Contact:
Matthew S. Stadler
EVP and CFO
Tel (212) 446-9168
COHEN & STEERS REPORTS SECOND QUARTER 2016
DILUTED EPS OF $0.53, OR $0.46, AS ADJUSTED
NEW YORK, NY, July 20, 2016—Cohen & Steers, Inc. (NYSE: CNS) reported net income attributable to common stockholders of $24.8 million, or $0.53 per diluted share and $0.54 per basic share, for the quarter ended June 30, 2016, compared with $19.0 million, or $0.42 per share (diluted and basic), for the quarter ended June 30, 2015. Total revenue for the second quarter of 2016 was a record $86.4 million, an increase of 3.4% from $83.5 million for the second quarter of 2015.
For the six months ended June 30, 2016, the company recorded net income attributable to common stockholders of $42.9 million, or $0.93 per share (diluted and basic), compared with $39.8 million, or $0.87 per diluted share and $0.88 per basic share, for the six months ended June 30, 2015.
Financial Highlights (Unaudited)
For the Periods |
| | | | | | | | | | | | | | | | | | | | | |
| (in thousands, except per share data) | Three Months Ended | | | | Six Months Ended | | |
| | June 30, 2016 | | March 31, 2016 | | Change | | June 30, 2016 | | June 30, 2015 | | Change |
| U.S. GAAP | | | | | | | | | | | |
| Revenue | $ | 86,373 |
| | $ | 79,681 |
| | 8.4 | % | | $ | 166,054 |
| | $ | 167,317 |
| | (0.8 | %) |
| Expenses | $ | 52,242 |
| | $ | 51,374 |
| | 1.7 | % | | $ | 103,616 |
| | $ | 101,597 |
| | 2.0 | % |
| Operating income | $ | 34,131 |
| | $ | 28,307 |
| | 20.6 | % | | $ | 62,438 |
| | $ | 65,720 |
| | (5.0 | %) |
| Operating margin | 39.5 | % | | 35.5 | % | | 399 bps |
| | 37.6 | % | | 39.3 | % | | (168) bps |
|
| Non-operating income (loss) | $ | 4,466 |
| | $ | 643 |
| | * |
| | $ | 5,109 |
| | $ | (1,506 | ) | | * |
|
| Net income attributable to common stockholders | $ | 24,808 |
| | $ | 18,083 |
| | 37.2 | % | | $ | 42,891 |
| | $ | 39,828 |
| | 7.7 | % |
| Diluted earnings per share | $ | 0.53 |
| | $ | 0.39 |
| | 36.6 | % | | $ | 0.93 |
| | $ | 0.87 |
| | 6.8 | % |
| | | | | | | | | | | | |
As Adjusted (1) | | | | | | | | | | | |
| Expenses | $ | 52,242 |
| | 49,429 |
| | 5.7 | % | | $ | 101,671 |
| | $ | 101,597 |
| | 0.1 | % |
| Operating income | $ | 34,131 |
| | $ | 30,252 |
| | 12.8 | % | | $ | 64,383 |
| | $ | 65,720 |
| | (2.0 | %) |
| Operating margin | 39.5 | % | | 38.0 | % | | 155 bps |
| | 38.8 | % | | 39.3 | % | | (51) bps |
|
| Non-operating income (loss) | $ | 196 |
| | $ | (3 | ) | | * |
| | $ | 193 |
| | $ | (595 | ) | | * |
|
| Net income | $ | 21,283 |
| | $ | 18,754 |
| | 13.5 | % | | $ | 40,037 |
| | $ | 40,377 |
| | (0.8 | %) |
| Diluted earnings per share | $ | 0.46 |
| | $ | 0.41 |
| | 13.0 | % | | $ | 0.86 |
| | $ | 0.88 |
| | (1.7 | %) |
_______________________
* Not meaningful
(1) The as adjusted financial measures represent non-GAAP financial measures. Please refer to the “Non-GAAP Reconciliation” on page 17 of this release for a reconciliation to the most directly comparable U.S. GAAP measures.
U.S. GAAP
This section discusses the financial results of the company as presented in accordance with U.S. GAAP for the quarter and six months ended June 30, 2016, compared with the quarter ended March 31, 2016 and the six months ended June 30, 2015.
Revenue
Revenue for the second quarter of 2016 was $86.4 million, an increase of $6.7 million from $79.7 million for the first quarter of 2016. Higher average assets under management in the quarter resulted in the following increases in investment advisory and administration fees for the second quarter of 2016:
| |
• | Institutional account revenue increased $2.1 million to $23.5 million; |
| |
| • | Open-end fund revenue increased $3.0 million to $36.5 million; and |
| |
| • | Closed-end fund revenue increased $0.9 million to $19.2 million. |
Revenue for the six months ended June 30, 2016 was $166.1 million, a decrease of $1.3 million from $167.3 million for the six months ended June 30, 2015.
Expenses
Expenses for the second quarter of 2016 were $52.2 million, an increase of $0.9 million from $51.4 million for the first quarter of 2016. The change was primarily due to:
| |
| • | Higher employee compensation and benefits expenses of $0.2 million, resulting primarily from higher incentive compensation, partially offset by lower stock based compensation. The first quarter of 2016 included the accelerated vesting of certain restricted stock units. |
| |
| • | Increased distribution and service fees of $1.1 million, primarily due to higher average assets under management in U.S. open-end funds. |
| |
| • | Lower general and administrative expenses of $0.2 million, primarily due to lower costs associated with hosted wealth management marketing events. |
Expenses for the six months ended June 30, 2016 were $103.6 million, an increase of $2.0 million from $101.6 million for the six months ended June 30, 2015.
Operating Margin
Operating margin increased to 39.5% for the second quarter of 2016 from 35.5% for the first quarter of 2016. The first quarter of 2016 included the accelerated vesting of certain restricted stock units. Operating margin decreased to 37.6% for the six months ended June 30, 2016 from 39.3% for the six months ended June 30, 2015.
Non-operating Income
Non-operating income for the second quarter of 2016 was $4.5 million, compared with non-operating income of $0.6 million for the first quarter of 2016. The increase was primarily due to unrealized gains on the company's seed investments. Non-operating income for the six months ended June 30, 2016 was $5.1 million, compared with non-operating loss of $1.5 million for the six months ended June 30, 2015.
As Adjusted
This section discusses the financial results of the company as presented on a non-GAAP basis for the quarter and six months ended June 30, 2016, compared with the quarter ended March 31, 2016 and the six months ended June 30, 2015. The term “as adjusted” is used to identify non-GAAP information in the discussion below and excludes non-operating results from seed investments, the effect of the accelerated vesting of certain restricted stock units in the first quarter of 2016 and the tax effect on these items. Please refer to the “Non-GAAP Reconciliation” on page 17 of this release for a reconciliation to the most directly comparable U.S. GAAP measures.
