NEW
YORK, May 13, 2024 /PRNewswire/ -- Burford
Capital Limited ("Burford"), the leading global finance and asset
management firm focused on law, today announces its first quarter
2024 results.
In addition, Burford has made available an accompanying first
quarter 2024 results presentation on its website at
http://investors.burfordcapital.com.
Christopher Bogart, Chief
Executive Officer of Burford Capital, commented:
"Our first
quarter showed our highest ever reported level of first quarter
cash receipts, above-average realized gains, continued case
conclusions with loss levels below historical experience and
moderate new business activity broadly consistent with a typical
first quarter. Total revenues reflected the variable timing of
recognition we expect in our business; the underlying portfolio
continued to show forward momentum with no material negative
developments, while lower operating expenses reflected the absence
of elevated variable costs."
Consolidated financial results
|
|
|
|
|
|
|
|
|
Summary statements
of operations
|
|
|
|
Three months ended
March 31,
|
|
|
Consolidated (US
GAAP)
($ in thousands, except
per share data)
|
|
2024
|
2023
|
%
change
|
|
Capital provision
income
|
|
40,761
|
475,933
|
-91 %
|
|
Asset management
income
|
|
1,863
|
1,997
|
-7 %
|
|
Total
revenues
|
|
44,295
|
380,905
|
-88 %
|
|
Total operating
expenses
|
|
30,138
|
54,299
|
-44 %
|
|
Net income/(loss)
attributable to Burford Capital Limited shareholders
|
|
(29,937)
|
259,425
|
NM
|
|
|
Per diluted ordinary
share
|
|
(0.14)
|
1.17
|
NM
|
|
Note: "NM" denotes not
meaningful. Changes from negative to positive amounts and positive
to negative amounts, increases or decreases from zero and changes
greater than 700% are not considered meaningful.
|
|
|
|
|
|
|
|
|
|
|
Summary statements
of financial position
|
|
Consolidated (US
GAAP)
($ in thousands, except
per share data)
|
March 31,
2024
|
December 31,
2023
|
%
change
|
|
Capital provision
assets
|
5,096,807
|
5,045,388
|
1 %
|
|
Total Burford
Capital Limited equity
|
2,261,789
|
2,290,858
|
-1 %
|
|
|
Book value per ordinary
share
|
10.34
|
10.46
|
-1 %
|
|
Non-controlling
interests
|
864,465
|
916,922
|
-6 %
|
|
Total shareholders'
equity
|
3,126,254
|
3,207,780
|
-3 %
|
|
Total liabilities
and shareholders' equity
|
6,012,208
|
5,837,394
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In this announcement, references to "1Q24"and "1Q23" are to
Burford's financial results for the three months ended March 31, 2024 and 2023, respectively. All
figures in this announcement are presented on an unaudited
consolidated basis in accordance with the generally accepted
accounting principles in the United
States ("US GAAP"), unless otherwise stated. Figures at and
for the three months ended March 31,
2024 are not necessarily indicative of the results that may
be expected for the full year ending December 31, 2024.
Definitions, reconciliations and information additional to
those set forth in this announcement are available on Burford's
website at http://investors.burfordcapital.com.
Burford-only operational and financial review
(non-GAAP)
|
|
|
|
|
Selected
metrics1
|
|
|
|
Three months ended
March 31,
|
|
Burford-only
(non-GAAP)
($ in
thousands)
|
|
2024
|
2023
|
%
change
|
Realized
gains
|
|
28,754
|
35,613
|
-19 %
|
Realizations
|
|
61,074
|
61,746
|
-1 %
|
Cash
receipts2
|
|
137,694
|
97,157
|
42 %
|
Deployments
|
|
59,080
|
66,993
|
-12 %
|
New
commitments
|
|
82,459
|
100,764
|
-18 %
|
1 Represents
Burford-only capital provision-direct, unless noted
otherwise.
|
2 Represents
Burford-only proceeds from capital provision-direct, capital
provision-indirect and asset management and other
services.
|
|
Group-wide
(non-GAAP)
($ in
thousands)
|
March 31,
2024
|
December 31,
2023
|
%
change
|
Total
portfolio
|
7,126,980
|
7,170,308
|
-1 %
|
|
|
|
|
|
|
|
|
|
|
|
- Realized gains in 1Q24 down 19% to $29
million (1Q23: $36 million)
- Realized gains comprised $45
million of gross realized gains offset by $16 million of gross realized losses primarily
related to unfavorable conclusions in sub-cases within a portfolio
asset that previously generated realized gains in excess of the
loss
- Realizations in 1Q24 of $61
million (1Q23: $62 million)
- Continued brisk post-Covid-19 pandemic pace of realizations in
1Q24 reflects continuing elevated resolution frequency amid
normalized court activity and reducing case backlogs
- Cash receipts in 1Q24 up 42% to $138
million (1Q23: $97 million)
- Cash receipts in 1Q24 were 2.2x total operating expenses and
finance costs, and were broadly diversified with five assets
generating total proceeds of $103
million and each asset's proceeds greater than $10 million
- Deployments in 1Q24 down 12% to $59
million (1Q23: $67 million)
- Burford-only capital provision-direct deployments generally in
line with prior first quarters
- $1.4 billion of Burford-only
capital provision-direct undrawn commitments to legal finance
assets at March 31, 2024 serves as a
strong base for potential future deployments
- Capital provision-direct new commitments on Burford-only basis
in 1Q24 down 18% to $82 million
(1Q23: $101 million)
- First quarter typically quiet for new commitments—while 1Q23
