Caliber (NASDAQ: CWD; “CaliberCos Inc.”), a real estate
investor, developer, and asset manager, today reported results for
the first quarter ended on March 31, 2024.
First Quarter 2024 Financial Highlights (compared to first
quarter 2023)
- Total revenue of $23.0 million, a 22.3% decrease
- Platform revenue of $4.7 million, a 25.6% decrease
- Asset management revenue of $4.6 million, a 16.1% increase
- Performance allocations of $0.2 million, related to the sale of
land in Johnstown, Colorado
- Net loss attributable to Caliber of $3.8 million, or $0.18 per
diluted share, compared to net loss attributable to Caliber of $1.2
million or $0.07 per diluted share
- Caliber Adjusted EBITDA loss of $1.7 million, compared to
Caliber Adjusted EBITDA of $1.0 million
- Fair value assets under management (“FV AUM”) of $766.7
million, a 3.4% increase, primarily due to the L.T.D. hotel
contribution into the Caliber Hospitality Trust
- Managed capital of $453.9 million, a 3.7% increase compared to
December 31, 2023, with originations of $19.1 million, partially
offset by redemptions of $2.8 million
Management Commentary
“Caliber continues to focus on our core objective: consistent,
profitable growth,” said Chris Loeffler, CEO of Caliber. “Our
year-over-year first quarter results were impacted by the
deconsolidation of six hotels on March 7, 2024, which were included
in our first quarter 2023 results. While the change negatively
impacts the present performance comparisons from a financial
reporting standpoint, I look forward to sharing during our call
today why we believe it’s a positive long-term change for
Caliber.”
“Following a thorough evaluation of our cost structure, we
identified more than $6 million in annualized savings, which will
reduce our annual operating costs to approximately $15 million.
Many of these reductions have already been implemented. Reductions
in non-payroll operating costs are expected to yield annualized
savings of $2.5 million compared to 2023. Reduction in payroll
expenses, through attrition and a reduction in force, are
anticipated to produce $2 million in savings in 2024 with the full
$4 million in annualized savings expected to be realized in 2025.
These savings are expected to partially offset the sizeable
increase in operating costs Caliber incurred between 2022 and
2023.”
"While these decisions are difficult to make, we believe they
are essential to restoring Caliber's profitability and ensuring a
robust foundation for future growth and success. We remain
confident in our medium- and long-term growth prospects,
particularly as we’ve seen development activity pick-up in the past
couple of months as well as meaningful increases in our fundraising
pipeline and activity.”
Business Update
The following are key milestones completed both during and
subsequent to the first quarter ended March 31, 2024.
- As of March 31, 2024, Caliber was actively developing 2,240
multifamily units, 2,386 single family units, 2.6 million square
feet of commercial and industrial, and 1.0 million square feet of
office and retail.
- On April 29, 2024, Caliber announced the sale of Areas B and C
of The Ridge development, each approximately 20-acre parcels of
land in Johnstown, Colo., for an aggregate $12.3 million.
- On May 1, 2024, Caliber closed on the capitalization of Phase 1
of the Company’s SP10 project, which includes the conversion of an
existing hotel to apartments along with the development of new
townhomes surrounding the site, producing 188 units in total. In
doing so, the SP10 partnership repaid an existing $11 million loan
that had matured.
- As of May 2, 2024, Caliber’s new wholesale fundraising team has
signed 26 selling agreements with regional broker dealers and
registered investment advisors for investments in company-sponsored
products. In total, these partners have approximately 381
representatives with $3.4 billion of accessible AUM.
- On May 7, 2024, Caliber announced the sale of an approximately
50-acre parcel of land in Johnstown, Colo., to the Archdiocese of
Denver for $7.7 million.
- On May 8, 2024, the Caliber Hospitality Trust (CHT) received a
$10 million investment commitment into its Series D preferred
equity. This investment nearly doubles the current total of
preferred equity invested in CHT and will help advance the business
plans of Caliber and CHT.
Conference Call Information
Caliber will host a conference call today, Thursday, May 9,
2024, at 5:00 p.m. Eastern Time (ET) to discuss its first quarter
2024 financial results and business outlook. To access this call,
dial 1-800-672-2415 (domestic) or 1-646-307-1952 (international)
with conference ID 1287647. A live webcast of the conference call
will be available via the investor relations section of Caliber’s
website under “Financial Results.” The webcast replay of the
conference call will be available on Caliber’s website shortly
after the call concludes.