Diluted Earnings Per Share
Diluted earnings per share, as adjusted, were $0.46 for the quarter ended June 30, 2016, compared with $0.41 for the first quarter of 2016. For the six months ended June 30, 2016, diluted earnings per share, as adjusted, were $0.86 compared with $0.88 for the six months ended June 30, 2015.
Expenses
Expenses for the quarter ended June 30, 2016 were $52.2 million, an increase of $2.8 million compared with expenses, as adjusted, of $49.4 million for the first quarter of 2016. The increase was primarily due to higher incentive compensation which increased consistent with revenue growth. Expenses, as adjusted, for the six months ended June 30, 2016 were $101.7 million, compared with expenses of $101.6 million for the six months ended June 30, 2015.
Operating Margin
Operating margin for the second quarter of 2016 increased to 39.5% from 38.0%, as adjusted, for the first quarter of 2016. Operating margin for the six months ended June 30, 2016, decreased to 38.8%, as adjusted, from 39.3% for the six months ended June 30, 2015.
Assets Under Management Highlights (Unaudited)
June 30, 2016 Compared with March 31, 2016
|
| | | | | | | | | | |
| (in millions) | Assets Under Management | | |
| | As of | | |
| By Investment Vehicle | June 30,
2016 | | March 31,
2016 | | % Change |
| Institutional accounts | $ | 29,581 |
| | $ | 27,857 |
| | 6.2 | % |
| Open-end funds | 19,777 |
| | 18,146 |
| | 9.0 | % |
| Closed-end funds | 9,391 |
| | 9,056 |
| | 3.7 | % |
| Total | $ | 58,749 |
| | $ | 55,059 |
| | 6.7 | % |
| | | | | | |
| By Investment Strategy | | | | | |
| U.S. real estate | $ | 30,981 |
| | $ | 29,069 |
| | 6.6 | % |
| Global/international real estate | 9,984 |
| | 10,152 |
| | (1.7 | %) |
| Preferred securities | 9,082 |
| | 8,099 |
| | 12.1 | % |
| Global listed infrastructure | 5,760 |
| | 5,272 |
| | 9.3 | % |
| Other | 2,942 |
| | 2,467 |
| | 19.3 | % |
| Total | $ | 58,749 |
| | $ | 55,059 |
| | 6.7 | % |
Assets under management were a record $58.7 billion as of June 30, 2016, an increase of $3.7 billion from $55.1 billion at March 31, 2016. The increase from March 31, 2016 was attributable to net inflows of $2.3 billion and market appreciation of $2.7 billion, partially offset by distributions of $1.3 billion.
Institutional Accounts
Assets under management in institutional accounts were $29.6 billion as of June 30, 2016, an increase of 6.2% from $27.9 billion at March 31, 2016. The change from March 31, 2016 was due to the following:
| |
| • | Market appreciation of $1.3 billion, including $905 million from U.S. real estate, $194 million from global/international real estate and $107 million from global listed infrastructure; |
| |
| • | Net inflows of $812 million into subadvisory accounts, including $796 million into U.S. real estate; |
| |
| • | Net inflows of $327 million into advisory accounts, including $350 million into multi-strategy real assets (included in Other in the table above), $200 million into global listed infrastructure, partially offset by net outflows of $140 million from global/international real estate and $97 million from U.S. real estate; and |
| |
| • | Distributions from subadvisory accounts in Japan of $752 million, including $702 million from U.S. real estate and $45 million from global/international real estate. |
Open-end Funds
Assets under management for open-end funds were $19.8 billion as of June 30, 2016, an increase of 9.0% from $18.1 billion at March 31, 2016. The change from March 31, 2016 was due to the following:
| |
| • | Market appreciation of $855 million, including $626 million from U.S. real estate and $181 million from preferred securities; |
| |
| • | Net inflows of $1.2 billion, including $733 million into preferred securities and $549 million into U.S. real estate; and |
| |
| • | Distributions of $375 million, including $271 million from U.S. real estate and $77 million from preferred securities. |
Closed-end Funds
Assets under management for closed-end funds were $9.4 billion as of June 30, 2016, an increase of 3.7% from $9.1 billion at March 31, 2016. The increase from March 31, 2016 was due to market appreciation of $458 million, partially offset by distributions of $123 million.
Balance Sheet Information
As of June 30, 2016, cash, cash equivalents and seed investments were $207 million. As of June 30, 2016, stockholders' equity was $255 million and the company had no debt.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, July 21, 2016 at 10:00 a.m. (ET) to discuss the company's second quarter results. Investors and analysts can access the live conference call by dialing 800-786-5706 (U.S.) or +1-212-231-2937 (international); passcode: 21814646. Participants should plan to register at least 10 minutes before the conference call begins. The presentation that will be reviewed as part of the conference call will be available on the company's website at www.cohenandsteers.com under "Company - Press Releases."
A replay of the call will be available for two weeks starting at approximately 12:00 p.m. (ET) on July 21, 2016 and can be accessed at 800-633-8284 (U.S.) or +1-402-977-9140 (international); passcode: 21814646. Internet access to the webcast, which includes audio (listen-only), will be available on the company's website at www.cohenandsteers.com under "Company - Investor Relations." The webcast will be archived on the website for one month.
About Cohen & Steers
Cohen & Steers is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Hong Kong, Tokyo and Seattle.
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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect management's current views with respect to, among other things, the company's 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 forward-looking statements. The company believes that these factors include, but are not limited to, the risks described in the Risk Factors section of the company's Annual Report on Form 10-K for the year ended December 31, 2015 (the Form 10-K), which is accessible on the Securities and Exchange Commission's website at www.sec.gov and on the company's website at www.cohenandsteers.com. These factors are not exhaustive and should be read in conjunction with the other cautionary statements that are included in the company's Form 10-K and other filings with the Securities and Exchange Commission. 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.
