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 CapitalBurford 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)