8-KEarnings & ResultsExhibits & Filings

Blackstone Inc. 8-K Report, Financial Results (May 6, 2009)

Filed May 6, 2009For Securities:BX

Summary

This 8-K filing by The Blackstone Group L.P. (now Blackstone Inc.) on May 6, 2009, primarily announces their financial results for the quarter ended March 31, 2009. The report highlights the company's use of non-GAAP financial measures to provide a clearer view of operational performance and value creation. Key among these are Economic Net Income (ENI) and Net Fee Related Earnings from Operations, which exclude certain accounting treatments and transaction-related items to better reflect the underlying business performance and cash generation capabilities. Investors should note that Blackstone emphasizes these non-GAAP measures as critical for understanding management's decision-making and assessing the company's ability to cover operating expenses with recurring revenue, as well as its liquidity and capacity for distributions. While GAAP measures are also provided, the company directs attention to ENI and Net Fee Related Earnings for a more focused view on operational efficiency and value creation, especially in the context of the prevailing economic conditions of 2009.

Key Highlights

  • 1Blackstone Group L.P. reported financial results for the quarter ended March 31, 2009, via a press release filed as an exhibit.
  • 2The company utilizes and emphasizes non-GAAP financial measures, including Economic Net Income (ENI), to provide a more granular view of performance.
  • 3ENI is defined as segment net income excluding income taxes and transaction-related items, used by management for resource deployment and compensation decisions.
  • 4Net Fee Related Earnings from Operations is presented as a key performance metric to assess profitability from recurring revenues versus operating expenses.
  • 5Adjusted Cash Flows from Operations is disclosed as a supplemental measure to assess liquidity and amounts available for distributions to unitholders.
  • 6Reconciliations of these non-GAAP measures to their GAAP equivalents are available in the attached press release.
  • 7The filing was made on May 6, 2009, with the event date being May 5, 2009.

Frequently Asked Questions

Blackstone is highlighting Economic Net Income (ENI), Economic Net Income After Taxes, Net Fee Related Earnings from Operations, and Adjusted Cash Flows from Operations. These measures are used to provide a clearer picture of operational performance and value creation by excluding certain accounting treatments and transaction-related items.

Blackstone uses ENI as a key measure of value creation and performance, excluding items such as income taxes, equity-based compensation charges, and amortization of intangibles. Management uses ENI and other non-GAAP measures primarily for making resource deployment and compensation decisions across its segments and to assess operational efficiency and liquidity.

The press release attached as Exhibit 99.1 to this 8-K filing contains the detailed reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

Blackstone presents these non-GAAP measures as supplemental information and advises that they should be considered in addition to, and not as a substitute for, or superior to, financial measures presented in accordance with GAAP. However, the company emphasizes their importance in management's assessment of performance and decision-making.