Burford Capital(BUR) - 2025 Q1 - Quarterly Report

Part I. Financial Information Overview of Burford Capital Limited's unaudited condensed consolidated financial statements and related disclosures for the first quarter Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements for Burford Capital Limited and its subsidiaries for the three months ended March 31, 2025 and 2024, including statements of operations, comprehensive income, financial condition, cash flows, and changes in equity. It also includes detailed notes on organization, significant accounting policies, income taxes, segment reporting, capital provision assets, debt, fair value measurements, variable interest entities, shareholders' equity, earnings per share, financial commitments, related party transactions, credit risk, and subsequent events Condensed Consolidated Statements of Operations | Metric | Three months ended March 31, 2025 ($ in thousands) | Three months ended March 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Capital provision income/(loss) | $131,516 | $40,761 | | Total revenues | $118,859 | $44,295 | | Total operating expenses | $41,101 | $30,138 | | Operating income/(loss) | $77,758 | $14,157 | | Income/(loss) before income taxes | $44,478 | ($18,902) | | Net income/(loss) attributable to Burford Capital Limited shareholders | $30,929 | ($29,937) | | Basic EPS | $0.14 | ($0.14) | | Diluted EPS | $0.14 | ($0.14) | Condensed Consolidated Statements of Comprehensive Income/(Loss) | Metric | Three months ended March 31, 2025 ($ in thousands) | Three months ended March 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Net income/(loss) | $36,910 | ($17,498) | | Foreign currency translation adjustment | ($4,029) | $1,383 | | Comprehensive income/(loss) | $32,881 | ($16,115) | | Comprehensive income/(loss) attributable to Burford Capital Limited shareholders | $26,900 | ($28,554) | Condensed Consolidated Statements of Financial Condition | Metric | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------- | :--------------------------------- | | Cash and cash equivalents | $486,639 | $469,930 | | Capital provision assets | $5,305,021 | $5,243,917 | | Total assets | $6,180,805 | $6,175,025 | | Debt payable | $1,764,726 | $1,763,612 | | Total liabilities | $3,020,224 | $2,918,190 | | Total Burford Capital Limited equity | $2,434,375 | $2,419,432 | | Total shareholders' equity | $3,160,581 | $3,256,835 | Condensed Consolidated Statements of Cash Flows | Metric | Three months ended March 31, 2025 ($ in thousands) | Three months ended March 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Net cash provided by/(used in) operating activities | $155,170 | $52,963 | | Net cash provided by/(used in) investing activities | ($24) | ($43) | | Net cash provided by/(used in) financing activities | ($139,170) | $209,412 | | Net increase/(decrease) in cash and cash equivalents | $15,976 | $262,332 | | Cash and cash equivalents at end of period | $486,639 | $482,673 | Condensed Consolidated Statements of Changes in Equity | Metric | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------- | :--------------------------------- | | Total Burford Capital Limited equity (End of period) | $2,434,375 | $2,419,432 | | Non-controlling interests (End of period) | $726,206 | $837,403 | | Total shareholders' equity (End of period) | $3,160,581 | $3,256,835 | - Net income attributable to Burford Capital Limited shareholders was $30,929 thousand for the three months ended March 31, 2025, a significant improvement from a net loss of $29,937 thousand in the prior year period[69] - The company acquired $15,310 thousand of ordinary shares held in treasury during the three months ended March 31, 2025[69] Notes to the Condensed Consolidated Financial Statements Detailed explanations of accounting policies, segment information, and specific financial statement line items 1. Organization - Burford Capital Limited and its consolidated subsidiaries provide legal finance products and services and are engaged in the asset management business[71] - The Company's ordinary shares trade on AIM (London Stock Exchange) since October 2009 and on the New York Stock Exchange since October 2020 under the symbol 'BUR'[72] 2. Summary of Significant Accounting Policies - The financial statements are prepared in accordance with US GAAP and reflect normal, recurring adjustments for interim periods[73] - Key estimates include valuation of capital provision assets (using Level 3 inputs), deferred tax balances, and goodwill[74] - The Group consolidates certain variable interest entities (VIEs) and entities with majority voting interest, including BOF-C, Advantage Fund, Colorado, and EP Funds[75][80] - Capital provision assets are fair valued using an income approach, estimating risk-adjusted future cash flows with a discount rate and risk-adjustment factor (Level 3 inputs)[100] - The Group adopted ASU 2023-09, Income Taxes (Topic 740), on January 1, 2025, effective prospectively, requiring additional annual income tax disclosures[106] 3. Income Taxes - The Company was granted a corporate income tax exemption in Guernsey for the year ending December 31, 2025, requiring annual reapplication[107] - Operating subsidiaries in Australia, Ireland, Singapore, the UK, and the US are subject to local taxation[108] | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Effective tax rate | 17% | 7% | - The variability in the effective tax rate is due to differing income/losses across jurisdictions and changes in the valuation allowance against deferred tax assets[109] | Deferred Tax Balances ($ in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------- | :------------- | :---------------- | | Gross deferred tax assets | $78,097 | $74,201 | | Gross deferred tax liabilities | ($78,629) | ($71,932) | | Valuation allowance | ($38,511) | ($34,826) | | Net deferred tax liabilities | ($39,043) | ($32,557) | 4. Segment Reporting - The Group has two reportable segments: Principal Finance and Asset Management and Other Services[121] - The Chief Executive Officer and Chief Financial Officer collectively serve as the chief