Biglari (BH)2024-11-08 21:09Financial Performance - Net earnings attributable to Biglari Holdings Inc. shareholders for Q3 2024 were 56,514 in Q3 2023[100]. - Net sales for Q3 2024 were 465 or 1.2% compared to Q3 2023, driven by a 5.4% increase in same-store sales at Steak n Shake[107]. - Total revenue for Q3 2024 was 61,886 in Q3 2023, reflecting a growth in overall business performance[106]. - Total operating businesses reported earnings of 20,319 in Q3 2023, primarily due to lower performance in oil and gas operations[100]. - Net sales for the third quarter of 2024 were 81,780 in 2023, while net sales for the first nine months of 2024 reached 242,741 in 2023[118]. Costs and Expenses - Franchise partner fees decreased to 17,622 in Q3 2023, attributed to higher food and labor expenses for franchise partners[109]. - The cost of food at company-operated units was 13,158 or 33.2% of net sales in Q3 2024, compared to 31.1% in Q3 2023[112]. - General and administrative expenses were 752 in Q3 2023, reflecting improved asset management[114]. - As of September 30, 2024, the company operated 143 Steak n Shake locations, down from 159 a year earlier, indicating a strategic reduction in company-operated units[102]. Insurance Operations - Underwriting gain for First Guard was 2,362 in Q3 2023, with a total underwriting gain of 7,379 in 2023[120]. - Southern Pioneer reported premiums written of 5,804 in Q3 2023, with a loss ratio of 47.9% compared to 60.5% in the same period last year[126]. - The company's insurance operations reported a pre-tax underwriting gain of 2,196 in Q3 2023[120]. - The ratio of losses and loss adjustment expenses to premiums earned for Southern Pioneer improved to 59.9% in the first nine months of 2024 from 59.6% in 2023[126]. Investment Performance - Net investment income for the third quarter of 2024 was 658 in Q3 2023, with total investment income for the first nine months reaching 1,714 in 2023[128]. - Investment income for the first nine months of 2024 was 2,169 in the same period of 2023[128]. - Investment gains net of tax for Q3 2024 were 3,710 million in Q3 2023[138]. Cash Flow and Debt - Consolidated cash and investments as of September 30, 2024, totaled 592,717 million on December 31, 2023[147]. - Net cash provided by operating activities for the first nine months of 2024 was 48,676 million in the same period of 2023[149]. - Cash used in investing activities decreased by 9,000 million on September 30, 2024, with an increase in the available line of credit to 35 million as of September 30, 2024, with a balance of 500,000 revolver as of September 30, 2024[152]. Regulatory and Compliance - There have been no material changes to critical accounting policies since the annual report for the year ended December 31, 2023[153]. - No recently issued accounting pronouncements were applicable for the Quarterly Report on Form 10-Q[154]. - Disclosure controls and procedures were deemed effective as of September 30, 2024[158]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2024[159]. - There have been no material changes to risk factors as previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[160].