8-KEarnings & ResultsExhibits & Filings

Blackstone Inc. 8-K Report, Financial Results (Oct 28, 2010)

Filed October 28, 2010For Securities:BX

Summary

Blackstone Inc. (BX), formerly The Blackstone Group L.P., filed an 8-K on October 28, 2010, to report its third-quarter financial results for the period ending September 30, 2010. The filing primarily references a press release (Exhibit 99.1) that details these results and introduces several non-GAAP financial measures used by the company to assess performance. These include Economic Net Income (ENI), ENI After Taxes, Net Fee Related Earnings from Operations, EBITDA-NFRE, and Distributable Earnings. Investors should note that these non-GAAP metrics are presented to provide additional insights into Blackstone's operational performance, particularly focusing on value creation and earnings derived from its core businesses, excluding certain accounting impacts and the performance of managed funds. The company emphasizes that these measures are supplemental and should be considered alongside GAAP results. The filing indicates that Distributable Earnings is a key measure for assessing amounts available for distribution to unitholders, with Blackstone's intention to distribute substantially all of these earnings annually.

Key Highlights

  • 1Blackstone reported its Q3 2010 financial results via an 8-K filing on October 28, 2010.
  • 2The report references a press release (Exhibit 99.1) containing the detailed financial results.
  • 3The filing introduces and explains several non-GAAP financial measures used by Blackstone.
  • 4Key non-GAAP metrics include Economic Net Income (ENI), ENI After Taxes, Net Fee Related Earnings from Operations, and EBITDA-NFRE.
  • 5Distributable Earnings is highlighted as a key measure for assessing amounts available for unitholder distributions.
  • 6Blackstone intends to distribute substantially all of its Distributable Earnings annually, in excess of amounts needed for business operations and investments.
  • 7The non-GAAP measures are presented as supplemental to GAAP results and provide insights into operational performance and value creation.

Frequently Asked Questions

The key non-GAAP financial measures discussed are Economic Net Income (ENI), ENI After Taxes, Net Fee Related Earnings from Operations, EBITDA-NFRE, and Distributable Earnings. These measures are used to assess value creation, performance, and earnings from operations, often excluding certain accounting treatments or fund performance.

Blackstone uses these non-GAAP measures to provide a more granular view of its operational performance, value creation, and earnings potential, particularly focusing on its core fee-generating businesses and management's assessment of performance. They are intended to supplement, not replace, GAAP financial measures.

Distributable Earnings is a non-GAAP measure derived from segment results, designed to show net realized earnings excluding the consolidation effects of Blackstone's managed funds. It is considered a key metric for assessing amounts available for distribution to unitholders. Blackstone intends to distribute substantially all of its annual Distributable Earnings, making it a critical metric for investors interested in direct returns.

The detailed financial results and reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures are provided in the press release attached as Exhibit 99.1 to this 8-K filing.