Burford Capital Reports Third Quarter 2024 Results
NEW YORK, Nov. 7, 2024 /PRNewswire/ -- Burford Capital Limited ("Burford"), the leading global finance and asset management firm focused on law, today announces its unaudited financial results at and for the three and nine months ended September 30, 2024.
In addition, Burford has made available an accompanying three and nine months ended September 30, 2024 results presentation on its website at http://investors.burfordcapital.com.
Christopher Bogart, Chief Executive Officer of Burford Capital, commented:
"We are having a great year as we enjoy the long-awaited momentum in the portfolio. We have generated $556 million in Burford-only cash receipts YTD24 and $310 million just in 3Q24, setting new records. Our core portfolio net realized gains are already in line with the previous annual peak, with $184 million in YTD24 up 49% from YTD23, and $56 million in 3Q24, around twice the level of the 2023 and 2022 third quarters. Net realized gains in YTD24 reflect a ROIC of 94% on realizations which remains above our historical track record. We reported Burford-only net income attributable to shareholders of $136 million in 3Q24 and grew tangible book value to more than $10 per share for the first time. And despite the team being focused on the very active portfolio, new commitments are up substantially in 3Q24 over 3Q23."
Consolidated financial results
Summary statements of operations
Nine months ended
September 30,
Three months ended
September 30,
Consolidated (US GAAP)
($ in thousands, except per share data)
2024
2023
% change
2024
2023
% change
Capital provision income
469,494
1,016,113
-54 %
270,988
504,513
-46 %
Asset management income
6,654
5,767
15 %
3,147
1,876
68 %
Total revenues
453,062
794,329
-43 %
249,114
368,873
-32 %
Total operating expenses
115,182
150,999
-24 %
46,893
53,068
-12 %
Net income/(loss) attributable to Burford Capital Limited shareholders
159,452
510,427
-69 %
135,643
272,542
-50 %
Per diluted ordinary share
0.71
2.29
-69 %
0.61
1.22
-50 %
Summary statements of financial position
Consolidated (US GAAP)
($ in thousands, except per share data)
September 30, 2024
December 31, 2023
% change
Capital provision assets
5,356,300
5,045,388
6 %
Total Burford Capital Limited equity
2,432,109
2,290,858
6 %
Book value per ordinary share
11.08
10.46
6 %
Non-controlling interests
865,242
916,922
-6 %
Total shareholders' equity
3,297,351
3,207,780
3 %
Total liabilities and shareholders' equity
6,274,902
5,837,394
7 %
In this announcement, references to "3Q24" and "YTD24" are to Burford's financial results for the three and nine months ended September 30, 2024, respectively, and references to "3Q23" and "YTD23" are to Burford's financial results for the three and nine months ended September 30, 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 and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.
In addition, in this announcement, the term "core portfolio" refers to Burford-only capital provision direct.
