Burford Capital Limited, 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
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Summary statements of operations |
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Three months ended March 31, |
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Consolidated (US GAAP) ($ in thousands, except per share data) |
2024 |
2023 |
% change |
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Capital provision income |
40,761 |
475,933 |
-91 % |
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Asset management income |
1,863 |
1,997 |
-7 % |
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Total revenues |
44,295 |
380,905 |
-88 % |
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Total operating expenses |
30,138 |
54,299 |
-44 % |
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Net income/(loss) attributable to Burford Capital Limited shareholders |
(29,937) |
259,425 |
NM |
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Per diluted ordinary share |
(0.14) |
1.17 |
NM |
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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. |
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Summary statements of financial position |
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Consolidated (US GAAP) ($ in thousands, except per share data) |
March 31, 2024 |
December 31, 2023 |
% change |
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Capital provision assets |
5,096,807 |
5,045,388 |
1 % |
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Total Burford Capital Limited equity |
2,261,789 |
2,290,858 |
-1 % |
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Book value per ordinary share |
10.34 |
10.46 |
-1 % |
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Non-controlling interests |
864,465 |
916,922 |
-6 % |
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Total shareholders’ equity |
3,126,254 |
3,207,780 |
-3 % |
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Total liabilities and shareholders’ equity |
6,012,208 |
5,837,394 |
3 % |
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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)
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Selected metrics1 |
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Three months ended March 31, |
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Burford-only (non-GAAP) ($ in thousands) |
2024 |
2023 |
% change |
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Realized gains |
28,754 |
35,613 |
-19 % |
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Realizations |
61,074 |
61,746 |
-1 % |
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Cash receipts2 |
137,694 |
97,157 |
42 % |
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Deployments |
59,080 |
66,993 |
-12 % |
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New commitments |
82,459 |
100,764 |
-18 % |
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1 Represents Burford-only capital provision-direct, unless noted otherwise. |
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2 Represents Burford-only proceeds from capital provision-direct, capital provision-indirect and asset management and other services. |
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Group-wide (non-GAAP) ($ in thousands) |
March 31, 2024 |
December 31, 2023 |
% change |
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Total portfolio |
7,126,980 |
7,170,308 |
-1 % |
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- 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: $7.2 billion)
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Selected financial metrics |
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Three months ended March 31, |
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Burford-only (non-GAAP) ($ in thousands, except per share data) |
2024 |
2023 |
$ change |
% change |
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Total revenues |
31,378 |
338,677 |
-307,299 |
-91 % |
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Total operating expenses |
29,664 |
54,009 |
-24,345 |
-45 % |
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Operating income/(loss) |
1,714 |
284,668 |
-282,954 |
-99 % |
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Net income/(loss) attributable to Burford Capital Limited shareholders |
(29,937) |
259,425 |
-289,362 |
NM |
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Burford-only (non-GAAP) ($ in thousands, except per share data) |
March 31, 2024 |
December 31, 2023 |
$ change |
% change |
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Tangible book value attributable to Burford Capital Limited |
2,127,833 |
2,156,893 |
-29,060 |
-1 % |
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Tangible book value attributable to Burford Capital Limited per ordinary share |
9.73 |
9.85 |
-0.12 |
-1 % |
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- 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: $9.85)
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Selected portfolio metrics |
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Burford-only (non-GAAP) ($ in thousands) |
March 31, 2024 |
December 31, 2023 |
$ change |
% change |
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Deployed cost |
1,595,505 |
1,573,531 |
21,974 |
1 % |
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Plus: Fair value adjustments |
1,806,542 |
1,814,070 |
-7,528 |
0 % |
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Fair value |
3,402,047 |
3,387,601 |
14,446 |
0 % |
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Undrawn commitments |
1,406,220 |
1,396,061 |
10,159 |
1 % |
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Total capital provision-direct portfolio |
4,808,267 |
4,783,662 |
24,605 |
1 % |
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Total capital provision portfolio1 |
4,851,592 |
4,840,117 |
-11,475 |
0 % |
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1 Represents capital provision-direct and capital provision-indirect. |
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- Fair value of Burford-only capital provision-direct assets increased by $14 million to $3.4 billion at March 31, 2024 (December 31, 2023: $3.4 billion)
- Cumulative ROIC since inception from Burford-only capital provision-direct assets of 82% (December 31, 2023: 82%) and IRR of 27% (December 31, 2023: 27%)
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Liquidity and capital |
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Burford-only (non-GAAP) ($ in thousands) |
March 31, 2024 |
December 31, 2023 |
$ change |
% change |
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Liquidity |
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Cash and cash equivalents |
464,698 |
195,915 |
268,783 |
137 % |
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Marketable securities |
102,873 |
107,561 |
(4,688) |
-4 % |
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Total liquidity |
567,571 |
303,476 |
264,095 |
87 % |
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Due from settlement of capital provision assets |
131,688 |
185,267 |
(53,579) |
-29 % |
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- 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
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.
