BIGLARI HOLDINGS INC.
|
(Exact name of registrant as specified in its charter)
|
INDIANA
|
37-0684070
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
17802 IH 10 West, Suite 400
San Antonio, Texas
|
78257
|
(Address of principal executive offices)
|
(Zip Code)
|
(210) 344-3400
|
(Registrant’s telephone number, including area code)
|
Not Applicable
|
(Former name, former address and former fiscal year, if changed since last report)
|
Large accelerated filer ¨
|
Accelerated filer x
|
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company o
|
April 11,
2012
|
September 28,
2011
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 37,042 | $ | 98,987 | ||||
Investments
|
217,743 | 115,321 | ||||||
Receivables, net of allowance of $742 and $559, respectively
|
8,131 | 4,133 | ||||||
Inventories
|
6,423 | 5,886 | ||||||
Deferred income taxes
|
— | 6,150 | ||||||
Assets held for sale
|
6,203 | 6,870 | ||||||
Other current assets
|
6,393 | 3,237 | ||||||
Total current assets
|
281,935 | 240,584 | ||||||
Property and equipment, net
|
362,079 | 371,736 | ||||||
Goodwill
|
27,529 | 27,529 | ||||||
Other intangible assets, net
|
6,587 | 6,950 | ||||||
Other assets
|
9,615 | 7,278 | ||||||
Investments held by consolidated affiliated partnerships
|
23,603 | 18,783 | ||||||
Total assets
|
$ | 711,348 | $ | 672,860 | ||||
Liabilities and shareholders’ equity
|
||||||||
Liabilities
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 33,921 | $ | 29,236 | ||||
Due to broker
|
3,852 | 7,272 | ||||||
Accrued expenses
|
44,888 | 46,948 | ||||||
Revolving credit
|
15,000 | 15,000 | ||||||
Deferred income taxes
|
4,029 | — | ||||||
Current portion of obligations under leases
|
5,560 | 5,272 | ||||||
Current portion of long-term debt
|
11,180 | 11,141 | ||||||
Total current liabilities
|
118,430 | 114,869 | ||||||
Deferred income taxes
|
10,086 | 6,664 | ||||||
Obligations under leases
|
112,769 | 116,066 | ||||||
Long-term debt
|
95,793 | 101,417 | ||||||
Other long-term liabilities
|
9,754 | 8,914 | ||||||
Total liabilities
|
346,832 | 347,930 | ||||||
Commitments and contingencies
|
||||||||
Redeemable noncontrolling interests of consolidated affiliated partnerships
|
54,822 | 45,252 | ||||||
Shareholders’ equity
|
||||||||
Common stock – $0.50 stated value, 2,500,000 shares authorized – 1,511,174 shares issued, 1,227,558 and 1,227,276 shares outstanding (net of treasury stock), respectively
|
756 | 756 | ||||||
Additional paid-in capital
|
138,735 | 144,569 | ||||||
Retained earnings
|
243,713 | 230,390 | ||||||
Accumulated other comprehensive income (loss)
|
17,057 | (5,468 | ) | |||||
Treasury stock – at cost: 283,616 and 283,898 shares (includes 205,743 shares held by consolidated affiliated partnerships) at April 11, 2012 and September 28, 2011, respectively
|
(90,567 | ) | (90,569 | ) | ||||
Biglari Holdings Inc. shareholders’ equity
|
309,694 | 279,678 | ||||||
Total liabilities and shareholders’ equity
|
$ | 711,348 | $ | 672,860 |
Sixteen Weeks Ended
|
Twenty-Eight Weeks Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Net revenues
|
||||||||||||||||
Restaurant Operations:
|
||||||||||||||||
Net sales
|
$ | 218,358 | $ | 207,896 | $ | 379,874 | $ | 360,955 | ||||||||
Franchise fees
|
2,603 | 2,305 | 4,747 | 4,350 | ||||||||||||
Other revenue
|
790 | 711 | 1,320 | 1,222 | ||||||||||||
Total
|
221,751 | 210,912 | 385,941 | 366,527 | ||||||||||||
Investment Management Operations:
|
||||||||||||||||
Management fee income
|
— | 114 | — | 224 | ||||||||||||
Consolidated Affiliated Partnerships:
