Biglari (US:BH)2022-05-06 20:18Financial Performance - Net sales for 2022 were $38,216 million, a decrease of $16,734 million or 30.5% compared to 2021[105] - Total revenue for 2022 was $59,847 million, down from $69,954 million in 2021[105] - Contribution to net earnings for 2022 was $3,262 million, down from $4,118 million in 2021[105] Costs and Expenses - Cost of food was $10,960 million or 28.7% of net sales in 2022, compared to $15,554 million or 28.3% in 2021[107] - Restaurant operating costs were $20,032 million or 52.4% of net sales in 2022, up from $25,197 million or 45.9% in 2021[107] - General and administrative costs rose to $8,650 million in 2022, representing 14.5% of total revenue, compared to $7,680 million or 11.0% in 2021[108] Franchise Operations - Franchise partner fees increased to $15,624 million in 2022 from $7,853 million in 2021, with 171 franchise partner units as of March 31, 2022[106] Investment Performance - Oil and gas revenue for the first quarter of 2022 was $9,812 million, an increase from $8,592 million in 2021[117] - Investment gains net of tax for the first quarter of 2022 were $175 million, compared to $2,414 million in 2021[120] - Investment partnership pretax losses were $6,661 in Q1 2022 compared to pretax gains of $81,766 in Q1 2021[125] Cash Flow and Liquidity - Net cash provided by operating activities was $21,092 in Q1 2022, a significant decrease from $165,298 in Q1 2021, primarily due to lower distributions from investment partnerships[129] - Cash used in investing activities increased to $16,077 in Q1 2022 from $8,780 in Q1 2021, with capital expenditures rising by $1,846[130] - Total cash and investments as of March 31, 2022, were $604,719, up from $599,611 on December 31, 2021[127] - The carrying value of cash and investments on the balance sheet was $375,295 as of March 31, 2022, slightly down from $375,809 at the end of 2021[127] Tax and Interest - Income tax benefit for Q1 2022 was $171, compared to an income tax expense of $22,016 in Q1 2021[125] - Interest expense net of tax was $841 in Q1 2021, with no interest expense reported for Q1 2022[123] Operational Strategy - The company intends to meet working capital needs primarily through anticipated cash flows generated from operations and cash on hand[131] - Unrealized gains/losses from investments held by partnerships are eliminated in the company's consolidated financial results[127] - The company has minimal exposure to foreign currency exchange rate fluctuations in Q1 2022 and Q1 2021[139] Impairment Charges - The company recorded no impairment charges in 2022, while there were $298 million in impairments in the first quarter of 2021[108]