operating decision maker (CODM) and assess segment performance based on segment income/(loss) before income taxes[116][117] - The Principal Finance segment allocates capital from Burford's balance sheet to legal finance assets. The Asset Management and Other Services segment manages legal finance assets for third-party investors and provides other legal industry services[121] - Effective December 31, 2024, the Capital Provision segment was renamed Principal Finance, and revenue, expenses, and assets from 'other corporate' were reallocated to the two reportable segments[123] | Segment Income/(Loss) Before Income Taxes ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Principal Finance | $31,906 | ($33,295) | | Asset Management and Other Services | $6,591 | $1,954 | | Total segments (Burford-only) | $38,497 | ($31,341) | | Reconciling items | $5,981 | $12,439 | | Total consolidated | $44,478 | ($18,902) | 5. Capital Provision Assets - Capital provision assets increased to $5,305,021 thousand as of March 31, 2025, from $5,243,917 thousand at the beginning of the period[136] | Capital Provision Assets ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Deployments | $216,476 | $125,403 | | Realizations | ($288,848) | ($112,971) | | Income/(loss) for the period | $125,568 | $44,161 | | Foreign exchange gains/(losses) | $7,908 | ($5,174) | | End of period | $5,305,021 | $5,096,807 | | Deployed cost, end of period | $2,268,825 | $2,338,056 | | Unrealized fair value, end of period | $3,036,196 | $2,758,751 | | Capital Provision Income ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Net realized gains/(losses) | $67,619 | $57,862 | | Fair value adjustment (net) | $57,949 | ($13,701) | | Foreign exchange gains/(losses) | $5,410 | ($4,202) | | Total capital provision income | $131,516 | $40,761 | 6. Due from Settlement of Capital Provision Assets - Amounts due from settlement of capital provision assets decreased to $102,648 thousand as of March 31, 2025, from $183,858 thousand at the beginning of the period[142] - The decrease is primarily due to proceeds received from capital provision assets totaling $371,054 thousand during the period[142] - The majority of settlement balances are expected to be received within 12 months after conclusion of the capital provision assets[140] 7. Asset Management Income | Asset Management Income ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Management fee income | $1,538 | $1,863 | | Performance fee income | — | — | | Total asset management income | $1,538 | $1,863 | - Asset management income remained relatively flat, with no performance fee income recognized in either period[145] 8. Long-Term Incentive Compensation Payable - Long-term incentive compensation payable decreased to $197,293 thousand as of March 31, 2025, from $217,552 thousand at the beginning of the period[147] - Cash paid for long-term incentive compensation was $27,701 thousand for the three months ended March 31, 2025, significantly higher than $4,482 thousand in the prior year period[147] 9. Other Liabilities | Other Liabilities ($ in thousands) | March 31, 2025 | December 31, 2024 | | :--------------------------------- | :------------- | :---------------- | | General expenses payable | $53,463 | $66,966 | | Tax payable | $23,586 | $21,144 | | Contingent fees | $69,967 | — | | Total other liabilities | $192,660 | $141,973 | - Total other liabilities increased by $50,687 thousand, primarily due to the recognition of $69,967 thousand in contingent fees as of March 31, 2025[149] 10. Debt | Debt Securities ($ in thousands) | March 31, 2025 (Carrying Value) | December 31, 2024 (Carrying Value) | | :------------------------------- | :------------------------------ | :--------------------------------- | | 6.125% Bonds due August 12, 2025 | $122,700 | $129,275 | | 5.000% Bonds due December 1, 2026 | $225,372 | $218,640 | | 6.250% Senior Notes due April 15, 2028 | $396,224 | $395,913 | | 6.875% Senior Notes due April 15, 2030 | $353,294 | $352,961 | | 9.250% Senior Notes due July 1, 2031 | $667,136 | $666,823 | | Total debt | $1,764,726 | $1,763,612 | - Total debt payable remained relatively stable at $1,764,726 thousand as of March 31, 2025[152] - During Q1 2025, Burford Capital Finance LLC purchased and cancelled approximately $6.6 million of 2025 Bonds, resulting in a $0.03 million gain on early extinguishment of debt[162] | Finance Costs ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :----------------------------- | :-------------------------------- | :-------------------------------- | | Debt interest expense | $32,772 | $31,440 | | Debt issuance costs | $1,108 | $1,127 | | Total finance costs | $33,880 | $32,567 | 11. Fair Value of Assets and Liabilities - The Group's financial instruments are classified into Level 1, Level 2, and Level 3 based on market price observability, with capital provision assets primarily in Level 3 due to unobservable inputs[90][95] | Level 3 Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------ | :------------- | :---------------- | | Total capital provision assets | $5,292,499 | $5,226,625 | | Due from settlement | $102,648 | $183,858 | | Total Level 3 assets | $5,395,147 | $5,410,483 | - Key unobservable inputs for Level 3 valuations include discount rate (weighted average 6.7% at March 31, 2025), duration (weighted average 2.9 years), and adjusted risk premium (weighted average 30.9%)[178] - A 10% higher or lower valuation of Level 3 assets and liabilities would impact consolidated income and net assets by approximately $461.5 million as of March 31, 2025[184] | Interest Rate Sensitivity (Consolidated, $ in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------------------------- | :------------- | :---------------- | | +100 bps interest rates | ($160,020) | ($153,241) | | +50 bps interest rates | ($81,092) | ($77,644) | | -50 bps interest rates | $82,043 | $78,514 | | -100 bps interest rates | $166,354 | $159,169 | | Duration Sensitivity (Consolidated, $ in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------------------------------------- | :------------- | :---------------- | | +12 