|
||||||||||||||||
Investment gains/losses
|
1,842 | 259 | 3,966 | 2,946 | ||||||||||||
Other income/loss
|
91 | (8 | ) | 167 | 302 | |||||||||||
Total
|
1,933 | 365 | 4,133 | 3,472 | ||||||||||||
Total net revenues
|
223,684 | 211,277 | 390,074 | 369,999 | ||||||||||||
Costs and expenses
|
||||||||||||||||
Cost of sales
|
63,272 | 57,543 | 108,696 | 98,823 | ||||||||||||
Restaurant operating costs
|
102,807 | 102,640 | 176,770 | 175,329 | ||||||||||||
General and administrative
|
19,854 | 14,595 | 33,112 | 25,609 | ||||||||||||
Depreciation and amortization
|
8,098 | 8,683 | 14,399 | 15,292 | ||||||||||||
Marketing
|
11,390 | 10,780 | 20,277 | 19,731 | ||||||||||||
Rent
|
5,445 | 5,124 | 9,492 | 9,020 | ||||||||||||
Pre-opening costs
|
322 | 34 | 423 | 76 | ||||||||||||
Asset impairments and provision for restaurant closings
|
320 | (270 | ) | 320 | 13 | |||||||||||
Loss on disposal of assets
|
153 | 153 | 369 | 257 | ||||||||||||
Other operating (income) expense
|
(125 | ) | (57 | ) | (644 | ) | 765 | |||||||||
Total costs and expenses, net
|
211,536 | 199,225 | 363,214 | 344,915 | ||||||||||||
Other income (expense)
|
||||||||||||||||
Interest, dividend and other investment income
|
776 | 118 | 1,402 | 153 | ||||||||||||
Interest on obligations under leases
|
(3,102 | ) | (3,261 | ) | (5,427 | ) | (5,710 | ) | ||||||||
Interest expense
|
(2,533 | ) | (867 | ) | (4,388 | ) | (1,432 | ) | ||||||||
Realized investment gains/losses
|
378 | 366 | 3,973 | 3,244 | ||||||||||||
Derivative and short sale gains/losses
|
— | 32 | — | 207 | ||||||||||||
Total other income (expense)
|
(4,481 | ) | (3,612 | ) | (4,440 | ) | (3,538 | ) | ||||||||
Earnings before income taxes
|
7,667 | 8,440 | 22,420 | 21,546 | ||||||||||||
Income taxes
|
2,136 | 2,687 | 6,896 | 7,028 | ||||||||||||
Net earnings
|
5,531 | 5,753 | 15,524 | 14,518 | ||||||||||||
Earnings attributable to redeemable noncontrolling interest:
|
||||||||||||||||
Income allocation
|
(1,003 | ) | (108 | ) | (2,237 | ) | (1,920 | ) | ||||||||
Incentive fee
|
— | — | 36 | 2,510 | ||||||||||||
Total earnings/loss attributable to redeemable noncontrolling interests
|
(1,003 | ) | (108 | ) | (2,201 | ) | 590 | |||||||||
Net earnings attributable to Biglari Holdings Inc.
|
$ | 4,528 | $ | 5,645 | $ | 13,323 | $ | 15,108 | ||||||||
Earnings per share attributable to Biglari Holdings Inc.
|
||||||||||||||||
Basic earnings per common and common equivalent share
|
$ | 3.39 | $ | 4.25 | $ | 9.99 | $ | 11.38 | ||||||||
Diluted earnings per common and common equivalent share
|
$ | 3.39 | $ | 4.23 | $ | 9.97 | $ | 11.31 | ||||||||
Weighted average shares and equivalents
|
||||||||||||||||
Basic
|
1,333,848 | 1,327,685 | 1,333,685 | 1,327,480 | ||||||||||||
Diluted
|
1,337,446 | 1,334,653 | 1,336,904 | 1,335,878 |
Twenty-Eight Weeks Ended
|
||||||||
2012
|
2011
|
|||||||
(Unaudited)
|
||||||||
Operating activities
|
||||||||
Net earnings
|
$
|
15,524
|
$
|
14,518
|
|
|||
Adjustments to reconcile net earnings to operating cash flows (excluding investment operations of consolidated affiliated partnerships):
|
|
|||||||
Depreciation and amortization
|
14,399
|
15,292
|
||||||
Provision for deferred income taxes
|
(204
|
)
|
1,314
|
|||||
Asset impairments and provision for restaurant closings
|
320
|
13
|
||||||
Stock-based compensation and other non-cash expenses
|
638
|
572
|
||||||
Loss on disposal of assets
|
369
|
257
|
||||||
Realized investment gains/losses
|
(3,973
|
)
|
(3,244
|
)
|
||||
Derivative and short sale gains/losses
|
—
|
(207
