BIGLARI HOLDINGS INC. NEWS RELEASE

Rhea-AI Summary

Biglari Holdings Inc. (NYSE: BH) has announced its first-quarter results for 2024, reporting pre-tax operating earnings of $5,697 compared to $9,049 in 2023. The company saw investment gains of $23,698 in 2024, a decline from $76,226 in 2023. However, net earnings attributable to Biglari Holdings shareholders were $22,579 in 2024, down from $64,886 in 2023. Shareholders are advised to review the detailed 10-Q report available on the company's website for a comprehensive understanding of the results.

Insights

Financial Analyst

The earnings report from Biglari Holdings indicates a notable decrease in net earnings attributable to shareholders, dropping from $64,886,000 in Q1 2023 to $22,579,000 in Q1 2024. This significant year-over-year decline could be concerning to investors as it suggests potential challenges in the company's core operations or investment strategy. The reduction in pre-tax operating earnings from $9,049,000 to $5,697,000 underscores this point. However, the company explicitly states that the fluctuations in investment gains, which also saw a substantial decrease from $76,226,000 to $23,698,000, are not regarded as meaningful to its long-term performance. This perspective is essential for investors, as it highlights the importance of focusing on the performance of Biglari Holdings' varied business operations rather than the volatility of its investment portfolio. The company's approach to bifurcate operating earnings from investment gains provides a clearer picture of its underlying business health. Nevertheless, stakeholders should also consider broader market conditions that may have influenced both operating earnings and investment performance during the period.

Market Research Analyst

From a market research perspective, Biglari Holdings' first quarter earnings report may suggest a need to delve deeper into the company's market positioning and the competitive landscape. The decline could be indicative of market share challenges or reduced consumer spending within their industry sectors. It's also vital to consider external factors, such as economic downturns or shifts in consumer behavior that may have affected the company's performance. Investors would benefit from understanding the specific industry trends that could influence Biglari Holdings' diverse businesses, including any regulatory changes or technological advancements that may present both challenges and opportunities. Furthermore, since Biglari Holdings functions as a holding company with a varied portfolio, the collective performance of its subsidiaries should be scrutinized to identify which segments are underperforming and whether strategic adjustments are being considered.

San Antonio, TX, May 10, 2024 /PRNewswire/ -- Biglari Holdings Inc. (NYSE: BH.A; BH) announces its results for the first quarter of 2024.

Biglari Holdings Inc.'s earnings for the first quarter 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)
	First Quarter
	2024		2023
Pre-tax operating earnings	$             5,697		$           9,049
Investment gains	23,698		76,226
Income taxes and income attributable to noncontrolling interest	(6,816)		(20,389)
Net earnings attributable to Biglari Holdings shareholders	$           22,579		$         64,886

 

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.

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SOURCE Biglari Holdings Inc.

FAQ

What are Biglari Holdings Inc.'s pre-tax operating earnings for the first quarter of 2024 and 2023?

Biglari Holdings Inc. reported pre-tax operating earnings of $5,697 for the first quarter of 2024 and $9,049 for the same period in 2023.

What were the investment gains for Biglari Holdings Inc. in the first quarter of 2024 and 2023?

Biglari Holdings Inc. recorded investment gains of $23,698 in the first quarter of 2024 and $76,226 in the comparable period in 2023.

Where can shareholders access the detailed results of Biglari Holdings Inc. for the first quarter of 2024?

Shareholders can review the complete results of Biglari Holdings Inc. for the first quarter of 2024 in the 10-Q report available on the company's website.