About Caliber (CaliberCos Inc.) (NASDAQ: CWD)
With more than $2.9 billion of managed assets, including
estimated costs to complete assets under development, Caliber’s
15-year track record of managing and developing real estate is
built on a singular goal: make money in all market conditions. Our
growth is fueled by our performance and our competitive advantage:
we invest in projects, strategies, and geographies that global real
estate institutions do not. Integral to our competitive advantage
is our in-house shared services group, which offers Caliber greater
control over our real estate and visibility to future investment
opportunities. There are multiple ways to participate in Caliber’s
success: invest in Nasdaq-listed CaliberCos Inc. and/or invest
directly in our Private Funds.
Forward Looking Statements
This press release contains “forward-looking statements” that
are subject to substantial risks and uncertainties. All statements,
other than statements of historical fact, contained in this press
release are forward-looking statements. Forward-looking statements
contained in this press release may be identified by the use of
words such as “anticipate,” “believe,” “contemplate,” “could,”
“estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “target,” “aim,” “should,”
"will” “would,” or the negative of these words or other similar
expressions, although not all forward-looking statements contain
these words. Forward-looking statements are based on the Company’s
current expectations and are subject to inherent uncertainties,
risks and assumptions that are difficult to predict. Further,
certain forward-looking statements are based on assumptions as to
future events that may not prove to be accurate including, but not
limited to, the Company’s ability to adequately grow cumulative
fundraising, AUM and annualized platform revenue to meet 2026
targeted goals, the closing of the transaction with L.T.D.
Hospitality Group LLC and the viability of and ability of the
Company to adequately access the real estate and capital markets.
These and other risks and uncertainties are described more fully in
the section titled “Risk Factors” in the final prospectus related
to the Company’s public offering filed with the SEC and other
reports filed with the SEC thereafter. Forward-looking statements
contained in this announcement are made as of this date, and the
Company undertakes no duty to update such information except as
required under applicable law.
CALIBERCOS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE DATA)
Three Months Ended March
31,
2024
2023
(unaudited)
Revenues
Asset management revenues
$
3,170
$
2,036
Performance allocations
166
2,426
Consolidated funds – hospitality
revenues
18,145
23,209
Consolidated funds – other revenues
1,470
1,851
Total revenues
22,951
29,522
Expenses
Operating costs
5,262
4,504
General and administrative
1,940
1,816
Marketing and advertising
106
353
Depreciation and amortization
146
132
Consolidated funds – hospitality
expenses
16,782
20,283
Consolidated funds – other expenses
3,072
1,925
Total expenses
27,308
29,013
Other income, net
272
519
Interest income
117
98
Interest expense
(1,294
)
(831
)
Net (loss) income before income
taxes
(5,262
)
295
Benefit from income taxes
—
—
Net (loss) income
(5,262
)
295
Net (loss) income attributable to
noncontrolling interests
(1,457
)
1,502
Net loss attributable to CaliberCos
Inc.
