Significant Shareholder Value Creation at Biglari Holdings Trumps Groveland’s Hollow Rhetoric
March 30 2015 - 5:04PM
Business Wire
– Since Sardar Biglari became CEO, Biglari
Holdings’ share price has increased 267.1%, outperforming S&P
500 by 175.2% –
– Executed major turnaround at Steak n Shake
with 25 consecutive quarters of same-store sales growth –
– Company has generated $490 million in
investment gains under present management –
Biglari Holdings Inc. (NYSE:BH) (“Biglari Holdings” or the
“Company”) believes the facts below trump Groveland’s hollow
rhetoric. These facts will aid shareholders in making an informed
decision when casting their votes for directors at the Company’s
2015 Annual Meeting, scheduled to be held on April 9, 2015. Biglari
Holdings urges the Company’s shareholders to vote on
the BLUE proxy card
"FOR ALL" of the Company's nominees to the Board and to
affirmatively reject Groveland’s attempt to gain control of the
Biglari Holdings Board of Directors.
SIGNIFICANT VALUE
CREATION AT BIGLARI HOLDINGS INC.
Shareholder Return
- Since Sardar Biglari became CEO on
August 5, 2008, Biglari Holdings’ share price increased 267.1%,
compared to 91.9% for the S&P 500.
- During this period BH’s total
shareholder return has outpaced the S&P 500 by 175.2%.
Annual Percentage
Change
Year
Biglari
HoldingsStock(1)
S&P 500 Index(2)
Outperformanceof S&P
500
(1)-(2)
2008 (12.1 ) (26.8 ) 14.7 2009 172.4 26.5 145.9 2010 26.6 15.1 11.5
2011 (10.2 ) 2.1 (12.3 ) 2012 5.9 16.0 (10.1 ) 2013 40.0 32.4 7.6
2014 (14.9 ) 13.7 (28.6 ) 2015 6.9 1.0 5.9
Average Annual Return 21.8 % 10.4 % 11.4 % Overall Return 267.1 %
91.9 % 175.2 %
Notes for Shareholder Return:
- 2008 is a partial year from August 5,
2008 through December 31, 2008; 2009-2014 are full calendar years;
2015 is as of March 6, 2015
- Average annual return is for the period
August 5, 2008 through March 6, 2015
- Historical share prices adjusted for
rights offerings
- Data source is FactSet
- Includes reinvested dividends
Operating
Performance
Steak n Shake’s Same-Store Sales Prior
Management Current Management 2005
2006 2007 2008
2009 2010 2011
2012 2013 2014 1st
Quarter – -1.1% -1.7% -9.5%
-1.4% 14.4%
2.1% 5.5% 1.3% 3.0% 2nd Quarter
– -0.3% -4.7% -6.3%
2.4% 5.1% 4.3% 4.8%
0.3% 3.7% 3rd Quarter – -3.9% -4.3% -5.8%
5.0% 7.5% 4.9% 2.9% 4.2%
1.0% 4th Quarter -3.0% -3.4% -3.9%
-7.4%
10.1% 6.8%
5.3% 1.8% 3.3%
3.4%
- When Sardar Biglari became CEO in
August 2008, Steak n Shake’s customer traffic was declining
year-over-year by over 10%, cash flows were negative, and the
company was out of compliance with its debt covenants. Its lenders
demanded a reduction in its debt, and after all possible avenues
had been exhausted, one lender stated in an e-mail to management:
“We have done all we can.” Under present management, Steak n Shake
has experienced one of the great brand turnarounds in the history
of the restaurant industry. For the quarter ending March 31, 2015,
Steak n Shake achieved its 25th consecutive
quarter of same-store sales growth.
Investment
Performance
Biglari Holdings’ Investment Portfolio
vs. the S&P 500 Index
Annual Percentage
Change
Year
Return
FromBiglariInvestments(1)
S&P 500 Index(2)
Outperformanceof S&P
500(1)-(2)
2009 19.9 14.0 5.9 2010 33.5 15.1 18.4 2011 13.7 2.1 11.6 2012 25.1
16.0 9.1 2013 69.1 32.4 36.7 2014 20.6 13.7 6.9
Average Annual Return 32.8 % 17.0 % 15.8 % Overall Return
364.3 % 133.9 % 230.4 %
Notes for Biglari Holdings’ Investment
Performance:
- 2009 is a partial year from August 1,
2009 through December 31, 2009 and 2010-2014 are full calendar
years
- Average annual return is for the period
August 1, 2009 through December 31, 2014
- From August 2009 through December 31, 2014, Biglari Holdings
has earned $490 million in investment gains.
- Biglari Holdings’ balance sheet has grown exponentially from a
standing start of $1.6 million in cash in 2008 to over $917 million
of cash and investments on December 31, 2014.
***
Do not permit Mr. Swenson or any of his
cohorts to derail the value-creating momentum of Biglari
Holdings.
***
If you have any questions, require assistance
with voting your BLUE proxy
card, or need additional copies of the proxy materials, please
contact our proxy solicitor:
OKAPI PARTNERS LLC437 Madison Avenue,
28th FloorNew York, NY 10022(212)
297-0720Shareholders Call Toll-Free at: (877)
279-2311E-mail: info@okapipartners.com
About Biglari Holdings Inc.
Biglari Holdings Inc. is a holding company owning subsidiaries
engaged in a number of diverse business activities, including
media, property and casualty insurance, as well as restaurants. The
Company’s largest operating subsidiaries are involved in the
franchising and operating of restaurants. All major operating,
investment, and capital allocation decisions are made for the
Company and its subsidiaries by Sardar Biglari, Chairman and Chief
Executive Officer.
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.
Media:Sloane & CompanyElliot Sloane,
212-446-1860esloane@sloanepr.comorDan Zacchei,
212-446-1882dzacchei@sloanepr.com
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