|
)
|
|||||
Changes in receivables and inventories
|
(4,749
|
)
|
(5,161
|
)
|
||||
Changes in other assets
|
(6,156
|
)
|
1,261
|
|||||
Changes in accounts payable and accrued expenses
|
2,475
|
2,679
|
||||||
Investment operations of consolidated affiliated partnerships:
|
||||||||
Purchases of investments
|
(6,356
|
)
|
(28,057
|
)
|
||||
Sales of investments
|
12,103
|
37,752
|
||||||
Realized investment gains, net
|
(1,585
|
)
|
(2,567
|
)
|
||||
Unrealized gains on marketable securities held by consolidated affiliated partnerships
|
(2,381
|
)
|
(379
|
)
|
||||
Changes in due to/from broker and cash equivalents held by consolidated affiliated partnerships
|
(6,598
|
)
|
(1,858
|
)
|
||||
Net cash provided by operating activities
|
13,826
|
32,185
|
||||||
Investing activities
|
||||||||
Additions of property and equipment
|
(4,702
|
)
|
(7,556
|
)
|
||||
Proceeds from property and equipment disposals
|
1,595
|
1,988
|
||||||
Purchases of investments
|
(93,857
|
)
|
(25,841
|
)
|
||||
Sales of investments
|
31,739
|
44,422
|
||||||
Changes in due to/from broker
|
(3,420
|
)
|
(3,903
|
)
|
||||
Net cash (used in) provided by investing activities
|
(68,645
|
)
|
9,110
|
|||||
Financing activities
|
||||||||
Proceeds from revolving credit facility
|
—
|
144,325
|
|
|||||
Payments on revolving credit facility
|
—
|
(149,281
|
)
|
|||||
Borrowings on long-term debt
|
—
|
20,000
|
||||||
Principal payments on long-term debt
|
(5,585
|
)
|
(15,289
|
)
|
||||
Principal payments on direct financing lease obligations
|
(3,009
|
)
|
(4,301
|
)
|
||||
Proceeds from exercise of stock options and employees stock purchase plan
|
3
|
477
|
||||||
Excess tax benefits from stock-based awards
|
383
|
—
|
||||||
Repurchase of employee shares for tax withholding
|
—
|
(494
|
)
|
|||||
Financing activities of consolidated affiliated partnerships:
|
||||||||
Contributions from noncontrolling interests
|
1,107
|
691
|
||||||
Distributions to noncontrolling interests
|
(25
|
)
|
(15,772
|
)
|
||||
Net cash used in financing activities
|
(7,126
|
)
|
(19,644
|
)
|
||||
(Decrease) increase in cash and cash equivalents
|
(61,945
|
)
|
21,651
|
|||||
Cash and cash equivalents at beginning of period
|
98,987
|
47,563
|
||||||
Cash and cash equivalents at end of period
|
$ |
37,042
|
$ |
69,214
|
(Unaudited)
|
Common Stock
|
Additional Paid-In Capital
|
Retained Earnings
|
Accumulated Other Comprehensive Income
|
Treasury Stock
|
Total
|
||||||||||||||||||
Balance at September 28, 2011
|
$ | 756 | $ | 144,569 | $ | 230,390 | $ | (5,468 | ) | $ | (90,569 | ) | $ | 279,678 | ||||||||||
Net earnings attributable to Biglari Holdings Inc.
|
13,323 | 13,323 | ||||||||||||||||||||||
Reclassification of investment appreciation in net earnings, net of $553 tax
|
(902 | ) | (902 | ) | ||||||||||||||||||||
Net change in unrealized gains and losses on investments, net of $14,358 tax
|
23,427 | 23,427 | ||||||||||||||||||||||
Total comprehensive income
|
35,848 | |||||||||||||||||||||||
Exercise of stock options and other stock compensation transactions
|
453 | 2 | 455 | |||||||||||||||||||||
Adjustment to redeemable noncontrolling interest to reflect maximum redemption value
|
(6,287 | ) | (6,287 | ) | ||||||||||||||||||||
Balance at April 11, 2012
|
$ | 756 | $ | 138,735 | $ | 243,713 | $ | 17,057 | $ | (90,567 | ) | $ | 309,694 | |||||||||||
Balance at September 29, 2010
|
$ | 756 | $ | 143,521 | $ | 195,825 | $ | (1,152 | ) | $ | (89,955 | ) | $ | 248,995 | ||||||||||
Net earnings attributable to Biglari Holdings Inc.
