Financial Data and Key Metrics Changes - Burford Capital reported a net income of 136millionforQ32024,resultingin0.61 per share, with net income constituting over 60% of total revenues [10] - The company has over 3.6billionincapitalprovisionassets,withnon−YPFassetsvaluedatapproximately2.2 billion, reflecting a 35% fair value uplift to deployed cost [10] - Year-to-date net realized gains reached 186million,aligningwithpreviousannualrecords,andnetrealizedandunrealizedgainsexcludingYPFincreasedby200450 million, consistent with previous years [13] - Realizations for Burford-only capital provision direct reached 380million,a39310 million, contributing to nearly 0.5billionreturnedtothebalancesheet[16]MarketDataandKeyMetricsChanges−Thecompanynotedarobustpipelineofactivityacrossvariousgeographicregions,includingEMEAandAsiaPacific,withsignificantengagementinintellectualpropertylitigation[20]−Thecompetitiveenvironmentremainsactive,particularlyinantitrustandcompetitionlitigation,aswellasarbitration[85]CompanyStrategyandDevelopmentDirection−BurfordCapitalemphasizesalong−termviewofitsbusiness,focusingonportfolioactivityandcashresolutionofassetsratherthanshort−termquarterlyresults[4][5]−Thecompanyiscommittedtomaintainingliquidity,endingQ3with629 million in cash and securities, as it prepares for upcoming debt maturities [63] - The strategic focus includes leveraging its global origination platform and asset management business while managing the YPF case effectively [66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing portfolio activity and the potential for future cash generation, despite the slow nature of the third quarter [5][7] - The management team highlighted the importance of maintaining a strong cash position to support ongoing litigation financing needs [76] - Comments on the YPF case indicated a belief that Argentina's economic recovery could lead to a resolution of the outstanding judgment [52][54] Other Important Information - The YPF judgment continues to accrue interest at a rate of 5.42%, increasing the total judgment amount to approximately 17billion[49]−Burford′sentitlementfromtheYPFcaseisaround401.5 billion [51] Q&A Session Summary Question: Has Argentina indicated that they're not willing to come to the table until this appeal is fully adjudicated? - Management indicated that it is unlikely for a government to resolve ongoing litigation easily, suggesting a focus on positioning for the end of the process [69] Question: When do you expect the oral arguments to be scheduled? - Management stated that a date for oral argument has not yet been set, but it is anticipated to occur later this year or early next year [70] Question: Can you discuss the recent environment for deployments and new opportunities? - Management noted that while there hasn't been a large deal comparable to last year's $325 million commitment, the volume of business remains strong, particularly in antitrust and intellectual property [83][85] Question: Is there anything on the regulatory or legislative front that might affect litigation finance? - Management acknowledged a lack of enthusiasm from companies that are regular litigation defendants regarding litigation finance, indicating potential regulatory scrutiny [92]
Burford Capital(BUR)2024-11-10 02:50