months duration | ($390,776) | ($396,845) | | +6 months duration | ($196,405) | ($200,908) | | -6 months duration | $202,711 | $196,721 | | -12 months duration | $417,624 | $405,926 | 12. Variable Interest Entities - The Group consolidates certain VIEs, including private funds (BOF-C, Advantage Fund), EP Funds, and investment vehicles (Colorado)[192] | Consolidated VIEs ($ in thousands) | March 31, 2025 | December 31, 2024 | | :--------------------------------- | :------------- | :---------------- | | Total assets | $2,139,277 | $1,833,592 | | Total liabilities | $370,974 | $8,711 | | Total revenues (Q1) | $36,628 | $22,276 | - The Group's maximum exposure to loss from unconsolidated VIEs was $35,394 thousand as of March 31, 2025, including on-balance sheet exposure and undrawn commitments[197] 13. Shareholders' Equity - Shareholders approved a resolution on May 15, 2024, to purchase up to 21,864,608 ordinary shares on the open market, with 20,745,323 shares remaining authorized as of March 31, 2025[198] - The Board declared a final dividend of 6.25¢ per ordinary share on February 28, 2025, subject to shareholder approval, to be paid on June 13, 2025[199] 14. Earnings Per Ordinary Share | EPS ($) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :-------- | :-------------------------------- | :-------------------------------- | | Basic | $0.14 | ($0.14) | | Diluted | $0.14 | ($0.14) | | Weighted Average Shares Outstanding | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Basic | 219,299,857 | 218,933,963 | | Diluted | 223,102,344 | 218,933,963 | 15. Financial Commitments and Contingent Liabilities - The Group enters into financing agreements with definitive commitments (contractually obligated capital) and discretionary commitments (broad discretion over capital advancement)[205] | Undrawn Commitments ($ in thousands) | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Definitive | $985,953 | $962,808 | | Discretionary | $879,362 | $1,032,433 | | Legal risk (definitive) | $42,969 | $41,318 | | Total | $1,908,284 | $2,036,559 | - The Group does not consider there to be any material contingent liability from legal proceedings requiring disclosure as of the date of the 10-Q[210] 16. Related Party Transactions | Joint Ventures and Equity Method Investments ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :---------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Fundings | $674 | $763 | | Proceeds | $816 | $2,160 | 17. Credit Risk from Financial Instruments - The Group is exposed to credit risk in various asset structures, with recovery often contingent on successful capital provision assets[213] - Credit risk for cash and cash equivalents is mitigated by placing funds with reputable banks, and marketable securities consist of investment-grade fixed income assets[213] - Maximum credit exposure for financial assets and receivables in other assets was $20.2 million as of March 31, 2025, with no material expected credit loss identified[215][217] 18. Subsequent Events - There have been no events since March 31, 2025, requiring recognition or disclosure in the unaudited condensed consolidated financial statements[218] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on Burford's operational and financial performance for the three months ended March 31, 2025, compared to the same period in 2024. It covers company overview, economic conditions, detailed analysis of financial results, segment performance (Principal Finance and Asset Management), liquidity, capital resources, critical accounting estimates, and various financial reconciliations Company Overview - Burford is the world's largest dedicated provider of capital for litigation and legal assets, focusing on large, complex disputes[220][221] Economic and Market Conditions - Portfolio returns are generally uncorrelated to market conditions, but cost of debt and discount rates for asset valuation are impacted by economic factors[222] - Increased corporate insolvencies or higher interest rates can lead to more financeable litigation claims[223] - Global trade disruption from tariffs is not expected to significantly impact the legal finance portfolio, but tighter financial conditions could increase corporate disputes with a lag[224] Covid-19 - Court systems have largely returned to functionality, working through backlogs caused by the Covid-19 pandemic, leading to continuing portfolio activity[226] - Delays in adjudication due to court backlogs are considered deferrals of income rather than permanent diminution, as many assets have time-based terms that increase absolute returns over time[226][227] Inflation - Inflation's effect on revenues is mitigated by high returns and short asset lives; increased legal fees and expenses can also boost commitment sizes and damages sought, positively impacting returns[228] - Higher inflation could lead to increased court awards if pre- and post-judgment interest rates are tied to market rates[228] - Employee costs are the primary inflationary impact on expenses, though a significant portion is performance-based. Principal Finance interest expenses are fixed coupon and non-adjustable[228] Party Solvency - Litigation outcomes differ from conventional credit; judgment creditors have immediate rights to seize assets, offering substantial leverage even against financially distressed debtors[229] - Claimant insolvency may delay litigation but claims are valuable contingent assets, and Burford is often a secured creditor[230] - Defendant insolvency poses recovery risk dependent on financial condition and asset availability for unsecured creditors[230] Other Items - No material developments or changes regarding international sanctions on Russian businesses/individuals or the conflict in Israel and Gaza since the 2024 Form 10-K[231] Basis of Presentation of Financial Information - Financial statements are presented in US dollars and prepared in accordance with US GAAP, which requires consolidation of certain limited partner interests and partially owned subsidiaries[232][233] - The company also provides 'Burford-only' non-GAAP financial measures, excluding