|
15,108 | 15,108 | ||||||||||||||||||||||
Reclassification of investment appreciation in net earnings, net of $821 tax
|
1,285 | 1,285 | ||||||||||||||||||||||
Net change in unrealized gains and losses on investments, net of $379 tax
|
592 | 592 | ||||||||||||||||||||||
Total comprehensive income
|
16,985 | |||||||||||||||||||||||
Exercise of stock options and other stock compensation transactions
|
741 | (537 | ) | 204 | ||||||||||||||||||||
Adjustment to redeemable noncontrolling interest to reflect maximum redemption value
|
(7,668 | ) | (7,668 | ) | ||||||||||||||||||||
Balance at April 13, 2011
|
$ | 756 | $ | 136,594 | $ | 210,933 | $ | 725 | $ | (90,492 | ) | $ | 258,516 |
Sixteen Weeks Ended
|
Twenty-Eight Weeks Ended
|
|||||||||||||||
April 11,
|
April 13,
|
April 11,
|
April 13,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Basic earnings per share:
|
|
|||||||||||||||
Weighted average common shares
|
1,333,848 | 1,327,685 | 1,333,685 | 1,327,480 | ||||||||||||
Diluted earnings per share:
|
||||||||||||||||
Weighted average common shares
|
1,333,848 | 1,327,685 | 1,333,685 | 1,327,480 | ||||||||||||
Dilutive effect of stock awards
|
3,598 | 6,968 | 3,219 | 8,398 | ||||||||||||
Weighted average common and incremental shares
|
1,337,446 | 1,334,653 | 1,336,904 | 1,335,878 | ||||||||||||
Number of share-based awards excluded from the calculation of earnings per share as the awards’ exercise prices were greater than the average market price of the Company’s common stock
|
705 | — | 705 | 1,030 |
April 11, 2012
|
September 28, 2011
|
|||||||
Cost
|
$ 190,231
|
$ 124,140
|
||||||
Gross unrealized gains
|
27,859
|
1,956
|
||||||
Gross unrealized losses
|
(347
|
)
|
(10,775
|
)
|
||||
Fair value
|
$ 217,743
|
$ 115,321
|
Sixteen Weeks Ended
|
Twenty-Eight Weeks Ended
|
|||||||||||||||
April 11,
|
April 13,
|
April 11,
|
April 13,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Gross realized gains on sales
|
$ | 378 | $ | 366 | $ | 4,357 | $ | 3,250 | ||||||||
Gross realized losses on sales
|
$ | — | $ | — | $ | (384 | ) | $ | (6 | ) |
April 11,
2012
|
September 28,
2011
|
|||||||
Equity securities:
|
||||||||
Cost
|
$ | 14,811 | $ | 19,122 | ||||
Fair value
|
$ | 17,005 | $ | 18,783 |
Sixteen Weeks Ended
|
Twenty-Eight Weeks Ended
|
|||||||||||||||
April 11,
2012
|
April 13,
2011
|
April 11,
2012
|
April 13,
2011
|
|||||||||||||
Net unrealized gains/losses
|
$ | 1,683 | $ | 154 | $ | 2,381 | $ | 379 | ||||||||
Net realized gains/losses from sale
|
$ | 159 | $ | 105 | $ | 1,585 | $ | 2,567 |
Twenty-Eight Weeks Ended
|
||||||||
April 11,
2012
|
April 13,
2011
|
|||||||
Carrying value at beginning of period
|
$ | 45,252 | $ | 62,245 | ||||
Contributions from noncontrolling interests
|
1,107 | 691 | ||||||
Distributions to noncontrolling interests
|
(25 | ) | (17,193 | ) | ||||
Incentive fee
|
(36 | ) | (2,510 | ) | ||||
Income / loss allocation
|
2,237 | 1,920 | ||||||
Adjustment to redeemable noncontrolling interest to reflect maximum redemption value
|
6,287 | 7,668 | ||||||
Carrying value at end of period
|
$ | 54,822 | $ | 52,821 |
April 11,
2012
|
September 28, 2011
|
|||||||
Land and buildings
|
$ | 5,740 | $ | 6,262 | ||||
Improvements
|
463 | 608 | ||||||
Total assets held for sale
|
$ | 6,203 | $ | 6,870 |
April 11,
2012
|
September 28,
2011
|
|||||||
Land
|
$ | 160,421 | $ | 161,339 | ||||
Buildings
|
149,927 | 149,444 | ||||||
Land and leasehold improvements
|
155,091 | 153,731 | ||||||
Equipment
|
203,679 | 202,933 | ||||||
Construction in progress
|
2,567 | 1,850 | ||||||
671,685 | 669,297 | |||||||
Less accumulated depreciation and amortization
|
(309,606 | ) | (297,561 | ) | ||||
Property and equipment, net
|
$ | 362,079 | $ | 371,736 |
April 11, 2012
|
September 28, 2011
|
|||||||||||||||||||||||
Gross carrying amount
|
Accumulated amortization
|
Total
|
Gross carrying amount
|
Accumulated amortization
|
Total
|
|||||||||||||||||||
Right to operate
|
$ | 1,480 | $ | (1,181 | ) | $ | 299 | $ | 1,480 | $ | (1,117 | ) | $ | 363 | ||||||||||
Franchise agreement
|
5,310 | (1,062 | ) | 4,248 | 5,310 | (797 | ) | 4,513 | ||||||||||||||||
Other
|
810 | (514 | ) | 296 | 810 | (480 | ) | 330 | ||||||||||||||||
Total
|
7,600 | (2,757 | ) | 4,843 | 7,600 | (2,394 | ) | 5,206 | ||||||||||||||||
Intangible assets with indefinite lives
|
1,744 | — | 1,744 | 1,744 | — | 1,744 | ||||||||||||||||||
Total intangible assets
|
$ | 9,344 | $ | (2,757 | ) | $ | 6,587 | $ | 9,344 | $ | (2,394 | ) | $ | 6,950 |
•
|
Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.