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
Nine months ended September 30,
Three months ended September 30,
Burford-only (non-GAAP)
($ in thousands)
2024
2023
% change
2024
2023
% change
Net realized gains/(losses)
184,164
123,539
49 %
56,257
29,145
93 %
Realizations
380,442
274,101
39 %
164,704
79,158
108 %
Cash receipts2
555,548
379,732
46 %
310,491
132,794
134 %
Deployments
263,103
304,432
-14 %
72,277
55,986
29 %
New commitments
443,451
448,682
-1 %
100,861
17,648
472 %
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)
September 30, 2024
December 31, 2023
% change
Total portfolio
7,478,292
7,170,308
4 %
Realizations are on a record annual pace in 2024
Core portfolio realizations of $380 million in YTD24 up 39% compared to YTD23 and diversified across 40 assets
We continue to see progress in clearing the pandemic-driven backlog with about half of the capital provision assets generating realizations in YTD24 being from 2020 and prior vintages
During YTD24, 10 assets have each generated more than $10 million in realizations, with five of those assets each delivering $20 million or more
Net realized gains through 3Q24 are already near record annual levels
Core portfolio net realized gains of $184 million in YTD24 up 49% compared to YTD23, already in line with the previous annual peak of $186 million achieved in the full year 2023
YTD24 net realized gains reflect a ROIC of 94% on YTD24 realizations which remains above our historical track record
Record cash generation underscores portfolio progress and healthy liquidity
Cash receipts of $310 million in 3Q24 and $556 million in YTD24 driven by realizations, collection of receivables and asset management income
New business remains solid
Core portfolio new commitments of $443 million and deployments of $263 million in YTD24 remain on a consistent pace even as substantial portfolio activity places demands on team resources
Definitive undrawn commitments of $727 million at September 30, 2024 up 25% in YTD24 and support deployment activity looking forward
Selected financial metrics
Nine months ended
September 30,
Three months ended
September 30,
Burford-only (non-GAAP)
($ in thousands, except per share data)
2024
2023
% change
2024
2023
% change
Total revenues
394,688
725,927
-46 %
226,033
344,013
-34 %
Total operating expenses
112,977
150,377
-25 %
46,011
52,801
-13 %
Operating income/(loss)
281,711
575,550
-51 %
180,022
291,212
-38 %
Net income/(loss)
159,452
510,427
-69 %
135,643
272,542
-50 %
Burford-only (non-GAAP)
($ in thousands, except per share data)
September 30, 2024
December 31, 2023
$ change
% change
Tangible book value attributable to Burford Capital Limited
2,298,094
2,156,893
141,201
7 %
Tangible book value attributable to Burford Capital Limited per ordinary share
10.47
9.85
0.62
6 %
Net income in 3Q24 accelerated relative to the first half of the year
3Q24 net income attributable to Burford Capital Limited shareholders of $136 million, or $0.61 per diluted share
3Q23 and YTD23 results benefited from substantial positive impact of YPF-related capital provision income, which impacts 3Q24 and YTD24 comparisons
Within total revenues, 3Q24 was a strong quarter for capital provision income, which is up significantly from prior year, excluding YPF-related assets impact
3Q24 Burford-only capital provision income of $205 million was driven, among other things, by positive impact across the major valuation inputs of discount rates, case milestones and duration
Excluding YPF-related assets, which heavily impacted 2023 results, Burford-only total net realized and unrealized gains were up 200% in 3Q24 and 17% in YTD24 compared to 3Q23 and YTD23, respectively
Selected portfolio metrics
Burford-only (non-GAAP)
($ in thousands)
September 30, 2024
December 31, 2023
$ change
% change
Deployed cost
1,645,667
1,573,531
72,136
5 %
Plus: Fair value adjustments
1,967,677
1,814,070
153,607
8 %
Fair value
3,613,344
3,387,601
225,743
7 %
Undrawn commitments
1,562,125
1,396,061
166,064
12 %
Total capital provision-direct portfolio
5,175,469
4,783,662
391,807
8 %
Total capital provision portfolio1
5,215,932
4,840,117
375,815
8 %
1 Represents capital provision-direct and capital provision-indirect.
Strong returns on realizations in YTD24 drove an increase in the cumulative ROIC since inception from Burford-only capital provision-direct assets from 82% at December 31, 2023 to 84%, while cumulative IRR declined by 40 basis points to 26% reflecting extended duration of certain assets (December 31, 2023: 27%)
Liquidity and capital
Burford-only (non-GAAP)
($ in thousands)
September 30, 2024
December 31, 2023
$ change
% change
Liquidity
Cash and cash equivalents
553,158
195,915
357,243
182 %
Marketable securities
75,801
107,561
(31,760)
-30 %
Total liquidity
628,959
303,476
325,483
107 %
Due from settlement of capital provision assets
64,489
185,267
(120,778)
-65 %
Burford-only cash and cash equivalents and marketable securities of $629 million at September 30, 2024 (December 31, 2023: $303 million)
Strong liquidity position at September 30, 2024 augmented by $556 million of Burford-only cash receipts in YTD24 and $275 million add-on offering to 2031 senior notes in January 2024
Burford-only due from settlement of capital provision assets of $64 million at September 30, 2024 (December 31, 2023: $185 million), with 95% of December 31, 2023 balance collected in YTD24
Total debt outstanding of $1.8 billion at September 30, 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 10.00am EST / 3.00pm GMT on Thursday, November 7, 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 1730316. To minimize the risk of delayed access, participants are urged to dial into the conference call by 9.40am EST / 2.40pm GMT.