(3,805
)
(1,207
)
Basic net loss per share attributable to
common stockholders
$
(0.18
)
$
(0.07
)
Diluted net loss per share attributable to
common stockholders
$
(0.18
)
$
(0.07
)
Weighted average common shares
outstanding:
Basic
21,542
18,182
Diluted
21,542
18,182
CALIBERCOS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(AMOUNTS IN THOUSANDS, EXCEPT
FOR SHARE AND PER SHARE DATA)
March 31, 2024
December 31, 2023
Assets
Cash
$
679
$
940
Restricted cash
2,599
2,569
Real estate investments, net
21,652
21,492
Notes receivable - related parties
6,749
50
Due from related parties
9,397
9,709
Investments in unconsolidated entities
9,726
3,338
Operating lease - right of use assets
182
193
Prepaid and other assets
2,888
2,781
Assets of consolidated funds
Cash
1,416
2,865
Restricted cash
640
11,266
Real estate investments, net
101,037
185,636
Accounts receivable, net
371
1,978
Notes receivable - related parties
40,347
34,620
Operating lease - right of use assets
—
10,318
Prepaid and other assets
3,779
11,677
Total assets
$
201,462
$
299,432
CALIBERCOS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(AMOUNTS IN THOUSANDS, EXCEPT
FOR SHARE AND PER SHARE DATA)
March 31, 2024
December 31, 2023
Liabilities and Stockholders’
Equity
Notes payable
$
52,952
$
53,799
Accounts payable and accrued expenses
9,766
8,886
Due to related parties
157
257
Operating lease liabilities
112
119
Other liabilities
614
420
Liabilities of consolidated funds
Notes payable, net
47,654
129,684
Notes payable - related parties
—
12,055
Accounts payable and accrued expenses
2,723
11,736
Due to related parties
258
101
Operating lease liabilities
—
13,957
Other liabilities
736
2,400
Total liabilities
114,972
233,414
Commitments and Contingencies
Common stock Class A, $0.001 par value;
100,000,000 shares authorized, 14,311,355 and 13,872,671 shares
issued and outstanding as of March 31, 2024 and December 31, 2023,
respectively
14
14
Common stock Class B, $0.001 par value;
15,000,000 shares authorized, 7,416,414 shares issued and
outstanding as March 31, 2024 and December 31, 2023
7
7
Paid-in capital
39,869
39,432
Accumulated deficit
(40,635
)
(36,830
)
Stockholders’ equity (deficit)
attributable to CaliberCos Inc.
(745
)
2,623
Stockholders’ equity attributable to
noncontrolling interests
87,235
63,395
Total stockholders’ equity
86,490
66,018
Total liabilities and stockholders’
equity
$
201,462
$
299,432
Definitions
Assets Under Management
AUM refers to the assets we manage or sponsor. We monitor two
types of information with regard to our AUM:
i.
Managed Capital – we define this as the
total capital we fundraise from our customers as investments in our
funds. It also includes fundraising into our corporate note
program, the proceeds of which were used, in part, to invest in or
loan to our funds. We use this information to monitor, among other
things, the amount of ‘preferred return’ that would be paid at the
time of a distribution and the potential to earn a performance fee
over and above the preferred return at the time of the
distribution. Our fund management fees are based on a percentage of
managed capital or a percentage of assets under management, and
monitoring the change and composition of managed capital provides
relevant data points for Caliber management to further calculate
and predict future earnings.
ii.
Fair Value (“FV”) AUM – we define this is
as the aggregate fair value of the real estate assets we manage and
from which we derive management fees, performance revenues and
other fees and expense reimbursements. We estimate the value of
these assets quarterly to help make sale and hold decisions and to
evaluate whether an existing asset would benefit from refinancing
or recapitalization. This also gives us insight into the value of
our carried interest at any point in time. We also utilize FV AUM
to predict the percentage of our portfolio which may need
development services in a given year, fund management services
(such as refinance), and brokerage services. As we control the
decision to hire for these services, our service income is
generally predictable based upon our current portfolio AUM and our
expectations for AUM growth in the year forecasted.
Non-GAAP Measures
We use non-GAAP financial measures to evaluate operating
performance, identify trends, formulate financial projections, make
strategic decisions, and for other discretionary purposes. We
believe that these measures enhance the understanding of ongoing
operations and comparability of current results to prior periods
and may be useful for investors to analyze our financial
performance because they provides investors a view of the
performance attributable to CaliberCos Inc. When analyzing our
operating performance, investors should use these measures in
addition to, and not as an alternative for, their most directly
comparable financial measure calculated and presented in accordance
with U.S. GAAP. Our presentation of non-GAAP measures may not be
comparable to similarly identified measures of other companies
because not all companies use the same calculations. These measures
may also differ from the amounts calculated under similarly titled
definitions in our debt instruments, which amounts are further
adjusted to reflect certain other cash and non-cash charges and are
used by us to determine compliance with financial covenants therein
and our ability to engage in certain activities, such as incurring
additional debt and making certain restricted payments.