was slightly more active with $101
million of new commitments, 1Q22 new commitments were lower
at $44 million
- Group-wide total portfolio steady at $7.1 billion (December 31,
2023: $7.2 billion)
|
|
|
|
|
|
|
|
Selected financial
metrics
|
|
|
|
Three months ended
March 31,
|
|
|
|
Burford-only
(non-GAAP)
($ in thousands, except
per share data)
|
2024
|
2023
|
$
change
|
%
change
|
|
Total
revenues
|
31,378
|
338,677
|
-307,299
|
-91 %
|
|
Total operating
expenses
|
29,664
|
54,009
|
-24,345
|
-45 %
|
|
Operating
income/(loss)
|
1,714
|
284,668
|
-282,954
|
-99 %
|
|
Net income/(loss)
attributable to Burford Capital Limited shareholders
|
(29,937)
|
259,425
|
-289,362
|
NM
|
|
|
|
Burford-only
(non-GAAP)
($ in thousands, except
per share data)
|
March 31,
2024
|
December 31,
2023
|
$
change
|
%
change
|
|
Tangible book value
attributable to Burford Capital Limited
|
2,127,833
|
2,156,893
|
-29,060
|
-1 %
|
|
|
Tangible book value
attributable to Burford Capital Limited per ordinary
share
|
9.73
|
9.85
|
-0.12
|
-1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Total revenues in 1Q24 of $31
million (1Q23: $339 million),
with portfolio case development progressing well and timing of
revenue recognition variable, as expected in our business, and with
no individual asset having a material impact on 1Q24 quarterly
performance
- Realized gains on total capital provision assets of
$30 million in 1Q24 driven by capital
provision-direct assets, representing our highest returning core
legal finance strategy
- Unrealized losses on total capital provision assets were
$9 million in 1Q24 (1Q23: unrealized
gains of $277 million)—fair value
adjustments affected by a number of factors, including changes in
discount rate, duration and litigation risk premium, the reversal
of previously recognized unrealized gains upon conclusion of a
matter and its transfer to realized gains and actual performance of
matters as they pass through milestones
- Operating income in 1Q24 of $2
million (1Q23: $285 million),
attributable principally to the decrease in total revenues
- Total operating expenses normalized in 1Q24, down 45% to
$30 million (1Q23: $54 million), in the absence of elevated variable
costs
- General, administrative and other expenses in 1Q24 down 6% to
$7 million (1Q23: $8 million), while case-related expenditures were
approximately $6 million lower
- Net loss attributable to Burford Capital Limited shareholders
in 1Q24 of $30 million (1Q23: net
income of $259 million)
- Net loss per diluted share in 1Q24 of $0.14 (1Q23: net income of $1.17 per diluted share)
- Tangible book value attributable to Burford Capital Limited of
$2.1 billion at March 31, 2024 (December
31, 2023: $2.2 billion)
- Tangible book value attributable to Burford Capital Limited per
ordinary share decreased 1% to $9.73
at March 31, 2024 (December 31, 2023: $9.85)
|
|
|
|
|
Selected portfolio
metrics
|
Burford-only
(non-GAAP)
($ in
thousands)
|
March 31,
2024
|
December 31,
2023
|
$
change
|
%
change
|
Deployed
cost
|
1,595,505
|
1,573,531
|
21,974
|
1 %
|
Plus: Fair value
adjustments
|
1,806,542
|
1,814,070
|
-7,528
|
0 %
|
Fair value
|
3,402,047
|
3,387,601
|
14,446
|
0 %
|
Undrawn
commitments
|
1,406,220
|
1,396,061
|
10,159
|
1 %
|
Total capital
provision-direct portfolio
|
4,808,267
|
4,783,662
|
24,605
|
1 %
|
Total capital provision
portfolio1
|
4,851,592
|
4,840,117
|
-11,475
|
0 %
|
1 Represents capital
provision-direct and capital provision-indirect.
|
|
- Fair value of Burford-only capital provision-direct assets
increased by $14 million to
$3.4 billion at March 31, 2024 (December
31, 2023: $3.4 billion)
- Cumulative ROIC since inception from Burford-only capital
provision-direct assets of 82% (December 31,
2023: 82%) and IRR of 27% (December
31, 2023: 27%)
|
|
|
|
|
|
Liquidity and
capital
|
Burford-only
(non-GAAP)
($ in
thousands)
|
March 31,
2024
|
December 31,
2023
|
$
change
|
%
change
|
Liquidity
|
|
|
|
|
|
Cash and cash
equivalents
|
464,698
|
195,915
|
268,783
|
137 %
|
|
Marketable
securities
|
102,873
|
107,561
|
(4,688)
|
-4 %
|
|
Total
liquidity
|
567,571
|
303,476
|
264,095
|
87 %
|
Due from settlement
of capital provision assets
|
131,688
|
185,267
|
(53,579)
|
-29 %
|
|
|
|
|
|
- Burford-only cash and cash equivalents and marketable
securities of $568 million at
March 31, 2024 (December 31, 2023: $303
million)
- Robust liquidity position at March 31,
2024 augmented by $138 million
of Burford-only cash receipts and $275
million add-on offering to 2031 senior notes in January 2024
- Burford-only due from settlement of capital provision assets of
$132 million at March 31, 2024 (December
31, 2023: $185 million), with
30% of December 31, 2023 balance
collected in 1Q24
- Total debt outstanding of $1.8
billion at March 31, 2024
(December 31, 2023: $1.6 billion)
- Leverage remains well below covenant ceiling levels
Investor and analyst conference call
Burford will hold a conference call for investors and analysts
at 8.00am EDT / 1.00pm BST on
Monday, May 13, 2024. The dial-in
numbers for the conference call are +1 646 307-1963 (USA) or +1 800 715-9871 (USA & Canada toll free) / +44 (0)20 3481 4247 (UK)
or +44 800 260 6466 (UK toll free) and the access code is 7684047.
