Business Context and Reporting Period
Company: The Blackstone Group L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: May 6, 2009
Reporting Period: Quarter ended March 31, 2009
This filing announces the issuance of a press release detailing financial results for the quarter ended March 31, 2009. The specific numerical results are contained in the attached press release (Exhibit 99.1) and are furnished but not filed within this document.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it defines the non-GAAP measures used to assess performance:
- Economic Net Income (ENI): Segment net income excluding income taxes and transaction-related items (e.g., equity-based compensation, intangible amortization, acquisition charges). Used for resource deployment and compensation decisions.
- Economic Net Income After Taxes: ENI adjusted for an implied income tax provision.
- Net Fee Related Earnings from Operations: A component of Adjusted Cash Flows from Operations. Calculated as contractual revenues and interest income less compensation (excluding carried interest/incentive fees), other operating expenses, and cash taxes. Used to assess if recurring revenue covers operating expenses.
- Adjusted Cash Flows from Operations: A supplemental liquidity measure derived from segment results, adjusted for transaction-related actions, operating asset/liability changes, fund investment activity, realized gains, tax differences, and minority interests.
Material Changes
The filing text does not provide specific data regarding material changes in financial metrics compared to the prior comparable period. It only confirms the announcement of results for the quarter ended March 31, 2009.
Guidance, Outlook, and Management Commentary
Liquidity Management: Management states that liquidity and capital requirements are managed by focusing on cash flows before the consolidation of Blackstone Funds and normal changes in assets/liabilities expected to settle within one year. Normal short-term movements do not affect distribution decisions due to current balance sheet liquidity, including available cash, marketable securities, and borrowing capability.
Non-GAAP Disclosure: The company emphasizes that these non-GAAP measures should be considered in addition to, not as a substitute for, GAAP financial measures. Reconciliations to GAAP are included in the attached press release.
Investor Verification Checklist
- Review the attached press release (Exhibit 99.1) for specific GAAP and non-GAAP numerical results for the quarter ended March 31, 2009.
- Verify the reconciliation of Economic Net Income (ENI) and Adjusted Cash Flows from Operations to GAAP net income and operating cash flows.
- Assess the impact of transaction-related items and equity-based compensation on reported earnings as defined in the ENI methodology.
- Confirm the status of available cash, marketable securities, and borrowing capabilities mentioned in the liquidity discussion.