Fee-Related Earnings and Related Components
Fee-Related Earnings is a supplemental non-GAAP performance
measure used to assess our ability to generate profits from
fee-based revenues, focusing on whether our core revenue streams,
are sufficient to cover our core operating expenses. Fee- Related
Earnings represents the Company’s net income (loss) before income
taxes adjusted to exclude depreciation and amortization,
stock-based compensation, interest expense and extraordinary or
non-recurring revenue and expenses, including performance
allocation revenue and gain (loss) on extinguishment of debt,
public registration direct costs related to aborted or delayed
offerings and our Reg A+ offering, the share repurchase costs
related to the Company’s Buyback Program, litigation settlements,
and expenses recorded to earnings relating to investment deals
which were abandoned or closed. Fee-Related Earnings is presented
on a basis that deconsolidates our consolidated funds (intercompany
eliminations) and eliminates noncontrolling interest. Eliminating
the impact of consolidated funds and noncontrolling interest
provides investors a view of the performance attributable to
CaliberCos Inc. and is consistent with performance models and
analysis used by management.
Distributable Earnings
Distributable Earnings is a supplemental non-GAAP performance
measure equal to Fee-Related Earnings plus performance allocation
revenue and less interest expenses and provision for income taxes.
We believe that Distributable Earnings can be useful as a
supplemental performance measure to our GAAP results assessing the
amount of earnings available for distribution.
Caliber Adjusted EBITDA
Caliber Adjusted EBITDA represents the Company’s Distributable
Earnings adjusted for interest expense, the share repurchase costs
related to the Company’s Buyback Program, other income (expense),
and provision for income taxes on a basis that deconsolidates our
consolidated funds (intercompany eliminations), Loss on CRAF
Investment Redemption, Gain on extinguishment of Payroll Protection
Program loans, and eliminates noncontrolling interest. Eliminating
the impact of consolidated funds and noncontrolling interest
provides investors a view of the performance attributable to
CaliberCos Inc. and is consistent with performance models and
analysis used by management.
Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA represents the Company’s and the
consolidated funds’ earnings before net interest expense, income
taxes, depreciation and amortization, further adjusted to exclude
stock-based compensation, transaction fees, expenses and other
public registration direct costs related to aborted or delayed
offerings and our Reg A+ offering, the share repurchase costs
related to the Company’s Buyback Program, litigation settlements,
expenses recorded to earnings relating to investment deals which
were abandoned or closed, any other non-cash expenses or losses, as
further adjusted for extraordinary or non-recurring items.
NON-GAAP
RECONCILIATIONS
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
Three Months Ended March
31,
2024
2023
Net income (loss) attributable to
CaliberCos Inc.
$
(3,805
)
$
(1,207
)
Net income (loss) attributable to
noncontrolling interests
(1,457
)
1,502
Net income (loss)
(5,262
)
295
Provision for income taxes
—
—
Net income (loss) before income
taxes
(5,262
)
295
Depreciation and amortization
183
132
Consolidated funds' impact on fee-related
earnings
1,361
(605
)
Stock-based compensation
400
702
Severance
7
13
Performance allocations
(166
)
(2,426
)
Other expenses (income), net
(272
)
(519
)
Interest expense, net
1,010
580
Fee-related earnings
(2,739
)
(1,828
)
Performance allocations
166
2,426
Interest expense, net
(1,010
)
(580
)
Provision for income taxes
—
—
Distributable earnings
(3,583
)
18
Interest expense
1,294
831
Share buy-back
—
183
Other expenses (income), net
272
519
Provision for income taxes
—
—
Consolidated funds' impact on Caliber
adjusted EBITDA
348
(517
)
Caliber adjusted EBITDA
(1,669
)
1,034
Consolidated funds' EBITDA adjustments
3,856
7,051
Consolidated adjusted EBITDA
$
2,187
$
8,085
ASSET MANAGEMENT PLATFORM
SEGMENT(1)
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
Three Months Ended March 31,
2024
Unconsolidated (Wholly -
Owned)
Impact of Consolidated Fund
and Eliminations
Consolidated
Revenues
Asset management
$
4,555
$
(1,385
)
$
3,170
Performance allocations
171
(5
)
166
Consolidated funds – hospitality
revenue
—
18,145
18,145
Consolidated funds – other revenue
—
1,470
1,470
Total revenues
4,726
18,225
22,951
Expenses
Operating costs
5,484
(222
)
5,262
General and administrative
1,949
(9
)
1,940
Marketing and advertising
106
—
106
Depreciation and amortization
183
(37
)
146
Consolidated funds – hospitality
expenses
—
16,782
16,782
Consolidated funds – other expenses
—
3,072
3,072
Total expenses
7,722
19,586
27,308
Other income (expenses), net
452
(180
)
272
Interest income
285
(168
)
117
Interest expense
(1,295
)
1
(1,294
)
Net (loss) income before income
taxes
$
(3,554
)
$
(1,708
)
$
(5,262
)
Provision for income taxes
—
—
—
Net loss
(3,554
)
(1,708
)
(5,262
)
Net loss attributable to noncontrolling
interests
—
(1,457
)
(1,457
)
Net loss attributable to CaliberCos
Inc.
