2012 Q2 Form 10-Q Financial Statement

#000119312512340947 Filed on August 07, 2012

View on sec.gov

Income Statement

Concept 2012 Q2 2011 Q2
Revenue $627.2M $1.308B
YoY Change -52.06% 239.28%
Cost Of Revenue $40.70M $145.8M
YoY Change -72.09% 562.73%
Gross Profit $586.5M $959.8M
YoY Change -38.89% 163.97%
Gross Profit Margin 93.51% 73.36%
Selling, General & Admin $685.4M $824.8M
YoY Change -16.9% -24.89%
% of Gross Profit 116.86% 85.93%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $36.70M $41.60M
YoY Change -11.78% 1.96%
% of Gross Profit 6.26% 4.33%
Operating Expenses $685.3M $824.8M
YoY Change -16.91% -24.89%
Operating Profit -$98.80M $135.0M
YoY Change -173.19% -118.38%
Interest Expense $13.77M $14.19M
YoY Change -2.9% -85.47%
% of Operating Profit 10.51%
Other Income/Expense, Net $248.2M -$74.65M
YoY Change -432.51%
Pretax Income $135.6M $248.8M
YoY Change -45.49% -139.06%
Income Tax $41.34M $64.20M
% Of Pretax Income 30.48% 25.8%
Net Earnings -$74.96M $86.24M
YoY Change -186.93% -144.61%
Net Earnings / Revenue -11.95% 6.59%
Basic Earnings Per Share -$0.14 $0.18
Diluted Earnings Per Share -$0.14 $0.18
COMMON SHARES
Basic Shares Outstanding 528.8M shares 476.3M shares
Diluted Shares Outstanding 528.8M shares 483.6M shares

Balance Sheet

Concept 2012 Q2 2011 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.271B $1.431B
YoY Change -11.18% 59.53%
Cash & Equivalents $412.5M $434.8M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $586.0M $529.0M
Other Receivables $800.0M $756.0M
Total Short-Term Assets $2.657B $2.716B
YoY Change -2.17% 31.72%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill $1.704B
YoY Change
Intangibles
YoY Change
Long-Term Investments $2.253B $15.41B
YoY Change -85.38% 46.78%
Other Assets $1.230B $1.438B
YoY Change -14.46% 32.41%
Total Long-Term Assets $23.49B $19.62B
YoY Change 19.73% 36.11%
TOTAL ASSETS
Total Short-Term Assets $2.657B $2.716B
Total Long-Term Assets $23.49B $19.62B
Total Assets $26.14B $22.33B
YoY Change 17.07% 35.56%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $823.0M $736.0M
YoY Change 11.82% 9.69%
Accrued Expenses $977.0M $981.0M
YoY Change -0.41% 70.61%
Deferred Revenue
YoY Change
Short-Term Debt $116.0M $77.00M
YoY Change 50.65%
Long-Term Debt Due $88.00M $75.00M
YoY Change 17.33%
Total Short-Term Liabilities $3.768B $3.750B
YoY Change 0.48% 25.25%
LONG-TERM LIABILITIES
Long-Term Debt $12.11B $9.300B
YoY Change 30.23% 46.39%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $12.11B $9.300B
YoY Change 30.23% 46.39%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.768B $3.750B
Total Long-Term Liabilities $12.11B $9.300B
Total Liabilities $15.88B $17.73B
YoY Change -10.42% 40.31%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $5.382B $4.606B
YoY Change
Total Liabilities & Shareholders Equity $26.14B $22.33B
YoY Change 17.07% 35.56%

Cashflow Statement

Concept 2012 Q2 2011 Q2
OPERATING ACTIVITIES
Net Income -$74.96M $86.24M
YoY Change -186.93% -144.61%
Depreciation, Depletion And Amortization $36.70M $41.60M
YoY Change -11.78% 1.96%
Cash From Operating Activities $212.1M -$68.80M
YoY Change -408.28% -1192.06%
INVESTING ACTIVITIES
Capital Expenditures -$7.800M -$11.50M
YoY Change -32.17% -2.54%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$23.20M
YoY Change -100.0% 8.41%
Cash From Investing Activities -$7.900M -$34.70M
YoY Change -77.23% 4.52%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -182.9M 82.50M
YoY Change -321.7% -188.05%
NET CHANGE
Cash From Operating Activities 212.1M -68.80M
Cash From Investing Activities -7.900M -34.70M
Cash From Financing Activities -182.9M 82.50M
Net Change In Cash 21.30M -21.00M
YoY Change -201.43% -82.59%
FREE CASH FLOW
Cash From Operating Activities $212.1M -$68.80M
Capital Expenditures -$7.800M -$11.50M
Free Cash Flow $219.9M -$57.30M
YoY Change -483.77% -416.57%

