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Ben(BENF) - 2024 Q2 - Quarterly Results
BENFBen(BENF)2024-08-14 20:10

Financial Performance - Beneficient reported revenues of 10.0millionforQ1fiscal2025,asignificantimprovementfrom10.0 million for Q1 fiscal 2025, a significant improvement from (2.7) million in the same quarter of fiscal 2024[1]. - Total revenues for the three months ended June 30, 2024, were 10,046thousand,comparedtoalossof10,046 thousand, compared to a loss of 2,743 thousand in the same period of 2023, indicating a significant recovery[25]. - Net income attributable to Beneficient common shareholders for the same period was 47,667thousand,asubstantialimprovementfromanetlossof47,667 thousand, a substantial improvement from a net loss of 1,115,523 thousand in the prior year[25]. - Operating income before income taxes was 44,338thousand,anotableincreasefromalossof44,338 thousand, a notable increase from a loss of 1,155,970 thousand in the previous year[25]. - Total segment revenues attributable to Ben's equity holders for Fiscal Q1 2025 were 16,235,000,adecreaseof0.216,235,000, a decrease of 0.2% compared to 16,273,000 in the prior quarter[14]. - Total adjusted segment revenues attributable to Ben's equity holders were 16,242,000,down0.416,242,000, down 0.4% from 16,306,000 in the previous quarter[18]. - Net income attributable to Ben's common shareholders was 47,667,000,comparedtoalossof47,667,000, compared to a loss of 66,217,000 in the prior quarter[20]. - Total segment operating income attributable to Ben's equity holders was 44,864,000,asignificantimprovementfromalossof44,864,000, a significant improvement from a loss of 195,051,000 in the prior quarter, reflecting a change of 98.3%[15]. Assets and Liabilities - Total assets as of June 30, 2024, were 361,304thousand,adecreasefrom361,304 thousand, a decrease from 368,501 thousand as of March 31, 2024[26]. - Total liabilities decreased to 258,542thousandfrom258,542 thousand from 309,567 thousand in the previous quarter, reflecting improved financial health[26]. - As of June 30, 2024, Beneficient had cash and cash equivalents of 4.4millionandtotaldebtof4.4 million and total debt of 120.6 million[9]. - Cash and cash equivalents decreased to 4,399thousandfrom4,399 thousand from 7,913 thousand in the previous quarter, indicating a need for liquidity management[26]. Operating Expenses - The company achieved its first profitable quarter as a public company, with operating expenses of (34.3)million,influencedbya(34.3) million, influenced by a 55.0 million release of a loss contingency accrual[1]. - The company reported a goodwill impairment of 3,394thousandduringthequarter,comparedto3,394 thousand during the quarter, compared to 1,096,305 thousand in the same period last year[25]. - Operating expenses, excluding goodwill impairment and arbitration award adjustments, were 17,287millionforthethreemonthsendedJune30,2024[31].Thereleaseoflosscontingencyrelatedtoarbitrationawardscontributed17,287 million for the three months ended June 30, 2024[31]. - The release of loss contingency related to arbitration awards contributed 54,973 million to operating expenses[31]. Investment and Portfolio - Investments at fair value increased to 331.4millionasofJune30,2024,upfrom331.4 million as of June 30, 2024, up from 329.1 million at the end of the previous fiscal year[12]. - The loan portfolio was supported by a diversified alternative asset collateral portfolio, with a total gross loan balance of 566millionandanetloanbalanceof566 million and a net loan balance of 256 million after an allowance for credit losses of 311million[4].NAVofalternativeassetsheldincustodywas311 million[4]. - NAV of alternative assets held in custody was 380.7 million, slightly down from 381.2millionasofMarch31,2024[7].TheGPPreferredLiquidityProviderProgramexpandedto20fundswith381.2 million as of March 31, 2024[7]. - The GP Preferred Liquidity Provider Program expanded to 20 funds with 1.5 billion in committed capital, compared to 7 funds with 300millionincommittedcapitalattheendof2022[1].RevenueSegmentsBenLiquidityrecognized300 million in committed capital at the end of 2022[1]. Revenue Segments - Ben Liquidity recognized 10.8 million of interest income for Q1 fiscal 2025, a 1.9% increase from the previous quarter[5]. - Ben Liquidity segment revenue increased by 1.9% to 10,849,000from10,849,000 from 10,644,000 in the previous quarter[14]. - Ben Custody segment revenue decreased by 3.4% to 5,382,000comparedto5,382,000 compared to 5,573,000 in the prior quarter[14]. - Adjusted segment operating income for Ben Liquidity improved to a loss of 509,000fromalossof509,000 from a loss of 29,408,000 in the previous quarter, marking a 98.3% improvement[18]. - Corporate & Other segment reported an operating income of 44,091,000,asignificantrecoveryfromalossof44,091,000, a significant recovery from a loss of 115,637,000 in the previous quarter[20]. Legal and Regulatory Matters - The company announced a court ruling vacating a previously disclosed arbitration award of approximately $55.3 million against it[8]. - The company is actively involved in addressing legal and professional fees related to GWG Holdings bankruptcy, which may affect future financial results[30]. - Future outlook includes a focus on managing credit losses related to receivables from related parties and ongoing legal matters[32]. Innovation and Services - The company is focused on innovating the alternative asset investment market and expanding its Preferred Liquidity Provider Program[24]. - Beneficient's AltQuote™ tool provides customers with potential exit options within minutes, enhancing service efficiency[23].