San Antonio, TX, May 21 /PRNewswire-FirstCall/ -- Biglari Holdings Inc. announces its fiscal second quarter 2010 results:
Biglari Holdings Inc.'s operating results for the sixteen and the twenty-eight weeks, which ended April 14, 2010, are summarized below. To become apprised fully of our results, shareholders should carefully study our 10-Q, which has been posted at http://www.biglariholdings.com/.
Sixteen Weeks Ended Twenty-Eight Weeks Ended ------------------- ------------------------ April 14, April 8, April 14, April 8, 2010 2009 2010 2009 ---- ---- ---- ---- Pre-tax operating earnings (loss) $7,840 $2,606 $15,689 $(3,375) Realized investment gains/losses 522 - 834 - Income taxes (2,838) (353) (5,522) 2,188 ------ ---- ------ ----- Net earnings (loss) attributable to Biglari Holdings Inc. $5,524 $2,253 $11,001 $(1,187) ====== ====== ======= ======= Diluted net earnings (loss) per common and common equivalent share* $3.84 $1.58 $7.66 $(0.84) ===== ===== ===== ====== Weighted average diluted shares and equivalents* 1,437,806 1,427,720 1,436,746 1,420,134 * Adjusted for 1-for-20 reverse stock split effective December 18, 2009.
Net earnings for fiscal second quarter 2010 were $5.5 million, or $3.84 per diluted share, as contrasted with net earnings for the second quarter of fiscal year 2009 of $2.3 million, or $1.58 per diluted share. In the current quarter, net revenues increased 4.7% from $189 million to $197.8 million. Year-to-date net revenues increased 8% from $320.7 million to $346.3 million.
About Biglari Holdings Inc.
Biglari Holdings Inc. is a holding company engaged in a number of diverse business activities. The most important operating subsidiaries are engaged in investment management and the franchising and operating of restaurants.
The company's long-term objective is to maximize its per-share intrinsic value. Strategically, the holding company reinvests cash generated from its operating subsidiaries into investments whose purpose is to achieve high risk-adjusted returns. All investment and other capital allocation decisions are made by Sardar Biglari, Chairman and Chief Executive Officer, on behalf of the company.
Comment on Regulation G
This press release includes certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Biglari Holdings defines pre-tax operating earnings as exclusive of investment gains/losses and income taxes but inclusive of noncontrolling interest.
Risks Associated with Forward-Looking Statements
This news release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These statements which may concern anticipated future results are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ markedly from those projected or discussed here. Biglari Holdings cautions readers not to place undue reliance upon any such forward-looking statements, for actual results may differ materially from expectations. Biglari Holdings does not update publicly or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. Further information on the types of factors that could affect Biglari Holdings and its business can be found in the company's filings with the SEC.
Condensed Consolidated Statements of Financial Position (Unaudited) ------------------------------------------------------------------- Biglari Holdings Inc. (Amounts in $000s, except share and per share data) April 14, September 30, 2010 2009 ---- ---- Assets Current assets: Cash and cash equivalents $75,216 $51,395 Investments 5,806 3,001 Receivables, net of allowance of $538 and $538, respectively 10,848 7,660 Inventories 8,125 6,595 Deferred income taxes 4,329 3,910 Assets held for sale 12,284 13,733 Other current assets 4,561 4,421 ----- ----- Total current assets 121,169 90,715 Property and equipment, net 392,609 399,635 Marketable securities held by consolidated affiliated partnerships 11,658 - Goodwill 33,220 14,503 Other intangible assets, net 1,463 1,567 Other assets 8,420 8,076 ----- ----- Total assets $568,539 $514,496 ======== ======== Liabilities and shareholders' equity Liabilities Current liabilities: Accounts payable $25,962 $22,293 Accrued expenses 33,628 30,381 Revolving credit 17,500 18,500 Current portion of obligations under leases 4,390 4,339 Current portion of long-term debt 148 20 --- --- Total current liabilities 81,628 75,533 Deferred income taxes 10,754 9,388 Obligations under leases 127,098 130,076 Long-term debt 25,396 48 Other long-term liabilities 9,377 7,404 ----- ----- Total liabilities 254,253 222,449 ------- ------- Commitments and contingencies Redeemable noncontrolling interests of consolidated affiliated partnerships 12,004 - Shareholders' equity Common stock -$0.50 stated value, 2,500,000 shares authorized - 1,511,175 shares issued, 