third-party interests, to reflect its stand-alone business performance, consistent with management's internal assessment[234][235] KPIs and Non-GAAP Financial Measures - Key Performance Indicators (KPIs) include Assets Under Management (AUM), Concluded and Partially Concluded Assets, Deployed Cost, Commitment, Internal Rate of Return (IRR), Return on Invested Capital (ROIC), Weighted Average Life (WAL), and Portfolio[238][240][241][242][243][244][247] - Non-GAAP financial measures include Cash Receipts and Tangible Book Value attributable to Burford Capital Limited (and per ordinary share), which supplement GAAP measures for understanding performance and financial condition[248][249][250] Results of Operations and Financial Condition Analysis of the company's financial performance and position, including revenue, expenses, and balance sheet changes Consolidated Statements of Operations (Q1 2025 vs Q1 2024) Comparative analysis of consolidated operational results for the first quarter of 2025 versus 2024 Overview | Metric ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :---------------------- | :----------- | :----------- | :----------- | :--------- | | Total revenues | $118,859 | $44,295 | $74,564 | 168% | | Total operating expenses | $41,101 | $30,138 | $10,963 | 36% | | Operating income/(loss) | $77,758 | $14,157 | $63,601 | 449% | | Income/(loss) before income taxes | $44,478 | ($18,902) | $63,380 | NM | | Net income/(loss) attributable to Burford Capital Limited shareholders | $30,929 | ($29,937) | $60,866 | NM | - Total revenues increased 168% primarily due to higher capital provision income from fair value adjustments and net realized gains[254] - Net income attributable to shareholders was $30.9 million in Q1 2025, a significant turnaround from a $29.9 million net loss in Q1 2024[254] Revenues | Revenue Component ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--------------------------------- | :----------- | :----------- | :----------- | :--------- | | Capital provision income/(loss) | $131,516 | $40,761 | $90,755 | 223% | | Third-party interests | ($20,796) | ($5,224) | ($15,572) | 298% | | Asset management income/(loss) | $1,538 | $1,863 | ($325) | (17)% | | Marketable securities income | $6,787 | $6,611 | $176 | 3% | | Total revenues | $118,859 | $44,295 | $74,564 | 168% | - Net realized gains were $67.6 million in Q1 2025 (up 17% YoY), driven by $288.8 million in realizations (up from $113.0 million)[258][259] - Fair value adjustments resulted in a $57.9 million unrealized gain in Q1 2025, a significant improvement from a $13.7 million unrealized loss in Q1 2024, primarily due to the passage of time and a decrease in discount rates[260][261] - Third-party interests in capital provision assets reduced income by $20.8 million, mainly due to increased fair value of YPF-related assets[262] Operating Expenses | Operating Expense Component ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :------------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Total compensation and benefits | $26,314 | $22,001 | $4,313 | 20% | | General, administrative and other | $10,210 | $7,450 | $2,760 | 37% | | Case-related expenditures ineligible | $4,577 | $687 | $3,890 | 566% | | Total operating expenses | $41,101 | $30,138 | $10,963 | 36% | - Total operating expenses increased 36%, driven by higher fair value-driven compensation accruals and increased case-related expenditures ineligible for asset cost, particularly related to the restructuring of the EP Funds[268][269][270][271] Other Expenses | Other Expense Component ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Finance costs | $33,880 | $32,567 | $1,313 | 4% | | Foreign currency transactions | ($600) | $492 | ($1,092) | NM | | Total other expenses | $33,280 | $33,059 | $221 | 1% | - Finance costs increased 4% due to less interest expense in Q1 2024 related to the Additional 2031 Notes issuance[274] - Foreign currency transactions shifted from a $0.5 million loss in Q1 2024 to a $0.6 million gain in Q1 2025, driven by the strengthening of the sterling pound against the US dollar[275] Provision for/(Benefit from) Income Taxes | Income Taxes ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :---------------------------- | :----------- | :----------- | :----------- | :--------- | | Provision for/(benefit from) | $7,568 | ($1,404) | $8,972 | NM | - The shift from a tax benefit to a tax provision was primarily due to higher net income in taxable jurisdictions in 2025[277] Net Income/(Loss) Attributable to Non-Controlling Interests | Non-Controlling Interests ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :----------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Net income/(loss) attributable | $5,981 | $12,439 | ($6,458) | (52)% | - Net income attributable to non-controlling interests decreased 52%, mainly reflecting a decrease in capital provision income for BOF-C[280] Consolidated Statements of Financial Condition (Q1 2025 vs FY 2024) Comparative analysis of consolidated financial position as of March 31, 2025, versus December 31, 2024 Cash and Cash Equivalents and Marketable Securities | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------- | :---------------- | :--------- | :--------- | | Cash and cash equivalents | $486,639 | $469,930 | $16,709 | 4% | | Marketable securities | $83,544 | $79,020 | $4,524 | 6% | - The net increase in cash and marketable securities reflects proceeds from capital provision assets, partially offset by funding of assets and third-party net distributions[283] Other Assets | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------- | :---------------- | :--------- | :--------- | | Other assets | $65,774 | $61,006 | $4,768 | 8% | - Other assets increased 8% primarily due to higher receivables[284] Due from Settlement of Capital Provision Assets | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------- | :---------------- | :--------- | :--------- | | Due from settlement | $102,648 | $183,858 | ($81,210) | (44)% | - Due from settlement decreased 44% due to cash collections, with 62% of the December 31, 2024 balance