|
•
|
Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
|
•
|
Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
|
April 11, 2012
|
September 28, 2011
|
|||||||||||||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||
Cash equivalents
|
$ | — | $ | 21,131 | $ | — | $ | 21,131 | $ | — | $ | 88,022 | $ | — | $ | 88,022 | ||||||||||||||||
Equity securities:
|
||||||||||||||||||||||||||||||||
Restaurant/Retail
|
211,721 | — | — | 211,721 | 89,971 | — | — | 89,971 | ||||||||||||||||||||||||
Other
|
6,022 | — | — | 6,022 | 25,350 | — | — | 25,350 | ||||||||||||||||||||||||
Equity securities held by consolidated affiliated partnerships:
|
||||||||||||||||||||||||||||||||
Restaurant/Retail
|
9,752 | — | — | 9,752 | 7,677 | — | — | 7,677 | ||||||||||||||||||||||||
Other
|
7,057 | — | — | 7,057 | 10,913 | — | — | 10,913 | ||||||||||||||||||||||||
Non-qualified deferred compensation plan investments
|
736 | — | — | 736 | 546 | — | — | 546 | ||||||||||||||||||||||||
Investment held by consolidated affiliated partnership
|
— | — | 196 | 196 | — | — | 193 | 193 | ||||||||||||||||||||||||
Total assets at fair value
|
$ | 235,288 | $ | 21,131 | $ | 196 | $ | 256,615 | $ | 134,457 | $ | 88,022 | $ | 193 | $ | 222,672 | ||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||||||
Interest rate swaps
|
$ | — | $ | 368 | $ | — | $ | 368 | $ | — | $ | 439 | $ | — | $ | 439 |
Twenty-Eight Weeks Ended
|
||||||||
April 11,
|
April 13,
|
|||||||
2012
|
2011
|
|||||||
Beginning of period balance
|
$ | 193 | $ | 323 | ||||
Gain included in earnings
|
3 | 13 | ||||||
End of period balance
|
$ | 196 | $ | 336 |
Net Revenue
|
||||||||||||||||
Sixteen Weeks
|
Twenty-Eight Weeks
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Operating Business:
|
||||||||||||||||
Restaurant Operations:
|
||||||||||||||||
Steak n Shake
|
$ | 217,921 | $ | 207,142 | $ | 378,413 | $ | 359,038 | ||||||||
Western
|
3,830 | 3,770 | 7,528 | 7,489 | ||||||||||||
Total Restaurant Operations
|
221,751 | 210,912 | 385,941 | 366,527 | ||||||||||||
Investment Management:
|
||||||||||||||||
Management fees
|
— | 114 | — | 224 | ||||||||||||
Consolidated affiliated partnerships
|
1,933 | 251 | 4,133 | 3,248 | ||||||||||||
Total Investment Management Operations
|
1,933 | 365 | 4,133 | 3,472 | ||||||||||||
$ | 223,684 | $ | 211,277 | $ | 390,074 | $ | 369,999 |
Earnings before income taxes
|
Net earnings attributable to
Biglari Holdings Inc.
|
|||||||||||||||||||||||||||||||
Sixteen Weeks
|
Twenty-Eight Weeks
|
Sixteen Weeks
|
Twenty-Eight Weeks
|
|||||||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||||||||
Operating Business:
|
||||||||||||||||||||||||||||||||
Restaurant Operations:
|
||||||||||||||||||||||||||||||||
Steak n Shake
|
$ | 13,070 | $ | 9,475 | $ | 26,719 | $ | 19,031 | $ | 8,738 | $ | 6,778 | $ | 17,697 | $ | 13,367 | ||||||||||||||||
Western
|
463 | 454 | 854 | 877 | 287 | 281 | 528 | 538 | ||||||||||||||||||||||||
Total Restaurant Operations
|
13,533 | 9,929 | 27,573 | 19,908 | 9,025 | 7,059 | 18,225 | 13,905 | ||||||||||||||||||||||||
Investment Management:
|
||||||||||||||||||||||||||||||||
Biglari Capital Corp. (Incentive Fee)
|
— | — | 36 | 2,510 | — | — | 22 | 1,535 | ||||||||||||||||||||||||
Management fees
|
— | 114 | — | 224 | — | 71 | — | 139 | ||||||||||||||||||||||||
Consolidated affiliated partnerships
|
1,476 | 50 | 3,574 | 1,841 | 191 | 2 | 467 | (79 | ) | |||||||||||||||||||||||
Total Investment Management Operations
|
1,476 | 164 | 3,610 | 4,575 | 191 | 73 | 489 | 1,595 | ||||||||||||||||||||||||
Corporate and Other:
|
||||||||||||||||||||||||||||||||
Corporate and other
