Financial Results - Biglari Holdings Inc. reported its financial results for Q2 and the first six months ending June 30, 2024[4] - The press release detailing the financial results was issued on August 9, 2024[4] - The financial results include key metrics that are incorporated in the press release attached as Exhibit 99.1[4] Company Information - The company is listed on the New York Stock Exchange under the trading symbols BH.A and BH[2] - The company has not indicated that it is an emerging growth company[3] Report Details - The report is not deemed "filed" under the Securities Exchange Act of 1934, and the information is not incorporated by reference into any future filings unless explicitly stated[5] - The report was signed by Bruce Lewis, the Controller of Biglari Holdings Inc.[7]

Financial Performance - Net sales for Q2 2024 were $40,815 million, a 3.3% increase from Q2 2023, while first six months sales reached $79,550 million, up 4.1% year-over-year[93]. - Franchise partner fees decreased to $18,149 million in Q2 2024 from $19,070 million in Q2 2023, with a total of $35,907 million for the first six months of 2024 compared to $36,982 million in 2023[94]. - Franchise royalties and fees fell to $3,615 million in Q2 2024 from $4,125 million in Q2 2023, totaling $7,092 million for the first six months of 2024 versus $8,383 million in 2023[95]. - Other income decreased to $2,442 million in 2024 from $4,301 million in 2023, with notable property sales contributing to the previous year's figures[98]. - Total other income for the first six months of 2024 was $2,691 million, an increase from $2,300 million in the first six months of 2023, showing a growth of 17.0%[106]. Cost and Expenses - Cost of food as a percentage of net sales increased to 30.3% in Q2 2024 from 29.6% in Q2 2023, while for the first six months, it was 29.3% compared to 29.0% in 2023[96]. - Labor costs represented 31.8% of net sales in Q2 2024, up from 30.8% in Q2 2023, with first six months labor costs at 32.1% compared to 31.3% in 2023[96]. - General and administrative expenses rose to $13,016 million or 20.2% of total revenue in Q2 2024, compared to $10,790 million or 16.7% in Q2 2023[97]. - General and administrative expenses for Q2 2024 were $33 million, down from $54 million in Q2 2023[121]. Impairment and Losses - The company recorded impairment charges of $853 million in Q2 2023, with $107 million in the first six months of 2024 compared to $1,629 million in 2023[97]. - Investment losses net of tax for Q2 2024 were $2,159 million, a significant decline from investment gains of $276 million in Q2 2023, and for the first six months of 2024, losses were $827 million compared to gains of $3,141 million in 2023[123]. - Investment partnership losses for Q2 2024 were $79,890 million, compared to losses of $7,496 million in Q2 2023, and for the first six months of 2024, losses were $57,905 million compared to gains of $65,092 million in 2023[124]. - The total losses and expenses for Southern Pioneer in the second quarter of 2024 were $7,582 million, which is 111.5% of premiums earned, compared to 106.7% in the same quarter of 2023[110]. Insurance Operations - The pre-tax underwriting gain for the insurance operations was $546 million in Q2 2024, down from $2,704 million in Q2 2023[103]. - Premiums earned for the second quarter of 2024 were $16,291 million, an increase from $15,971 million in the same quarter of 2023, representing a growth of 2.0%[106]. - Insurance losses for the second quarter of 2024 were $10,962 million, up from $8,372 million in the second quarter of 2023, indicating a rise of 30.0%[106]. - The pre-tax underwriting gain for First Guard in the second quarter of 2024 was $1,331 million, compared to $3,155 million in the same quarter of 2023, reflecting a decrease of 57.8%[107]. - Southern Pioneer's insurance losses in the second quarter of 2024 were $4,801 million, which is 70.6% of premiums earned, compared to 61.0% in the same quarter of 2023[110]. Cash and Investments - The company's cash and cash equivalents as of June 30, 2024, were $26,897 million, down from $28,066 million at the end of 2023[131]. - Net cash provided by operating activities for the first six months of 2024 was $20,910 million, a decrease of $10,608 million compared to $31,518 million in 2023[133]. - Cash used in investing activities decreased by $8,888 million in 2024 compared to 2023, primarily due to increased proceeds from property and equipment disposals[134]. - The carrying value of cash and investments on the balance sheet as of June 30, 2024, was $279,247 million, down from $319,048 million at the end of 2023[131]. Oil and Gas Operations - Oil and gas revenues for the second quarter of 2024 were $8,671 million, down from $10,741 million in the same quarter of 2023, indicating a decline of 19.4%[115]. - The contribution to net earnings from oil and gas operations in the second quarter of 2024 was $13,369 million, compared to $2,150 million in the same quarter of 2023, reflecting a significant increase[115]. - Southern Oil's oil and gas revenues for the second quarter of 2024 were $3,679 million, down from $4,810 million in the same quarter of 2023, a decrease of 23.5%[119].