collected in Q1 2025[285] Capital Provision Assets | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------- | :---------------- | :--------- | :--------- | | Capital provision assets | $5,305,021 | $5,243,917 | $61,104 | 1% | - Capital provision assets increased 1%, reflecting continued deployments and fair value gains, partially offset by realizations[286] Fair Value of Capital Provision Assets Detailed discussion of the valuation methodologies and fair value of the company's capital provision assets Valuation Policy - The valuation policy for capital provision assets is described in Note 2 of the financial statements[288] Fair Value of Capital Provision Assets | Capital Provision Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | | :---------------------------------------- | :------------- | :---------------- | | Consolidated Fair Value | $5,305,021 | $5,243,917 | | Consolidated Deployed Costs | $2,268,825 | $2,341,377 | | Consolidated Unrealized Gains | $3,036,196 | $2,902,540 | | Burford-only Fair Value | $3,627,403 | $3,571,224 | | Burford-only Deployed Costs | $1,683,969 | $1,672,593 | | Burford-only Unrealized Gains | $1,943,434 | $1,898,631 | - Consolidated capital provision assets fair value increased to $5.3 billion, with deployed cost decreasing by $72.6 million due to realizations and unrealized gains increasing by $133.7 million[290] - Burford-only capital provision assets fair value increased to $3.6 billion, with deployed cost increasing by $11.4 million and unrealized gains increasing by $44.8 million[291] Fair Value of YPF-Related Assets - The fair value of YPF-related assets (Petersen and Eton Park claims) is determined using the same methodology as other capital provision assets, calibrated by market evidence from a 2019 secondary sale[292] - In September 2023, the US District Court issued a final judgment of $16.1 billion against the Republic of Argentina in favor of Petersen and Eton Park, with post-judgment interest at 5.42% per annum[296] - Further restructuring of the Eton Park liquidation in Q1 2025 led to consolidation of EP Funds, increasing consolidated capital provision assets by $116.6 million and Burford's share of proceeds[297] | YPF-Related Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | | :---------------------------------- | :------------- | :---------------- | | Consolidated Fair Value | $2,400,000 | $2,194,517 | | Consolidated Deployed Costs | $112,461 | $76,405 | | Consolidated Unrealized Gains | $2,243,973 | $2,118,112 | | Burford-only Fair Value | $1,538,082 | $1,465,475 | | Burford-only Deployed Costs | $105,632 | $69,576 | | Burford-only Unrealized Gains | $1,432,450 | $1,395,899 | Undrawn Commitments - Undrawn commitments are categorized as definitive (contractually obligated) or discretionary (management discretion)[304] | Undrawn Commitments ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------- | :---------------- | :--------- | :--------- | | Definitive | $985,953 | $962,808 | $23,145 | 2% | | Discretionary | $879,362 | $1,032,433 | ($153,071) | (15)% | | Legal risk (definitive) | $42,969 | $41,318 | $1,651 | 4% | | Total | $1,908,284 | $2,036,559 | ($128,275) | (6)% | - Total undrawn commitments decreased 6%, primarily due to deployments exceeding new commitments and the cancellation of unfunded discretionary commitments related to a single asset[302] Segments Analysis of financial performance and condition across the Principal Finance and Asset Management segments Segment Statements of Operations (Q1 2025 vs Q1 2024) | Segment Income/(Loss) Before Income Taxes ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | | :--------------------------------------------------------- | :----------- | :----------- | :----------- | | Principal Finance | $31,906 | ($33,295) | $65,201 | | Asset Management and Other Services | $6,591 | $1,954 | $4,637 | | Total segments (Burford-only) | $38,497 | ($31,341) | $69,838 | | Consolidated | $44,478 | ($18,902) | $63,380 | - The increase in income before income taxes for both consolidated and Burford-only bases was primarily driven by higher capital provision income from fair value adjustments and decreased discount rates[310] - Operating expenses increased due to higher compensation-related accruals and case-related expenditures (consolidated) or general, administrative, and other expenses (Burford-only)[311][315] Segment Statements of Financial Condition (Q1 2025 vs FY 2024) | Segment Total Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | | :------------------------------------ | :------------- | :---------------- | :--------- | | Principal Finance | $4,406,530 | $4,397,954 | $8,576 | | Asset Management and Other Services | $196,560 | $190,377 | $6,183 | | Total segments (Burford-only) | $4,603,089 | $4,588,331 | $14,758 | | Consolidated | $6,180,805 | $6,175,025 | $5,780 | - Total assets increased for both consolidated and Burford-only bases, driven by increases in capital provision assets and cash/marketable securities, partially offset by a decrease in due from settlement of capital provision assets[318] Group-Wide Portfolio | Group-Wide Portfolio ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------ | :------------- | :---------------- | :--------- | :--------- | | Principal Finance segment | $5,156,507 | $5,204,080 | ($47,573) | (1)% | | Asset Management and Other Services segment | $2,027,452 | $2,185,464 | ($158,012) | (7)% | | Total group-wide portfolio | $7,183,959 | $7,389,544 | ($205,585) | (3)% | - The total group-wide portfolio decreased 3% due to robust realizations and the cancellation of unfunded discretionary commitments[321] Group-Wide New Commitments | New Commitments ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :------------------------------- | :----------- | :----------- | :----------- | :--------- | | Principal Finance segment | $102,809 | $82,459 | $20,350 | 25% | | Asset Management segment | $23,888 | $31,844 | ($7,956) | (25)% | | Group-wide new commitments | $126,697 | $114,303 | $12,394 | 11% | - Group-wide new commitments increased modestly by 11% in Q1 2025[323] Principal Finance Segment