8-KEarnings & ResultsExhibits & Filings

Blackstone Inc. 8-K Report, Financial Results (Feb 27, 2009)

Filed February 27, 2009For Securities:BX

Summary

This 8-K filing from The Blackstone Group L.P., dated February 27, 2009, announces their financial results for the fourth quarter and full year ended December 31, 2008. The report primarily directs investors to a press release (Exhibit 99.1) which contains the detailed financial results and explanations of various non-GAAP financial measures the company utilizes. Key among these are "Economic Net Income (ENI)" and "Adjusted Cash Flow from Operations," which Blackstone uses to provide a clearer picture of value creation, operational performance, and liquidity, particularly in the context of its post-IPO reporting and pre-IPO operational structures. The filing emphasizes the use of these non-GAAP measures to provide investors with additional insights into Blackstone's performance and financial condition, especially considering the complexities of its business structure, transaction-related items, and compensation arrangements. Investors are encouraged to review these measures alongside the standard GAAP financial statements for a comprehensive understanding.

Key Highlights

  • 1Blackstone Group L.P. announced its financial results for Q4 and the full year 2008 via an 8-K filing on February 27, 2009.
  • 2The core of the filing directs investors to an attached press release (Exhibit 99.1) for detailed financial information.
  • 3The company utilizes several non-GAAP financial measures, including Economic Net Income (ENI), ENI After Taxes, Pro Forma ENI, Pro Forma Adjusted ENI After Taxes, and Net Fee Related Earnings from Operations.
  • 4These non-GAAP measures are presented to provide insights into value creation, operational performance, and liquidity, excluding certain transaction-related items, taxes, and compensation complexities.
  • 5Economic Net Income (ENI) is highlighted as a key measure of value creation, excluding income taxes and transaction-related items.
  • 6Adjusted Cash Flow from Operations is provided as a supplemental measure to assess liquidity and amounts available for distributions to unitholders.
  • 7Reconciliations of these non-GAAP measures to their GAAP equivalents are available in the press release, with a cautionary note for investors to consider them alongside GAAP figures.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce and provide access to Blackstone Group L.P.'s financial results for the fourth quarter and the full year ended December 31, 2008. It directs investors to an accompanying press release (Exhibit 99.1) for the detailed financial disclosures and explanations of their financial metrics.

The filing highlights 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, Pro Forma Adjusted Cash Flow from Operations, and Net Fee Related Earnings from Operations. These are used to provide a more granular view of performance and liquidity.

Blackstone uses non-GAAP measures like ENI to present performance and value creation in a way that management believes is more indicative of operational effectiveness, excluding items such as income taxes, transaction-related expenses (like equity-based compensation and amortization of intangibles), and certain historical compensation structures that differ from their post-IPO reporting. These measures are intended to aid investor understanding of core business performance.

The full financial results, including detailed explanations of the non-GAAP measures and their reconciliations to GAAP, are available in the press release attached as Exhibit 99.1 to this 8-K filing.