Bridge Investment (US:BRDG)2024-05-09 20:16Part I. Financial Information Financial Statements This section presents the unaudited condensed consolidated financial statements for Q1 2024, showing a net loss of $36.8 million and total assets of $1.22 billion Condensed Consolidated Financial Statements The condensed consolidated financial statements show a Q1 2024 net loss of $36.8 million, improved from $67.4 million in Q1 2023, with revenues at $102.8 million Condensed Consolidated Balance Sheet Data (in thousands USD) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | $1,224,551 | $1,288,818 | | Total Liabilities | $720,468 | $743,470 | | Total Equity | $504,083 | $545,348 | Condensed Consolidated Statement of Operations Data (in thousands USD) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $102,790 | $91,448 | | Total Investment Loss | $(48,701) | $(103,863) | | Net Loss | $(36,800) | $(67,431) | | Net Income Attributable to BRDG Inc. | $9,818 | $2,034 | | Diluted EPS | $(0.05) | $(0.13) | Condensed Consolidated Statement of Cash Flows Data (in thousands USD) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $25,089 | $12,815 | | Net Cash from/(used in) Investing Activities | $13,713 | $(315,996) | | Net Cash (used in)/from Financing Activities | $(33,752) | $197,373 | Notes to Condensed Consolidated Financial Statements The notes detail the company's organization, accounting policies, and financial line items, including a $1.8 million credit loss reserve and $446.8 million in Private Placement Notes - The company operates as an alternative investment manager, holding approximately 30% economic interest in its Operating Company as of March 31, 20243346 - A $1.8 million credit loss reserve was recognized in Q1 2024, primarily due to unfavorable market conditions affecting Bridge Office Fund LP (BOF I) receivables93238 - Accrued performance allocations decreased to $320.3 million as of March 31, 2024, with a $52.9 million loss recognized in Q1 2024119 - As of March 31, 2024, the company had $446.8 million in Private Placement Notes and $15.5 million outstanding on its Credit Facility, which was amended to $150.0 million commitments214209445 - Total share-based compensation expense was $11.8 million in Q1 2024, with $94.8 million in unrecognized compensation cost for unvested awards270272 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, with AUM at $48.0 billion, $102.8 million Q1 2024 revenues, and a $36.8 million net loss Overview and Business Environment Bridge operates as a leading alternative investment manager with $48.0 billion AUM, facing headwinds in commercial real estate and cessation of management fees from BOF I - The company is a leading alternative investment manager with approximately $48.0 billion in AUM as of March 31, 2024278 - Ongoing economic headwinds pressure the commercial real estate sector (4% of AUM), with management fees from Bridge Office Fund LP (BOF I) ceasing280 Results of Operations Q1 2024 total revenues increased 12% to $102.8 million, expenses grew 57% to $96.9 million, and investment loss narrowed to $48.7 million Revenue Changes (Q1 2024 vs Q1 2023, in thousands USD) | Revenue Type | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Fund management fees | $61,105 | $53,849 | 13% | | Transaction fees | $6,800 | $2,377 | 186% | | Construction management fees | $1,697 | $3,285 | -48% | | Total revenues | $102,790 | $91,448 | 12% | - Total investment loss improved to $(48.7) million in Q1 2024 from $(103.9) million in Q1 2023, driven by smaller unrealized performance allocation losses353 Expense Changes (Q1 2024 vs Q1 2023, in thousands USD) | Expense Type | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Employee compensation & benefits | $62,840 | $51,178 | 23% | | Unrealized performance allocations comp. | $3,178 | $(14,670) | -122% | | General & administrative expenses | $11,349 | $13,893 | -18% | | Total expenses | $96,930 | $61,656 | 57% | Non-GAAP Financial Measures Non-GAAP measures show Q1 2024 Distributable Earnings decreased 4% to $32.2 million, while Fee Related Earnings increased 10% to $33.9 million Non-GAAP Performance Summary (Attributable to Operating Co., in thousands USD) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Distributable Earnings | $32,171 | $33,395 | -4% | | Fee Related Earnings | $33,943 | $30,872 | 10% | - The increase in Fee Related Earnings was driven by a 19% rise in total fee-related revenues, primarily from higher fund management and transaction fees389 - The decrease in Distributable Earnings was influenced by increased fee-related expenses and changes in net realized performance allocations and net investment income389390 Liquidity and Capital Resources As of March 31, 2024, the company had $62.0 million in cash and $134.5 million available under its Credit Facility, with $25.1 million cash from operations - As of March 31, 2024, the company had $62.0 million in cash and $15.5 million outstanding on its Credit Facility, with $134.5 million available capacity414 Cash Flow Summary (Q1 2024, in thousands USD) | Activity | Cash Flow | | :--- | :--- | | Provided by Operating Activities | $25,089 | | Provided by Investing Activities | $13,713 | | Used in Financing Activities | $(33,752) | - In February 2024, the Credit Facility was amended, reducing total commitments from $225.0 million to $150.0 million and extending maturity to June 2026443 Quantitative and Qualitative Disclosures About Market Risk The company's main market risk is tied to the fair value of investments in managed funds, impacting performance fees, and interest rate risk from its SOFR-based Credit Facility - The company's predominant market risk relates to the fair value of investments in managed funds, affecting performance allocations, while management fees are less impacted431 - Interest rate risk stems from the variable-rate Credit Facility (SOFR-based) and cash deposits, with the Credit Facility rate at approximately 7.47% as of March 31, 2024466314 - Foreign exchange rate risk is not material as the company lacks significant foreign currency assets or transactions467 Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The principal executive and financial officers concluded that disclosure controls and procedures were effective at a reasonable assurance level as of the reporting period end455 - No material changes occurred in internal control over financial reporting during Q1 2024434 Part II. Other Information Legal Proceedings The company is party to various ordinary course legal proceedings, none expected to materially affect its business or financial results - The company reports no legal proceedings are expected to have a material effect on its business or financial results471 Risk Factors No material changes to risk factors have occurred since the 2023 Annual Report on Form 10-K filing - No material changes to risk factors have occurred since the 2023 Annual Report on Form 10-K filing472 Unregistered Sales of Equity Securities and Use of Proceeds The company reports no unregistered sales of equity securities during Q1 2024, other than those previously disclosed on Form 8-K - No unregistered sales of equity securities occurred during the quarter, other than as previously disclosed on Form 8-K457 Defaults Upon Senior Securities The company reported no defaults upon senior securities during the period - No defaults upon senior securities were reported458 Mine Safety Disclosures This section is not applicable to the company - This section is not applicable459 Other Information The company reported no other information for this item - No other information was reported for this item460 Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data - The report includes standard exhibits such as CEO/CFO certifications and Inline XBRL documents475462