Financial Results Announcement - Biglari Holdings Inc. announced its financial results for Q1 2024, ending March 31, 2024[6]. - The company issued a press release detailing its operational results, which is attached as Exhibit 99.1[6]. - The financial results include key metrics that will be elaborated in the attached press release[6]. - The report does not include specific performance metrics or future guidance as the detailed financial results are in the press release[6]. Regulatory Compliance - The report is filed under the Securities Exchange Act of 1934, ensuring compliance with regulatory requirements[10]. - The filing does not incorporate any information as "filed" under the Securities Act of 1933[7]. - The company has not indicated any new or revised financial accounting standards compliance for emerging growth companies[3]. Company Information - The company is registered under the New York Stock Exchange with Class A and Class B common stock[12]. - The company’s principal executive offices are located in San Antonio, Texas[11]. - The report is signed by Bruce Lewis, the Controller of Biglari Holdings Inc.[9].

Revenue and Sales - Net sales and other revenue rose to $80,788 in Q1 2024 from $77,952 in Q1 2023[24]. - Franchise royalties and fees fell to $3,477 in Q1 2024 from $4,258 in Q1 2023, attributed to the closure of traditional franchise stores, reducing units from 143 to 125[22]. Expenses - General and administrative expenses increased to $11,730, or 18.9% of total revenue, in Q1 2024, compared to $10,463, or 17.1% in Q1 2023, primarily due to higher salaries and wages[23]. - Cost of food increased to $23,170, representing 28.7% of net sales in Q1 2024, up from $20,871, or 26.8%, in Q1 2023[24]. - Labor costs remained stable at $21,765, accounting for 26.9% of net sales in both Q1 2024 and Q1 2023[24]. Cash Flow and Investments - Cash increase in Q1 2024 was $6,470 compared to $2,146 in Q1 2023, mainly due to reduced cash used in investing and financing activities[37]. - Investment partnership pretax gains were $21,985 in Q1 2024, down from $72,588 in Q1 2023, leading to a decrease in income tax expense from $19,738 to $6,816[35]. - The available line of credit is $30,000, maturing on September 12, 2024, with no balance as of March 31, 2024[38]. Franchise Operations - Franchise partner fees decreased to $17,758 in Q1 2024 from $17,912 in Q1 2023, with food and labor expenses up by 1.8 percentage points[21]. - Estimated ultimate liabilities for prior accident years were reduced by $3,319 in Q1 2024, representing 21.9% of net liabilities, compared to $1,651 or 9.8% in Q1 2023[73].

Financial Results - Biglari Holdings Inc. announced its earnings for the fourth quarter and year ended December 31, 2023, on February 24, 2024[3] - The 2023 Annual Report to shareholders is available online, including Sardar Biglari's annual letter[12] Stock Information - The company is listed on the New York Stock Exchange under the trading symbols BH.A and BH[2]

