8-KEarnings & ResultsExhibits & Filings

Blackstone Inc. 8-K Report, Financial Results (May 15, 2008)

Filed May 15, 2008For Securities:BX

Summary

This 8-K filing from The Blackstone Group L.P. (now Blackstone Inc.), dated May 15, 2008, primarily serves to announce the company's financial results for the quarter ended March 31, 2008, via an attached press release (Exhibit 99.1). While the filing itself is procedural, the attached press release contains the substantive financial information. Blackstone is presenting its results using several non-GAAP financial measures, including Economic Net Income (ENI), Pro Forma ENI, and Adjusted Cash Flow from Operations. These measures are highlighted as key performance indicators used by management for decision-making and benchmarking, and Blackstone believes they provide useful insights for investors in evaluating operating performance and liquidity. The company emphasizes its focus on cash flows before consolidation of its funds and normal changes in short-term assets/liabilities for managing liquidity and capital requirements. The adjusted cash flow metrics are presented as supplemental measures of liquidity and amounts available for distributions. Investors are advised to consider these non-GAAP measures alongside GAAP results, as reconciliations are provided in the press release.

Key Highlights

  • 1Blackstone Group L.P. announced its financial results for the first quarter ended March 31, 2008.
  • 2The results were disclosed via an attached press release (Exhibit 99.1), which is furnished but not filed with the SEC.
  • 3The company utilizes and emphasizes several non-GAAP financial measures, including Economic Net Income (ENI), to report performance.
  • 4Key non-GAAP metrics also include Pro Forma ENI and Adjusted Cash Flow from Operations, used to assess operating performance and liquidity.
  • 5ENI is presented as a key performance indicator for management, used for resource deployment and compensation decisions.
  • 6Blackstone highlights Adjusted Cash Flow from Operations as a supplemental measure of liquidity and amounts available for distributions to unitholders.
  • 7Reconciliations of these non-GAAP measures to comparable GAAP measures are available within the referenced press release.

Frequently Asked Questions

The main purpose of this 8-K filing is to publicly announce and provide investors with access to Blackstone's financial results for the first quarter ended March 31, 2008, through an attached press release (Exhibit 99.1).

Blackstone is highlighting several non-GAAP financial measures, including Economic Net Income (ENI), Economic Net Income After Taxes, Pro Forma Economic Net Income, Pro Forma Adjusted Economic Net Income After Taxes, Adjusted Cash Flow from Operations, and Pro Forma Adjusted Cash Flow from Operations. These measures are used to provide insights into operating performance and liquidity.

Blackstone uses Economic Net Income (ENI) and related metrics because management considers them important for evaluating value creation, making resource deployment and compensation decisions, and benchmarking the firm's performance. They believe these measures, when presented with GAAP measures, are useful for investors in assessing operating performance.

Adjusted Cash Flow from Operations is a supplemental measure of liquidity. It adjusts net cash flows from operating activities to exclude certain items like changes in operating assets/liabilities, fund investment activity, and realized gains, among others. Blackstone uses it to assess liquidity and the amounts available for distributions to unitholders and personnel.