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10-QPeriod: Q2 FY2018

Blackstone Inc. Quarterly Report for Q2 Ended Jun 30, 2018

Filed August 8, 2018For Securities:BX

Summary

Blackstone Inc. (BX) reported its financial results for the period ending June 29, 2018. The company demonstrated strong revenue growth, with total revenues reaching $2.63 billion for the quarter, a significant increase of 71% year-over-year, primarily driven by a substantial boost in "Other Revenue" and "Investment Income". This surge in revenue was largely influenced by proceeds from the conclusion of a sub-advisory relationship with FS Investments and strong performance across private equity and credit segments. Despite increased expenses, particularly in compensation and benefits, Blackstone maintained a robust net income of $1.55 billion for the quarter, representing a 111% increase year-over-year. The company's balance sheet showed total assets of $30.1 billion, down from $34.4 billion at the end of 2017, largely due to the deconsolidation of certain CLOs and fund entities. Total liabilities also decreased. Blackstone's "Fee-Earning Assets Under Management" stood at $333.0 billion, reflecting an active quarter for inflows despite outflows and realizations. The company also continued its unit repurchase program, demonstrating a commitment to returning capital to shareholders.

Financial Statements
Beta
Revenue$2.63B
Operating Expenses$1.02B
Interest Expense$39.32M
Net Income$742.04M
EPS (Basic)$1.09
EPS (Diluted)$1.09
Shares Outstanding (Basic)681.79M
Shares Outstanding (Diluted)682.01M

Key Highlights

  • 1Total Revenues surged by 71% year-over-year to $2.63 billion for the quarter ended June 30, 2018.
  • 2Net Income attributable to The Blackstone Group L.P. grew significantly by 120% year-over-year to $742.0 million.
  • 3Investment Income saw a substantial increase of 42% year-over-year, driven by strong performance in Private Equity and Credit segments.
  • 4Total Compensation and Benefits expenses increased by 21% year-over-year, reflecting business growth and performance-based compensation adjustments.
  • 5Fee-Earning Assets Under Management were $333.0 billion at June 30, 2018, with net inflows of $5.4 billion in the quarter.
  • 6Blackstone repurchased 2.2 million common units for $71.7 million during the quarter, with $928.3 million remaining under its repurchase program.
  • 7The company declared a distribution of $0.35 per common unit for the second quarter of 2018.

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