1,431,608 shares outstanding* 756 757 Additional paid-in capital 143,693 143,691 Retained earnings 178,732 167,731 Accumulated other comprehensive income 252 112 Treasury stock -at cost: 79,567 shares as of April 14, 2010; 77,796 shares as of September 30, 2009* (21,151) (20,430) ------- ------- Biglari Holdings Inc. shareholders' equity 302,282 291,861 Noncontrolling interest - 186 --- --- Total shareholders' equity 302,282 292,047 ------- ------- Total liabilities and shareholders' equity $568,539 $514,496 ======== ======== * Adjusted for 1-for-20 reverse stock split effective December 18, 2009. Condensed Consolidated Statements of Operations (Unaudited) ----------------------------------------------------------- Biglari Holdings Inc. (Amounts in $000s except share and per share data) Sixteen Weeks Twenty-Eight Weeks Ended Ended ------------- ------------------ April 14, April 8, April 14, April 8, 2010 2009 2010 2009 ---- ---- ---- ---- Revenues Net sales $196,650 $187,975 $344,236 $318,694 Franchise fees 1,192 1,054 2,111 2,012 ----- ----- ----- ----- Total revenues 197,842 189,029 346,347 320,706 ------- ------- ------- ------- Costs and expenses Cost of sales 54,160 50,714 92,639 85,831 Restaurant operating costs 98,394 96,423 171,551 168,019 General and administrative 11,609 10,799 20,394 19,444 Depreciation and amortization 8,962 9,606 15,885 17,049 Marketing 9,882 9,873 17,609 17,416 Interest 3,527 4,049 6,081 7,651 Rent 4,936 4,659 8,629 8,224 Asset impairments and provision for restaurant closing (28) 741 143 917 Loss (gain) on disposal of assets 122 47 99 (12) Total costs and expenses 191,564 186,911 333,030 324,539 ------- ------- ------- ------- Other income (expense) Other income 1,741 726 2,677 1,254 Other expense (186) (238) (295) (796) Other income (expense), net 1,555 488 2,382 458 Realized investment gains/ losses 522 - 834 - --- --- --- --- Earnings (loss) before income taxes 8,355 2,606 16,533 (3,375) Income taxes 2,838 353 5,522 (2,188) ----- --- ----- ------ Net earnings (loss) 5,517 2,253 11,011 (1,187) Less: (Loss) earnings attributable to noncontrolling interest (7) - 10 - Net earnings (loss) attributable to Biglari Holdings Inc. $5,524 $2,253 $11,001 $(1,187) ====== ====== ======= ======= Basic earnings (loss) per common and $3.87 $1.58 $7.70 $(0.84) common equivalent share* Diluted earnings (loss) per common and $3.84 $1.58 $7.66 $(0.84) common equivalent share* Weighted average shares and equivalents* Basic 1,428,699 1,423,918 1,427,835 1,420,134 Diluted 1,437,806 1,427,720 1,436,746 1,420,134 * Adjusted for 1-for-20 reverse stock split effective December 18, 2009. Condensed Consolidated Statements of Cash Flows (Unaudited) ------------------------------------ Biglari Holdings Inc. (Amounts in $000s) Twenty-Eight Weeks Ended ------------------------ April 14, April 8, 2010 2009 ---- ---- Operating activities Net earnings (loss) $11,011 $(1,187) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation and amortization 15,885 17,049 Provision for deferred income taxes 1,519 1,748 Asset impairments and provision for restaurant closing 143 917 Stock-based compensation and other non-cash expenses 900 1,942 Loss (gain) on disposal of assets 99 (12) Realized investment gains (834) - Changes in receivables and inventories (3,152) 9,312 Changes in other assets (126) (2,098) Changes in accounts payable and accrued expenses 5,650 (1,868) ----- ------ Net cash provided by operating activities 31,095 25,803 ------ ------ Investing activities Additions of property and equipment (4,648) (2,612) Proceeds from property and equipment disposals 711 6,590 Purchases of investments (9,532) - Sale of investments 9,169 - Cash from merger activities 1,208 - Net cash (used in) provided by investing activities (3,092) 3,978 ------ ----- Financing activities Proceeds from revolving credit facility - 7,400 Payments on revolving credit facility (1,000) (4,580) Principal payments on long-term debt (8) (4,482) Proceeds from property sale- leaseback - 2,005 Principal payments on direct financing lease obligations (2,253) (2,407) Proceeds from exercise of stock options and employee stock purchase plan 210 566 Cash paid in lieu of fractional shares (711) - Repurchase of employee shares for tax withholding (199) (128) Distributions to noncontrolling interest (221) - ---- --- Net cash used in financing activities (4,182) (1,626) ------ ------ Increase in cash and cash equivalents 23,821 28,155 Cash and cash equivalents at beginning of period 51,395 6,855 ------ ----- Cash and cash equivalents at end of period $75,216 $35,010 ======= =======
Biglari Holdings Inc.
CONTACT: Duane Geiger, +1-317-633-4100
Web Site: http://www.biglariholdings.com/