Financial Performance - Total revenue for 2023 was $365.318 million, a slight decrease from $368.231 million in 2022 [263]. - Net earnings attributable to Biglari Holdings Inc. shareholders for 2023 were $54.948 million, compared to a loss of $32.018 million in 2022 [263]. - Restaurant operations generated revenue of $250.857 million in 2023, up from $241.568 million in 2022 [263]. - The consolidated income tax expense was $9,308 in 2023 compared to a benefit of $10,722 in 2022, with tax benefits of $5,660 associated with Abraxas Petroleum's oil and gas properties [232]. - Corporate and other net losses increased in 2023 compared to 2022, primarily due to an incentive fee of $7,271 [233]. - The company reported a gain on investment partnership of $19.440 million in 2023, recovering from a loss of $75.953 million in 2022 [263]. Cash Flow and Assets - Net cash provided by operating activities was $73,002 in 2023, down from $127,825 in 2022, while net cash used in investing activities decreased by $70,525 [237]. - The company had cash and cash equivalents of $28,066 and total cash and investments of $592,717 as of December 31, 2023 [235]. - Cash and cash equivalents decreased to $28.066 million in 2023 from $37.467 million in 2022 [262]. - Total current assets increased to $152.551 million in 2023 from $150.654 million in 2022 [262]. - Total assets rose to $849.422 million in 2023, compared to $828.474 million in 2022 [262]. - Total liabilities decreased to $250.092 million in 2023 from $272.906 million in 2022 [262]. Shareholder Information - Shareholders' equity increased to $599,330 as of December 31, 2023, an increase of $52,364 from the previous year, primarily due to net income of $54,948 [234]. - The company has never declared a dividend and had 1,551 beneficial shareholders of its Class A common stock as of February 1, 2024 [120]. Acquisitions - The company acquired the remaining 10% of Abraxas Petroleum for $5,387 in 2023, following the initial acquisition of 90% for $80,000 [102]. - The company’s financial results include the results of Abraxas Petroleum from the acquisition date to the end of the calendar year [102]. Lease Accounting - The company records right-of-use assets and corresponding lease liabilities on its consolidated balance sheets when a lease is determined to exist [267]. - Right-of-use assets are recognized at the commencement date at the value of the lease liability, adjusted for prepayments and initial direct costs [267]. - Lease liabilities are recognized based on the present value of remaining lease payments over the lease term [267]. - The company does not record lease contracts with a term of 12 months or less on its consolidated balance sheets [267]. - Fixed lease expense for operating leases is recognized on a straight-line basis over the lease term [267]. Operational Metrics - As of December 31, 2023, Biglari Holdings had 492 company-operated and franchise restaurant locations, with 17 of the 148 Steak n Shake company-operated stores closed [114]. - Goodwill remained relatively stable at $53.530 million in 2023, compared to $53.513 million in 2022 [262]. - The company maintained effective internal control over financial reporting as of December 31, 2023 [258].

Financial Performance - Net sales for Q3 2023 were $39,195, representing a 4.7% increase from Q3 2022, while net sales for the first nine months of 2023 were $115,613, a 2.0% increase compared to the same period in 2022[160] - Total revenue for Q3 2023 was $61,886, an increase from $59,437 in Q3 2022[160] - Franchise partner fees for Q3 2023 were $17,622, up from $15,880 in Q3 2022, and totaled $54,604 for the first nine months of 2023 compared to $47,929 in 2022[161] - The company reported a third-quarter income tax benefit of $17,502 in 2023, compared to an expense of $9,598 in Q3 2022[143] - Investment partnership pre-tax losses were $89,599 in Q3 2023, compared to pre-tax gains of $29,658 in Q3 2022[143] Operational Metrics - As of September 30, 2023, the company operated 510 restaurants, including both company-operated and franchise locations[135] - The company reopened four Steak n Shake stores and sold six properties during the first nine months of 2023[159] Cost and Expenses - The cost of food for Q3 2023 was $11,888, representing 30.3% of net sales, consistent with the same percentage in Q3 2022[160] - The company incurred $12,524 in total selling, general, and administrative expenses in Q3 2023, which was 20.2% of total revenue[160] Assets - The company’s total assets at fair value as of September 30, 2023, were $92,356, compared to $88,267 at the same time in 2022[149]

Corporate expenses exclude the activities of the restaurant, insurance, brand licensing, and oil and gas businesses. Corporate and other net losses increased during the second quarter and first six months of 2023 compared to the same periods in 2022 primarily because of recording a non-cash write down of a receivable of $1,000 and accruing for incentive fees. Consolidated cash and investments are summarized below. Table of Contents In 2023, cash from operating activities decreased by $2,686 as compared to 2 ...

First Quarter | --- | --- | --- | --- | --- | --- | |------------------------------------------------------|-------|---------|----------|---------|----------| | | | 2023 | | 2022 | | | Revenue | | | | | | | Net sales | $ | 36,894 | $ | 38,216 | | | Franchise partner fees | | 17,912 | | 15,624 | | | Franchise royalties and fees | | 4,258 | | 5,146 | | | Other revenue | | 2,065 | | 861 | | | Total revenue | | 61,129 | | 59,847 | | | | | | | | | | Restaurant cost of sales | | | | | | | | | | | | | | Cost of fo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file number 001-38477 BIGLARI HOLDINGS INC. (Exact name of registrant as specified in its charter) Indiana 82-3784946 (State or other jurisdiction of ...