# # # #
|
| | | | | | | | | | | | | | | | | |
| Cohen & Steers, Inc. and Subsidiaries | | | | | | | | | |
| Condensed Consolidated Statements of Operations (Unaudited) | | | | | | |
| For the Periods | | | | | | | | | |
| (in thousands, except per share data) | | | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended | | % Change From |
| | June 30, 2016 | | March 31, 2016 | | June 30, 2015 (1) | | March 31, 2016 | | June 30, 2015 |
| Revenue | | | | | | | | | |
| Investment advisory and administration fees | $ | 79,090 |
| | $ | 73,088 |
| | $ | 77,221 |
| | | | |
| Distribution and service fees | 4,671 |
| | 4,233 |
| | 4,014 |
| | | | |
| Portfolio consulting and other | 2,612 |
| | 2,360 |
| | 2,267 |
| | | | |
| Total revenue | 86,373 |
| | 79,681 |
| | 83,502 |
| | 8.4 | % | | 3.4 | % |
| Expenses | | | | | | | | | |
| Employee compensation and benefits | 28,287 |
| | 28,040 |
| | 28,395 |
| | | | |
| Distribution and service fees | 9,773 |
| | 8,702 |
| | 9,525 |
| | | | |
| General and administrative | 12,489 |
| | 12,735 |
| | 12,825 |
| | | | |
| Depreciation and amortization | 1,693 |
| | 1,897 |
| | 1,586 |
| | | | |
| Total expenses | 52,242 |
| | 51,374 |
| | 52,331 |
| | 1.7 | % | | (0.2 | %) |
| Operating income | 34,131 |
| | 28,307 |
| | 31,171 |
| | 20.6 | % | | 9.5 | % |
| Non-operating income | | | | | | | | | |
| Interest and dividend income—net | 558 |
| | 542 |
| | 450 |
| | | | |
| Gains (losses) from seed investments—net | 3,815 |
| | 190 |
| | (141 | ) | | | | |
| Other gains (losses) | 93 |
| | (89 | ) | | (263 | ) | | | | |
| Total non-operating income | 4,466 |
| | 643 |
| | 46 |
| | * |
| | * |
|
| Income before provision for income taxes | 38,597 |
| | 28,950 |
| | 31,217 |
| | 33.3 | % | | 23.6 | % |
| Provision for income taxes | 13,676 |
| | 11,083 |
| | 12,194 |
| | | | |
| Net income | 24,921 |
| | 17,867 |
| | 19,023 |
| | 39.5 | % | | 31.0 | % |
| Less: Net (income) loss attributable to redeemable noncontrolling interest | (113 | ) | | 216 |
| | (11 | ) | | | | |
| Net income attributable to common stockholders | $ | 24,808 |
| | $ | 18,083 |
| | $ | 19,012 |
| | 37.2 | % | | 30.5 | % |
| | | | | | | | | | |
| Earnings per share attributable to common stockholders | | | | | | | | | |
| Basic | $ | 0.54 |
| | $ | 0.39 |
| | $ | 0.42 |
| | 36.7 | % | | 29.0 | % |
| Diluted | $ | 0.53 |
| | $ | 0.39 |
| | $ | 0.42 |
| | 36.6 | % | | 28.9 | % |
| | | | | | | | | | |
| Dividends declared per share | | | | | | | | |
|
|
| Quarterly | $ | 0.26 |
| | $ | 0.26 |
| | $ | 0.25 |
| | — |
| | 4.0 | % |
| | | | | | | | | | |
| Weighted average shares outstanding | | | | | | | | | |
| Basic | 45,984 |
| | 45,808 |
| | 45,462 |
| | | | |
| Diluted | 46,378 |
| | 46,195 |
| | 45,805 |
| | | | |
| | | | | | | | | | |
| * Not meaningful | | | | | | | | | |
| (1) During the three months ended December 31, 2015, one of the company's investments changed classification from available-for-sale to equity method. As a result, all prior periods have been retrospectively recast to reflect this investment as if it were always an equity method investment. |
|
| | | | | | | | | | |
| Cohen & Steers, Inc. and Subsidiaries | | | | | |
| Condensed Consolidated Statements of Operations (Unaudited) | | |
| For the Periods | | | | | |
| (in thousands, except per share data) | | | | | |
| | | | | | |
| | Six Months Ended | | |
| | June 30, 2016 | | June 30, 2015 (1) | | % Change |
| Revenue | | | | | |
| Investment advisory and administration fees | $ | 152,178 |
| | $ | 154,973 |
| | |
| Distribution and service fees | 8,904 |
| | 7,920 |
| | |
| Portfolio consulting and other | 4,972 |
| | 4,424 |
| | |
| Total revenue | 166,054 |
| | 167,317 |
| | (0.8 | %) |
| Expenses | | | | | |
| Employee compensation and benefits | 56,327 |
| | 54,378 |
| | |
| Distribution and service fees | 18,475 |
| | 18,776 |
| | |
| General and administrative | 25,224 |
| | 25,288 |
| | |
| Depreciation and amortization | 3,590 |
| | 3,155 |
| | |
| Total expenses | 103,616 |
| | 101,597 |
| | 2.0 | % |
| Operating income | 62,438 |
| | 65,720 |
| | (5.0 | %) |
| Non-operating income | | | | | |
| Interest and dividend income—net | 1,100 |
| | 749 |
| | |
| Gains (losses) from seed investments—net | 4,005 |
| | (1,573 | ) | | |
| Other gains (losses) | 4 |
| | (682 | ) | | |
| Total non-operating income (loss) | 5,109 |
| | (1,506 | ) | | * |
|
| Income before provision for income taxes | 67,547 |
| | 64,214 |
| | 5.2 | % |
| Provision for income taxes | 24,759 |
| | 24,420 |
| | |
| Net income | 42,788 |
| | 39,794 |
| | 7.5 | % |
| Less: Net loss attributable to redeemable noncontrolling interest | 103 |
| | 34 |
| | |
| Net income attributable to common stockholders | $ | 42,891 |
| | $ | 39,828 |
| | 7.7 | % |
| | | | | | |
| Earnings per share attributable to common stockholders | | | | | |
| Basic | $ | 0.93 |
| | $ | 0.88 |
| | 6.4 | % |
| Diluted | $ | 0.93 |
| | $ | 0.87 |
| | 6.8 | % |
| | | | | | |
| Dividends declared per share | | | | | |
| Quarterly | $ | 0.52 |
| | $ | 0.50 |
| | 4.0 | % |
| | | | | | |
| Weighted average shares outstanding | | | | | |
| Basic | 45,896 |
| | 45,352 |
| | |
| Diluted | 46,287 |
| | 45,893 |
| | |
| | | | | | |
| * Not meaningful |
