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 Highlights

33 data points
Beta

Revenue

$2.63B

Net Income

$742.04M

28.2% Net Margin

EPS (Diluted)

$1.09

Total Assets

$30.08B

Cash & Equivalents

$1.71B

Free Cash Flow

-$895.06M

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.

Frequently Asked Questions

Blackstone's total revenues increased significantly by 71% year-over-year to $2.63 billion for the quarter ended June 30, 2018. This growth was primarily driven by a substantial increase in 'Other Revenue', which included proceeds from the conclusion of its sub-advisory relationship with FS Investments, and a significant rise in 'Investment Income', particularly from its Private Equity and Credit segments due to strong performance and market appreciation.

Blackstone demonstrated substantial profitability improvement. Net Income attributable to The Blackstone Group L.P. increased by 120% year-over-year to $742.0 million for the quarter. This was driven by strong revenue growth outpacing the rise in expenses, leading to a significant increase in net income.

Blackstone's Fee-Earning Assets Under Management were $333.0 billion at June 30, 2018. The company experienced net inflows of $5.4 billion during the quarter, indicating continued investor confidence and capital deployment, although total AUM saw a net decrease due to outflows and realizations, partially offset by market appreciation.

Blackstone is returning capital to shareholders through its unit repurchase program and distributions. During the quarter, the company repurchased 2.2 million common units for $71.7 million, with $928.3 million remaining authorized for future repurchases. Additionally, Blackstone declared a distribution of $0.35 per common unit for the second quarter of 2018.