To minimize the risk of delayed access, participants are urged to
dial into the conference call by 7.40am
EDT / 12.40pm BST.
A live webcast of the call will also be available at
https://events.q4inc.com/attendee/323980508, and pre-registration
at that link is encouraged.
An accompanying 1Q24 results presentation for investors and
analysts will also be made available on Burford's website prior to
the conference call at http://investors.burfordcapital.com.
Following the conference call, a replay facility for this event
will be accessible through the webcast at
https://events.q4inc.com/attendee/323980508.
For further information, please contact:
|
|
Burford Capital
Limited
|
|
For investor and
analyst inquiries:
|
|
Americas: Josh Wood,
Head of Investor Relations - email
|
+1 212 516
5824
|
EMEA & Asia: Rob
Bailhache, Head of EMEA & Asia Investor Relations -
email
|
+44 (0)20 3530
2023
|
For press
inquiries:
|
|
David Helfenbein, Vice
President, Public Relations - email
|
+1 (212) 516
5824
|
|
|
Deutsche Numis -
NOMAD and Joint Broker
|
+44 (0)20 7260
1000
|
Giles Rolls
|
|
Charlie
Farquhar
|
|
|
|
Jefferies
International Limited - Joint Broker
|
+44 (0)20 7029
8000
|
Graham
Davidson
|
|
James Umbers
|
|
|
|
Berenberg –
Joint Broker
|
+44 (0)20 3207
7800
|
Toby Flaux
|
|
James
Thompson
|
|
Yasmina
Benchekroun
|
|
About Burford Capital
Burford Capital is the leading
global finance and asset management firm focused on law. Its
businesses include litigation finance and risk management, asset
recovery and a wide range of legal finance and advisory activities.
Burford is publicly traded on the New York Stock Exchange (NYSE:
BUR) and the London Stock Exchange (LSE: BUR), and it works with
companies and law firms around the world from its offices in
New York, London, Chicago, Washington,
DC, Singapore,
Dubai, Sydney and Hong
Kong.
For more information, please visit www.burfordcapital.com.
Summary financial statements and reconciliations
The tables below set forth summaries of the condensed
consolidated and Burford-only statements of operations for the
three months ended March 31, 2024 and
2023, the condensed consolidated and Burford-only statements of
financial position at March 31, 2024
and December 31, 2023 and
corresponding reconciliations from consolidated to Burford-only
financial results. Furthermore, the tables below set forth certain
additional reconciliations for financial information contained in
this announcement.
Summary condensed consolidated statements of
operations
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
($ in
thousands)
|
|
|
2024
|
|
2023
|
Revenues
|
|
|
|
|
|
Capital provision
income/(loss)
|
|
|
40,761
|
|
475,933
|
(Less)/Plus:
Third-party interests in capital provision assets
|
|
|
(5,224)
|
|
(100,345)
|
Asset management
income
|
|
|
1,863
|
|
1,997
|
Marketable securities
and other income/(loss)
|
|
|
6,895
|
|
3,320
|
Total
revenues
|
|
|
44,295
|
|
380,905
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
30,138
|
|
54,299
|
|
|
|
|
|
|
Operating
income/(loss)
|
|
|
14,157
|
|
326,606
|
|
|
|
|
|
|
Finance
costs
|
|
|
32,567
|
|
20,553
|
Foreign currency
transactions (gains)/losses
|
|
|
492
|
|
(2,440)
|
Income/(loss) before
income taxes
|
|
|
(18,902)
|
|
308,493
|
|
|
|
|
|
|
(Provision for)/benefit
from income taxes
|
|
|
1,404
|
|
(7,112)
|
Net
income/(loss)
|
|
|
(17,498)
|
|
301,381
|
|
|
|
|
|
|
Net income/(loss)
attributable to Burford Capital Limited shareholders
|
|
|
(29,937)
|
|
259,425
|
|
|
|
|
|
|
Net income/(loss)
attributable to Burford Capital Limited shareholders per ordinary
share
|
|
|
|
|
|
Basic
|
|
|
$(0.14)
|
|
$1.19
|
Diluted
|
|
|
$(0.14)
|
|
$1.17
|
Summary Burford-only statement of operations
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
($ in
thousands)
|
|
|
2024
|
|
2023
|
Revenues
|
|
|
|
|
|
Capital provision
income/(loss)
|
|
|
17,903
|
|
316,015
|
Asset management
income
|
|
|
6,673
|
|
19,357
|
Marketable securities
and other income/(loss)
|
|
|
6,802
|
|
3,305
|
Total
revenues
|
|
|
31,378
|
|
338,677
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
29,664
|
|
54,009
|
|
|
|
|
|
|
Operating
income
|
|
|
1,714
|
|
284,668
|
|
|
|
|
|
|
Net
income
|
|
|
(29,937)
|
|
259,425
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
Basic
|
|
|
$(0.14)
|
|
$1.19
|
Diluted
|
|
|
$(0.14)
|
|
$1.17
|
