Biglari Holdings Reports Fiscal 2012 First Quarter Results

January 31, 2012

Biglari Holdings Inc. (NYSE: BH) reported total revenues for is fiscal first quarter ended  December 21, 2011 increased 4.8% to $166.39 million compared to $158.72 million during the first quarter of fiscal 2011.  Total revenue primarily benefited from increased sales from the company’s restaurant operations which saw Steak n Shake same-store sales increase 5.5% during the quarter.

Net earnings for the first quarter of 2012 slipped 7.1% to $8.8 million or $6.58 per diluted share versus $9.46 million or $7.08 per diluted share.  Net earnings were negatively impacted by higher commodity costs, franchising efforts, the Cracker Barrel Old Country Store, Inc (NasdaqGS: CBRL) proxy contest, higher interest expenses and a much lower incentive fee related to redeemable noncontrolling interest.  These negative impacts were in part offset by better operating efficiencies, higher investment gains and investment income (dividends, interest, etc.).

At the end of the fiscal 2012 first quarter, the balance sheet reflected current assets of $258.65 million (including cash/cash equivalents of $115.4 million and investments of $118.7 million), total assets of $690.13 million, current liabilities of $106.4 million and total liabilities of $342.04 million.  Since September 28, 2011, shareholders’ equity increased 6.6% to $298.08 million.

Biglari has been in a proxy battle with Cracker Barrel for some time now and recently announced that it had raised its stake in Cracker Barrel to 14.5%.  Just before Christmas, it was announced that Cracker Barrel shareholders elected all of the company’s nominees blocking Sardar Biglari’s attempt at a board seat.  However, the shareholder rights plan that would have went into effect if any shareholder acquired 10% or more of the stock was not supported by shareholders and opened the door for Biglari to increase its stake.

Biglari Holdings Inc. is a diversified holding company with operations in investment management and the franchising and operating of restaurants.

Source: Biglari Holdings Inc.

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