Biglari (BH_A) - 2023 Q4 - Annual Report

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$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].