8-KEarnings & ResultsExhibits & Filings

Blackstone Inc. 8-K Report, Financial Results (Aug 6, 2008)

Filed August 6, 2008For Securities:BX

Summary

This 8-K filing from The Blackstone Group L.P. (BX), dated August 6, 2008, announces the company's financial results for the quarter ended June 30, 2008, through an attached press release (Exhibit 99.1). The filing highlights the company's use of non-GAAP financial measures to provide investors with a clearer view of its operational performance and liquidity, especially given its recent transition as a public entity. Key metrics like Economic Net Income (ENI) and Adjusted Cash Flow from Operations are detailed, along with their pro forma adjustments. Investors should note that the company emphasizes these non-GAAP measures as important indicators of value creation and liquidity, particularly in assessing amounts available for distributions. While these measures offer insights into operational performance and cash generation, the filing clearly states they should be considered in conjunction with, and not as a substitute for, GAAP-based financial measures. The press release itself provides the detailed reconciliations for these non-GAAP figures.

Key Highlights

  • 1Blackstone Group L.P. reported its financial results for the second quarter ended June 30, 2008.
  • 2The company utilizes and discloses several non-GAAP financial measures, including Economic Net Income (ENI) and Adjusted Cash Flow from Operations.
  • 3ENI is presented as a key performance measure for evaluating value creation and segment performance, excluding income taxes and transaction-related items.
  • 4Pro Forma ENI and Pro Forma Adjusted ENI After Taxes are used to provide a comparable view for periods following its initial public offering.
  • 5Adjusted Cash Flow from Operations is highlighted as a supplemental liquidity measure, focusing on cash available for distributions.
  • 6The filing emphasizes that these non-GAAP measures are supplemental and should be considered alongside GAAP financial statements.
  • 7Detailed reconciliations of these non-GAAP measures to their GAAP equivalents are available in the attached press release (Exhibit 99.1).

Frequently Asked Questions

Blackstone is primarily using 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 intended to provide a clearer picture of operational performance and liquidity.

Blackstone uses these non-GAAP measures to better reflect how management makes decisions regarding resource allocation and compensation, and to provide a more consistent view of operating performance and liquidity, particularly in light of its recent transition from a private partnership to a publicly traded entity. They aim to exclude certain transaction-related costs and accounting treatments that might obscure the underlying operational trends.

Investors should consider these non-GAAP measures as supplemental information to, and not a substitute for, the financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP). The company itself states that these measures are useful for evaluating operating performance and liquidity when presented with comparable GAAP measures, and that detailed reconciliations are provided in the attached press release.

ENI is highlighted as a key performance measure used by Blackstone's management to assess value creation and benchmark the firm's performance across its segments. It represents segment net income before the impact of income taxes and certain transaction-related items, as well as specific equity-based compensation adjustments.