| (1) During the three months ended December 31, 2015, one of the company's investments changed classification from available-for-sale to equity method. As a result, all prior periods have been retrospectively recast to reflect this investment as if it were always an equity method investment. |
|
| | | | | | | | | | | | | | | | | |
| Cohen & Steers, Inc. and Subsidiaries | | | | | | | | | |
| Assets Under Management (Unaudited) | | | | | | | | | |
| By Investment Vehicle | | | | | | | | | |
| For the Periods | | | | | | | | | |
| (in millions) | | | | | | | | | |
| | Three Months Ended | | % Change From |
| | June 30, 2016 | | March 31, 2016 | | June 30, 2015 | | March 31, 2016 | | June 30, 2015 |
| Institutional Accounts | | | | | | | | | |
| Assets under management, beginning of period | $ | 27,857 |
| | $ | 26,105 |
| | $ | 26,704 |
| | | | |
| Inflows | 1,626 |
| | 1,772 |
| | 781 |
| | | | |
| Outflows | (487 | ) | | (582 | ) | | (506 | ) | | | | |
| Net inflows | 1,139 |
| | 1,190 |
| | 275 |
| | | | |
| Market appreciation (depreciation) | 1,337 |
| | 1,215 |
| | (1,890 | ) | | | | |
| Distributions | (752 | ) | | (653 | ) | | (544 | ) | | | | |
| Total increase (decrease) | 1,724 |
| | 1,752 |
| | (2,159 | ) | | | | |
| Assets under management, end of period | $ | 29,581 |
| | $ | 27,857 |
| | $ | 24,545 |
| | 6.2 | % | | 20.5 | % |
| Percentage of total assets under management | 50.4 | % | | 50.6 | % | | 48.9 | % | | | | |
| Average assets under management for period | $ | 28,057 |
| | $ | 25,775 |
| | $ | 25,942 |
| | 8.9 | % | | 8.2 | % |
| | | | | | | | | | |
| Open-end Funds | | | | | | | | | |
| Assets under management, beginning of period | $ | 18,146 |
| | $ | 17,460 |
| | $ | 18,062 |
| | | | |
| Inflows | 2,393 |
| | 2,022 |
| | 2,125 |
| | | | |
| Outflows | (1,242 | ) | | (1,698 | ) | | (1,761 | ) | | | | |
| Net inflows | 1,151 |
| | 324 |
| | 364 |
| | | | |
| Market appreciation (depreciation) | 855 |
| | 495 |
| | (1,247 | ) | | | | |
| Distributions | (375 | ) | | (133 | ) | | (943 | ) | | | | |
| Total increase (decrease) | 1,631 |
| | 686 |
| | (1,826 | ) | | | | |
| Assets under management, end of period | $ | 19,777 |
| | $ | 18,146 |
| | $ | 16,236 |
| | 9.0 | % | | 21.8 | % |
| Percentage of total assets under management | 33.7 | % | | 33.0 | % | | 32.4 | % | | | | |
| Average assets under management for period | $ | 18,692 |
| | $ | 17,099 |
| | $ | 17,514 |
| | 9.3 | % | | 6.7 | % |
| | | | | | | | | | |
| Closed-end Funds | | | | | | | | | |
| Assets under management, beginning of period | $ | 9,056 |
| | $ | 9,029 |
| | $ | 9,900 |
| | | | |
| Inflows | — |
| | — |
| | — |
| | | | |
| Outflows | — |
| | (86 | ) | | (19 | ) | | | | |
| Net outflows | — |
| | (86 | ) | | (19 | ) | | | | |
| Market appreciation (depreciation) | 458 |
| | 235 |
| | (387 | ) | | | | |
| Distributions | (123 | ) | | (122 | ) | | (127 | ) | | | | |
| Total increase (decrease) | 335 |
| | 27 |
| | (533 | ) | | | | |
| Assets under management, end of period | $ | 9,391 |
| | $ | 9,056 |
| | $ | 9,367 |
| | 3.7 | % | | 0.3 | % |
| Percentage of total assets under management | 16.0 | % | | 16.4 | % | | 18.7 | % | | | | |
| Average assets under management for period | $ | 9,160 |
| | $ | 8,743 |
| | $ | 9,832 |
| | 4.8 | % | | (6.8 | %) |
| | | | | | | | | | |
| Total | | | | | | | | | |
| Assets under management, beginning of period | $ | 55,059 |
| | $ | 52,594 |
| | $ | 54,666 |
| | | | |
| Inflows | 4,019 |
| | 3,794 |
| | 2,906 |
| | | | |
| Outflows | (1,729 | ) | | (2,366 | ) | | (2,286 | ) | | | | |
| Net inflows | 2,290 |
| | 1,428 |
| | 620 |
| | | | |
| Market appreciation (depreciation) | 2,650 |
| | 1,945 |
| | (3,524 | ) | | | | |
| Distributions | (1,250 | ) | | (908 | ) | | (1,614 | ) | | | | |
| Total increase (decrease) | 3,690 |
| | 2,465 |
| | (4,518 | ) | | | | |
| Assets under management, end of period | $ | 58,749 |
| | $ | 55,059 |
| | $ | 50,148 |
| | 6.7 | % | | 17.2 | % |
| Average assets under management for period | $ | 55,909 |
| | $ | 51,617 |
| | $ | 53,288 |
| | 8.3 | % | | 4.9 | % |
| | | | | | | | | | |
| June 30, 2015 amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. |
|
| | | | | | | | | | |
| Cohen & Steers, Inc. and Subsidiaries | | | | | |
| Assets Under Management (Unaudited) | | | | | |
| By Investment Vehicle | | | | | |
| For the Periods | | | | | |
| (in millions) | | | | | |
| | Six Months Ended | | |
| | June 30, 2016 | | June 30, 2015 | | % Change |
| Institutional Accounts | | | | | |
| Assets under management, beginning of period | $ | 26,105 |
| | $ | 26,201 |
| | |
| Inflows | 3,398 |
| | 1,706 |
| | |
| Outflows | (1,069 | ) | | (1,510 | ) | | |
| Net inflows | 2,329 |
| | 196 |
| | |
| Market appreciation (depreciation) | 2,552 |
| | (769 | ) | | |
| Distributions | (1,405 | ) | | (1,083 | ) | | |
| Total increase (decrease) | 3,476 |
| | (1,656 | ) | | |
| Assets under management, end of period | $ | 29,581 |
| | $ | 24,545 |
| | 20.5 | % |
| Percentage of total assets under management | 50.4 | % | | 48.9 | % | | |
| Average assets under management for period | $ | 26,916 |
| | $ | 26,508 |
| | 1.5 | % |
| | | | | | |
| Open-end Funds | | | | | |
| Assets under management, beginning of period | $ | 17,460 |
| | $ | 17,131 |
| | |
| Inflows | 4,415 |
| | 3,851 |
| | |
| Outflows | (2,940 | ) | | (3,236 | ) | | |
| Net inflows | 1,475 |
| | 615 |
| | |
| Market appreciation (depreciation) | 1,350 |
