Financial Performance - Beneficient reported revenues of $10.0 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 $10,046 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 $47,667 thousand, a substantial improvement from a net loss of $1,115,523 thousand in the prior year[25]. - Operating income before income taxes was $44,338 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, 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, down 0.4% from $16,306,000 in the previous quarter[18]. - Net income attributable to Ben's common shareholders was $47,667,000, 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, 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 $361,304 thousand, a decrease from $368,501 thousand as of March 31, 2024[26]. - Total liabilities decreased to $258,542 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 $4.4 million and total debt of $120.6 million[9]. - Cash and cash equivalents decreased to $4,399 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, influenced by a $55.0 million release of a loss contingency accrual[1]. - The company reported a goodwill impairment of $3,394 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 $17,287 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 $331.4 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 $566 million and a net loan balance of $256 million after an allowance for credit losses of $311 million[4]. - NAV of alternative assets held in custody was $380.7 million, slightly down from $381.2 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 $300 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 $10,849,000 from $10,644,000 in the previous quarter[14]. - Ben Custody segment revenue decreased by 3.4% to $5,382,000 compared to $5,573,000 in the prior quarter[14]. - Adjusted segment operating income for Ben Liquidity improved to a loss of $509,000 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, 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].
Ben(BENF) - 2024 Q2 - Quarterly Results