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NEW YORK, Oct. 21 /PRNewswire-FirstCall/ -- Cohen & Steers, Inc. (NYSE: CNS) reported income from continuing operations attributable to common shareholders of $7.5 million, or $0.18 per share (diluted and basic), for the quarter ended September 30, 2009, compared with a loss from continuing operations attributable to common shareholders of $754,000, or $0.02 per share (diluted and basic), for the quarter ended September 30, 2008. Total revenue for the third quarter of 2009 was $33.8 million, a decrease of 30.9% from $48.9 million for the third quarter of 2008.
The third quarter 2008 results from continuing operations attributable to common shareholders included the previously disclosed after-tax expense of $0.20 per share associated with losses recorded on available-for-sale securities and a $0.04 per share increase to tax expense associated primarily with available-for-sale securities. After adjusting for these items, earnings per share from continuing operations attributable to common shareholders would have been $0.22 for the quarter ended September 30, 2008.
For the nine months ended September 30, 2009, the company recorded a loss from continuing operations attributable to common shareholders of $13.3 million, or $0.32 per share (diluted and basic), compared with income from continuing operations attributable to common shareholders of $27.1 million, or $0.64 per diluted share and $0.65 per basic share, for the nine months ended September 30, 2008. The 2009 results include the previously disclosed after-tax expenses of $0.69 per share due to other-than-temporary impairment charges recorded during the period. After adjusting for these items, earnings per share would have been $0.38 per share for the nine months ended September 30, 2009. The 2008 results included the loss on available-for-sale securities and the increase to tax expense mentioned above. After adjusting for these items, earnings per share would have been $0.88 per share for the nine months ended September 30, 2008. Total revenue was $83.7 million for the nine months ended September 30, 2009, a decrease of 46.7% from $156.9 million for the 2008 period. The decline in revenue was primarily attributable to lower average assets under management.
Assets Under Management
Assets under management were $22.5 billion as of September 30, 2009, an increase of 37.8% from $16.3 billion at June 30, 2009 and a decrease of 8.7% from $24.6 billion at September 30, 2008. The increase from June 30, 2009 was due to market appreciation of $4.4 billion and net inflows of $1.8 billion. The decrease from September 30, 2008 was due to market depreciation of $2.8 billion, partially offset by net inflows of $705 million. Average assets under management were $19.5 billion for the quarter ended September 30, 2009, an increase of 33.1% from $14.6 billion for the quarter ended June 30, 2009 and a decrease of 25.7% from $26.2 billion for the quarter ended September 30, 2008.
Open-end mutual funds had net inflows of $386 million during the quarter ended September 30, 2009, compared with net inflows of $161 million during the quarter ended June 30, 2009 and net outflows of $321 million during the quarter ended September 30, 2008. Average assets under management for open-end mutual funds were $5.1 billion for the quarter ended September 30, 2009, an increase of 34.7% from $3.8 billion for the quarter ended June 30, 2009 and a decrease of 29.7% from $7.3 billion for the quarter ended September 30, 2008.
Closed-end mutual funds had inflows of $180 million during the quarter ended September 30, 2009 through an increase in the use of the funds' credit facility. Average assets under management for closed-end mutual funds were $4.8 billion for the quarter ended September 30, 2009, an increase of 23.5% from $3.9 billion for the quarter ended June 30, 2009 and a decrease of 48.2% from $9.2 billion for the quarter ended September 30, 2008.
Institutional separate accounts had net inflows of $1.2 billion during the quarter ended September 30, 2009, compared with net inflows of $782 million during the quarter ended June 30, 2009 and net outflows of $144 million during the quarter ended September 30, 2008. Average assets under management for institutional separate accounts were $9.6 billion for the quarter ended September 30, 2009, an increase of 37.5% from $7.0 billion for the quarter ended June 30, 2009 and a decrease of 1.3% from $9.7 billion for the quarter ended September 30, 2008.
