Cohen & Steers, Inc. 280 Park Avenue New York, NY 10017-1216 Tel (212) 832-3232 | |
Contact:
Matthew S. Stadler
Executive Vice President
Chief Financial Officer
Cohen & Steers, Inc.
Tel (212) 446-9168
COHEN & STEERS REPORTS SECOND QUARTER
2010 RESULTS
NEW YORK, NY, July 21, 2010—Cohen & Steers, Inc. (NYSE: CNS) reported income attributable to common shareholders of $11.6 million, or $0.27 per share (diluted and basic), for the quarter ended June 30, 2010, compared with a loss attributable to common shareholders of $6.4 million, or $0.15 per share (diluted and basic), for the quarter ended June 30, 2009.
The second quarter 2010 results included an after-tax gain of approximately $0.08 per share primarily due to recoveries on the sale of previously impaired securities. After adjusting for these items, earnings per share attributable to common shareholders would have been $0.19 for the quarter ended June 30, 2010. The second quarter 2009 results included an after-tax expense of approximately $0.30 per share due to impairment charges. After adjusting for these items, earnings per share attributable to common shareholders would have been $0.15 for the quarter ended June 30, 2009.
For the six months ended June 30, 2010, the company recorded income attributable to common shareholders of $20.5 million, or $0.48 per share (diluted and basic), compared with a loss attributable to common shareholders of $20.9 million, or $0.49 per share (diluted and basic), for the six months ended June 30, 2009. After adjusting for the $0.08 after-tax gain mentioned above, earnings per share attributable to common shareholders would have been $0.39 for the six months ended June 30, 2010. The 2009 results included after-tax expenses of approximately $0.69 per share due to impairment charges. After adjusting for these items, earnings per share attributable to common shareholders would have been $0.20 per share for the six months ended June 30, 2009.
Assets Under Management
Assets under management were $26.2 billion as of June 30, 2010, a decrease of 3.5% from $27.2 billion at March 31, 2010 and an increase of 60.8% from $16.3 billion at June 30, 2009. The decrease from March 31, 2010 was due to market depreciation of $2.2 billion partially offset by net inflows of $1.2 billion. The increase from June 30, 2009 was due to net inflows of $5.0 billion and market appreciation of $4.9 billion. Average assets under management were $27.0 billion for the quarter ended June 30, 2010, an increase of 8.5% from $24.9 billion for the quarter ended March 31, 2010 and an increase of 84.8% from $14.6 billion for the quarter ended June 30, 2009.
Assets under management for open-end mutual funds were $6.6 billion as of June 30, 2010, a decrease of 5.2% from $7.0 billion at March 31, 2010 and an increase of 55.6% from $4.2 billion at June 30, 2009. The decrease from March 31, 2010 was due to market depreciation of $538 million partially offset by net inflows of $175 million. The increase from June 30, 2009 was due to market appreciation of $1.5 billion and net inflows of $864 million. Average assets under management for open-end mutual funds were $6.7 billion for the quarter ended June 30, 2010, an increase of 7.1% from $6.2 billion for the quarter ended March 31, 2010 and an increase of 75.4% from $3.8 billion for the quarter ended June 30, 2009.
Assets under management for closed-end mutual funds were $5.3 billion as of June 30, 2010, a decrease of 7.3% from $5.7 billion at March 31, 2010 and an increase of 26.2% from $4.2 billion at June 30, 2009. The decrease from March 31, 2010 was primarily due to market depreciation of $414 million. The increase from June 30, 2009 was due to market appreciation of $929 million and net inflows of $173 million through an increase in the use of the funds’ credit facility. Average assets under management for closed-end mutual funds were $5.6 billion for the quarter ended June 30, 2010, an increase of 1.7% from $5.5 billion for the quarter ended March 31, 2010 and an increase of 46.1% from $3.9 billion for the quarter ended June 30, 2009.
Assets under management for institutional separate accounts were $14.3 billion as of June 30, 2010, a decrease of 1.2% from $14.5 billion at March 31, 2010 and an increase of 82.1% from $7.9 billion at June 30, 2009. The decrease from March 31, 2010 was due to market depreciation of $1.2 billion partially offset by net inflows of $1.1 billion. The increase from June 30, 2009 was due to net inflows of $4.0 billion and market appreciation of $2.5 billion. Average assets under management for institutional separate accounts were $14.7 billion for the quarter ended June 30, 2010, an increase of 12.0% from $13.1 billion for the quarter ended March 31, 2010 and an increase of 111.3% from $7.0 billion for the quarter ended June 30, 2009.