Detailed financial performance and portfolio analysis for the Principal Finance segment Principal Finance Segment Operations (Q1 2025 vs Q1 2024) | Principal Finance Segment ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :----------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Capital provision income/(loss) | $90,950 | $17,903 | $73,047 | 408% | | Total revenues | $97,650 | $24,421 | $73,229 | 300% | | Total operating expenses | $32,463 | $24,661 | $7,802 | 32% | | Income/(loss) before income taxes | $31,906 | ($33,295) | $65,201 | NM | - Total revenues increased 300% due to a significant rise in capital provision income from higher fair value adjustments and net realized gains[327] - Operating expenses increased 32% due to higher compensation accruals and case-related expenditures, leading to a turnaround from a loss to $31.9 million in income before taxes[328][329] Gains from Capital Provision Asset Portfolio | Principal Finance Capital Provision Income ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :-------------------------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Net realized gains/(losses) | $34,584 | $29,894 | $4,690 | 16% | | Fair value adjustment (net) | $50,765 | ($9,088) | $59,853 | NM | | Total capital provision income | $90,950 | $17,903 | $73,047 | 408% | - Net realized gains increased 16% due to fewer realized losses in 2025[332] - Unrealized gains from fair value adjustments increased to $50.8 million, driven by the passage of time and a decrease in discount rates[333] Principal Finance Segment Financial Condition (Q1 2025 vs FY 2024) | Principal Finance Segment Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------------------ | :------------- | :---------------- | :--------- | :--------- | | Cash and cash equivalents and marketable securities | $538,374 | $508,031 | $30,343 | 6% | | Due from settlement of capital provision assets | $102,648 | $183,651 | ($81,003) | (44)% | | Capital provision assets | $3,627,403 | $3,571,224 | $56,179 | 2% | | Total assets | $4,406,530 | $4,397,954 | $8,576 | 0.2% | - Total assets for the Principal Finance segment increased 0.2%, driven by increases in capital provision assets and cash/marketable securities, offset by a decrease in due from settlement[335] Principal Finance Segment Portfolio Value | Principal Finance Portfolio ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------------- | :------------- | :---------------- | :--------- | :--------- | | Capital provision assets (Fair value) | $3,627,403 | $3,571,224 | $56,179 | 2% | | Undrawn commitments | $1,529,104 | $1,632,856 | ($103,752) | (6)% | | Total portfolio | $5,156,507 | $5,204,080 | ($47,573) | (1)% | - The Principal Finance portfolio remained relatively flat at $5.2 billion[337] | Deployments and Realizations ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :-------------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Deployments (Principal Finance) | $125,818 | $66,816 | $59,002 | 88% | | Realizations (Principal Finance) | $162,905 | $73,208 | $89,697 | 123% | | Deployments (Adjusted Burford-only) | $129,911 | $67,515 | $62,396 | 92% | | Realizations (Adjusted Burford-only) | $163,148 | $62,537 | $100,611 | 161% | - Deployments increased by 88% (Principal Finance) and 92% (Adjusted Burford-only), primarily from $75.5 million in monetizations across three deals[340] - Realizations increased by 123% (Principal Finance) and 161% (Adjusted Burford-only), driven by robust realizations, including $93.8 million from a single asset conclusion[342] Principal Finance Segment Undrawn Commitments | Principal Finance Undrawn Commitments ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------------------------- | :------------- | :---------------- | :--------- | :--------- | | Definitive | $793,714 | $773,673 | $20,041 | 3% | | Discretionary | $692,421 | $817,865 | ($125,444) | (15)% | | Total | $1,529,104 | $1,632,856 | ($103,752) | (6)% | - Total undrawn commitments decreased 6%, with definitive commitments at 55% and discretionary at 45% of the total[344] Portfolio Tenor - The timing of realizations is difficult to forecast, but asset pricing is structured to compensate for longer resolution times[345] | Weighted Average Life (WAL) (in years) | March 31, 2025 | December 31, 2024 | | :------------------------------------- | :------------- | :---------------- | | WAL weighted by deployed cost | 2.4 | 2.5 | | WAL weighted by realizations | 2.6 | 2.6 | | WAL of active deployed capital | 3.2 | 3.1 | - WALs of concluded assets remained relatively flat, while WAL of active deployed capital slightly increased[348][350] Returns on Concluded Portfolio | Concluded Portfolio Returns (Burford-only) | March 31, 2025 | December 31, 2024 | | :----------------------------------------- | :------------- | :---------------- | | ROIC | 83% | 87% | | IRR | 26% | 26% | | Cumulative realizations ($ in thousands) | $3,480,527 | $3,331,356 | - ROIC declined from 87% to 83% due to a fast resolution of a large 2024 vintage matter, which generated $93.8 million in realizations and $18.8 million in realized gains (25% ROIC, 40% IRR) but lowered the overall cumulative ROIC[352] - Total capital provision asset deployments were $133.2 million in Q1 2025, with 11% related to vintage year 2020 and earlier[357] - Total capital provision asset realizations were $148.9 million in Q1 2025, with 24% related to vintage year 2020 and earlier[360] Asset Management and Other Services Segment Detailed financial performance and portfolio analysis for the Asset Management and Other Services segment Asset Management Segment Operations (Q1 2025 vs Q1 2024) | Asset Management Segment ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :---------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Asset management income/(loss) | $13,837 | $6,673 | $7,164 | 107% | | Total revenues | $13,651 | $6,957 | $6,694 | 96% | | Total operating expenses | $7,060 | $5,003 | $2,057 | 41% | | Income/(loss) before income taxes | $6,591 | $1,954 | $4,637 | 237% | - Total revenues increased 96%, driven by higher asset management income, particularly