Burford Capital(US:BUR)2024-05-13 14:16Financial Data and Key Metrics Changes - The company reported $31 million in revenue for the quarter, with a net income per share of negative $0.14 and tangible book value just shy of $10 per share [7][10][32] - Cash receipts reached the highest level ever reported for the first quarter, with gross realized gains of $45 million, a $6 million increase compared to the previous year [10][29] - The company experienced a loss in a subcase associated with a larger portfolio, which impacted the net realized gains [29] Business Line Data and Key Metrics Changes - The capital provision assets are approximately $3.4 billion, with $1.6 billion in deployed costs, and a fair value gain of $490 million relative to the rest of the portfolio [15][33] - The asset management business continues to perform well, generating $4 million in cash receipts [31] Market Data and Key Metrics Changes - The company noted that deployments are influenced by law firms' billing efficiency, particularly at the end of the calendar year [4] - The company is seeing a divergence in business activity between the first and third quarters compared to the second and fourth quarters, with historically lower activity in the first quarter [11][21] Company Strategy and Development Direction - The company is focused on maintaining a strong liquidity position, currently holding over $500 million in cash and securities, which positions it well for future opportunities [24][33] - The management emphasized the importance of the core portfolio, which continues to generate consistent returns [35] Management's Comments on Operating Environment and Future Outlook - Management expressed that the first quarter is typically less active, but they remain encouraged by the level of interest from corporates in litigation finance [23][40] - The company does not provide specific guidance on future new business levels but remains optimistic about ongoing interest in the market [39][44] Other Important Information - The company is currently managing a significant portfolio and has been generating consistent returns as cases conclude [24][35] - The increase in discount rates across the portfolio represented a $22 million headwind to valuations [17] Q&A Session Summary Question: What level of commitments is expected for the rest of the year? - The company does not provide guidance on future new business but remains encouraged by interest from corporates and anticipates ongoing activity [39][40] Question: How does the company view the unpredictability of large deals? - The management noted that the level of new business is heavily influenced by the occurrence of large transactions, which are difficult to predict due to long sales cycles [45][46]