|
(5,187 | ) | (1,184 | ) | (8,312 | ) | (2,446 | ) | (3,351 | ) | (737 | ) | (5,133 | ) | (1,555 | ) | ||||||||||||||||
Investment and derivative gains/losses
|
378 | 398 | 3,973 | 3,451 | 234 | 251 | 2,463 | 2,174 | ||||||||||||||||||||||||
Total Corporate and Other
|
(4,809 | ) | (786 | ) | (4,339 | ) | 1,005 | (3,117 | ) | (486 | ) | (2,670 | ) | 619 | ||||||||||||||||||
Reconciliation of segments to consolidated amount:
|
||||||||||||||||||||||||||||||||
Eliminations
|
— | — | (36 | ) | (2,510 | ) | — | (463 | ) | — | (123 | ) | ||||||||||||||||||||
Interest expense, excluding interest allocated to operating businesses
|
(2,533 | ) | (867 | ) | (4,388 | ) | (1,432 | ) | (1,571 | ) | (538 | ) | (2,721 | ) | (888 | ) | ||||||||||||||||
$ | 7,667 | $ | 8,440 | $ | 22,420 | $ | 21,546 | $ | 4,528 | $ | 5,645 | $ | 13,323 | $ | 15,108 |
Company-
operated
|
Franchised
|
Total
|
||||||||||
Steak n Shake
|
414 | 79 | 493 | |||||||||
Western
|
5 | 88 | 93 | |||||||||
Total
|
419 | 167 | 586 |
Sixteen Weeks Ended
|
Twenty-Eight Weeks Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net revenues
|
||||||||||||||||
Restaurant Operations:
|
||||||||||||||||
Net sales
|
97.6 | % | 98.4 | % | 97.4 | % | 97.6 | % | ||||||||
Franchise fees
|
1.2 | 1.1 | 1.2 | 1.2 | ||||||||||||
Other revenue
|
0.4 | 0.3 | 0.3 | 0.3 | ||||||||||||
Total
|
99.1 | 99.8 | 98.9 | 99.1 | ||||||||||||
Investment Management Operations:
|
||||||||||||||||
Management fee income
|
0.0 | 0.1 | 0.0 | 0.1 | ||||||||||||
Consolidated Affiliated Partnerships:
|
||||||||||||||||
Investment gains/losses
|
0.8 | 0.1 | 1.0 | 0.8 | ||||||||||||
Other income/loss
|
0.0 | (0.0 | ) | 0.0 | 0.1 | |||||||||||
Total
|
0.9 | 0.2 | 1.1 | 0.9 | ||||||||||||
Total net revenues
|
100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||
Costs and expenses
|
||||||||||||||||
Cost of sales (1)
|
29.0 | 27.7 | 28.6 | 27.4 | ||||||||||||
Restaurant operating costs (1)
|
47.1 | 49.4 | 46.5 | 48.6 | ||||||||||||
General and administrative
|
8.9 | 6.9 | 8.5 | 6.9 | ||||||||||||
Depreciation and amortization
|
3.6 | 4.1 | 3.7 | 4.1 | ||||||||||||
Marketing
|
5.1 | 5.1 | 5.2 | 5.3 | ||||||||||||
Rent
|
2.4 | 2.4 | 2.4 | 2.4 | ||||||||||||
Pre-opening costs
|
0.1 | 0.0 | 0.1 | 0.0 | ||||||||||||
Asset impairments and provision for restaurant closings
|
0.1 | (0.1 | ) | 0.1 | 0.0 | |||||||||||
Loss on disposal of assets
|
0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
Other operating (income) expense
|
(0.1 | ) | (0.0 | ) | (0.2 | ) | 0.2 | |||||||||
Other income (expense)
|
||||||||||||||||
Interest, dividend and other investment income
|
0.3 | 0.1 | 0.4 | 0.0 | ||||||||||||
Interest on obligations under leases
|
(1.4 | ) | (1.5 | ) | (1.4 | ) | (1.5 | ) | ||||||||
Interest expense
|
(1.1 | ) | (0.4 | ) | (1.1 | ) | (0.4 | ) | ||||||||
Realized investment gains/losses
|
0.2 | 0.2 | 1.0 | 0.9 | ||||||||||||
Derivative and short sale gains/losses
|
0.0 | 0.0 | 0.0 | 0.1 | ||||||||||||
Total other income (expense)
|
(2.0 | ) | (1.7 | ) | (1.1 | ) | (1.0 | ) | ||||||||
Earnings before income taxes
|
3.4 | 4.0 | 5.7 | 5.8 | ||||||||||||
Income taxes
|
1.0 | 1.3 | 1.8 | 1.9 | ||||||||||||
Net earnings
|
2.5 | 2.7 | 4.0 | 3.9 | ||||||||||||
Earnings attributable to redeemable noncontrolling interest:
|
||||||||||||||||
Income allocation
|
(0.4 | ) | (0.1 | ) | (0.6 | ) | (0.5 | ) | ||||||||
Incentive fee
|
0.0 | 0.0 | 0.0 | 0.7 | ||||||||||||
Total earnings/loss attributable to redeemable noncontrolling interests
|
(0.4 | ) | (0.1 | ) | (0.6 | ) | 0.2 | |||||||||
Net earnings attributable to Biglari Holdings Inc.