performance fees from the Advantage Fund[366] - Income before income taxes increased 237% due to higher revenues, partially offset by a 41% increase in operating expenses from compensation and benefits[366] Asset Management Segment Financial Condition (Q1 2025 vs FY 2024) | Asset Management Segment Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------------------- | :------------- | :---------------- | :--------- | :--------- | | Cash and cash equivalents and marketable securities | $9,834 | $12,650 | ($2,816) | (22)% | | Other assets | $160,740 | $151,770 | $8,970 | 6% | | Total assets | $196,560 | $190,377 | $6,183 | 3% | - Total assets increased 3%, primarily due to higher asset management income increasing related receivables within other assets[368] Asset Management Income - Asset management income is categorized into management fees, performance fees, and profit sharing income[369] | Asset Management Income ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Management fee income | $1,538 | $1,863 | ($325) | (17)% | | Performance fee income | $4,400 | — | $4,400 | NM | | Profit sharing income from private funds | $7,899 | $4,810 | $3,089 | 64% | | Total asset management income | $13,837 | $6,673 | $7,164 | 107% | - Total asset management income increased 107%, mainly driven by $4.4 million in performance fee income from the Advantage Fund and higher profit-sharing income from BOF-C[372] Asset Management Segment Portfolio Value | Asset Management Portfolio ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------------ | :------------- | :---------------- | :--------- | :--------- | | Capital provision assets (Fair value) | $1,272,789 | $1,353,893 | ($81,104) | (6)% | | Undrawn commitments | $471,661 | $491,186 | ($19,525) | (4)% | | Post-settlement (Fair value) | $230,909 | $272,424 | ($41,515) | (15)% | | Total portfolio value | $2,027,452 | $2,185,464 | ($158,012) | (7)% | - Total portfolio value for the Asset Management segment decreased 7%, largely due to robust realizations in Q1 2025[373] Private Funds - As of March 31, 2025, Burford operated eight private funds and three 'sidecar' funds as an SEC-registered investment adviser[374] | Private Fund Key Statistics ($ in millions) | Investor Commitments Closed | Asset Commitments to Date | Asset Deployments to Date | AUM ($ in millions) | | :------------------------------------------ | :-------------------------- | :------------------------ | :------------------------ | :------------------ | | BCIM Partners II, LP | $260 | $253 | $186 | $128 | | BCIM Partners III, LP | $412 | $447 | $332 | $424 | | Burford Opportunity Fund LP (BOF) | $300 | $398 | $302 | $364 | | BCIM Credit Opportunities, LP (COLP) | $488 | $699 | $695 | $399 | | Burford Alternative Income Fund LP (BAIF) | $327 | $678 | $663 | $253 | | Burford Alternative Income Fund II LP (BAIF II) | $350 | $362 | $310 | $385 | | Burford Advantage Master Fund LP (Advantage Fund) | $360 | $370 | $367 | $326 | | Burford Opportunity Fund C LP (BOF-C) | $766 | $1,281 | $794 | $1,025 | | Total | $3,263 | $4,488 | $3,649 | $3,304 | - Total Assets Under Management (AUM) was $3.3 billion as of March 31, 2025, down from $3.5 billion as of December 31, 2024[379] Liquidity and Capital Resources Assessment of the company's cash position, debt structure, and ability to meet financial obligations Overview | Cash & Marketable Securities ($ in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------------------------------- | :------------- | :---------------- | | Consolidated | $570,183 | $548,950 | | Total segments (Burford-only) | $548,208 | $520,681 | - Consolidated cash and marketable securities increased 4%, while Burford-only increased 5%, primarily due to proceeds from capital provision assets[381] - Marketable securities consist mainly of short-duration, investment-grade fixed income assets managed by a third-party[382] Debt - The company maintains low leverage and laddered debt maturities, with a weighted average maturity of 4.3 years, longer than the 2.6-year weighted average life of concluded assets[384] - As of March 31, 2025, the consolidated net debt to consolidated tangible assets ratio was 20%, and the Consolidated Indebtedness to Net Tangible Equity Ratio was 0.76x, both in compliance with covenants[387] - Burford Capital Limited and its Restricted Subsidiaries had total assets of $5,450,178 thousand and total revenues of $110,791 thousand for Q1 2025[389] Cash Flows | Cash Flow Activity ($ in thousands) | Q1 2025 | Q1 2024 | | :---------------------------------- | :----------- | :----------- | | Net cash from operating activities | $155,170 | $52,963 | | Net cash from investing activities | ($24) | ($43) | | Net cash from financing activities | ($139,170) | $209,412 | | Net increase in cash and cash equivalents | $15,976 | $262,332 | - Net cash provided by operating activities significantly increased to $155.2 million, driven by higher proceeds from capital provision assets ($371.1 million) and increased deployments ($216.5 million)[394] - Net cash used in financing activities was $139.2 million, primarily due to the absence of debt issuance in 2025[396] Cash Receipts (Non-GAAP Financial Measure) | Burford-only Cash Receipts ($ in thousands) | Q1 2025 | Q1 2024 | | :------------------------------------------ | :----------- | :----------- | | Proceeds from capital provision assets | $244,904 | $127,525 | | Proceeds from asset management income | $7,105 | $4,476 | | Proceeds from other items | $5,707 | $5,693 | | Total Cash receipts | $257,716 | $137,694 | - Burford-only cash receipts increased 87%, reflecting higher cash received from realizations and collections on due from settlement receivables[400] Dividends - A final dividend of 6.25¢ per ordinary share was declared on February 28, 2025, subject to shareholder approval, with no dividend payments made in Q1 2025[402] - The company anticipates continuing a total annual dividend of 12.50¢ per ordinary share, payable semi-annually, without regular increases[403] Off-Balance Sheet Arrangements - As of December 31, 2024, off-balance sheet arrangements related to