CaliberCos (CWD) Q2 2024 earnings summary

Executive summary

• Reported a net loss attributable to the parent of $4.7 million for Q2 2024, a 17.4% improvement year-over-year, and $8.5 million for the six months ended June 30, 2024, a 23.1% increase in loss year-over-year.

• Total revenues for Q2 2024 were $8.2 million, down 60% year-over-year, primarily due to the deconsolidation of hospitality funds.

• Asset management revenues increased 70.3% in Q2 2024 to $3.2 million, driven by new fund offerings and increased managed capital.

• Hospitality revenues declined sharply due to the deconsolidation of Caliber Hospitality, LP and related entities.

Financial highlights

• Q2 2024 net loss before income taxes was $5.3 million, a 54.1% improvement year-over-year.

• Six-month total revenues were $31.1 million, down 37.7% year-over-year.

• Six-month total expenses decreased 33.9% to $40.0 million, mainly due to the deconsolidation of hospitality funds.

• Interest expense increased to $2.6 million for the six months, reflecting higher average corporate notes outstanding.

• Basic and diluted net loss per share for Q2 2024 was $(0.22), compared to $(0.29) in Q2 2023.

Outlook and guidance

• Management plans to continue extending or refinancing maturing unsecured notes, reduce operating costs, and pursue new financing.

• Substantial doubt remains about the ability to continue as a going concern beyond one year without successful execution of these plans.