COHN - Earnings call transcript Q2 2024

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Operator

Good morning, ladies and gentlemen, and welcome to Cohen & Company's Second Quarter 2024 Earnings Call. My name is Diego, and I will be your operator for today.

Before we begin, Cohen & Company would like to remind everyone that some of the statements the company makes during this call may contain forward-looking statements under applicable securities laws. These statements may involve risks and uncertainties that could cause the company's actual results to differ materially from the results discussed in such forward-looking statements. The forward-looking statements made during this call are made only as of the date of this call, and the company undertakes no obligation to update such statements to reflect subsequent events or circumstances. filed you its the most earnings report Form advises forward-looking note recent Company on in SEC. statements release XX-K & to cautionary read regarding annual Cohen the with and its

be being today, call. of website XXXX results. for press at the conference quarter available release, cohenandcompany.com. & announcing to available it is is is financial issued press of This Today's a conclusion Earlier beginning release recorded, Cohen days, on replay second shortly which complementary will discussion and a that Company X the call company's after this

The is certain the up management company's remarks in release. earnings provided the non-GAAP prepared financial evaluating believes reconciliation A measures to of these the the opened company's company's that be also the call include will performance. financial for After when measures are remarks, GAAP meaningful questions. measures non-GAAP comparable

I Company. would Brafman, turn Officer Lester to Executive of call Mr. to the over now like Cohen & Chief

Lester Brafman

thank joining our CFO. Thank With call Pooler, Joe Diego, XXXX us is me on everyone, Call. quarter second and Earnings you, our the for you, for

team. We Company of as has for Markets, add XX professionals, SPAC investment to to our bank $X.X intend are and continue generated CCM Capital revenues of IPOs. opportunistically million investment advisory CCM has lead operation. Cohen to book with grown to pleased acted the banking performance runner CCM & X full-service our and we talent

pipeline and of about forward CCM's end the production are We the consistent optimistic look to CCM year. through

to continued pretax performance our investment long-term portfolio, remain versus unfavorable line by potential payment year-to-date have impact of pleased our dividend. on quarterly to ongoing principal our XXXX. sustained enhancing million adjustments focus results mark-to-market on about weakened stockholders, earnings were confident While are company's loss our as including for $XX.X improved our by We the future quarter value and the our second adjusted we of

financial quarter's to detail. Joe highlights call this to Now walk through turn over the in I will more

Joseph Pooler

you, Lester. Thank

with a of operating discussion results quarter. our for begin the I'll

million Our net compared quarter of loss million attributable or $X.XX or $X.XX and to fully Cohen fully loss to for $X.X $X.X $X.XX fully for quarter of the share the million or & per net prior diluted share income net diluted $X Inc. per for the was quarter prior per year share. Company diluted

pretax Our million was for $X.X adjusted prior for pretax adjusted loss $X.X million and quarter income year prior million adjusted to the the compared quarter of loss $X.X quarter. pretax the of for

to it subsidiary, Inc. interest, substantially Chairman, a pretax in our is interest key earnings Cohen consolidated of enterprise adjusted which attributable convertible Cohen the through reminder, his Company, Company, incorporates us & primary a operating income our which a noncontrolling holds Cohen. Daniel as LLC, subsidiary Founder As measurement & enterprise is Daniel is and earnings for the by held

revenue advisory ago in first and increase quarter, million million an year $XX.X issue was the $X.X of from the the quarter million from New second $X.X of a quarter. decrease and

closes, volatility in as also underlying can revenue when recognized. engagement our revenue is quarter-to-quarter in of and underlying generally an increases the average fluctuations transactions revenue The fluctuate limited per number has from will a advisory be volatile. the of revenue revenue earn engagements, number small expect of Our We a been result to in continue engagements revenue and issue change earned new can and from transaction earned the the well. thus timing we

second million down first quarter, trading the million came 'XX. from quarter the at from $X.X and up in in Net second of the $X.X revenue $X.X quarter million

quarter down $X.X in million the totaled year $XXX,XXX prior prior asset from from the management revenue which up and the quarter Our was $XXX,XXX quarter.

positions has asset adjustments management, resulted principal market the in mark-to-market our a million, due holdings adviser involvement as other to and investments we and to SPAC in line transactions in related was founder our P&L. to Second public decline in continued many leading line method which value, equity $X.X post-business decrease SPACs revenue of the primarily quarter increased sponsor, shares combination equity on the transaction negative companies. the post-business to received on our item investor of principal and principal item Equity combination negatively has value impacting both

Compensation those in $XX.X earned we fallen consideration certain net all includes have and investment investment related cases, million to year $XX.X variable addition, losses banking method and prior and noncontrolling interests portfolio. up the and in the these received which incentive bank of affiliates, some subsequently in quarter primarily from and of benefits transactions assets income prior quarter Principal equity second revenue was the value. for and revenue, in net compensation. our the on due fluctuations income In quarter, expense our the investment clients from million was from form assets from gains down of investment nonconvertible

on notes, Net XXX 'XX. million, trust as at from our June The million quarter of of line Loss of the for method during the end at XXX compared affiliates $X equity X our on $X.X expense number of quarter senior on including financial credit of and XXX of end was company debt totaled end XX,XXX instrument. the our the XXX,XXX employees interest the instruments, XXX,XXX million. on was preferred our redeemable the $X.X to and March quarter

attributable loss method or of our an credit to from in generally SPAC our record current of million income item. The fund portfolio line the line in These former ownership quarter, loss interest recorded SPAC the funds. to the subsidiaries also equity net nonconvertible interests amounts an affiliates in was noncontrolling we $X.X by managers offsetting series noncontrolling offset credit the the certain charge nonconvertible there represent item. is consolidated net During and our income

interest $XX.X was and end decrease 'XX. of at the December $X.X nonconvertible $X.X of interest million total $XX.X the the 'XX. and the In At the end sheet, our June our noncontrolling compared a of quarter, of was terms noncontrolling million The excluding end nonconvertible of the was component indebtedness at quarter, consolidated instrument total from of $XX.X of was million redeemable of equity at the equity balance $X.X $XX.X equity million of to as $XX.X as carried enterprise financial million the million. XXXX. was at total at the million of the carried end $XX.X quarter million XX Thus, million at XX, end

we As quarterly declared have payable $X.XX August stockholders Lester dividend of of XX as of of mentioned, to a X 'XX per September of 'XX. share record on

be the results each will board capital quarterly continue decisions and to operating quarter policy Our may and by dividends the evaluate needs. regarding company's future impacted dividend

turn it back I'll that, With to over Lester.

Lester Brafman

contact for the earnings bottom questions be also the thank via lines call you release. can can at of or Joe. direct at now today. Joe for investor XXX-XXXX e-mail found Operator, us (XXX) to our you Pooler Thanks, joining any Please investorrelations@cohenandcompany.com. off-line And The all to open questions. information

Operator

And closing Lester appears to you. gentlemen, comments. Instructions] Thank questions Brafman, ladies the [Operator be at back no to I'll for and this there time. floor hand

Lester Brafman

us joining and the for forward to everyone, results. speaking our thanks, the for you. Well, rest today, week. look of with you quarter Thank we Enjoy third

Operator

Thank today's may a disconnect. conference. parties All day. concludes you. Have This good

Cohen & Company (COHN) 5 Aug 242024 Q2 Earnings call transcript