Biglari Holdings Inc. News Release
Biglari Holdings Inc. (NYSE: BH.A; BH) reported its financial results for Q2 and the first half of 2020, showing a net loss of $95,419,000 compared to a net gain of $31,792,000 for the same period in 2019. The pre-tax operating loss for Q2 was $4,894,000, while the first half loss was $15,213,000. Notably, the company recorded investment gains of $60,757,000 in Q2, contrasting with a substantial loss of $114,985,000 in the first half. The results highlight a significant downturn amid challenging market conditions.
- Investment gains of $60,757,000 in Q2 versus $34,198,000 in Q2 2019.
- Gains on debt extinguishment totaling $1,367,000 in Q2.
- Net loss of $95,419,000 in the first half of 2020 versus a net gain of $31,792,000 in 2019.
- Pre-tax operating loss of $4,894,000 for Q2 and $15,213,000 for the first half.
San Antonio, TX, Aug. 7, 2020 /PRNewswire/ -- Biglari Holdings Inc. (NYSE: BH.A; BH) announces its results for the second quarter and first six months of 2020.
Biglari Holdings Inc.'s earnings for the second quarter and first six months of 2020 and 2019 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 | ||||||||
2020 | 2019 | 2020 | 2019 | ||||||
Pre-tax operating earnings (loss) | $ (4,894) | $ (6,328) | $ (15,213) | $ (28,920) | |||||
Investment gains | 60,757 | 34,198 | (114,985) | 68,352 | |||||
Gains on debt extinguishment | 1,367 | - | 5,713 | - | |||||
Income tax (expense) benefit | (14,764) | (5,896) | 29,066 | (7,640) | |||||
Net earnings (loss) | $ 42,466 | $ 21,974 | $ (95,419) | $ 31,792 | |||||
June 30, 2020 | June 30, 2019 | ||||||||
Class A equivalent shares outstanding | 620,592 | 620,592 | |||||||
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, media and licensing, restaurants, and oil and gas. The Company's largest operating subsidiaries are involved in the franchising and operating of restaurants.
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.
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