Biglari Holdings Inc. News Release

Rhea-AI Summary

Biglari Holdings Inc. (NYSE: BH.A; BH) has released its financial results for the second quarter and first six months of 2024. The company reported pre-tax operating earnings of $19,704,000 for Q2 2024, a significant increase from $10,037,000 in Q2 2023. For the first six months, pre-tax operating earnings rose to $25,401,000 in 2024 from $19,086,000 in 2023.

However, the company experienced substantial investment losses of $82,619,000 in Q2 2024, compared to losses of $7,143,000 in Q2 2023. This resulted in a net loss attributable to Biglari Holdings shareholders of $48,190,000 for Q2 2024, in contrast to a net earnings of $1,936,000 in Q2 2023. The company emphasizes that quarterly fluctuations in investments are not considered meaningful for analysis of their operating businesses.

Positive

• Pre-tax operating earnings increased to $19,704,000 in Q2 2024 from $10,037,000 in Q2 2023
• First six months pre-tax operating earnings improved to $25,401,000 in 2024 from $19,086,000 in 2023

Negative

• Investment losses of $82,619,000 in Q2 2024, significantly higher than $7,143,000 loss in Q2 2023
• Net loss attributable to shareholders of $48,190,000 in Q2 2024 compared to net earnings of $1,936,000 in Q2 2023
• First six months net loss of $25,611,000 in 2024 versus net earnings of $66,822,000 in 2023

Insights

Financial Analyst

Biglari Holdings' Q2 2024 results present a mixed picture. Pre-tax operating earnings doubled to $19.7 million from $10 million in Q2 2023, indicating improved core business performance. However, this was overshadowed by significant investment losses of $82.6 million, leading to a net loss of $48.2 million.

The company's six-month performance shows a similar trend: improved operating earnings but substantial investment losses. This stark contrast between operating and investment performance highlights the volatility in Biglari's investment portfolio. The company's emphasis on separating operating results from investment fluctuations is prudent, given the unpredictable nature of market movements.

For investors, it's important to focus on the 33% increase in six-month operating earnings as a more reliable indicator of business health, while being mindful of the potential impact of investment volatility on overall financial stability.

Investment Strategist

Biglari Holdings' Q2 results underscore the importance of distinguishing between operating performance and investment outcomes. The dramatic swing from a $66.8 million profit in H1 2023 to a $25.6 million loss in H1 2024 is primarily due to investment losses, not operational issues.

This volatility highlights a key risk for Biglari shareholders: the company's significant exposure to market fluctuations. While the improved operating earnings are encouraging, the magnitude of investment losses raises questions about the company's risk management strategies.

Investors should consider:

• The sustainability of operating improvements
• The company's investment strategy and risk tolerance
• The potential for future earnings volatility

Given the company's structure and investment approach, shareholders should be prepared for continued earnings unpredictability, despite solid operational progress.

San Antonio, TX, Aug. 9, 2024 /PRNewswire/ -- Biglari Holdings Inc. (NYSE: BH.A; BH) announces its results for the second quarter and first six months of 2024.

Biglari Holdings Inc.'s earnings for the second quarter and first six 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)
	Second Quarter				First Six Months
	2024		2023		2024		2023
Pre-tax operating earnings	$  19,704		$10,037		$  25,401		$ 19,086
Investment gains (losses)	(82,619)		(7,143)		(58,921)		69,083
Income taxes and income attributable to noncontrolling interest	14,725		(958)		7,909		(21,347)
Net earnings (loss) attributable to Biglari Holdings shareholders	$ (48,190)		$  1,936		$ (25,611)		$ 66,822

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-302219132.html

SOURCE Biglari Holdings Inc.

FAQ

What were Biglari Holdings' (BH) pre-tax operating earnings for Q2 2024?

Biglari Holdings' pre-tax operating earnings for Q2 2024 were $19,704,000, an increase from $10,037,000 in Q2 2023.

How much investment loss did Biglari Holdings (BH) report in Q2 2024?

Biglari Holdings reported investment losses of $82,619,000 in Q2 2024, compared to losses of $7,143,000 in Q2 2023.

What was Biglari Holdings' (BH) net earnings/loss for Q2 2024?

Biglari Holdings reported a net loss attributable to shareholders of $48,190,000 for Q2 2024, compared to net earnings of $1,936,000 in Q2 2023.

How did Biglari Holdings' (BH) first six months performance in 2024 compare to 2023?

For the first six months of 2024, Biglari Holdings reported a net loss of $25,611,000, compared to net earnings of $66,822,000 in the same period of 2023.