$
(3,554
)
$
(251
)
$
(3,805
)
___________________________________________
(1)
Represents the results of our asset
management platform segment, which are presented on a basis that
deconsolidates our consolidated funds (intercompany eliminations)
and eliminate noncontrolling interest.
REVENUE(1)
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
Three Months Ended March 31,
2024
2024
2023
Fund set-up fees
$
7
$
63
Fund management fees
2,562
2,308
Financing fees
73
327
Development and construction fees
1,654
956
Brokerage fees
259
270
Total asset management
4,555
3,924
Performance allocations
171
2,426
Total revenue
$
4,726
$
6,350
___________________________________________
(1)
Represents the results of our asset
management platform segment, which are presented on a basis that
deconsolidates our consolidated funds (intercompany eliminations)
and eliminate noncontrolling interest.
FV AUM
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
Balances as of December 31, 2023
$
741,190
CHT Contribution
29,900
Construction and net market
depreciation
10,971
Asset sold(1)
(12,771
)
Credit(2)
(781
)
Other(3)
(1,771
)
Balances as of March 31, 2024
$
766,738
March 31,
2024
2023
Real Estate
Hospitality
$
67,400
$
67,200
Caliber Hospitality Trust
231,200
201,600
Residential
138,900
138,000
Commercial
237,800
240,400
Total Real Estate
675,300
647,200
Credit(1)
83,807
84,588
Other(2)
7,631
9,402
Total
$
766,738
$
741,190
___________________________________________
(1)
Assets sold during the three months ended
March 31, 2024 include lot sales related to a development asset in
Colorado and one home from our residential fund.
(2)
Credit FV AUM represents loans made to
Caliber’s investment funds by our diversified credit fund.
(3)
Other FV AUM represents undeployed capital
held in our diversified funds.
MANAGED CAPITAL
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
Managed Capital
Balances as of December 31, 2023
$
437,625
Originations
19,099
Redemptions
(2,819
)
Balances as of March 31, 2024
$
453,905
March 31, 2024
December 31, 2023
Real Estate
Hospitality
$
43,660
$
43,660
Caliber Hospitality Trust(1)
84,177
70,747
Residential
77,262
74,224
Commercial
157,368
155,004
Total Real Estate(2)
362,467
343,635
Credit(3)
83,807
84,588
Other(4)
7,631
9,402
Total
$
453,905
$
437,625
_________________________________________
(1)
The Company earns a fund management fee of
0.70% of the Caliber Hospitality Trust’s enterprise value and is
reimbursed for certain costs incurred on behalf of the Caliber
Hospitality Trust.
(2)
Beginning during the year ended December
31, 2023, the Company includes capital raised from investors in
CaliberCos Inc. through corporate note issuances that was further
invested in our funds in Managed Capital. As of March 31, 2024 and
December 31, 2023, the Company had invested $18.6 million and $18.3
million, respectively, in our funds.
(3)
Credit managed capital represents loans
made to Caliber’s investment funds by the Company and our
diversified funds. As of March 31, 2024 and December 31, 2023, the
Company had loaned $7.2 million and $8.5 million to our funds.
(4)
Other managed capital represents
undeployed capital held in our diversified funds.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509247183/en/
Caliber: Victoria Rotondo +1 480-295-7600
Victoria.Rotondo@caliberco.com
Investor Relations: Lisa Fortuna, Financial Profiles +1
310-622-8234 ir@caliberco.com
Media Relations: Kelly McAndrew, Financial Profiles +1
203-613-1552 KMcAndrew@finprofiles.com
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