Financial Data and Key Metrics Changes - The company reported basic earnings per share of $10.30 and fully diluted earnings per share of $0.12 for the fiscal year-to-date as of December 31, 2024 [8] - Revenues for the third quarter were $4.4 million, compared to negative $10.2 million in the prior year [28] - Operating expenses declined 38% to $13.9 million in the third quarter of fiscal 2025 compared to $22.5 million in the same period for fiscal 2024 [29] - Permanent equity improved from a deficit of $148.3 million to a positive $14.3 million as of December 31, 2024 [30] Business Line Data and Key Metrics Changes - Ben Liquidity recognized $11.3 million of interest income in the third quarter, a decrease of 5.7% from the previous quarter [33] - Ben Custody's revenues were $5.4 million for the fiscal third quarter, stable compared to the previous quarter [36] - The NAV of alternative assets held in custody increased to $385.1 million as of December 31, 2024, driven by new assets and unrealized gains [35] Market Data and Key Metrics Changes - The company identified an unmet demand for liquidity of over $60 billion annually for smaller investors and institutions [11] - The average time for general partners to raise private equity funds has doubled to 18 months over the past three years [12] Company Strategy and Development Direction - The company aims to provide fiduciary products and services that deliver liquidity and primary capital for holders and managers of alternative assets [9] - The proposed acquisition of Mercantile Bank is expected to expand the range of custody, clearing, and control account services [19] - The company is focusing on high-net-worth individuals and small to midsized institutions, which have been underserved in terms of liquidity [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for increased realization events and unrealized appreciation due to a positive outlook on the U.S. economy [54] - The company expects an uptick in liquidity transactions following the approval of the BCH transaction [59] Other Important Information - The company closed a $1.4 million primary capital commitment transaction during the fiscal third quarter [24] - The company has a cash and cash equivalents balance of $4.1 million and total debt of $122.9 million as of December 31, 2024 [39] Q&A Session Summary Question: Importance of public stockholder enhancement transactions - Management indicated that the enhancement transactions will facilitate reaccelerating ExchangeTrust activity and are expected to lead to additional transactions once completed [44][47] Question: Underlying moving parts in the loan portfolio - Management noted that the loan portfolio was flat, with unrealized gains around 6-7% and distributions for the quarter at approximately $4-5 million [51][52] Question: Timeline for liquidity transactions - Management expects an uptick in transactions following the approval of the BCH transaction, which is currently in the process of proxy votes [60][61] Question: Performance of the alternative asset collateral portfolio - Management reported unrealized appreciation of about 7% and similar distribution rates, with expectations for increased distributions in 2025 based on the U.S. economy outlook [63][65]
Ben(BENF) - 2025 Q3 - Earnings Call Transcript