| | (451 | ) | | |
| Distributions | (508 | ) | | (1,059 | ) | | |
| Total increase (decrease) | 2,317 |
| | (895 | ) | | |
| Assets under management, end of period | $ | 19,777 |
| | $ | 16,236 |
| | 21.8 | % |
| Percentage of total assets under management | 33.7 | % | | 32.4 | % | | |
| Average assets under management for period | $ | 17,895 |
| | $ | 17,737 |
| | 0.9 | % |
| | | | | | |
| Closed-end Funds | | | | | |
| Assets under management, beginning of period | $ | 9,029 |
| | $ | 9,805 |
| | |
| Inflows | — |
| | — |
| | |
| Outflows | (86 | ) | | (19 | ) | | |
| Net outflows | (86 | ) | | (19 | ) | | |
| Market appreciation (depreciation) | 693 |
| | (165 | ) | | |
| Distributions | (245 | ) | | (254 | ) | | |
| Total increase (decrease) | 362 |
| | (438 | ) | | |
| Assets under management, end of period | $ | 9,391 |
| | $ | 9,367 |
| | 0.3 | % |
| Percentage of total assets under management | 16.0 | % | | 18.7 | % | | |
| Average assets under management for period | $ | 8,952 |
| | $ | 9,905 |
| | (9.6 | %) |
| | | | | | |
| Total | | | | | |
| Assets under management, beginning of period | $ | 52,594 |
| | $ | 53,137 |
| | |
| Inflows | 7,813 |
| | 5,557 |
| | |
| Outflows | (4,095 | ) | | (4,765 | ) | | |
| Net inflows | 3,718 |
| | 792 |
| | |
| Market appreciation (depreciation) | 4,595 |
| | (1,385 | ) | | |
| Distributions | (2,158 | ) | | (2,396 | ) | | |
| Total increase (decrease) | 6,155 |
| | (2,989 | ) | | |
| Assets under management, end of period | $ | 58,749 |
| | $ | 50,148 |
| | 17.2 | % |
| Average assets under management for period | $ | 53,763 |
| | $ | 54,150 |
| | (0.7 | %) |
| | | | | | |
| June 30, 2015 amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. |
|
| | | | | | | | | | | | | | | | | |
| Cohen & Steers, Inc. and Subsidiaries | | | | | | | | | |
| Assets Under Management - Institutional Accounts (Unaudited) | | | | | | |
| By Account Type | | | | | | | | | |
| For the Periods | | | | | | | | | |
| (in millions) | | | | | | | | | |
| | Three Months Ended | | % Change From |
| | June 30, 2016 | | March 31, 2016 | | June 30, 2015 | | March 31, 2016 | | June 30, 2015 |
| Subadvisory | | | | | | | | | |
| Assets under management, beginning of period | $ | 19,582 |
| | $ | 18,540 |
| | $ | 19,242 |
| | | | |
| Inflows | 1,036 |
| | 1,073 |
| | 579 |
| | | | |
| Outflows | (224 | ) | | (260 | ) | | (277 | ) | | | | |
| Net inflows | 812 |
| | 813 |
| | 302 |
| | | | |
| Market appreciation (depreciation) | 992 |
| | 882 |
| | (1,477 | ) | | | | |
| Distributions | (752 | ) | | (653 | ) | | (544 | ) | | | | |
| Total increase (decrease) | 1,052 |
| | 1,042 |
| | (1,719 | ) | | | | |
| Assets under management, end of period | $ | 20,634 |
| | $ | 19,582 |
| | $ | 17,523 |
| | 5.4 | % | | 17.8 | % |
| Percentage of institutional assets under management | 69.8 | % | | 70.3 | % | | 71.4 | % | | | | |
| Average assets under management for period | $ | 19,598 |
| | $ | 18,057 |
| | $ | 18,582 |
| | 8.5 | % | | 5.5 | % |
| | | | | | | | | | |
| Advisory | | | | | | | | | |
| Assets under management, beginning of period | $ | 8,275 |
| | $ | 7,565 |
| | $ | 7,462 |
| | | | |
| Inflows | 590 |
| | 699 |
| | 202 |
| | | | |
| Outflows | (263 | ) | | (322 | ) | | (229 | ) | | | | |
| Net inflows (outflows) | 327 |
| | 377 |
| | (27 | ) | | | | |
| Market appreciation (depreciation) | 345 |
| | 333 |
| | (413 | ) | | | | |
| Total increase (decrease) | 672 |
| | 710 |
| | (440 | ) | | | | |
| Assets under management, end of period | $ | 8,947 |
| | $ | 8,275 |
| | $ | 7,022 |
| | 8.1 | % | | 27.4 | % |
| Percentage of institutional assets under management | 30.2 | % | | 29.7 | % | | 28.6 | % | | | | |
| Average assets under management for period | $ | 8,459 |
| | $ | 7,718 |
| | $ | 7,360 |
| | 9.6 | % | | 14.9 | % |
| | | | | | | | | | |
| Total Institutional Accounts | | | | | | | | | |
| Assets under management, beginning of period | $ | 27,857 |
| | $ | 26,105 |
| | $ | 26,704 |
| | | | |
| Inflows | 1,626 |
| | 1,772 |
| | 781 |
| | | | |
| Outflows | (487 | ) | | (582 | ) | | (506 | ) | | | | |
| Net inflows | 1,139 |
| | 1,190 |
| | 275 |
| | | | |
| Market appreciation (depreciation) | 1,337 |
| | 1,215 |
| | (1,890 | ) | | | | |
| Distributions | (752 | ) | | (653 | ) | | (544 | ) | | | | |
| Total increase (decrease) | 1,724 |
| | 1,752 |
| | (2,159 | ) | | | | |
| Assets under management, end of period | $ | 29,581 |
| | $ | 27,857 |
| | $ | 24,545 |
| | 6.2 | % | | 20.5 | % |
| Average assets under management for period | $ | 28,057 |
| | $ | 25,775 |
| | $ | 25,942 |
| | 8.9 | % | | 8.2 | % |
| | | | | | | | | | |
| June 30, 2015 amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. |
|
| | | | | | | | | | |
| Cohen & Steers, Inc. and Subsidiaries | | | | | |
| Assets Under Management - Institutional Accounts (Unaudited) | | | |
| By Account Type | | | | | |
| For the Periods | | | | | |
| (in millions) | | | | | |
| | Six Months Ended | | |
| | June 30, 2016 | | June 30, 2015 | | % Change |
| Subadvisory | | | | | |
| Assets under management, beginning of period | $ | 18,540 |
| | $ | 18,857 |
| | |
| Inflows | 2,109 |
| | 1,306 |
| | |
| Outflows | (484 | ) | | (894 | ) | | |
| Net inflows | 1,625 |
| | 412 |
| | |
| Market appreciation (depreciation) | 1,874 |
| | (663 | ) | | |
| Distributions | (1,405 | ) | | (1,083 | ) | | |
