Biglari (US:BH)2023-02-26 16:00Revenue and Growth - Southern Pioneer's premiums earned in 2022 were $24,035 million, an increase from $21,890 million in 2021, reflecting a growth of 9.8%[177] - Southern Oil's oil and gas revenue for 2022 was $46,091 million, a significant increase from $33,004 million in 2021, representing a growth of 39.7%[182] - Maxim's licensing and media revenue for 2022 was $4,577 million, up from $3,203 million in 2021, showing an increase of 42.8%[187] - Franchise partner fees increased to $63,853 million in 2022 from $55,641 million in 2021, marking a growth of 14.4%[195] - Other revenue rose to $8,853 million in 2022 from $6,000 million in 2021, primarily driven by gift card breakage[197] - Total revenues for 2022 were $368,231 thousand, slightly up from $366,106 thousand in 2021, indicating a marginal growth of about 0.6%[406] Expenses and Costs - The ratio of losses and loss adjustment expenses to premiums earned for Southern Pioneer was 61.9% in 2022, up from 51.7% in 2021, indicating increased claim frequency and severity[177] - The cost of food at company-operated units in 2022 was $44,461, or 29.8% of net sales, compared to $55,315, or 29.4% in 2021[198] - Operating costs at company-operated restaurants in 2022 were $79,921, or 53.6% of net sales, down from $92,543, or 49.2% in 2021[199] - Selling, general and administrative expenses decreased to $51,833, or 21.5% of total revenue in 2022, from $57,186, or 21.1% in 2021[200] Net Earnings and Losses - Net underwriting gain from insurance operations was $4,188 in 2022, down from $9,730 in 2021[205] - Net earnings for the year 2022 were a loss of $32,305 thousand, compared to a profit of $35,478 thousand in 2021, representing a significant negative swing[406] - The company reported a comprehensive loss of $33,188 thousand for the year 2022, compared to a comprehensive income of $35,102 thousand in 2021[410] - The company reported a net loss per equivalent Class A share of $107.43 for 2022, compared to a profit of $111.83 per share in 2021[406] Investments and Acquisitions - Investment losses were $3,393 in 2022, compared to investment gains of $6,401 in 2021[222] - Investment partnership losses amounted to $(75,953) in 2022, a significant decline from gains of $10,953 in 2021[224] - The company acquired Maxim to transform its business model and generate non-magazine revenue through licensing[221] - The company made acquisitions totaling $58.274 million, net of cash acquired, with no acquisitions reported in the previous year[415] Assets and Liabilities - Total assets decreased from $894,807 thousand in December 2021 to $828,474 thousand in December 2022, a decline of approximately 7.4%[402] - Total liabilities decreased from $307,111 thousand in December 2021 to $272,906 thousand in December 2022, a reduction of approximately 11%[402] - Cash and cash equivalents decreased from $42,349 thousand in December 2021 to $37,467 thousand in December 2022, a decline of about 11%[402] - The current liabilities decreased from $143,641 thousand in December 2021 to $134,897 thousand in December 2022, a decrease of about 6%[402] Future Projections and Reserves - Future net cash flows for 2022 were estimated at $332,848,000, up from $107,510,000 in 2021, indicating a growth of approximately 209.5%[233] - The standardized measure of discounted future net cash flows increased from $77,759,000 at December 31, 2021 to $210,067,000 at December 31, 2022, reflecting a growth of approximately 169.5%[235] - Total proved reserves increased from 6,376 MBOE at December 31, 2020 to 13,188 MBOE at December 31, 2022, representing a growth of approximately 106.5%[228] - Proved developed reserves rose from 4,968 MBOE at December 31, 2021 to 11,371 MBOE at December 31, 2022, an increase of approximately 128.5%[228] - Future production costs for 2022 were estimated at $(288,816,000), compared to $(78,207,000) in 2021, indicating a significant increase in expected costs[233] Financial Reporting and Controls - The company’s internal control over financial reporting was deemed effective as of December 31, 2022, according to the audit report[393] - The allowance for doubtful accounts increased to $1.151 million in 2022 from $505 thousand in 2021, reflecting a rise in expected credit losses[438] Other Financial Information - Depreciation and amortization expense increased by $6,012 in 2022 due to higher capital expenditures in 2021[201] - Interest on lease obligations decreased to $5,493 in 2022 from $6,039 in 2021[201] - Capital expenditures for 2022 were $29.746 million, significantly lower than $64.549 million in 2021[415] - The company experienced a net cash used in investing activities of $136.605 million, compared to $58.525 million in 2021, indicating increased investment outflows[415] - Cash equivalents primarily consist of U.S. Government securities and money market accounts, carried at fair value[433] - No impairments were recorded to goodwill and other intangible assets during 2022 and 2021[443] - An impairment of $300 million to goodwill and $3,728 million to indefinite life intangible assets was recorded in 2020[443] - Goodwill and indefinite life intangible assets are tested for potential impairment annually[443] - Class A common shares have one vote per share, while Class B common stock has economic rights equal to one-fifth of Class A but no voting rights[445]