DigitalBridge (DBRG)2025-02-21 21:29Financial Performance - Total revenues for the year ended December 31, 2024, were $607.028 million, a decrease of 26.1% from $821.383 million in 2023[382]. - The Company reported a net income of $147.006 million for 2024, compared to a net income of $45.165 million in 2023[384]. - The fee revenue for 2024 was $329.693 million, an increase of 24.8% from $264.117 million in 2023[382]. - The principal investment income for 2024 was $30.023 million, a significant decrease of 79.3% from $145.448 million in 2023[382]. - The Company’s total expenses for 2024 were $496.865 million, down from $551.873 million in 2023, indicating a decrease of 10%[382]. - The income (loss) from discontinued operations for 2024 was $(18.865) million, compared to $(320.458) million in 2023, showing an improvement[382]. - The Company reported a comprehensive income (loss) of $(974,000) for the year ended December 31, 2024[393]. - Net income for the year ended December 31, 2024, was $147,006,000, a significant increase from $45,165,000 in 2023[396]. Assets and Liabilities - The Company's total assets decreased to $3.513 billion as of December 31, 2024, from $3.563 billion in 2023, reflecting a decline of 1.4%[380]. - The total liabilities decreased to $1.022 billion in 2024, down from $1.053 billion in 2023, representing a reduction of 2.9%[380]. - The Company’s accumulated deficit as of December 31, 2024, was $(6.838) billion, slightly improved from $(6.843) billion in 2023[380]. - The balance of total equity at December 31, 2024, was $2,466,834,000, compared to $2,491,301,000 at the end of 2023[393]. Investment and Market Activity - The company reported a management fee revenue of $11.6 million from vehicles with NAV or GAV fee basis, which constituted 5% of the total $35.5 billion FEEUM as of December 31, 2024[355]. - The company had $84 million in long positions and $48 million in short positions in marketable equity securities as of December 31, 2024[363]. - Principal investments increased from $1,194.417 million in 2023 to $1,391.316 million in 2024, reflecting a growth of approximately 16.5%[529]. - Carried interest allocation rose from $676.421 million in 2023 to $894.553 million in 2024, indicating a growth of about 32.3%[529]. - Marketable equity securities decreased from $17.487 million in 2023 to $242 thousand in 2024, showing a significant decline[529]. Cash Flow and Dividends - Cash generated from operating activities for 2024 was $60,122,000, compared to $233,637,000 in 2023, indicating a decrease in operational cash flow[396]. - Total cash, cash equivalents, and restricted cash at the end of 2024 was $306,298,000, down from $350,250,000 at the end of 2023[398]. - Dividends paid to preferred stockholders in 2024 amounted to $58,641,000, slightly lower than $58,761,000 in 2023[398]. - The Company declared common stock dividends of $0.04 per share, totaling $6,513 for the year[390]. Discontinued Operations - In 2023, the Company reported revenues from discontinued operations of $783.1 million, a decrease from $975.3 million in 2022, reflecting a decline of approximately 19.7%[506]. - The total loss from discontinued operations in 2023 was $320.5 million, compared to a loss of $510.2 million in 2022, indicating an improvement of about 37.2%[506]. - The Company recorded an income tax benefit of $190 in 2024 from discontinued operations, compared to an expense of $1.6 million in 2023[506]. - The Company’s discontinued operations included residual activities from former real estate investments, which have been largely disposed of as part of its transformation strategy[499]. Risk Factors - The company operates in a highly competitive investment management environment, which significantly impacts its ability to raise capital and maintain distributions to stockholders[20]. - Changes in debt financing markets or higher interest rates could negatively affect the value of certain assets and the ability of funds to access capital markets on attractive terms[26]. - The company is exposed to foreign currency risk, particularly from its InfraBridge advisor subsidiary, which incurs operating costs in Pound Sterling while receiving fee revenue predominantly in U.S. dollars[361]. - The market price of the company's class A common stock has been volatile, which could result in significant losses for shareholders[26]. - The company’s operations in foreign markets expose it to risks related to foreign exchange rate fluctuations[20]. Acquisitions and Investments - The Company acquired AMP Capital's global infrastructure equity investment management business for $314.3 million in cash, with additional contingent consideration based on future fundraising targets[525]. - The total consideration for the acquisition was $376.314 million, with cash assets of $365.440 million and contingent consideration valued at $10.874 million[527]. - The fair value of net assets acquired was $208.571 million, with goodwill recorded at $167.743 million[527]. Accounting and Financial Reporting - The Company accounts for acquisitions using the acquisition method, with transaction costs expensed as incurred[431]. - Contingent consideration related to business acquisitions is measured at fair value on the acquisition date and remeasured each reporting period until settled[434]. - The Company uses the asset and liability method for income taxes, reflecting expected future tax consequences of temporary differences[491]. - Basic earnings per share (EPS) is calculated using the two-class method, allocating earnings to common shares and participating securities[495]. - Diluted EPS considers the effect of potentially dilutive common share equivalents outstanding during the period[496].