8-KEarnings & ResultsExhibits & Filings

Blackstone Inc. 8-K Report, Financial Results (Apr 22, 2010)

Filed April 22, 2010For Securities:BX

Summary

This Form 8-K filing from The Blackstone Group L.P. (now Blackstone Inc.) on April 22, 2010, announces the company's financial results for the first quarter ended March 31, 2010. The key focus of the report is the disclosure of the company's financial performance using several non-GAAP (Generally Accepted Accounting Principles) financial measures, which management utilizes for decision-making and performance assessment. Investors should note that Blackstone employs specific metrics such as Economic Net Income (ENI), Economic Net Income After Taxes, Net Fee Related Earnings from Operations, EBITDA-NFRE, and Distributable Earnings. These measures are designed to provide a clearer view of value creation, operational profitability, and amounts available for distribution to unitholders, by excluding certain items like taxes, IPO and acquisition-related costs, and gains/losses from consolidated investment funds. The press release containing detailed reconciliations of these non-GAAP measures to GAAP figures is attached as an exhibit. While these non-GAAP metrics offer insights into Blackstone's operational performance and distribution capacity, investors are reminded to consider them alongside the company's GAAP financial statements for a comprehensive understanding of its financial health. The filing signifies Blackstone's commitment to providing detailed financial reporting that goes beyond standard accounting principles to illustrate its business model and performance drivers.

Key Highlights

  • 1Blackstone Group L.P. announced its first quarter 2010 financial results via a press release filed on April 22, 2010.
  • 2The filing details several non-GAAP financial measures used by management to assess performance and make strategic decisions.
  • 3Key non-GAAP metrics disclosed include Economic Net Income (ENI), Economic Net Income After Taxes, and Net Fee Related Earnings from Operations.
  • 4Distributable Earnings is presented as a supplemental measure to assess performance and amounts available for distribution to unitholders.
  • 5The company emphasizes that these non-GAAP measures should be considered in addition to, and not as a substitute for, GAAP financial measures.
  • 6Detailed reconciliations of the non-GAAP financial measures to GAAP are included in the accompanying press release (Exhibit 99.1).

Frequently Asked Questions

The main non-GAAP financial measures disclosed are Economic Net Income (ENI), Economic Net Income After Taxes, Net Fee Related Earnings from Operations, EBITDA-NFRE (Earnings Before Interest, Taxes, Depreciation, and Amortization from Net Fee Related Earnings from Operations), and Distributable Earnings. These are used to provide a specific view on performance and value creation.

Blackstone uses these non-GAAP measures to highlight specific aspects of its financial performance that management believes are key indicators of value creation, operational efficiency, and amounts available for distribution. For example, ENI excludes taxes and IPO/acquisition costs to show core value creation, while Net Fee Related Earnings focuses on recurring operational profits.

Investors should view these non-GAAP figures as supplemental information. They provide additional insights into Blackstone's business model and performance drivers but should not replace or be considered superior to the financial measures prepared in accordance with GAAP. The filing notes that reconciliations to GAAP are provided in the attached press release.

Distributable Earnings is presented as a measure of performance and indicates the amounts available for distribution to Blackstone's unitholders. The company states its intention to distribute annually all of its Distributable Earnings in excess of amounts deemed necessary for business operations, investments, legal compliance, and future distributions.