| Total increase (decrease) | 2,094 |
| | (1,334 | ) | | |
| Assets under management, end of period | $ | 20,634 |
| | $ | 17,523 |
| | 17.8 | % |
| Percentage of institutional assets under management | 69.8 | % | | 71.4 | % | | |
| Average assets under management for period | $ | 18,828 |
| | $ | 19,051 |
| | (1.2 | %) |
| | | | | | |
| Advisory | | | | | |
| Assets under management, beginning of period | $ | 7,565 |
| | $ | 7,344 |
| | |
| Inflows | 1,289 |
| | 400 |
| | |
| Outflows | (585 | ) | | (616 | ) | | |
| Net inflows (outflows) | 704 |
| | (216 | ) | | |
| Market appreciation (depreciation) | 678 |
| | (106 | ) | | |
| Total increase (decrease) | 1,382 |
| | (322 | ) | | |
| Assets under management, end of period | $ | 8,947 |
| | $ | 7,022 |
| | 27.4 | % |
| Percentage of institutional assets under management | 30.2 | % | | 28.6 | % | | |
| Average assets under management for period | $ | 8,088 |
| | $ | 7,457 |
| | 8.5 | % |
| | | | | | |
| Total Institutional Accounts | | | | | |
| Assets under management, beginning of period | $ | 26,105 |
| | $ | 26,201 |
| | |
| Inflows | 3,398 |
| | 1,706 |
| | |
| Outflows | (1,069 | ) | | (1,510 | ) | | |
| Net inflows | 2,329 |
| | 196 |
| | |
| Market appreciation (depreciation) | 2,552 |
| | (769 | ) | | |
| Distributions | (1,405 | ) | | (1,083 | ) | | |
| Total increase (decrease) | 3,476 |
| | (1,656 | ) | | |
| Assets under management, end of period | $ | 29,581 |
| | $ | 24,545 |
| | 20.5 | % |
| Average assets under management for period | $ | 26,916 |
| | $ | 26,508 |
| | 1.5 | % |
| | | | | | |
| June 30, 2015 amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. |
|
| | | | | | | | | | | | | | | | | |
| Cohen & Steers, Inc. and Subsidiaries | | | | | | | | | |
| Assets Under Management (Unaudited) | | | | | | | | | |
| By Investment Strategy | | | | | | | | | |
| For the Periods | | | | | | | | | |
| (in millions) | | | | | | | | | |
| | Three Months Ended | | % Change From |
| | June 30, 2016 | | March 31, 2016 | | June 30, 2015 | | March 31, 2016 | | June 30, 2015 |
| U.S. Real Estate | | | | | | | | | |
| Assets under management, beginning of period | $ | 29,069 |
| | $ | 27,814 |
| | $ | 29,289 |
| | | | |
| Inflows | 2,050 |
| | 1,739 |
| | 1,626 |
| | | | |
| Outflows | (800 | ) | | (1,004 | ) | | (1,093 | ) | | | | |
| Net inflows | 1,250 |
| | 735 |
| | 533 |
| | | | |
| Market appreciation (depreciation) | 1,677 |
| | 1,227 |
| | (2,825 | ) | | | | |
| Distributions | (1,015 | ) | | (707 | ) | | (1,393 | ) | | | | |
| Total increase (decrease) | 1,912 |
| | 1,255 |
| | (3,685 | ) | | | | |
| Assets under management, end of period | $ | 30,981 |
| | $ | 29,069 |
| | $ | 25,604 |
| | 6.6 | % | | 21.0 | % |
| Percentage of total assets under management | 52.7 | % | | 52.8 | % | | 51.1 | % | | | | |
| Average assets under management for period | $ | 29,266 |
| | $ | 26,990 |
| | $ | 27,748 |
| | 8.4 | % | | 5.5 | % |
| | | | | | | | | | |
| Global/International Real Estate | | | | | | | | | |
| Assets under management, beginning of period | $ | 10,152 |
| | $ | 9,476 |
| | $ | 10,189 |
| | | | |
| Inflows | 185 |
| | 777 |
| | 417 |
| | | | |
| Outflows | (490 | ) | | (468 | ) | | (412 | ) | | | | |
| Net outflows (inflows) | (305 | ) | | 309 |
| | 5 |
| | | | |
| Market appreciation (depreciation) | 203 |
| | 409 |
| | (480 | ) | | | | |
| Distributions | (66 | ) | | (42 | ) | | (60 | ) | | | | |
| Total decrease (increase) | (168 | ) | | 676 |
| | (535 | ) | | | | |
| Assets under management, end of period | $ | 9,984 |
| | $ | 10,152 |
| | $ | 9,654 |
| | (1.7 | %) | | 3.4 | % |
| Percentage of total assets under management | 17.0 | % | | 18.4 | % | | 19.3 | % | | | | |
| Average assets under management for period | $ | 9,903 |
| | $ | 9,444 |
| | $ | 10,097 |
| | 4.9 | % | | (1.9 | %) |
| | | | | | | | | | |
| Preferred Securities | | | | | | | | | |
| Assets under management, beginning of period | $ | 8,099 |
| | $ | 7,705 |
| | $ | 6,732 |
| | | | |
| Inflows | 1,157 |
| | 1,135 |
| | 688 |
| | | | |
| Outflows | (351 | ) | | (661 | ) | | (503 | ) | | | | |
| Net inflows | 806 |
| | 474 |
| | 185 |
| | | | |
| Market appreciation (depreciation) | 288 |
| | 25 |
| | (90 | ) | | | | |
| Distributions | (111 | ) | | (105 | ) | | (85 | ) | | | | |
| Total increase | 983 |
| | 394 |
| | 10 |
| | | | |
| Assets under management, end of period | $ | 9,082 |
| | $ | 8,099 |
| | $ | 6,742 |
| | 12.1 | % | | 34.7 | % |
| Percentage of total assets under management | 15.5 | % | | 14.7 | % | | 13.4 | % | | | | |
| Average assets under management for period | $ | 8,572 |
| | $ | 7,799 |
| | $ | 6,869 |
| | 9.9 | % | | 24.8 | % |
| | | | | | | | | | |
| June 30, 2015 amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. |
|
| | | | | | | | | | | | | | | | | |
| Cohen & Steers, Inc. and Subsidiaries | | | | | | | | | |
| Assets Under Management (Unaudited) | | | | | | | | | |
| By Investment Strategy - continued | | | | | | | | | |
| For the Periods | | | | | | | | | |
| (in millions) | | | | | | | | | |
| | Three Months Ended | | % Change From |
| | June 30, 2016 | | March 31, 2016 | | June 30, 2015 | | March 31, 2016 | | June 30, 2015 |
| Global Listed Infrastructure | | | | | | | | | |
| Assets under management, beginning of period | $ | 5,272 |
| | $ | 5,147 |
| | $ | 5,701 |
| | | | |
