Author Topic: BH - Biglari Holdings  (Read 1158534 times)

gg

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Re: BH - Biglari Holdings
« Reply #1570 on: March 27, 2015, 07:13:21 AM »
I don't think this is correct. I have read the report in its entirety and ISS is recommending that shareholder's withholding votes as opposed to backing either one.

Could you (or anyone else who has it) post that ISS report or a link to it?


OracleofCarolina

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Re: BH - Biglari Holdings
« Reply #1571 on: March 27, 2015, 11:07:57 AM »
« Last Edit: March 27, 2015, 11:14:16 AM by OracleofCarolina »

pantheman

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innerscorecard

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Re: BH - Biglari Holdings
« Reply #1573 on: March 27, 2015, 10:05:01 PM »
Inner Scorecard - Where financial independence, value investing and life meet: http://www.innerscorecard.co/

philly value

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Re: BH - Biglari Holdings
« Reply #1574 on: March 28, 2015, 10:51:07 AM »
I had been thinking myself about buyout possibilities here. A traditional buyout does seems impossible/unlikely, certainly if forced to maintain the existing structure. Interesting to entertain the idea, however.

As someone new here, is there any real economic or legal reason why Biglari Holding's investments in CBRL/etc need to be held in the Lion Funds? Or is this purely a Biglari move to get additional compensation given the cap on incentives at BH? Simplifying this structure in a go-private transaction would be a first step I'd think. The arguments that Biglari needs this structure in order to maintain control given his control of the GP would no longer make sense in a private scenario.

A buyout fueled with debt does not seem possible given the structure. BH's most significant asset by far is its holding of CBRL stock, currently $715M gross and roughly $550M net of a 35% tax liability. There are few other unencumbered assets with significant value. SnS has I believe $213M of debt attached to it, which is a significant amount of leverage relative to operating earnings of $26.5M. Western is too small to provide any real base for adding debt. First Guard is a nice business but again quite small. A buyout could only become a slight possibility if the CBRL stake was sold prior to or as a part of such a transaction. To me this seems like a logical step towards creating value here, because it's not clear where CBRL fits into the BH model given Sardar has no control / ability to turnaround an underperforming business here.

On the cash figure that NBL0303 had speculated to be ~$200M, I'm wondering how those add up to what is in the filings. The company has first the $130M of cash reported on the B/S. Then there are $10.8M of investments. Then there is the $698M fair value of the LP interests as of 12/31/14, which is net of the shares of BH held in the partnership that BH itself has a claim on. At ~4.73M shares and $140.76/share for CBRL as of 12/31/14, this totals $667M. This leaves the net non-BH, non-CBRL LP interests as $31M. Any cash transferred to the partnerships would be recorded here, wouldn't it be? Seems to fall far short of the additional $70M you had mentioned. Am I looking at this incorrectly?

Finally, do we know Sardar Biglari's full economic holdings of BH? I can find via filings that he holds 31,000 shares of stock directly. Biglari Capital's filings indicate they control 320,000 shares of BH. In the BH filings, they indicate that via LP interests, BH has a claim on 197,533 shares of itself. This brings the total share count controlled by Biglari Capital not owed to Biglari Holdings itself to 320,421 - 197,533 = 122,888.

Do we know how many of those 122,888 shares are held by Biglari, other insiders, or other LPs of Lion Funds?

Thanks for any help here.




Cevian

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Re: BH - Biglari Holdings
« Reply #1575 on: March 28, 2015, 11:20:38 AM »
NBL0303, I agree with your last post.

One option that I would expect is that the existing management would put in place a dual share class structure at some stage in the not distant future once this proxy contest is behind them.

frugalchief

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Re: BH - Biglari Holdings
« Reply #1576 on: March 28, 2015, 07:57:39 PM »
Maxim April issue is out. 

March issue:
Full page ads - 8
Half page ads - 30
Revenue - $2.2 million

April issue:
Full page ads - 5
Half page ads - 17
Revenue - ??

I would expect revenues to be less of course for April from the comparable month-to-month ads.  Maybe we will see another press release about Maxim revenues as long as higher than April 2014.

frugalchief

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Re: BH - Biglari Holdings
« Reply #1577 on: March 28, 2015, 08:12:49 PM »
Would help to include April 2014 info:

Full page ads - 1
Half page ads - 17 (includes 3 pages of "Maxim Market" ads...not sure if those count)
Revenue - ??


I don't have March 2013 magazine to compare to figure out how many ads = approx. $600,000 revenue.

Maxim April issue is out. 

March issue:
Full page ads - 8
Half page ads - 30
Revenue - $2.2 million

April issue:
Full page ads - 5
Half page ads - 17
Revenue - ??

I would expect revenues to be less of course for April from the comparable month-to-month ads.  Maybe we will see another press release about Maxim revenues as long as higher than April 2014.

giofranchi

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Re: BH - Biglari Holdings
« Reply #1578 on: March 29, 2015, 03:48:36 AM »
NBL,
A "more credible" activist should be an "effective" activist... An effective activist is an investor who finds and pushes for a way to get better business results...

25 straight quarters of same store sales growth... Investment returns that beat 99% of hedge fund managers (just because I could never be sure of saying 100%!!)...

Who on earth would ever promise to achieve better results for BH shareholders?!?!

Cheers,

Gio
Portfolio: AAPL, AMZN, BABA, BOSS, BRK.B, FB, FFH, FIH.U, FINX, FWONA, GOOG, IBB, JPM, LBRDA, MKL, NKE, QQQ, SFTBF, SMH, TCEHY, V, XBI, XT

racemize

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Re: BH - Biglari Holdings
« Reply #1579 on: March 29, 2015, 06:09:34 AM »
Who on earth would ever promise to achieve better results for BH shareholders?!?!

Someone who would return the capital to shareholders instead of himself?