Reconciliation of summary condensed consolidated statement of
operations to summary Burford-only statement of operations
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2024
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
($ in
thousands)
|
Consolidated
|
Strategic
Value
Fund
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-
only
|
Capital provision
income
|
40,761
|
-
|
(9,686)
|
(5,420)
|
(7,271)
|
(481)
|
17,903
|
(Less): Third-party
interests in capital provision assets
|
(5,224)
|
-
|
-
|
5,369
|
-
|
(145)
|
-
|
Asset management
income
|
1,863
|
-
|
4,810
|
-
|
-
|
-
|
6,673
|
Marketable securities
and other income
|
6,895
|
-
|
(88)
|
-
|
-
|
(5)
|
6,802
|
Total
revenues
|
44,295
|
-
|
(4,964)
|
(51)
|
(7,271)
|
(631)
|
31,378
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
30,138
|
-
|
44
|
(51)
|
(169)
|
(298)
|
29,664
|
|
|
|
|
|
|
|
|
Operating
income
|
14,157
|
-
|
(5,008)
|
-
|
(7,102)
|
(333)
|
1,714
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
(17,498)
|
-
|
(5,008)
|
-
|
(7,102)
|
(329)
|
(29,937)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2023
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
($ in
thousands)
|
Consolidated
|
Strategic
Value Fund
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-
only
|
Capital provision
income
|
475,933
|
(107)
|
(48,308)
|
(99,769)
|
(7,022)
|
(4,712)
|
316,015
|
(Less): Third-party
interests in capital provision assets
|
(100,345)
|
-
|
-
|
99,764
|
-
|
581
|
-
|
Asset management
income
|
1,997
|
46
|
17,314
|
-
|
-
|
-
|
19,357
|
Marketable securities
and other income
|
3,320
|
-
|
(1)
|
-
|
-
|
(14)
|
3,305
|
Total
revenues
|
380,905
|
(61)
|
(30,995)
|
(5)
|
(7,022)
|
(4,145)
|
338,677
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
54,299
|
(155)
|
30
|
(5)
|
(123)
|
(37)
|
54,009
|
|
|
|
|
|
|
|
|
Operating
income
|
326,606
|
94
|
(31,025)
|
-
|
(6,899)
|
(4,108)
|
284,668
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
301,381
|
94
|
(31,025)
|
-
|
(6,899)
|
(4,126)
|
259,425
|
|
|
|
|
|
|
|
|
|
Reconciliations of operating expenses from the condensed
consolidated statements of operations to Burford-only statements of
operations
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2024
|
|
|
(GAAP)
|
|
(non-GAAP)
|
|
|
|
|
Eliminations
and
|
|
|
($ in
thousands)
|
|
Consolidated
|
|
adjustments
|
|
Burford-only
|
Compensation and
benefits
|
|
|
|
|
|
|
Salaries
and benefits
|
|
11,664
|
|
-
|
|
11,664
|
Annual
incentive compensation
|
|
4,836
|
|
-
|
|
4,836
|
Share-based compensation
|
|
3,863
|
|
-
|
|
3,863
|
Long-term
incentive compensation including accruals
|
|
1,638
|
|
-
|
|
1,638
|
General, administrative
and other
|
|
7,450
|
|
(333)
|
|
7,117
|
Case-related
expenditures ineligible for inclusion in asset cost
|
|
687
|
|
(141)
|
|
546
|
Total operating
expenses
|
|
30,138
|
|
(474)
|
|
29,664
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2023
|
|
|
(GAAP)
|
|
(non-GAAP)
|
|
|
|
|
Eliminations
and
|
|
|
($ in
thousands)
|
|
Consolidated
|
|
adjustments
|
|
Burford-only
|
Compensation and
benefits
|
|
|
|
|
|
|
Salaries
and benefits
|
|
12,492
|
|
-
|
|
12,492
|
Annual
incentive compensation
|
|
4,686
|
|
-
|
|
4,686
|
Share-based compensation
|
|
3,504
|
|
-
|
|
3,504
|
Long-term
incentive compensation including accruals
|
|
19,555
|
|
-
|
|
19,555
|
General, administrative
and other
|
|
7,751
|
|
(199)
|
|
7,552
|
Case-related
expenditures ineligible for inclusion in asset cost
|
|
6,311
|
|
(91)
|
|
6,220
|
Total operating
expenses
|
|
54,299
|
|
(290)
|
|
54,009
|
Summary condensed consolidated statement of financial
position
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
March
31,
2024
|
|
December
31,
2023
|
|
|
|
|
|
Total assets
|
|
6,012,208
|
|
5,837,394
|
|
|
|
|
|
Total
liabilities
|
|
2,885,954
|
|
2,629,614
|
|
|
|
|
|
Total Burford
Capital Limited equity
|
|
2,261,789
|
|
2,290,858
|
|
|
|
|
|
Non-controlling
interests
|
|
864,465
|
|
916,922
|
|
|
|
|
|
Total shareholders'
equity
|
|
3,126,254
|
|
3,207,780
|
|
|
|
|
|
Basic ordinary shares
outstanding
|
|
218,673,490
|
|
218,962,441
|
|
|
|
|
|
Total shareholders'
equity attributable to Burford Capital Limited per basic ordinary
share
|
|
10.34
|
|
10.46
|
Total shareholders'
equity per basic ordinary share
|
|
14.30
|
|
14.65
|
Reconciliation of summary consolidated statement of financial
