine months of 2024 and 2023 are summarized below.  To become fully apprised of our results, shareholders should carefully study our 10-Q, which has been posted at www.biglariholdings.com. 

(dollars in thousands)
	Third  Quarter				First Nine Months
	2024		2023		2024		2023
Pre-tax operating earnings..................................................................................	$        3,272		$      20,298		$      28,673		$      39,384
Investment gains (losses)...................................................................................	40,054		(94,314)		(18,867)		(25,231)
Income taxes and income attributable to noncontrolling interest.............................	(11,201)		17,502		(3,292)		(3,845)
Net earnings (loss) attributable to Biglari Holdings shareholders.............................	$      32,125		$     (56,514)		$        6,514		$      10,308

Analysis of Results:

Investments affect our reported quarterly earnings based on their carrying value. We do not regard the quarterly or annual fluctuations in our investments to be meaningful. Therefore, our operating businesses are best analyzed before the impact of investment gains. As a consequence, in the preceding table we separate earnings of our operating businesses from our investment gains.

About Biglari Holdings Inc.

Biglari Holdings Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance, licensing and media, restaurants, and oil and gas.

Comment on Regulation G

This press release contains certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Biglari Holdings defines pre-tax operating earnings outside of the investment gains/losses of the Company.

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 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. Biglari Holdings cautions readers not to place undue reliance upon any such forward-looking statements, for actual results may differ materially from expectations. Biglari Holdings does not update publicly 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 Biglari Holdings and its business can be found in the Company's filings with the SEC.

View original content:https://www.prnewswire.com/news-releases/biglari-holdings-inc-news-release-302300368.html

SOURCE Biglari Holdings Inc.

FAQ

What was Biglari Holdings (BH) net earnings for Q3 2024?

Biglari Holdings reported net earnings of $32.1 million for Q3 2024, compared to a loss of $56.5 million in Q3 2023.

How much were Biglari Holdings (BH) investment gains in Q3 2024?

Biglari Holdings recorded investment gains of $40.1 million in Q3 2024, compared to losses of $94.3 million in Q3 2023.

What were Biglari Holdings (BH) pre-tax operating earnings for Q3 2024?

Biglari Holdings pre-tax operating earnings were $3.3 million in Q3 2024, down from $20.3 million in Q3 2023.