10-QPeriod: Q2 FY2009

Blackstone Inc. Quarterly Report for Q2 Ended Jun 30, 2009

Filed August 7, 2009For Securities:BX

Summary

Blackstone Inc. (BX) reported its second quarter 2009 results, showing resilience amidst a challenging economic environment. Total revenues increased by 15% year-over-year to $406.4 million, primarily driven by growth in management and advisory fees, and a significant turnaround in performance fees and allocations which moved from a negative figure in the prior year to a positive $71.2 million. Despite a decline in investment income (loss), overall expense management was effective, with total expenses decreasing by 10% year-over-year to $1.05 billion. This led to a net loss attributable to Blackstone Group L.P. of $164.3 million, a slight increase from the prior year's $156.5 million, resulting in a net loss per common unit of ($0.60) for priority distribution units. The company maintained a strong liquidity position, ending the quarter with $784.6 million in cash and cash equivalents and an undrawn revolving credit facility.

Financial Highlights

16 data points
Beta

Revenue

$406.42M

Net Income

-$597.87M

-147.1% Net Margin

Cash & Equivalents

$784.58M

Free Cash Flow

$679.69M

Financial Statements
Beta
Revenue$406.42M
Operating Expenses$1.05B
Interest Expense$87K
Net Income-$597.87M

Key Highlights

  • 1Total revenues increased 15% to $406.4 million in Q2 2009, driven by growth in management and advisory fees and a positive swing in performance fees.
  • 2Performance fees and allocations improved significantly, reaching $71.2 million in Q2 2009, compared to a loss of $13.7 million in Q2 2008.
  • 3Total expenses decreased by 10% to $1.05 billion, reflecting effective cost management, particularly in compensation and benefits.
  • 4The company ended the quarter with a healthy cash position of $784.6 million and an undrawn $850 million credit facility.
  • 5Assets Under Management saw a decrease of 22% to $93.5 billion, reflecting challenging market conditions affecting portfolio valuations.
  • 6Fee-Earning Assets Under Management also declined by 6% to $93.5 billion, impacted by market depreciation and the liquidation of proprietary hedge funds.
  • 7The Financial Advisory segment showed strong revenue growth of 15%, boosted by increased activity in restructuring and M&A advisory services.

Frequently Asked Questions

Blackstone's total revenues increased by 15% to $406.4 million in the second quarter of 2009, compared to $353.9 million in the same period of 2008. This growth was primarily driven by higher management and advisory fees, and a significant improvement in performance fees and allocations.

Blackstone reported a net loss attributable to The Blackstone Group L.P. of $164.3 million for the second quarter of 2009, which was a slight increase from the $156.5 million net loss in the second quarter of 2008. The net loss per common unit (basic and diluted) for common units entitled to priority distributions was ($0.60).

Blackstone demonstrated effective expense management, with total expenses decreasing by 10% to $1.05 billion in the second quarter of 2009 compared to $1.16 billion in the prior year's second quarter. This reduction was mainly due to lower compensation and benefits expenses.

Blackstone maintained a strong liquidity position, reporting $784.6 million in cash and cash equivalents at the end of the second quarter of 2009. Additionally, the company had an undrawn revolving credit facility of $850 million, providing ample financial flexibility.