|
2.0 | % | 2.7 | % | 3.4 | % | 4.1 | % |
|
·
|
the ability of the restaurant operations to increase store traffic on a profitable basis;
|
|
·
|
competition in the restaurant industry for customers, staff, locations, and new products;
|
|
·
|
disruptions in the overall economy and the financial markets;
|
|
·
|
the Company’s ability to comply with the restrictions and covenants to its debt agreements;
|
|
·
|
declines in the market price of our common stock, which could adversely affect our goodwill impairment analysis;
|
|
·
|
the potential to recognize additional impairment charges on our long-lived assets;
|
|
·
|
fluctuations in food commodity and energy prices and the availability of food commodities;
|
|
·
|
the ability of our franchisees to operate profitable restaurants;
|
|
·
|
the poor performance or closing of even a small number of restaurants;
|
|
·
|
changes in customer preferences, tastes, and dietary habits;
|
|
·
|
changes in minimum wage rates and the availability and cost of qualified personnel;
|
|
·
|
harsh weather conditions or losses due to casualties;
|
|
·
|
unfavorable publicity relating to food safety or food-borne illness;
|
|
·
|
exposure to liabilities related to the ownership and leasing of significant amounts of real estate;
|
|
·
|
our ability to comply with existing and future governmental regulations;
|
|
·
|
our ability to adequately protect our trademarks, service marks, and other components of our brand;
|
|
·
|
changes in market prices of our investments; and
|
|
·
|
other risks identified in the periodic reports we file with the Securities and Exchange Commission.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1A.
|
Risk Factors
|
Item 6.
|
Exhibits
|
Exhibit Number
|
Description
|
|
31.01
|
Rule 13(a)-14(a)/15d-14(a) Certification of Chief Executive Officer
|
|
31.02
|
Rule 13(a)-14(a)/15d-14(a) Certification of Controller
|
|
32.01
|
Section 1350 Certifications
|
|
101
|
The following financial information from Biglari Holdings Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended April 11, 2012, formatted in XBRL (Extensible Business Reporting Language), includes: (i) the Condensed Consolidated Balance Sheets as of April 11, 2012 and September 28, 2011, (ii) the Condensed Consolidated Statements of Earnings for the Sixteen and Twenty-Eight Weeks Ended April 11, 2012 and April 13, 2011, (iii) the Condensed Consolidated Statements of Cash Flows for the Twenty-Eight Weeks Ended April 11, 2012 and April 13, 2011, (iv) the Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Twenty-Eight Weeks Ended April 11, 2012 and April 13, 2011, and (v) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text
|
Date: May 18, 2012
|
||
Biglari Holdings inc.
|
||
By:
|
/s/ Bruce Lewis
|
|
Bruce Lewis
Controller
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 18, 2012