legal finance assets with structured entities totaled $4.8 million[404] Critical Accounting Estimates Discussion of key accounting judgments and assumptions that significantly impact financial reporting Fair Value of Capital Provision Assets - Fair value determination for capital provision assets involves significant subjective estimates of forecasted cash flows, discount rates, and litigation risk[407] - A 10% change in the estimated value of these instruments would impact consolidated income and net assets by approximately $461.5 million as of March 31, 2025[408] | Interest Rate Sensitivity (Consolidated, $ in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------------------------- | :------------- | :---------------- | | +100 bps interest rates | ($160,020) | ($153,241) | | -100 bps interest rates | $166,354 | $159,169 | | Duration Sensitivity (Consolidated, $ in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------------------------------------- | :------------- | :---------------- | | +12 months duration | ($390,776) | ($396,845) | | -12 months duration | $417,624 | $405,926 | Reconciliations Detailed reconciliations of consolidated financial data to Burford-only non-GAAP measures Reconciliation of Financial Condition (Consolidated vs Burford-only) - Reconciliations adjust consolidated financial statements to a 'Burford-only' basis by excluding third-party interests in non-wholly owned entities, providing a view of Burford's stand-alone assets and liabilities[418] | Assets ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :---------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Cash and cash equivalents | $486,639 | ($21,975) | $464,664 | | Capital provision assets | $5,305,021 | ($1,677,618) | $3,627,403 | | Total assets | $6,180,805 | ($1,577,716) | $4,603,089 | | Liabilities ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :--------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Debt payable | $1,764,726 | — | $1,764,726 | | Financial liabilities relating to third-party interests | $780,330 | ($780,330) | — | | Total liabilities | $3,020,224 | ($851,510) | $2,168,714 | Reconciliation of Capital Provision Assets | Capital Provision Assets ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :---------------------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Beginning of period | $5,243,917 | ($1,672,693) | $3,571,224 | | Deployments | $216,476 | ($90,658) | $125,818 | | Realizations | ($288,848) | $125,943 | ($162,905) | | End of period | $5,305,021 | ($1,677,618) | $3,627,403 | | Deployed cost, end of period | $2,268,825 | ($584,856) | $1,683,969 | | Unrealized fair value, end of period | $3,036,196 | ($1,092,762) | $1,943,434 | Reconciliation of Capital Provision Income | Capital Provision Income ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :---------------------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Net realized gains/(losses) | $67,619 | ($33,035) | $34,584 | | Fair value adjustment (net) | $57,949 | ($7,184) | $50,765 | | Total capital provision income | $131,516 | ($40,566) | $90,950 | Reconciliation of Due from Settlement of Capital Provision Assets | Due from Settlement ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :----------------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Beginning of period | $183,858 | ($207) | $183,651 | | Proceeds from capital provision assets | ($371,054) | $126,150 | ($244,904) | | End of period | $102,648 | — | $102,648 | Reconciliation of Capital Provision Undrawn Commitments | Undrawn Commitments ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :----------------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Definitive | $985,953 | ($192,239) | $793,714 | | Discretionary | $879,362 | ($186,941) | $692,421 | | Total | $1,908,284 | ($379,180) | $1,529,104 | Reconciliation of Asset Management Income | Asset Management Income ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :--------------------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Management fee income | $1,538 | — | $1,538 | | Performance fee income | — | $4,400 | $4,400 | | Profit sharing income from funds | — | $7,899 | $7,899 | | Total asset management income | $1,538 | $12,299 | $13,837 | Reconciliation of Deployments | Deployments ($ in thousands) | Q1 2025 | Q1 2024 | | :--------------------------- | :----------- | :----------- | | Consolidated deployments | $216,476 | $125,403 | | Total segments (Burford-only) | $125,818 | $66,816 | | Adjusted Burford-only | $129,911 | $67,515 | Reconciliation of Realizations | Realizations ($ in thousands) | Q1 2025 | Q1 2024 | | :---------------------------- | :----------- | :----------- | | Consolidated realizations | $288,848 | $112,971 | | Total segments (Burford-only) | $162,905 | $73,208 | | Adjusted Burford-only | $163,148 | $62,537 | Reconciliation of Cash Receipts | Cash Receipts ($ in thousands) | Q1 2025 | Q1 2024 | | :----------------------------- | :----------- | :----------- | | Consolidated proceeds from capital provision assets | $371,054 | $247,561 | | Burford-only proceeds from capital provision assets | $244,904 | $127,525 | | Burford-only proceeds from asset management income | $7,105 | $4,476 | | Total Cash receipts | $257,716 | $137,694 | Reconciliation of Tangible Book Value | Tangible Book Value ($ in thousands, except share data) | March 31, 2025 | December 31, 2024 | | :------------------------------------------------------ | :------------- | :---------------- | | Total Burford Capital Limited equity | $2,434,375 | $2,419,432 | | Less: Goodwill | ($133,977) | ($133,948) | | Tangible book value attributable to Burford Capital Limited | $2,300,398 | $2,285,484 | | Basic ordinary shares outstanding | 218,321,904 | 219,421,904 | | Tangible book value per ordinary share | $10.54 | $10.42 | Debt Leverage Ratio Calculations | Debt Leverage Ratios | March 31, 2025 | December 31, 2024 | | :------------------- | :------------- | :---------------- | | Consolidated net debt to consolidated tangible assets ratio | 20% | 20% | | Consolidated Indebtedness to Net Tangible Equity Ratio | 0.76x | 0.77x