8-KEarnings & ResultsExhibits & Filings

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

Filed November 6, 2008For Securities:BX

Summary

This 8-K filing from Blackstone Inc. (BX), filed on November 6, 2008, announces the company's financial results for the quarter ended September 30, 2008. The filing primarily serves to attach a press release detailing these results. A key focus of the filing is the disclosure and explanation of several non-GAAP financial measures that Blackstone utilizes to provide a clearer picture of its performance and value creation. These include Economic Net Income (ENI), ENI After Taxes, Pro Forma ENI, and Adjusted Cash Flow from Operations. Investors should note the significant emphasis on these non-GAAP metrics, which management uses for decision-making and performance benchmarking. The filing clarifies that these measures exclude certain items like income taxes, transaction-related expenses, and differences in accounting for compensation and equity-based awards, particularly when comparing pre- and post-IPO periods. Reconciliations to GAAP measures are provided in the attached press release, and investors are advised to consider these non-GAAP figures alongside traditional GAAP reporting.

Key Highlights

  • 1Blackstone Inc. (BX) reported its financial results for the third quarter of 2008.
  • 2The 8-K filing includes a press release detailing these quarterly results.
  • 3The company emphasizes the use of non-GAAP financial measures to assess performance.
  • 4Key non-GAAP metrics discussed include Economic Net Income (ENI), ENI After Taxes, and Pro Forma ENI.
  • 5Adjusted Cash Flow from Operations is presented as a measure of liquidity and amounts available for distributions.
  • 6These non-GAAP measures are explained as excluding items like income taxes, transaction costs, and certain compensation expenses to provide a clearer view of operational performance and value creation.
  • 7Reconciliations of non-GAAP to GAAP measures are available in the accompanying press release.

Frequently Asked Questions

Blackstone is highlighting several non-GAAP measures including Economic Net Income (ENI), Economic Net Income After Taxes, Pro Forma ENI, and Adjusted Cash Flow from Operations. These are used by management to assess performance and value creation, particularly for decision-making across business segments and for evaluating liquidity.

Blackstone uses these non-GAAP measures to provide a more granular view of its operating performance and value creation. They exclude items like income taxes, transaction-related expenses (e.g., equity-based compensation charges, amortization of intangibles), and corporate actions, which can fluctuate and may not reflect the core operational performance. They also help in comparing pre- and post-IPO periods by adjusting for structural changes.

The filing states that reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in the press release attached as Exhibit 99.1 to this 8-K filing.

ENI is presented as Blackstone's key measure of value creation and a benchmark for its performance. By excluding certain non-operational or transaction-related items and income taxes, ENI aims to show the underlying profitability and economic performance of its segments, which management uses for resource allocation and compensation decisions.