position to summary Burford-only statement of financial
position
|
|
|
|
|
|
|
|
|
March
31, 2024
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
($ in
thousands)
|
Consolidated
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-only
|
|
|
|
|
|
|
|
Total assets
|
6,012,208
|
(604,919)
|
(691,682)
|
(199,002)
|
(78,823)
|
4,437,782
|
|
|
|
|
|
|
|
Total
liabilities
|
2,885,954
|
-
|
(691,682)
|
(154)
|
(18,125)
|
2,175,993
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
3,126,254
|
(604,919)
|
-
|
(198,848)
|
(60,698)
|
2,261,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2023
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
($ in
thousands)
|
Consolidated
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-only
|
|
|
|
|
|
|
|
Total assets
|
5,837,394
|
(634,239)
|
(686,304)
|
(222,413)
|
(78,574)
|
4,215,864
|
|
|
|
|
|
|
|
Total
liabilities
|
2,629,614
|
-
|
(686,304)
|
(100)
|
(18,204)
|
1,925,006
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
3,207,780
|
(634,239)
|
-
|
(222,313)
|
(60,370)
|
2,290,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of components of realizations from a
consolidated basis to a Group-wide basis
|
Three months ended
March 31, 2024
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-only
|
Other
funds
|
BOF-C
|
Group-
wide
|
Capital
provision-direct
|
104,193
|
|
(43,119)
|
61,074
|
28,771
|
30,198
|
120,043
|
Capital
provision-indirect
|
8,778
|
|
(7,315)
|
1,463
|
7,315
|
-
|
8,778
|
Post-settlement
|
-
|
|
-
|
-
|
27,834
|
-
|
27,834
|
Total
realizations
|
112,971
|
|
(50,434)
|
62,537
|
63,920
|
30,198
|
156,655
|
|
Three months ended
March 31, 2023
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-only
|
Other
funds
|
BOF-C
|
Group-
wide
|
Capital
provision-direct
|
115,732
|
|
(53,986)
|
61,746
|
50,390
|
35,423
|
147,559
|
Capital
provision-indirect
|
12,580
|
|
(10,484)
|
2,096
|
10,484
|
-
|
12,580
|
Post-settlement
|
-
|
|
-
|
-
|
18,680
|
-
|
18,680
|
Total
realizations
|
128,312
|
|
(64,470)
|
63,842
|
79,554
|
35,423
|
178,819
|
Reconciliation of components of deployments from a
consolidated basis to a Group-wide basis
|
Three months ended
March 31, 2024
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-only
|
Other
funds
|
BOF-C
|
Group-
wide
|
Capital
provision-direct
|
74,790
|
|
(15,710)
|
59,080
|
2,540
|
16,609
|
78,229
|
Capital
provision-indirect
|
50,613
|
|
(42,178)
|
8,435
|
42,178
|
-
|
50,613
|
Post-settlement
|
-
|
|
-
|
-
|
20,707
|
-
|
20,707
|
Total
deployments
|
125,403
|
|
(57,888)
|
67,515
|
65,425
|
16,609
|
149,549
|
|
Three months ended
March 31, 2023
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-only
|
Other
funds
|
BOF-C
|
Group-
wide
|
Capital
provision-direct
|
84,685
|
|
(17,692)
|
66,993
|
6,913
|
17,452
|
91,358
|
Capital
provision-indirect
|
34,000
|
|
(28,333)
|
5,667
|
28,333
|
-
|
34,000
|
Post-settlement
|
-
|
|
-
|
-
|
3,867
|
-
|
3,867
|
Total
deployments
|
118,685
|
|
(46,025)
|
72,660
|
39,113
|
17,452
|
129,225
|
Reconciliation of consolidated proceeds from capital
provision assets to Burford-only cash receipts
|
|
|
|
($ in
thousands)
|
|
Three months
ended
March 31, 2024
|
Three months
ended
March 31, 2023
|
Consolidated
proceeds from capital provision assets
|
|
247,561
|
144,485
|
Less: Elimination of
third-party interests
|
|
(120,036)
|
(60,563)
|
Burford-only total
proceeds from capital provision assets
|
|
127,525
|
83,922
|
Burford-only proceeds
from capital provision-direct assets
|
|
112,922
|
77,742
|
Burford-only proceeds
from capital provision-indirect assets
|
|
14,603
|
6,180
|
Burford-only total
proceeds from capital provision assets
|
|
127,525
|
83,922
|
Consolidated asset
management income
|
|
1,863
|
1,997
|
Plus: Eliminated
income from funds
|
|
4,810
|
17,360
|
Burford-only asset
management income
|
|
6,673
|
19,357
|
Less: Non-cash
adjustments(1)
|
|
(2,197)
|
(7,086)
|
Burford-only
proceeds from asset management income
|
|
4,476
|
12,271
|
Burford-only proceeds
from marketable security interest and dividends
|
|
5,476
|
881
|
Burford-only proceeds
from other income
|
|
217
|
83
|
Burford-only
proceeds from other items
|
|
5,693
|
964
|
Cash
receipts
|
|
137,694
|
97,517
|
|
(1) Adjustments for the
change in asset management receivables accrued during the
applicable period but not yet received at the end of such
period.