| Inflows | 245 |
| | 91 |
| | 90 |
| | | | |
| Outflows | (49 | ) | | (178 | ) | | (200 | ) | | | | |
| Net inflows (outflows) | 196 |
| | (87 | ) | | (110 | ) | | | | |
| Market appreciation (depreciation) | 337 |
| | 253 |
| | (122 | ) | | | | |
| Distributions | (45 | ) | | (41 | ) | | (47 | ) | | | | |
| Total increase (decrease) | 488 |
| | 125 |
| | (279 | ) | | | | |
| Assets under management, end of period | $ | 5,760 |
| | $ | 5,272 |
| | $ | 5,422 |
| | 9.3 | % | | 6.2 | % |
| Percentage of total assets under management | 9.8 | % | | 9.6 | % | | 10.8 | % | | | | |
| Average assets under management for period | $ | 5,486 |
| | $ | 5,002 |
| | $ | 5,766 |
| | 9.7 | % | | (4.9 | %) |
| | | | | | | | | | |
| Other | | | | | | | | | |
| Assets under management, beginning of period | $ | 2,467 |
| | $ | 2,452 |
| | $ | 2,755 |
| | | | |
| Inflows | 382 |
| | 52 |
| | 85 |
| | | | |
| Outflows | (39 | ) | | (55 | ) | | (78 | ) | | | | |
| Net inflows (outflows) | 343 |
| | (3 | ) | | 7 |
| | | | |
| Market appreciation (depreciation) | 145 |
| | 31 |
| | (7 | ) | | | | |
| Distributions | (13 | ) | | (13 | ) | | (29 | ) | | | | |
| Total increase (decrease) | 475 |
| | 15 |
| | (29 | ) | | | | |
| Assets under management, end of period | $ | 2,942 |
| | $ | 2,467 |
| | $ | 2,726 |
| | 19.3 | % | | 7.9 | % |
| Percentage of total assets under management | 5.0 | % | | 4.5 | % | | 5.4 | % | | | | |
| Average assets under management for period | $ | 2,682 |
| | $ | 2,382 |
| | $ | 2,808 |
| | 12.6 | % | | (4.5 | %) |
| | | | | | | | | | |
| Total | | | | | | | | | |
| Assets under management, beginning of period | $ | 55,059 |
| | $ | 52,594 |
| | $ | 54,666 |
| | | | |
| Inflows | 4,019 |
| | 3,794 |
| | 2,906 |
| | | | |
| Outflows | (1,729 | ) | | (2,366 | ) | | (2,286 | ) | | | | |
| Net inflows | 2,290 |
| | 1,428 |
| | 620 |
| | | | |
| Market appreciation (depreciation) | 2,650 |
| | 1,945 |
| | (3,524 | ) | | | | |
| Distributions | (1,250 | ) | | (908 | ) | | (1,614 | ) | | | | |
| Total increase (decrease) | 3,690 |
| | 2,465 |
| | (4,518 | ) | | | | |
| Assets under management, end of period | $ | 58,749 |
| | $ | 55,059 |
| | $ | 50,148 |
| | 6.7 | % | | 17.2 | % |
| Average assets under management for period | $ | 55,909 |
| | $ | 51,617 |
| | $ | 53,288 |
| | 8.3 | % | | 4.9 | % |
| | | | | | | | | | |
| June 30, 2015 amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. |
|
| | | | | | | | | | |
| Cohen & Steers, Inc. and Subsidiaries | | | | | |
| Assets Under Management (Unaudited) | | | | | |
| By Investment Strategy | | | | | |
| For the Periods | | | | | |
| (in millions) | | | | | |
| | Six Months Ended | | |
| | June 30, 2016 | | June 30, 2015 | | % Change |
| U.S. Real Estate | | | | | |
| Assets under management, beginning of period | $ | 27,814 |
| | $ | 28,357 |
| | |
| Inflows | 3,789 |
| | 2,794 |
| | |
| Outflows | (1,804 | ) | | (2,171 | ) | | |
| Net inflows | 1,985 |
| | 623 |
| | |
| Market appreciation (depreciation) | 2,904 |
| | (1,395 | ) | | |
| Distributions | (1,722 | ) | | (1,981 | ) | | |
| Total increase (decrease) | 3,167 |
| | (2,753 | ) | | |
| Assets under management, end of period | $ | 30,981 |
| | $ | 25,604 |
| | 21.0 | % |
| Percentage of total assets under management | 52.7 | % | | 51.1 | % | | |
| Average assets under management for period | $ | 28,128 |
| | $ | 28,682 |
| | (1.9 | %) |
| | | | | | |
| Global/International Real Estate | | | | | |
| Assets under management, beginning of period | $ | 9,476 |
| | $ | 10,184 |
| | |
| Inflows | 962 |
| | 692 |
| | |
| Outflows | (958 | ) | | (1,114 | ) | | |
| Net inflows (outflows) | 4 |
| | (422 | ) | | |
| Market appreciation | 612 |
| | 8 |
| | |
| Distributions | (108 | ) | | (116 | ) | | |
| Total increase (decrease) | 508 |
| | (530 | ) | | |
| Assets under management, end of period | $ | 9,984 |
| | $ | 9,654 |
| | 3.4 | % |
| Percentage of total assets under management | 17.0 | % | | 19.3 | % | | |
| Average assets under management for period | $ | 9,673 |
| | $ | 10,262 |
| | (5.7 | %) |
| | | | | | |
| Preferred Securities | | | | | |
| Assets under management, beginning of period | $ | 7,705 |
| | $ | 6,342 |
| | |
| Inflows | 2,292 |
| | 1,397 |
| | |
| Outflows | (1,012 | ) | | (970 | ) | | |
| Net inflows | 1,280 |
| | 427 |
| | |
| Market appreciation | 313 |
| | 138 |
| | |
| Distributions | (216 | ) | | (165 | ) | | |
| Total increase | 1,377 |
| | 400 |
| | |
| Assets under management, end of period | $ | 9,082 |
| | $ | 6,742 |
| | 34.7 | % |
| Percentage of total assets under management | 15.5 | % | | 13.4 | % | | |
| Average assets under management for period | $ | 8,185 |
| | $ | 6,734 |
| | 21.5 | % |
| | | | | | |
| June 30, 2015 amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. |
|
| | | | | | | | | | |
| Cohen & Steers, Inc. and Subsidiaries | | | | | |
| Assets Under Management (Unaudited) | | | | | |
| By Investment Strategy - continued | | | | | |
| For the Periods | | | | | |
| (in millions) | | | | | |
| | Six Months Ended | | |
| | June 30, 2016 | | June 30, 2015 | | % Change |
| Global Listed Infrastructure | | | | | |
| Assets under management, beginning of period | $ | 5,147 |
| | $ | 5,697 |
| | |
| Inflows | 336 |
| | 299 |
| | |
| Outflows | (227 | ) | | (357 | ) | | |
| Net inflows (outflows) | 109 |
| | (58 | ) | | |
