8-KEarnings & ResultsExhibits & Filings

Blackstone Inc. 8-K Report, Financial Results (Feb 3, 2011)

Filed February 3, 2011For Securities:BX

Summary

This 8-K filing from Blackstone Inc. (then The Blackstone Group L.P.) on February 3, 2011, primarily serves to announce their fourth quarter and full year 2010 financial results. The report highlights the company's use of several non-GAAP financial measures, including Economic Net Income (ENI), Economic Net Income After Taxes, Net Fee Related Earnings from Operations, EBITDA-NFRE, and Distributable Earnings. These measures are presented to provide investors with a clearer view of value creation, operational profitability, and amounts available for distribution, particularly by excluding certain IPO and acquisition-related items, income taxes, and unrealized gains/losses. The focus on these specific non-GAAP metrics suggests Blackstone's emphasis on showcasing operational performance and its ability to generate distributable earnings for its unitholders. Investors should pay close attention to these metrics as they are central to understanding Blackstone's business performance and its capacity for future distributions, alongside the traditional GAAP financial statements which are detailed in the accompanying press release (Exhibit 99.1).

Key Highlights

  • 1Blackstone announced its fourth quarter and full year 2010 financial results via a press release filed on February 3, 2011.
  • 2The filing emphasizes the use of multiple non-GAAP financial measures to report performance, including Economic Net Income (ENI), ENI After Taxes, Net Fee Related Earnings from Operations, EBITDA-NFRE, and Distributable Earnings.
  • 3ENI is presented as a key measure of value creation and performance, excluding IPO/acquisition-related items and income taxes.
  • 4Net Fee Related Earnings from Operations is highlighted to assess the sufficiency of recurring revenue to cover operating expenses.
  • 5Distributable Earnings is introduced as a supplemental measure to assess performance and amounts available for distribution to unitholders.
  • 6Reconciliations of these non-GAAP measures to GAAP are available in the attached press release (Exhibit 99.1).
  • 7The press release containing the detailed financial results and reconciliations is attached as Exhibit 99.1.

Frequently Asked Questions

Blackstone is highlighting several non-GAAP financial measures: Economic Net Income (ENI), Economic Net Income After Taxes, Net Fee Related Earnings from Operations, EBITDA-NFRE, and Distributable Earnings. These are presented alongside traditional GAAP measures to offer a comprehensive view of their performance.

Blackstone uses these non-GAAP measures to provide a clearer picture of value creation, operational profitability, and amounts available for distribution to unitholders. They are designed to exclude certain items like income taxes, IPO and acquisition-related costs, and unrealized gains/losses to better reflect ongoing operational performance and economic reality.

Distributable Earnings is a supplemental measure intended to show realized earnings and the amounts available for distribution to Blackstone's unitholders. It excludes effects of consolidating investment funds and certain other non-cash or non-recurring items. It is important for investors as it reflects the cash flow generated by the business that can potentially be returned to shareholders.

The detailed financial results for the fourth quarter and year ended December 31, 2010, along with reconciliations of the non-GAAP financial measures to GAAP, are provided in the press release attached as Exhibit 99.1 to this 8-K filing.