Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Caliber Reports First Quarter 2024 Results By: Caliber via Business Wire May 09, 2024 at 16:05 PM EDT 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/Contacts 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 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Caliber Reports First Quarter 2024 Results By: Caliber via Business Wire May 09, 2024 at 16:05 PM EDT 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/Contacts 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
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
