Biglari’s Maxim magazine revenue slides 55%

Revenue at racy men’s magazine Maxim slid 55 percent in the first quarter, the first year-over-year drop in sales since San Antonio businessman Sardar Biglari bought the publication in the first quarter of 2014.

The startling drop in revenue from $5.4 million a year ago to $2.4 million in the first quarter shows that Biglari’s bold remake of the New York-based Maxim is rocky at best.

He offset falling revenue by slashing administrative and other costs from $11.3 million in the first three months of last year to $5.9 million during the first quarter, narrowing the magazine’s loss to $2.2 million from $3.9 million in the prior year.

Maxim’s loss pulled down the combined performance of Biglari Holdings Inc.’s operating businesses, which include the Steak n Shake restaurant chain and other businesses. The San Antonio company’s net income from its operating businesses was $4.2 million, compared with $164,000 last year.

Chairman and CEO Biglari reiterated in a February letter to shareholders that Maxim would become profitable by late this year.

“We have taken the risk on the belief that the probability for gain in value more than justifies the risk of loss,” the company said in a regulatory filing Friday.

Although Biglari Holdings repeatedly has said that its businesses are best analyzed before the impact of investment gains, its overall results were propelled by $79 million in unrealized investment partnership gains, up from $23 million a year ago.

The company holds a $857.3 million investment in the Lion Fund partnerships, private funds managed by Biglari. Through the Lion Fund, Biglari Holdings has a nearly 20 percent stake in Cracker Barrel Old Country Store Inc.

The holding company earned $51.2 million, or $41.16 a share, on $208.2 million in revenue in the three months ended March 31.

By comparison, it earned almost $10 million, or $5.36 a share, on $205.8 million in revenue in the same period last year.

Biglari doesn’t discuss the company’s quarterly results with analysts.

The restaurant chains Steak n Shake and Western Sizzlin produced $5.5 million in profit on $200.3 million in revenue in the first quarter compared. They earned $3.6 million on $196.7 million in revenue a year ago.