Biglari (US:BH)2024-11-08 21:09Financial Performance - Net earnings attributable to Biglari Holdings Inc. shareholders for Q3 2024 were $32,125, a significant recovery from a loss of $56,514 in Q3 2023[100]. - Net sales for Q3 2024 were $39,660, representing an increase of $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 $62,384, compared to $61,886 in Q3 2023, reflecting a growth in overall business performance[106]. - Total operating businesses reported earnings of $7,520 in Q3 2024, a decline from $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 $82,553, up from $81,780 in 2023, while net sales for the first nine months of 2024 reached $246,811 compared to $242,741 in 2023[118]. Costs and Expenses - Franchise partner fees decreased to $17,157 in Q3 2024 from $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 $12,218 or 30.8% of net sales in Q3 2024, up from 30.3% in Q3 2023[111]. - Labor costs at company-operated restaurants rose to $13,158 or 33.2% of net sales in Q3 2024, compared to 31.1% in Q3 2023[112]. - General and administrative expenses were $10,355 or 16.6% of total revenue in Q3 2024, down from 17.3% in Q3 2023[113]. - Cost of food as a percentage of net sales increased to 30.4% in Q3 2024 from 28.8% in Q3 2023, while labor costs rose to 27.2% from 26.6%[118]. Asset Management - The company recorded no impairment charges in Q3 2024, contrasting with $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 $1,366 in Q3 2024, down from $2,362 in Q3 2023, with a total underwriting gain of $3,497 for the first nine months of 2024 compared to $7,379 in 2023[120]. - Southern Pioneer reported premiums written of $7,496 in Q3 2024, an increase of 29.2% from $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 $2,278 in Q3 2024, compared to $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 $645, slightly down from $658 in Q3 2023, with total investment income for the first nine months reaching $2,122 compared to $1,714 in 2023[128]. - Investment income for the first nine months of 2024 was $2,686, compared to $2,169 in the same period of 2023[128]. - Investment gains net of tax for Q3 2024 were $3,706 million, compared to losses of $3,710 million in Q3 2023[138]. Cash Flow and Debt - Consolidated cash and investments as of September 30, 2024, totaled $624,382 million, an increase from $592,717 million on December 31, 2023[147]. - Net cash provided by operating activities for the first nine months of 2024 was $31,665 million, down 34.9% from $48,676 million in the same period of 2023[149]. - Cash used in investing activities decreased by $21,310 million in 2024 compared to 2023, primarily due to a decrease in investments[150]. - The balance of the line of credit was $9,000 million on September 30, 2024, with an increase in the available line of credit to $35,000 million[144]. - Biglari Holdings' line of credit was increased to $35 million as of September 30, 2024, with a balance of $9 million[151]. - The interest rate on the line of credit was 7.71% as of September 30, 2024, compared to 8.06% on December 31, 2023[151]. - Western Sizzlin had no debt outstanding under its $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].