| Market appreciation (depreciation) | 590 |
| | (126 | ) | | |
| Distributions | (86 | ) | | (91 | ) | | |
| Total increase (decrease) | 613 |
| | (275 | ) | | |
| Assets under management, end of period | $ | 5,760 |
| | $ | 5,422 |
| | 6.2 | % |
| Percentage of total assets under management | 9.8 | % | | 10.8 | % | | |
| Average assets under management for period | $ | 5,244 |
| | $ | 5,726 |
| | (8.4 | %) |
| | | | | | |
| Other | | | | | |
| Assets under management, beginning of period | $ | 2,452 |
| | $ | 2,557 |
| | |
| Inflows | 434 |
| | 375 |
| | |
| Outflows | (94 | ) | | (153 | ) | | |
| Net inflows | 340 |
| | 222 |
| | |
| Market appreciation (depreciation) | 176 |
| | (10 | ) | | |
| Distributions | (26 | ) | | (43 | ) | | |
| Total increase | 490 |
| | 169 |
| | |
| Assets under management, end of period | $ | 2,942 |
| | $ | 2,726 |
| | 7.9 | % |
| Percentage of total assets under management | 5.0 | % | | 5.4 | % | | |
| Average assets under management for period | $ | 2,533 |
| | $ | 2,746 |
| | (7.8 | %) |
| | | | | | |
| Total | | | | | |
| Assets under management, beginning of period | $ | 52,594 |
| | $ | 53,137 |
| | |
| Inflows | 7,813 |
| | 5,557 |
| | |
| Outflows | (4,095 | ) | | (4,765 | ) | | |
| Net inflows | 3,718 |
| | 792 |
| | |
| Market appreciation (depreciation) | 4,595 |
| | (1,385 | ) | | |
| Distributions | (2,158 | ) | | (2,396 | ) | | |
| Total increase (decrease) | 6,155 |
| | (2,989 | ) | | |
| Assets under management, end of period | $ | 58,749 |
| | $ | 50,148 |
| | 17.2 | % |
| Average assets under management for period | $ | 53,763 |
| | $ | 54,150 |
| | (0.7 | %) |
| | | | | | |
| June 30, 2015 amounts have been revised to reflect distributions separately and dividend reinvestments as inflows. |
Non-GAAP Reconciliation
Management believes that use of these non-GAAP financial measures may enhance the evaluation of the company’s results, as they provide greater transparency into the company's operating results and allow for a more appropriate comparison with industry peers. In addition, these non-GAAP financial measures are used to prepare the company's internal management reports and by management in evaluating the company's business.
While management believes that this non-GAAP financial information is useful in evaluating the company's results and operating performance, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.
|
| | | | | | | | | | | | | | | |
| For the Periods | | | | | | | |
| | | | | | | | |
| (in thousands, except per share data and percentages) | Three Months Ended | | Six Months Ended |
| | June 30, 2016 | | March 31, 2016 | | June 30, 2016 | | June 30, 2015 |
| U.S. GAAP | | | | | | | |
| Revenue | $ | 86,373 |
| | $ | 79,681 |
| | $ | 166,054 |
| | $ | 167,317 |
|
| Expenses | $ | 52,242 |
| | $ | 51,374 |
| | $ | 103,616 |
| | $ | 101,597 |
|
| Operating income | $ | 34,131 |
| | $ | 28,307 |
| | $ | 62,438 |
| | $ | 65,720 |
|
| Non-operating income (loss) | $ | 4,466 |
| | $ | 643 |
| | $ | 5,109 |
| | $ | (1,506 | ) |
| Income before provision for income taxes | $ | 38,597 |
| | $ | 28,950 |
| | $ | 67,547 |
| | $ | 64,214 |
|
| Provision for income taxes | $ | 13,676 |
| | $ | 11,083 |
| | $ | 24,759 |
| | $ | 24,420 |
|
| Net income attributable to common stockholders | $ | 24,808 |
| | $ | 18,083 |
| | $ | 42,891 |
| | $ | 39,828 |
|
| Diluted earnings per share | $ | 0.53 |
| | $ | 0.39 |
| | $ | 0.93 |
| | $ | 0.87 |
|
| Operating margin | 39.5 | % | | 35.5 | % | | 37.6 | % | | 39.3 | % |
| | | | | | | | |
| Adjustments | | | | | | | |
Employee compensation and benefits (1) | $ | — |
| | $ | (1,945 | ) | | $ | (1,945 | ) | | $ | — |
|
| Results from seed investments: | | | | | | | |
| Interest and dividends on seed investments | $ | (455 | ) | | $ | (456 | ) | | $ | (911 | ) | | $ | (662 | ) |
| (Gains) losses from seed investments | $ | (3,815 | ) | | $ | (190 | ) | | $ | (4,005 | ) | | $ | 1,573 |
|
| Tax effect on adjustments | $ | (632 | ) | | $ | 412 |
| | $ | (220 | ) | | $ | 328 |
|
| | | | | | | | |
| As Adjusted | | | | | | | |
| Expenses, as adjusted | $ | 52,242 |
| | $ | 49,429 |
| | $ | 101,671 |
| | $ | 101,597 |
|
| Operating income, as adjusted | $ | 34,131 |
| | $ | 30,252 |
| | $ | 64,383 |
| | $ | 65,720 |
|
| Non-operating income, as adjusted | $ | 196 |
| | $ | (3 | ) | | $ | 193 |
| | $ | (595 | ) |
| Income before provision for income taxes, as adjusted | $ | 34,327 |
| | $ | 30,249 |
| | $ | 64,576 |
| | $ | 65,125 |
|
Provision for income taxes, as adjusted (2) | $ | 13,044 |
| | $ | 11,495 |
| | $ | 24,539 |
| | $ | 24,748 |
|
| Net income, as adjusted | $ | 21,283 |
| | $ | 18,754 |
| | $ | 40,037 |
| | $ | 40,377 |
|
| Diluted earnings per share, as adjusted | $ | 0.46 |
| | $ | 0.41 |
| | $ | 0.86 |
| | $ | 0.88 |
|
| Operating margin, as adjusted | 39.5 | % | | 38.0 | % | | 38.8 | % | | 39.3 | % |
________________________
(1) Employee compensation and benefits expense has been reduced to exclude amounts attributable to the accelerated vesting of certain restricted stock units in the three months ended March 31, 2016.
(2) The provision for income taxes for the periods presented is provided for at a 38% rate, which is the rate the company would pay on its earnings excluding the effect of non-operating gains and losses on seed investments and discrete items.