A live webcast of the call will also be available at https://events.q4inc.com/attendee/431913320, and pre-registration at that link is encouraged.
An accompanying 3Q24 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/431913320.
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 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 and nine months ended September 30, 2024 and 2023, the condensed consolidated and Burford-only statements of financial position at September 30, 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
September 30,
Nine months ended
September 30,
($ in thousands)
2024
2023
2024
2023
Revenues
Capital provision income/(loss)
270,988
504,513
469,494
1,016,113
(Less)/Plus: Third-party interests in capital
provision assets
(35,152)
(140,412)
(46,640)
(235,944)
Asset management income/(loss)
3,147
1,876
6,654
5,767
Services and other income/(loss)
10,131
2,896
23,554
8,393
Total revenues
249,114
368,873
453,062
794,329
Total operating expenses
46,893
53,068
115,182
150,999
Operating income/(loss)
202,221
315,805
337,880
643,330
Finance costs and loss on debt extinguishment
34,399
29,013
101,432
70,690
Foreign currency transactions (gains)/losses
(1,510)
(9,811)
(951)
(21,149)
Income/(loss) before income taxes
169,332
296,603
237,399
593,789
Benefit from/(provision for) income taxes
(11,468)
531
(21,761)
(15,550)
Net income/(loss)
157,864
297,134
215,638
578,239
Net income/(loss) attributable to Burford Capital Limited shareholders
135,643
272,542
159,452
510,427
Net income/(loss) attributable to Burford Capital Limited shareholders per ordinary share
Basic
$0.62
$1.24
$0.73
$2.33
Diluted
$0.61
$1.22
$0.71
$2.29
Summary Burford-only statement of operations
Three months ended
September 30,
Nine months ended
September 30,
($ in thousands)
2024
2023
2024
2023
Revenues
Capital provision income
204,961
324,995
342,224
676,402
Asset management income
11,110
16,141
29,270
41,182
Services and other income
9,962
2,877
23,194
8,343
Total revenues
226,033
344,013
394,688
725,927
Operating expenses
46,011
52,801
112,977
150,377
Operating income
180,022
291,212
281,711
575,550
Net income
135,643
272,542
159,452
510,427
Net income per share:
Basic
$0.62
$1.24
$0.73
$2.33
Diluted
$0.61
$1.22
$0.71
$2.29
Reconciliation of summary condensed consolidated statement of operations to summary Burford-only statement of operations
Three months ended September 30, 2024
(GAAP)
(Non-GAAP)
Elimination of third-party interests
($ in thousands)
Consolidated
BOF-C
Colorado
Advantage Fund
Other
Burford-only
Capital provision income
270,988
(18,742)
(34,546)
(10,257)
(2,482)
204,961
(Less): Third-party interests in capital provision assets
(35,152)
-
34,518
-
634
-
Asset management income
3,147
7,963
-
-
-
11,110
Services and other income
10,131
(165)
-
-
(4)
9,962
Total revenues
249,114
(10,944)
(28)
(10,257)
(1,852)
226,033
Operating expenses
46,893
62
(28)
(96)
(820)
46,011
Operating income
202,221
(11,006)
-
(10,161)
(1,032)
180,022
Net income/(loss)
157,864
(11,006)
-
(10,161)
(1,054)
135,643
Three months ended September 30, 2023
(GAAP)
(Non-GAAP)
Elimination of third-party interests
($ in thousands)
Consolidated
Strategic Value Fund
BOF-C
Colorado