Facts In Submission

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<div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>1.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>ORGANIZATION</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The Blackstone Group L.P., together with its subsidiaries, (&#x201C;Blackstone&#x201D; or the &#x201C;Partnership&#x201D;) is a leading global manager of private capital and provider of financial advisory services. The alternative asset management business includes the management of private equity funds, real estate funds, funds of hedge funds, credit-oriented funds, collateralized loan obligation (&#x201C;CLO&#x201D;) vehicles, separately managed accounts, and registered investment companies (collectively referred to as the &#x201C;Blackstone Funds&#x201D;). Blackstone also provides various financial advisory services, including financial advisory, restructuring and reorganization advisory and fund placement services. Blackstone&#x2019;s business is organized into five segments: private equity, real estate, hedge fund solutions, credit businesses, and financial advisory.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The Partnership was formed as a Delaware limited partnership on March&#xA0;12, 2007. The Partnership is managed and operated by its general partner, Blackstone Group Management L.L.C., which is in turn wholly-owned and controlled by one of Blackstone&#x2019;s founders, Stephen A. Schwarzman (the &#x201C;Founder&#x201D;), and Blackstone&#x2019;s other senior managing directors.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The activities of the Partnership are conducted through its holding partnerships: Blackstone Holdings&#xA0;I&#xA0;L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (collectively, &#x201C;Blackstone Holdings&#x201D;, &#x201C;Blackstone Holdings Partnerships&#x201D; or the &#x201C;Holding Partnerships&#x201D;). On June&#xA0;18, 2007, in preparation for an initial public offering (&#x201C;IPO&#x201D;), the predecessor owners (&#x201C;Predecessor Owners&#x201D;) of the Blackstone business completed a reorganization (the &#x201C;Reorganization&#x201D;) whereby, with certain limited exceptions, the operating entities of the predecessor organization and the intellectual property rights associated with the Blackstone name were contributed (&#x201C;Contributed Businesses&#x201D;) to five holding partnerships (Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and Blackstone Holdings V L.P.) either directly or indirectly via a sale to certain wholly-owned subsidiaries of the Partnership and then a contribution to the Holding Partnerships. The Partnership, through its wholly-owned subsidiaries, is the sole general partner in each of these Holding Partnerships. The reorganization was accounted for as an exchange of entities under common control for the component of interests contributed by the Founders and the other senior managing directors (collectively, the &#x201C;Control Group&#x201D;) and as an acquisition of non-controlling interests using the purchase method of accounting for all the predecessor owners other than the Control Group.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">On January&#xA0;1, 2009, the number of Holding Partnerships was reduced from five to four through the transfer of assets and liabilities of Blackstone Holdings III L.P. to Blackstone Holdings IV L.P. In connection therewith, Blackstone Holdings IV L.P. was renamed Blackstone Holdings III L.P. and Blackstone Holdings V L.P. was renamed Blackstone Holdings IV L.P. Blackstone Holdings refers to the five holding partnerships prior to the January 2009 reorganization and the four holding partnerships subsequent to the January 2009 reorganization.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">Generally, holders of the limited partner interests in the four Holding Partnerships may, up to four times each year, exchange their limited partnership interests (&#x201C;Partnership Units&#x201D;) for Blackstone Common Units, on a one-to-one basis, exchanging one Partnership Unit in each of the four Holding Partnerships for one Blackstone Common Unit.</font></p> </div>
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<div> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The following table summarizes the fair value transfers between Level I and Level II:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="84%" align="center"> <tr> <td width="58%"></td> <td valign="bottom" width="15%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="15%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: Times New Roman" size="1"><b>Three&#xA0;Months&#xA0;Ended</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: Times New Roman" size="1"><b>Six&#xA0;Months&#xA0;Ended</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: Times New Roman" size="1"><b>June&#xA0;30, 2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: Times New Roman" size="1"><b>June&#xA0;30, 2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Transfers from Level I into Level II (a)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">15,924</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">45,440</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Transfers from Level II into Level I (b)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">529</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">801</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="BORDER-BOTTOM: #000000 0.5pt solid; LINE-HEIGHT: 8px; MARGIN-TOP: 0px; WIDTH: 10%; MARGIN-BOTTOM: 2px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Transfers out of Level I represent those financial instruments for which restrictions exist and adjustments were made to an otherwise observable price to reflect fair value at the reporting date.</font></td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">(b)</font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Transfers into Level I represent those financial instruments for which an unadjusted quoted price in an active market became available for the identical asset.</font></td> </tr> </table> </div>
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