Biglari Holdings (BHA) Q2 2024 earnings summary

Executive summary

• Net loss attributable to shareholders was $48.2 million for Q2 2024 and $58.9 million for the first six months, compared to net earnings of $69.1 million and $66.8 million in the prior-year periods.

• Pre-tax operating earnings rose to $19.7 million in Q2 2024 from $10.0 million in Q2 2023, and to $25.4 million for the first six months of 2024 from $19.1 million in the same period last year.

• Significant losses from investment partnerships and lower investment gains drove the negative results.

• Operating businesses (restaurants, insurance, oil & gas, licensing) remained profitable, but were offset by non-operating losses.

Financial highlights

• Total revenues were $91.1 million for Q2 2024, down from $93.5 million in Q2 2023; six-month revenues were $180.6 million, down from $183.7 million year-over-year.

• Investment partnership losses were $79.9 million in Q2 2024 and $57.9 million for the first six months, compared to losses of $7.5 million and gains of $65.1 million in the prior-year periods.

• Investment losses of $82.6 million in Q2 2024 significantly impacted net results, compared to investment gains of $14.7 million in Q2 2023.

• Restaurant segment net sales increased 3.3% in Q2 2024, driven by a 7% same-store sales increase at Steak n Shake.

• Oil and gas segment recorded a $16.6 million gain on sale of properties in the first half of 2024.

Outlook and guidance

• Management notes continued volatility in investment partnership results and highlights the impact of market fluctuations on earnings.

• No specific forward guidance provided; cautionary statements emphasize risks and uncertainties.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations.