Biglari Holdings Inc. (NYSE:BH.A) is a diversified holding company with a portfolio of businesses spanning the restaurant, insurance, oil and gas, and media industries. Led by Chairman and CEO Sardar Biglari, the company has demonstrated its ability to navigate challenging market conditions while maintaining a strong financial position.
Financials
In the latest fiscal year, Biglari Holdings reported annual revenue of $365,318,000 and net income of $54,948,000. The company's annual operating cash flow stood at $73,002,000, while its free cash flow reached $49,597,000. These financial metrics showcased the company's operational efficiency and its capacity to generate substantial cash flows.
During the first quarter of 2024, Biglari Holdings continued to demonstrate its resilience. The company reported quarterly revenue of $89,451,000, a slight decrease from the $90,176,000 recorded in the same period of the previous year. However, the company's net earnings attributable to Biglari Holdings Inc. shareholders for the first quarter of 2024 were $22,579,000, compared to $64,886,000 in the first quarter of 2023.
Business Overview
The company's diverse business segments have contributed to its overall performance. The restaurant operations, which include the Steak n Shake and Western Sizzlin brands, generated quarterly revenue of $61,996,000 in the first quarter of 2024, compared to $61,129,000 in the same period of the previous year. The insurance operations, comprising First Guard and Southern Pioneer, reported quarterly revenue of $17,733,000, up from $16,229,000 in the first quarter of 2023.
The oil and gas segment, which includes Abraxas Petroleum and Southern Oil, generated quarterly revenue of $9,510,000, down from $12,223,000 in the first quarter of the previous year. This decrease was primarily due to lower natural gas prices and reduced production during the quarter.
Biglari Holdings' brand licensing and media segment, represented by Maxim, reported quarterly revenue of $212,000, a decline from $595,000 in the first quarter of 2023. The company attributed this decrease to fewer licensing events during the quarter.
The company's investment partnerships, which include The Lion Fund, L.P. and The Lion Fund II, L.P., continue to be a significant contributor to Biglari Holdings' financial performance. In the first quarter of 2024, the company recorded investment partnership gains of $21,985,000, compared to $72,588,000 in the same period of the previous year.
Liquidity
Biglari Holdings' balance sheet remains strong, with cash and investments totaling $677,170,000 as of March 31, 2024. The company's consolidated cash and investments, net of the portion of Biglari Holdings' stock held by the investment partnerships, stood at $353,018,000.
The company's liquidity position is further bolstered by its available line of credit, which stands at $30,000,000. As of March 31, 2024, Biglari Holdings had no outstanding balance on its line of credit.
Outlook
Biglari Holdings' management team, led by Sardar Biglari, has demonstrated its ability to navigate the company through various market conditions. The company's diversified business model, strong financial position, and experienced leadership provide a solid foundation for its continued growth and resilience.
Looking ahead, Biglari Holdings' management has not provided specific guidance for the remainder of the fiscal year. However, the company's focus on operational efficiency, strategic investments, and prudent capital allocation is expected to continue to drive its performance.
Conclusion
Biglari Holdings Inc. (NYSE:BH.A) is a diversified conglomerate that has demonstrated its ability to navigate challenging market conditions. The company's diverse business segments, strong financial position, and experienced leadership team position it well to capitalize on future opportunities and create value for its shareholders.