|
Reconciliation of consolidated portfolio to Group-wide
portfolio
|
|
March
31, 2024
|
|
|
(GAAP)
|
|
(non-GAAP)
|
|
|
|
|
Elimination of
|
|
|
|
|
|
|
|
|
|
|
|
|
third-party
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Consolidated
|
|
interests
|
|
Burford-only
|
|
Other
funds
|
|
BOF-C
|
|
Group-wide
|
Capital provision
assets - direct:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
2,127,082
|
|
(531,577)
|
|
1,595,505
|
|
368,994
|
|
437,697
|
|
2,402,196
|
Plus: Fair
value adjustments
|
|
2,733,691
|
|
(927,149)
|
|
1,806,542
|
|
172,600
|
|
208,360
|
|
2,187,502
|
Fair value
|
|
4,860,773
|
|
(1,458,726)
|
|
3,402,047
|
|
541,594
|
|
646,057
|
|
4,589,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital provision
assets - indirect:
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
210,974
|
|
(177,182)
|
|
33,792
|
|
177,182
|
|
-
|
|
210,974
|
Plus: Fair
value adjustments
|
|
25,060
|
|
(19,022)
|
|
6,038
|
|
19,022
|
|
-
|
|
25,060
|
Fair value
|
|
236,034
|
|
(196,204)
|
|
39,830
|
|
196,204
|
|
-
|
|
236,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
provision assets
|
|
5,096,807
|
|
(1,654,930)
|
|
3,441,877
|
|
737,798
|
|
646,057
|
|
4,825,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post-settlement
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
-
|
|
-
|
|
-
|
|
248,823
|
|
-
|
|
248,823
|
Plus: Fair
value adjustments
|
|
-
|
|
-
|
|
-
|
|
49,193
|
|
-
|
|
49,193
|
Fair value
|
|
-
|
|
-
|
|
-
|
|
298,016
|
|
-
|
|
298,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undrawn
commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
provision-direct
|
|
1,820,080
|
|
(413,860)
|
|
1,406,220
|
|
122,135
|
|
404,956
|
|
1,933,311
|
Capital
provision-indirect
|
|
20,972
|
|
(17,477)
|
|
3,495
|
|
17,477
|
|
-
|
|
20,972
|
Post-settlement
|
|
-
|
|
-
|
|
-
|
|
48,949
|
|
-
|
|
48,949
|
Total undrawn
commitments
|
|
1,841,052
|
|
(431,337)
|
|
1,409,715
|
|
188,561
|
|
404,956
|
|
2,003,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
portfolio
|
|
6,937,859
|
|
(2,086,267)
|
|
4,851,592
|
|
1,224,375
|
|
1,051,013
|
|
7,126,980
|
|
|
December 31, 2023
|
|
|
(GAAP)
|
|
(non-GAAP)
|
|
|
|
|
Elimination of
|
|
|
|
|
|
|
|
|
|
|
|
|
third-party
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Consolidated
|
|
interests
|
|
Burford-only
|
|
Other
funds
|
|
BOF-C
|
|
Group-wide
|
Capital provision
assets - direct:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
2,116,304
|
|
(542,773)
|
|
1,573,531
|
|
416,318
|
|
428,110
|
|
2,417,959
|
Plus: Fair
value adjustments
|
|
2,743,575
|
|
(929,505)
|
|
1,814,070
|
|
180,169
|
|
220,363
|
|
2,214,602
|
Fair value
|
|
4,859,879
|
|
(1,472,278)
|
|
3,387,601
|
|
596,487
|
|
648,473
|
|
4,632,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital provision
assets - indirect:
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
164,259
|
|
(125,508)
|
|
38,751
|
|
125,508
|
|
-
|
|
164,259
|
Plus: Fair
value adjustments
|
|
21,250
|
|
(15,490)
|
|
5,760
|
|
15,490
|
|
-
|
|
21,250
|
Fair value
|
|
185,509
|
|
(140,998)
|
|
44,511
|
|
140,998
|
|
-
|
|
185,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
provision assets
|
|
5,045,388
|
|
(1,613,276)
|
|
3,432,112
|
|
737,485
|
|
648,473
|
|
4,818,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post-settlement
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
-
|
|
-
|
|
-
|
|
253,062
|
|
-
|
|
253,062
|
Plus: Fair
value adjustments
|
|
-
|
|
-
|
|
-
|
|
45,792
|
|
-
|
|
45,792
|
Fair value
|
|
-
|
|
-
|
|
-
|
|
298,854
|
|
-
|
|
298,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undrawn
commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
provision-direct
|
|
1,801,627
|
|
(405,566)
|
|
1,396,061
|
|
126,560
|
|
396,646
|
|
1,919,267
|
Capital
provision-indirect
|
|
71,662
|
|
(59,718)
|
|
11,944
|
|
59,718
|
|
-
|
|
71,662
|
Post-settlement
|
|
-
|
|
-
|
|
-
|
|
62,455
|
|
-
|
|
62,455
|
Total undrawn
commitments
|
|
1,873,289
|
|
(465,284)
|
|
1,408,005
|
|
248,733
|
|
396,646
|
|
2,053,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
portfolio
|
|
6,918,677
|
|
(2,078,560)
|
|
4,840,117
|
|
1,285,072
|
|
1,045,119
|
|
7,170,308
|
Reconciliation of consolidated to Burford-only cash and cash
equivalents and marketable securities
|
|
|
|
|
|
|
|
|
March 31, 2024
|
|
December
31, 2023
|
|
(GAAP)
|
(Non-GAAP)
|
|
(GAAP)
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
Elimination
of third-
party
interests
|
Burford-
only
|
|
Consolidated
|
Elimination
of third-
party
interests
|
Burford-
only
|
Cash and cash
equivalents
|
482,673
|
(17,975)
|
464,698
|
|
220,549
|
(24,634)
|
195,915
|
Marketable
securities
|
102,873
|
-
|
102,873
|
|
107,561
|
-
|
107,561
|
Total cash and cash
equivalents and marketable securities
|
585,546
|
(17,975)
|
567,571
|
|
328,110
|
(24,634)
|
303,476
|
Reconciliation of consolidated to Burford-only due from
settlement of capital provision assets
|
|
|
|
|
|
|
|
|
March 31, 2024
|
|
December
31, 2023
|
|
(GAAP)
|
(Non-GAAP)
|
|
(GAAP)
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
Elimination
of third-party
interests
|
Burford-
only
|
|
Consolidated
|
Elimination
of third-party
interests
|
Burford-
only
|
Due from settlement of
capital provision assets
|
131,688
|
-
|
131,688
|
|
265,540
|
(80,273)
|
185,267
|
Reconciliation of consolidated to Burford-only realized gains
on capital provision-direct assets
|
|
|
|
|
|
|
|
|
|
|
|
|
(GAAP)
|
|
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-only
total
|
Burford-only
Capital
provision-direct
|
Burford-only
Capital
provision-indirect
|
Realized gains/(losses)
for the three months ended March 31, 2024
|
57,862
|
|
(27,968)
|
29,894
|
28,754
|
1,140
|
Realized gains/(losses)
for the three months ended March 31, 2023
|
69,442
|
|
(33,829)
|
35,613
|
35,613
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of consolidated to Burford-only unrealized
gains on capital provision-indirect assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(GAAP)
|
|
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-only
total
|
Burford-only
Capital
provision-direct
|
Burford-only
Capital
provision-indirect
|
|
Unrealized
gains/(losses) for the three months ended March 31, 2024
|
(13,701)
|
|
4,613
|
(9,088)
|
(9,366)
|
278
|
|
