Caliber(US:CWD)2024-05-10 20:35Financial Data and Key Metrics Changes - Total consolidated revenue for Q1 2024 was $23 million, a decrease of 22.3% compared to the same period last year, primarily due to a decrease in consolidated fund revenues and performance allocation revenue [52][57] - Net loss attributed to Caliber was $3.8 million or $0.18 per diluted share, compared to a net loss of $1.2 million or $0.07 per diluted share in the same period last year [57] - Adjusted EBITDA loss for Q1 was $1.7 million, compared to adjusted EBITDA of $1 million during the same period a year ago [27] Business Line Data and Key Metrics Changes - Platform revenue decreased by 25.6% to $4.7 million due to lower performance allocations [53] - Fund management fees increased by 11% to $2.6 million, related to a change in fee structure effective upon the contribution of hospitality assets [53] - Development and construction fees increased by 73%, primarily due to fees earned from completing predevelopment work for three projects during the quarter [24] Market Data and Key Metrics Changes - Managed capital increased from $438 million to $454 million from December 31, 2023, to March 31, 2024 [56] - The company signed 26 selling agreements with regional broker-dealers and registered investment advisers for investments in company-sponsored products, indicating improved fundraising activity [4][10] Company Strategy and Development Direction - The company aims to expand fundraising activity, targeting $750 million from 2024 through 2026, and grow AUM to $3 billion, with a focus on the Caliber Hospitality Trust reaching $1 billion in AUM [28][29] - Cost reduction initiatives are in place, with identified savings of approximately $6 million on an annualized basis, aiming to return to annual operating costs of approximately $15 million [18][50] - The company is focused on consistent profitable growth and is actively evaluating opportunities to enhance transparency in financial presentation [20][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in medium and long-term growth prospects, despite current industry conditions and low transaction volume [20] - The management team is focused on achieving profitability as soon as possible and has initiated a review of the cost structure to reflect current market dynamics [48][50] - Management noted ongoing fundraising efforts and the expectation of more normalized fundraising throughout the year [87] Other Important Information - The deconsolidation of six hotel assets has significantly impacted financial results, contributing to a reduction of assets from $299 million in Q1 2023 to $201 million in Q1 2024 [15][21] - Interest expense increased to $1.3 million in Q1 2024, compared to $800,000 in the same period last year, primarily due to an increase in corporate notes outstanding [58] Q&A Session Summary Question: What pace can investors expect with additional selling agreements in the future? - Management indicated that they did not anticipate the rapid increase in selling agreements and expect to see continued growth throughout the year [66][84] Question: Will fundraising seasonality shift due to new selling agreements? - Management believes that some seasonality will continue, particularly in retail channels, but expects more normalized fundraising results throughout the year [67][87] Question: Can you speak to the debt maturity profile and plans to address upcoming maturities? - Management is constantly monitoring debt and plans to refinance with institutional debt providers to extend maturities and recycle capital [75][77]