|
||
/s/ Sardar Biglari
|
||
Sardar Biglari
|
||
Chairman and Chief Executive Officer
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 18, 2012
|
||
/s/ Bruce Lewis
|
||
Bruce Lewis
|
||
Controller
|
/s/ Sardar Biglari
|
||||
Sardar Biglari
|
||||
Chairman and Chief Executive Officer
May 18, 2012
|
||||
/s/ Bruce Lewis
|
||||
Bruce Lewis
|
||||
Controller
May 18, 2012
|
%\'-?=JKQ"-\0B-.PX2Z$HLYB3E;0RKG>J#5K8`4QY8AQ3+-Y`I*%;,GA
MNL"G>XN/\`^"18LBVN9!:P.X0,[,0C;L6MIZ'LI8Z>L+#-G&1W(F4-#4AVP3
M4Q\L'$3SYT@M;.BR,/KGBQ@'$_$(Q&X$Y_G-MSA118S7%T",K_;&OSX@WN=^
MZ'ZG;82/O_C)N_D@3EY]\.%HYD03&)P.I'ER],LD>?>+,YN_^ZML2._P:R?S
M]+>_RFK^K_*G8X1W.I#1ER=!&"%!#![@#"GQ-7@>W(4S)_@U^^'7P3VJ\OC=
M8(GU;H")#AWD5J#_Q9NQX?@U@T<`C_@O\O$@OV4UY?%8/.R)4?;/L0Z#-=QV
M*YJ'*1@XKHO&>2=XQ2G0%H&S0'%F=G[8PYMIO92)6UK^&XRS<0HQB)&^@&Q:
M-1P/SN'$=R(XR'<\QP.DD,>#_\GKJ)GOGD'Q=^O=KX/5[XNX^?=P$34_R)%2
M:@5:^ #Z!+L"V:8_4?DF*F'QUA_T&+$M3ZOG#LW@3
MB(5-B3AFH783)P()!9B.4H<7`8]+>5(YH52GR=KD!$QA!C!,"S#XB&]9@#9A
MOAU\O1,:"]8"\8I\-XN0]*][.#G6L*AEUM,(U99H8"/@2;LBHV4>T`&,R%F:
M<&K&4AG3/R94;F^5N(%M<$+G?`(E/[11E<)[NQT#;-B\*8U_V`5B;R L(2+D&1Q!\=S6J!I?GC1?4'_EB5=].\-
M$'?!%L_QZ>*,2UFC9@$FS%7`W[#XKQ D^3@IZ+GCH7",,[EJ7\ZG-"(S'GB'\P'J?V92YT(D4O$8R!"TFH"M1=[
M99UTLR0<\G3!Y1RA(C^;<(CX\8FHH=3:L%,A">\7-I\3*#]]`XDC_OT-C&9+
M++RQ%7S&!BY:FG]ZJ`9E\14+HBGH/=OT\R!E($JU`D#FN0]W<.(LF3?]DUNT
MJHVG"4&RQ+Y%]M^
Q8)F?A0OXX<)\Y&S*NX/+W0]0=C:=>0GL#F])Z16C1:$:Q?]]MU0J@`1YE@)5MSJ9*I\CMU]K/0K306VWE__9OKH04;0"M&;R?92?'
M$)2V'`1&&\\!,J+3_`9T#X$BR$@6;!H>
M_<3G/[RX#WZ;@W@9=]W!G3Y\`6BUQ1?BL1=LQBT;\!+\\.+CKQ]>_+?>[_4&
M>N\?KZNM!9#]X_6WJ>_8;_"_\,__#U!+`P04````"`!5@;)`]>/A@N<0``"0
MW0``$P`<`&)H+3(P,3(P-#$Q7V-A;"YX;6Q55`D``\*LMD_"K+9/=7@+``$$
M)0X```0Y`0``[5U9<]LX$G[?JOT/7,_+SH/B(YDCJ`>++DGXFQ;)!SX5.14L1JE#`LP^"1\KFBP2X]@J=9E&R!=#6
M]VXPG'B!H7%UA4C9Q2HYOJ4A!4.!T/<338Q#W$C@!L=K+W"XB(H.'V5#'/I^
M!EX;1\.F@9O^WW@;#KNBH-/W!9U1X'\*87PNCF4X&-N[H?&=%S0CY.RB(@.DTJJPH2&KID;#C]XP:%9+'0(;.>)-&,`1;#:9.K8
MM5MF,6]@09944YE-$[*9`$&\6D?"149TP)3)6RT(FR\11*1UA>_RCDZYFTSX
M.CCX\!1&J
%W0E:<@R5<#O$*EUB?K`MG'F2HOR0$WK
M?)B#>O#!NTX)7:AW1);
HHBYGBUSC6#!Z;@YL.XN=(4;%3'IMZEN
M-40;TD%M)QSL(BGRLN$\.QMVE`49%S%B9JG1:=%X%U56>!4CIID:HX(*-&"8
M1+DH@:Y]`$C?U8B8'J=&J,`:A>:UGV8KOZT14TV-50MHTXJ6\#5S7_O.1AQ(
M:CS3KI#QI:>'L;=HN-"Q[3)A2J]VQ)&D!K@0:D;B5Y0$U]UME-WVB%FG!KL(
MBD(L6@!KUN%21?_1__P#_/(O4$L#!!0````(`%6!LD#N5S5,&BX``%A:`@`3
M`!P`8F@M,C`Q,C`T,3%?;&%B+GAM;%54"0`#PJRV3\*LMD]U>`L``00E#@``
M!#D!``#=?6USY+B1YO>+N/^`;3O6W1'2],N\C^UU2*V61[?JEDZML?=BPC'!
M(E$EN%ED&235TO[Z0P)\)P""K!*8O8ZPK:[*S'I`/$PD$D#B3W]YV,;DGO*,
MI
KXKF4K2QAP.)UJ]7+#E
MZR&D678;/)0%9^7R&)0.73D6;9UI:XF(
'["=M0H!2=??AZVM@^3O#E[^A3[
MOYK0[S:]H1&E6YAY?>@L^U;5S$!B'=,P?Q\\L&VQ!?FM;$,G,=QL$SJH<4\[
MP)[@@91;P`YH>?&7XTF:,[QMHOH%R`3P^C=,NQ*4E/P=LE4_)+74+Y%[^*DO
M+8>&<,W$@G+@\Y+(,7VV0+I;3'('+1FI_.:HNTA2W*4YVCRY37%Q1S,'K3F;
M+H;>MO8?B-(GOU86D"S)/%7BQG]6$4WJX8"/SD