Unrealized
gains/(losses) for the three months ended March 31, 2023
|
402,813
|
|
(126,157)
|
276,656
|
275,141
|
1,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of tangible book value attributable to Burford
Capital Limited per ordinary share
|
|
|
|
|
($ in thousands,
except share data)
|
|
March 31,
2024
|
|
December 31,
2023
|
Total Burford
Capital Limited equity
|
|
2,261,789
|
|
2,290,858
|
Less:
Goodwill
|
|
(133,956)
|
|
(133,965)
|
Tangible book value
attributable to Burford Capital Limited
|
|
2,127,833
|
|
2,156,893
|
Basic ordinary shares
outstanding
|
|
218,673,490
|
|
218,962,441
|
Tangible book value
attributable to Burford Capital Limited per ordinary
share
|
|
$9.73
|
|
$9.85
|
Definitions and use of non-GAAP financial measures and
alternative performance measures
Burford reports its consolidated financial results in accordance
with US GAAP. US GAAP requires us to present financial statements
that consolidate some of the limited partner interests in private
funds we manage as well as assets held on our balance sheet where
we have a partner or minority investor. We therefore refer to
various presentations of our consolidated financial results as
follows:
- Consolidated refers to assets, liabilities and
activities that include those third-party interests, partially
owned subsidiaries and special purpose vehicles that we are
required to consolidate under US GAAP. At the date of this
announcement, the major entities where there is also a third-party
partner in, or owner of, those entities include Burford Opportunity
Fund C LP, Burford Advantage Master Fund LP, Colorado Investments
Limited ("Colorado") and several
other entities in which Burford holds investments where there is
also a third-party partner in, or owner of, those entities.
- Burford-only refers to assets, liabilities and
activities that pertain only to Burford on a proprietary basis,
excluding any third-party interests and the portions of jointly
owned entities owned by others.
- Group-wide refers to the totality of assets managed by
Burford, including those portions of the private funds owned by
third parties and including private funds that are not consolidated
within Burford's consolidated financial statements. Group-wide is
therefore the sum of Burford-only and non-controlling interests in
consolidated and non-consolidated private funds. Group-wide does
not include third-party interests in capital provision assets, the
economics of which have been sold to those third parties, which do
not meet the criteria to be recognized as a sale under US GAAP.
This includes the third-party interests in Colorado and other capital provision asset
subparticipations.
We subdivide our capital provision assets into two
categories:
- Direct, which includes all of our capital provision
assets that we have originated directly (i.e., not through
participation in a private fund) from our balance sheet. We also
include direct (i.e., not through participation in a private
fund) complex strategies assets in this category.
- Indirect, which includes our balance sheet's
participations in one of our private funds (i.e., Burford
Advantage Master Fund LP).
We also use certain unaudited alternative performance measures,
including:
- Internal rate of return ("IRR") is a discount rate that
makes the net present value of a series of cash flows equal to zero
and is expressed as a percentage figure. We compute IRR on
concluded (including partially concluded) legal finance assets by
treating that entire portfolio (or, when noted, a subset thereof)
as one undifferentiated pool of capital and measuring actual and,
if necessary, estimated inflows and outflows from that pool,
allocating costs appropriately. IRRs do not include unrealized
gains or losses.
- Return on invested capital ("ROIC") from a concluded
asset is the absolute amount of realizations from such asset in
excess of the amount of expenditure incurred in financing such
asset divided by the amount of expenditure incurred, expressed as a
percentage figure. ROIC is a measure of our ability to generate
absolute returns on our assets. Some industry participants express
returns on a multiple of invested capital ("MOIC") instead
of a ROIC basis. MOIC includes the return of capital and,
therefore, is 1x higher than ROIC. In other words, 70% ROIC is the
same as 1.70x MOIC.
Other unaudited alternative performance measures and terms we
use include:
- Commitment is the amount of financing we agree to
provide for a legal finance asset. Commitments can be definitive
(requiring us to provide financing on a schedule or, more often,
when certain expenses are incurred) or discretionary (allowing us
to provide financing after reviewing and approving a future
matter). Unless otherwise indicated, commitments include deployed
cost and undrawn commitments.
- Deployment refers to the financing provided for an
asset, which adds to our deployed cost in such asset.
- Deployed cost is the amount of financing we have
provided for an asset at the applicable point in time.
- Fair value adjustment is the amount of unrealized gain
or loss recognized in our consolidated statements of operations in
the relevant period and added to or subtracted from, as applicable,
the asset or liability value in our consolidated statements of
financial position.
- Portfolio includes deployed cost, net unrealized gains
or losses and undrawn commitments.
- Realization: A legal finance asset is realized when the
asset is concluded (i.e., when litigation risk has been
resolved). A realization will result in us receiving cash or,
occasionally, non-cash assets, or recognizing a due from settlement
receivable, reflecting what we are owed on the asset.
- Realized gain / loss reflects the total amount of gain
or loss, relative to cost, generated by a legal finance asset when
it is realized, calculated as realized proceeds less deployed cost,
without regard for any previously recognized fair value
adjustment.
- Unrealized gain / loss represents the fair value of our
legal finance assets over or under their deployed cost, as
determined in accordance with the requirements of the applicable US
GAAP standards, for the relevant financial reporting period
(consolidated statements of operations) or cumulatively
(consolidated statements of financial position).
