DigitalBridge (US:DBRG)2022-11-06 16:00Financial Performance - Total revenues for the three months ended September 30, 2022, were $2,299 thousand, compared to $4,008 thousand for the same period in 2021, reflecting a decrease of 42.5%[14] - Net loss attributable to DigitalBridge Group, Inc. for the three months ended September 30, 2022, was $(49,088) thousand, compared to a net income of $61,357 thousand for the same period in 2021[14] - Comprehensive loss for the three months ended September 30, 2022, was $(146,511) thousand, compared to $(89,879) thousand for the same period in 2021, reflecting an increase in loss of 63.1%[17] - Loss from continuing operations before income taxes for the three months ended September 30, 2022, was $(102,439) thousand, compared to $(51,908) thousand for the same period in 2021, indicating a worsening of 97.5%[14] - The net loss for the nine months ended September 30, 2022, was $532,752, a decrease from a net loss of $774,046 for the same period in 2021, representing a 31.2% improvement[36] - The company reported a net loss attributable to common stockholders of $63.3 million for the three months ended September 30, 2022, compared to a net income of $41.0 million for the same period in 2021[191] Assets and Liabilities - Total assets decreased to $11,740,829 thousand as of September 30, 2022, down from $14,197,816 thousand at December 31, 2021, representing a decline of approximately 17.2%[10] - Total liabilities decreased to $7,036,112 thousand as of September 30, 2022, down from $8,926,203 thousand at December 31, 2021, a reduction of approximately 21.2%[10] - Cash and cash equivalents decreased to $636,366 thousand as of September 30, 2022, down from $1,602,102 thousand at December 31, 2021, a decline of approximately 60.3%[10] - The company's total debt reached $5,394,134 thousand as of September 30, 2022, an increase from $4,922,722 thousand as of December 31, 2021, marking an increase of approximately 9.6%[107] - The accrued and other liabilities totaled $1,662,606 thousand as of September 30, 2022, up from $928,042 thousand as of December 31, 2021, which is an increase of 79.2%[102] Equity and Stockholder Information - As of June 30, 2021, total stockholders' equity was $6,059,030, a decrease of $58,633 from the previous period[27] - The balance at September 30, 2022, showed total equity of $4,608,689, with a preferred stock balance of $800,355[34] - Preferred stock dividends amounted to $(17,456) for the quarter, impacting the accumulated deficit[27] - The Company reinstated quarterly common stock dividends beginning Q3 2022, declaring a dividend of $0.01 per share paid in October 2022[123] - The stock repurchase program has a total authorization of $200 million, set to expire on June 30, 2023[125] Operational Highlights - Property operating income increased to $244,336 thousand for the three months ended September 30, 2022, compared to $194,854 thousand for the same period in 2021, an increase of 25.4%[14] - Net cash provided by operating activities increased to $194,773 for the nine months ended September 30, 2022, compared to $181,412 for the same period in 2021, reflecting a 7.5% increase[36] - The company completed its digital transformation in February 2022, which included the disposition of non-digital assets and a strategic shift in operations[43] Investments and Acquisitions - The Company acquired a data center in Santa Clara, California for $404.5 million, with an additional deferred payment of $56.9 million contingent on future lease-up[64] - DataBank acquired four colocation data centers in Houston, Texas for $670 million, funded by $262.5 million of debt and $407.5 million of equity, with the Company's share being $87.0 million[64] - The Company entered into an agreement to acquire AMP Capital's global infrastructure equity investment management business for A$458 million ($314 million) plus a contingent amount of up to A$180 million ($125 million)[70] Discontinued Operations - Discontinued operations reported a loss of $26.4 million for the three months ended September 30, 2022, compared to a loss of $10.4 million for the same period in 2021[157] - Revenues from discontinued operations were $6.4 million for the three months ended September 30, 2022, down from $218.5 million in the same period of 2021[157] - The company incurred $7.6 million in expenses from discontinued operations for the three months ended September 30, 2022, compared to $199.4 million in the prior year[157] Accounting and Compliance - The Company adopted ASU No. 2021-5 regarding lessor accounting, effective January 1, 2022, which impacts lease classification for variable lease payments[58] - Future accounting standards include ASU 2022-03, effective January 1, 2024, which clarifies the treatment of equity securities subject to contractual sale restrictions[62] - The Company evaluates acquisitions to determine if they qualify as business combinations, requiring a substantive process that contributes to revenue generation[53] Compensation and Equity Awards - The total compensation expense for the three months ended September 30, 2022, was $8.576 million, compared to $6.914 million for the same period in 2021[202] - The company granted 1,098,185 restricted stock units and 185,674 PSUs during the reporting period[203] - The aggregate unrecognized compensation cost for all unvested equity awards was $41.8 million, expected to be recognized over a weighted average period of 2.1 years[203]