8-KEarnings & ResultsExhibits & Filings

Blackstone Inc. 8-K Report, Financial Results (Feb 25, 2010)

Filed February 25, 2010For Securities:BX

Summary

This 8-K filing from The Blackstone Group L.P. on February 25, 2010, primarily announces the release of their fourth quarter and full-year 2009 financial results. Investors should note the company's continued reliance on and disclosure of non-GAAP financial measures, such as Economic Net Income (ENI) and Net Fee Related Earnings from Operations. These measures are presented as key indicators of value creation, operational performance, and liquidity, particularly for assessing recurring revenue against operating expenses and determining amounts available for distribution to unitholders. The filing also highlights a forthcoming change in how Blackstone will report distributable earnings. "Adjusted Cash Flows from Operations" will be retired, and "Distributable Earnings" will become the primary non-GAAP measure for reporting net realized earnings available for distribution, with the intention to distribute all such earnings annually, subject to business needs and legal requirements. This signals a focus on transparency regarding cash generation and shareholder returns.

Key Highlights

  • 1Blackstone announced its fourth quarter and full-year 2009 financial results via a press release filed as an exhibit.
  • 2The company continues to emphasize non-GAAP financial measures for performance and operational insights.
  • 3Key non-GAAP metrics disclosed include Economic Net Income (ENI) and Net Fee Related Earnings from Operations.
  • 4ENI is presented as a primary measure of value creation and performance across segments.
  • 5Net Fee Related Earnings from Operations aims to highlight earnings from core operations, excluding performance fees and investment gains/losses.
  • 6Blackstone is transitioning from 'Adjusted Cash Flows from Operations' to 'Distributable Earnings' as its primary non-GAAP measure for distribution availability.
  • 7The company intends to distribute all Distributable Earnings annually, after retaining necessary funds for business operations and investments.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce and furnish the press release containing Blackstone's financial results for the fourth quarter and the full year ended December 31, 2009. It also details the non-GAAP financial measures the company uses and an upcoming change in reporting for distributable earnings.

Blackstone uses these non-GAAP measures because management believes they provide a clearer view of value creation, operational performance, and liquidity. ENI is used to measure value creation and performance, excluding certain items like income taxes and IPO/acquisition costs. Net Fee Related Earnings from Operations is used to assess if recurring revenue covers operating expenses and generates profit, excluding performance fees and investment gains/losses.

This shift indicates Blackstone's move towards a more direct and consolidated reporting of realized earnings available for distribution to its unitholders. Distributable Earnings aims to represent net realized earnings without the effects of consolidating the investment funds managed by Blackstone, with a stated intention for annual distribution of these earnings, subject to business needs.

The detailed financial results are presented in the press release attached as Exhibit 99.1 to this 8-K filing. The 8-K itself primarily serves as the notification and filing mechanism for this press release.