Financial Highlights
| | | Three Months Ended | |
| | | (in thousands, except per share data or as noted) | |
| | | June 30, 2010 | | | March 31, 2010 | | | June 30, 2009 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Revenue | | $ | 44,232 | | | $ | 41,344 | | | $ | 26,355 | |
| Expenses | | $ | 30,900 | | | $ | 28,915 | | | $ | 25,932 | |
| Operating income | | $ | 13,332 | | | $ | 12,429 | | | $ | 423 | |
| Operating margin | | | 30.1 | % | | | 30.1 | % | | | 1.6 | % |
| Total non-operating income (loss) | | $ | 2,050 | | | $ | 1,035 | | | $ | (5,373 | ) |
| Net income (loss) attributable to common | | | | | | | | | | | | |
| shareholders | | $ | 11,603 | | | $ | 8,880 | | | $ | (6,421 | ) |
| Diluted earnings (loss) per share attributable | | | | | | | | | | | | |
| to common shareholders | | $ | 0.27 | | | $ | 0.21 | | | $ | (0.15 | ) |
| Assets under management, end of period (in millions) | | $ | 26,242 | | | $ | 27,197 | | | $ | 16,320 | |
| Average assets under management for period (in millions) | | $ | 27,031 | | | $ | 24,910 | | | $ | 14,628 | |
Total revenue was $44.2 million for the three months ended June 30, 2010, an increase of 7.0% from $41.3 million for the three months ended March 31, 2010, primarily due to higher average assets under management. Operating expenses were $30.9 million for the three months ended June 30, 2010, an increase of 6.9% from $28.9 million for the three months ended March 31, 2010, primarily due to increases in employee compensation and benefits, distribution and service fees and general and administrative expenses. Operating income was $13.3 million for the three months ended June 30, 2010, compared with $12.4 million for the three months ended March 31, 2010. The company’s operating margin was 30.1% for the first and second quarter of 2010. Non-operating income was $2.1 million for the three months ended June 30, 2010, an increase of 98.1% from $1.0 million for the three months ended March 31, 2010, primarily due to recoveries on the sale of previously impaired securities, partially offset by a decline in the value of the company’s investment in its global real estate long-short funds.
Balance Sheet Information
As of June 30, 2010, cash, cash equivalents and investments were $241 million, net of redeemable non-controlling interest. As of June 30, 2010, stockholders’ equity was $289 million and the company had no long-term or short-term debt.
Conference Call Information
Cohen & Steers will hold a conference call tomorrow, July 22, 2010 at 11:00 a.m. (ET) to discuss the company's second quarter results. Investors and analysts can access the live conference call by dialing (800) 769-9015 (U.S.) or (212) 231-2913 (international); passcode: 21476735. Participants should plan to register at least 10 minutes before the conference call begins.
A replay of the call will be available for two weeks starting at approximately 1:00 p.m. (ET) on July 22, 2010 and can be accessed at (800) 633-8284 (U.S.) or (402) 977-9140 (international); passcode: 21476735. Internet access to the webcast, which includes audio (listen-only), will be available on the company's Web site at www.cohenandsteers.com under "Corporate Info." The webcast will be archived on the Web site for two weeks.
About Cohen & Steers, Inc.
Cohen & Steers is a manager of income-oriented equity portfolios specializing in U.S. and international real estate securities, large cap value stocks, listed infrastructure and utilities, and preferred securities. The company also manages alternative investment strategies such as hedged real estate securities portfolios and private real estate multimanager strategies for qualified investors. Headquartered in New York City, with offices in London, Brussels, Hong Kong and Seattle, Cohen & Steers serves individual and institutional investors through a broad range of investment vehicles.
Forward-Looking Statements
This press release and other statements that Cohen & Steers may make may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect the company's current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative versions of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties.
Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The company believes that these factors include, but are not limited to, those described in the "Risk Factors" section of the company's Annual Report on Form 10-K for the year ended December 31, 2009, which is accessible on the Securities and Exchange Commission's Web site at www.sec.gov and on the company’s Web site at www.cohenandsteers.com. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. The company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
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Cohen & Steers, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
For the Periods Ended
(in thousands, except per share data)