- YPF-related assets refers to our Petersen and Eton Park legal finance assets,
which are two claims relating to the Republic of Argentina's nationalization of YPF S.A., the
Argentine energy company.
We also use certain non-GAAP financial measures, including:
- Book value per ordinary share is calculated by dividing
total Burford Capital Limited equity by the number of ordinary
shares issued and outstanding.
- Cash receipts provide a measure of the cash that our
capital provision and other assets generate during a given period
as well as cash from certain other fees and income. In particular,
cash receipts represent the cash generated from capital provision
and other assets, including cash proceeds from realized or
concluded assets and any related hedging assets, and cash received
from asset management income, services and/or other income, before
any deployments into financing existing or new assets. Cash
receipts are a non-GAAP financial measure and should not be
considered in isolation from, as a substitute for, or superior to,
financial measures calculated in accordance with US GAAP. The most
directly comparable measure calculated in accordance with US GAAP
is proceeds from capital provision assets as set forth in our
consolidated statements of cash flows. We believe that cash
receipts are an important measure of our operating and financial
performance and are useful to management and investors when
assessing the performance of our Burford-only capital provision
assets.
- Return on tangible equity ("ROTE") is Burford-only net
income/(loss) divided by the average of tangible equity at the
beginning and end of the relevant period, with tangible equity
calculated as total Burford Capital Limited equity less goodwill.
ROTE is a non-GAAP financial measure and should not be considered
in isolation from, as a substitute for, or superior to, financial
measures calculated in accordance with US GAAP. The most directly
comparable measure calculated in accordance with US GAAP is net
income/(loss) attributable to Burford Capital Limited shareholders
as set forth in our consolidated statements of operations. We
believe ROTE is an important measure of our operating and financial
performance and is useful to management and investors when
assessing the performance of our Burford-only capital provision
assets.
- Tangible book value attributable to Burford Capital
Limited is calculated by subtracting intangible assets (such as
goodwill) from total Burford Capital Limited equity.
Tangible book value attributable to Burford Capital Limited
per ordinary share is calculated by dividing tangible book
value attributable to Burford Capital Limited by the total number
of outstanding ordinary shares. Each of tangible book value
attributable to Burford Capital Limited and tangible book value
attributable to Burford Capital Limited per ordinary share is a
non-GAAP financial measure and should not be considered in
isolation from, as a substitute for, or superior to, financial
measures calculated in accordance with US GAAP. The most directly
comparable measure calculated in accordance with US GAAP is total
Burford Capital Limited equity as set forth in our consolidated
statements of financial position. We believe that tangible book
value attributable to Burford Capital Limited per ordinary share is
an important measure of our financial condition and is useful to
management and investors when assessing capital adequacy and our
ability to generate earnings on tangible equity invested by our
shareholders.
Non-GAAP financial measures should not be considered in
isolation from, as substitutes for, or superior to, financial
measures calculated in accordance with US GAAP.
This announcement does not constitute an offer to sell or the
solicitation of an offer to buy any ordinary shares or other
securities of Burford.
This announcement does not constitute an offer of any Burford
private fund. Burford Capital Investment Management LLC, which
acts as the fund manager of all Burford private funds, is
registered as an investment adviser with the US Securities and
Exchange Commission. The information provided in this announcement
is for informational purposes only. Past performance is not
indicative of future results. The information contained in this
announcement is not, and should not be construed as, an offer to
sell or the solicitation of an offer to buy any securities
(including, without limitation, interests or shares in any of
Burford private funds). Any such offer or solicitation may be made
only by means of a final confidential private placement memorandum
and other offering documents.
Forward-looking statements
This announcement contains
"forward-looking statements" within the meaning of Section 21E of
the US Securities Exchange Act of 1934, as amended, regarding
assumptions, expectations, projections, intentions and beliefs
about future events. These statements are intended as
"forward-looking statements". In some cases, predictive,
future-tense or forward-looking words such as "aim", "anticipate",
"believe", "continue", "could", "estimate", "expect", "forecast",
"guidance", "intend", "may", "plan", "potential", "predict",
"projected", "should" or "will" or the negative of such terms or
other comparable terminology are intended to identify
forward-looking statements, but are not the exclusive means of
identifying such statements. In addition, Burford and its
representatives may from time to time make other oral or written
statements that are forward-looking, including in its periodic
reports that Burford files with, or furnishes to, the US Securities
and Exchange Commission, other information made available to
Burford's security holders and other written materials. By their
nature, forward-looking statements involve known and unknown risks,
uncertainties and other factors because they relate to events and
depend on circumstances that may or may not occur in the future.
Burford cautions that forward-looking statements are not guarantees
of future performance and are based on numerous assumptions,
expectations, projections, intentions and beliefs and that
Burford's actual results of operations, including its financial
position and liquidity, and the development of the industry in
which it operates, may differ materially from (and be more negative
than) those made in, or suggested by, the forward-looking
statements contained in this announcement. Significant factors that
may cause actual results to differ from those Burford expects
include, among others, those discussed under "Risk Factors" in
Burford's annual report on Form 20-F for the year ended
December 31, 2023 filed with the US
Securities and Exchange Commission on March
28, 2024 and other reports or documents that Burford files
with, or furnishes to, the US Securities and Exchange Commission
from time to time. In addition, even if Burford's results of
operations, including its financial position and liquidity, and the
development of the industry in which it operates are consistent
with the forward-looking statements contained in this announcement,
those results of operations or developments may not be indicative
of results of operations or developments in subsequent periods.
Except as required by applicable law, Burford undertakes no
obligation to update or revise the forward-looking statements
contained in this announcement, whether as a result of new
information, future events or otherwise.
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SOURCE Burford Capital