Summary
Blackstone Inc. (BX) reported its third-quarter 2015 financial results, highlighting a significant decline in revenues and net income compared to the prior year period. Total revenues decreased by 99% for the three months ended September 30, 2015, primarily driven by a substantial drop in performance fees and investment income. This decline was mainly attributed to challenging market conditions, including global economic growth concerns and heightened market volatility, which negatively impacted the value of its investment portfolio. Despite the revenue contraction, Blackstone managed its expenses more effectively, with total expenses decreasing by 55% year-over-year, largely due to lower performance fee compensation and reduced equity-based compensation expenses. The company also completed the spin-off of its Financial Advisory segment during the quarter, a strategic move that is expected to streamline operations and allow for a more focused approach in its core asset management businesses.
Financial Highlights
33 data points| Revenue | $11.57M |
| Operating Expenses | $477.00M |
| Interest Expense | $36.86M |
| Net Income | -$254.70M |
| EPS (Basic) | $-0.40 |
| EPS (Diluted) | $-0.40 |
| Shares Outstanding (Basic) | 638.83M |
| Shares Outstanding (Diluted) | 638.83M |
Key Highlights
- 1Total Revenues declined significantly to $11.6 million for Q3 2015 from $1.7 billion in Q3 2014, primarily due to a substantial decrease in Performance Fees (-$1.5 billion) and Investment Income (-$208.9 million).
- 2Performance Fees saw a sharp decrease due to challenging market conditions and portfolio depreciation, particularly impacting the Private Equity, Real Estate, and Credit segments.
- 3Total Expenses were reduced by 55% to $477.0 million in Q3 2015 from $1.1 billion in Q3 2014, mainly driven by lower Performance Fee Compensation and a reduction in equity-based compensation.
- 4The company completed the spin-off of its Financial Advisory segment on October 1, 2015, combining it with PJT Capital LP to form PJT Partners Inc.
- 5Fee-Earning Assets Under Management (AUM) increased slightly to $240.9 billion at September 30, 2015, up from $239.3 billion at June 30, 2015, reflecting inflows across various segments offset by realizations and market depreciation.
- 6Total Assets Under Management (AUM) saw a minor increase to $333.9 billion at September 30, 2015, from $332.7 billion at June 30, 2015.
- 7The company maintained a strong liquidity position with $1.4 billion in cash and cash equivalents and $2.6 billion in Treasury Cash Management Strategies as of September 30, 2015.