Biglari (BH_A) - 2024 Q4 - Annual Report

Financial Performance - Net earnings attributable to Biglari Holdings Inc. shareholders for 2024 were $(3,759) thousand, a decrease from$54,948 thousand in 2023 [100]. - Total revenues for Biglari Holdings Inc. in 2024 were $362,114,000, a decrease of 1$365,318,000 in 2023 [198]. - The company reported a comprehensive loss of $4,113,000 in 2024, compared to a comprehensive income of$55,811,000 in 2023 [202]. - Net loss attributable to Biglari Holdings Inc. shareholders for 2024 was $3,759,000, compared to a net income of$54,948,000 in 2023 [198]. - The total operating businesses reported earnings of $24,121 thousand in 2024, down from$39,162 thousand in 2023 [100]. Revenue Breakdown - Total revenue for the restaurant segment in 2024 was $251,447 thousand, slightly up from$250,857 thousand in 2023 [108]. - Restaurant operations generated revenues of $251,447,000 in 2024, slightly up from$250,857,000 in 2023 [198]. - Oil and gas revenues decreased to $36,945,000 in 2024 from$45,071,000 in 2023, reflecting a decline of approximately 18% [198]. - Licensing and media revenue fell by $1,089 million in 2024 compared to 2023, primarily due to poor performance of a key licensing arrangement [141]. Expenses and Costs - The cost of food at company-operated units was$47,891 thousand, representing 30.1% of net sales in 2024, up from 29.5% in 2023 [114]. - General and administrative expenses increased to $47,130 thousand, or 18.7$771 million in 2024, compared to $681 million in 2023, indicating increased borrowing costs [149]. Insurance and Underwriting - Underwriting gain for First Guard was$4,038 thousand in 2024, down from $9,492 thousand in 2023 [121]. - Pre-tax underwriting gain decreased to$4,438 million in 2024, down 47.5% from $8,454 million in 2023 [122]. - First Guard's underwriting gain declined by$5,454 million, or 57.5%, in 2024 compared to 2023 due to increased claim severity [124]. - Insurance losses rose to $43,643 million in 2024, compared to$35,668 million in 2023, marking an increase of 22.4% [122]. Assets and Liabilities - Total current assets increased to $170,615,000 in 2024 from$152,551,000 in 2023, representing an increase of about 12% [196]. - Total liabilities rose to $293,172,000 in 2024, up from$250,092,000 in 2023, indicating an increase of approximately 17% [196]. - Consolidated shareholders' equity decreased by $26,369 to$572,961 as of December 31, 2024, primarily due to a net loss of $3,759 and a change in treasury stock of$22,256 [152]. Cash Flow - Net cash provided by operating activities decreased by $23,342 to$49,660 in 2024, attributed to a $15,511 decrease in cash from business operations [156]. - Total cash and investments increased to$789,950 in 2024 from $592,717 in 2023, with cash and cash equivalents rising to$30,709 from $28,066 [154]. - Net cash used in investing activities increased by$21,308 in 2024, with capital expenditures in the oil and gas business rising by $11,239 due to drilling activities [157]. Investments - The company recorded investment partnership gains of$41,058 thousand in 2024, a significant recovery from a loss of $19,440 thousand in 2023 [205]. - The carrying value of investment partnerships net of deferred taxes increased from$171,207 in 2023 to $184,472 in 2024, reflecting a growth of approximately 7.4$201,727,000 as of December 31, 2024, compared to $199,103,000 in 2023 [176]. Franchise Operations - Steak n Shake's same-store sales increased by 6.4$70,616 thousand in 2024 from $72,552 thousand in 2023, with 173 franchise partner units as of December 31, 2024 [111]. - The total number of company-operated and franchise restaurants was 458 as of December 31, 2024, down from 492 in 2023 [105]. Impairments and Goodwill - The impairment expense for 2024 was$1,107,000, down from $3,947,000 in 2023, showing a reduction of about 72$1,000 to goodwill in 2024, while no impairment was recorded in 2023 [222]. - The company recorded impairments to restaurant long-lived assets of $107 in 2024, down from$3,947 in 2023, showing a substantial decrease in impairment losses [272]. Taxation - The consolidated income tax benefit was $4,395 in 2024 compared to a tax expense of$9,308 in 2023, with an effective tax rate of 26.0% in 2024 versus 9.9% in 2023 [150]. - Federal income tax for 2024 amounted to $2,702 million, an increase from$2,197 million in 2023, reflecting a growth of 23.0% [295]. - The income tax expense for 2024 was reported as a benefit of $4,395 million, contrasting with an expense of$9,308 million in 2023 [295].