"We are encouraged by the growth in our assets under management this quarter," said Martin Cohen, co-chairman and co-chief executive officer of Cohen & Steers. "Our strong investment performance and global distribution network put us in an excellent position to benefit as the economy improves and investor confidence increases."
Results From Continuing Operations
Total revenue was $33.8 million for the three months ended September 30, 2009, a decrease of 30.9% from $48.9 million for the three months ended September 30, 2008. Operating expenses were $28.0 million for the three months ended September 30, 2009, a decrease of 19.8% from $34.9 million for the three months ended September 30, 2008. Operating income was $5.8 million for the three months ended September 30, 2009, a decrease of 58.5% from $14.0 million for the three months ended September 30, 2008. Non-operating income was $4.2 million for the three months ended September 30, 2009, compared with non-operating loss of $10.0 million for the three months ended September 30, 2008. The 2008 period included the previously disclosed loss on available-for-sale securities of $10.5 million. Excluding this item, non-operating income would have been $464,000 for the three months ended September 30, 2008. Pretax income was $10.0 million for the three months ended September 30, 2009, compared with pretax income of $4.0 million for the three months ended September 30, 2008. Excluding the aforementioned losses on available-for-sale securities, pretax income would have been $14.5 million for the three months ended September 30, 2008.
Total revenue was $83.7 million for the nine months ended September 30, 2009, a decrease of 46.7% from $156.9 million for the nine months ended September 30, 2008. Operating expenses were $77.3 million for the nine months ended September 30, 2009, a decrease of 23.8% from $101.5 million for the nine months ended September 30, 2008. Operating income was $6.4 million for the nine months ended September 30, 2009, a decrease of 88.5% from $55.4 million for the nine months ended September 30, 2008. Non-operating loss was $17.5 million for the nine months ended September 30, 2009, compared with non-operating loss of $6.6 million for the nine months ended September 30, 2008. Excluding the previously disclosed other-than-temporary impairment charges of $32.2 million and $10.5 million, non-operating income would have been $14.7 million and $3.9 million for the nine months ended September 30, 2009 and 2008, respectively. Pretax loss was $11.1 million for the nine months ended September 30, 2009, compared with pretax income of $48.8 million for the nine months ended September 30, 2008. Excluding the aforementioned other-than-temporary impairment charge, pretax income would have been $21.1 million and $59.3 million for the nine months ended September 30, 2009 and 2008, respectively.
Balance Sheet Information
As of September 30, 2009, cash, cash equivalents, investments, available-for-sale and seed capital investments (excluding cash and marketable securities attributable to the consolidation of the company's long-short global real estate fund) were $179 million. As of September 30, 2009, stockholders' equity was $271 million and the company had no long-term or short-term debt.
Conference Call Information
Cohen & Steers will hold a conference call tomorrow, October 22, 2009 at 11:00 a.m. (ET) to discuss the company's third quarter results. Investors and analysts can access the live conference call by dialing (866) 672-2663 (domestic) or (973) 582-2772 (international); passcode: 35587855. 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 2:00 p.m. (ET) on October 22, 2009 and can be accessed at (800) 642-1687 (domestic) or (706) 645-9291 (international); passcode: 35587855. Internet access to the Web cast, which includes audio (listen-only), will be available on the company's Web site at www.cohenandsteers.com under "Corporate Info." The Web cast 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, 2008, which is accessible on the Securities and Exchange Commission's Web site at 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.
Cohen & Steers, Inc. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
For the Periods Ended
(in thousands, except per share data)
Three Months Ended % Change From
------------------------------ ------------------
September June September June September
30, 30, 30, 30, 30,
2009 2009 2008 2009 2008
--------- ----- --------- ----- ---------
Revenue
Investment
advisory and
administration
fees $30,929 $23,997 $43,558
Distribution
and service
fees 2,019 1,695 4,201
Portfolio
consulting and
other 879 663 1,178
--- --- -----
Total revenue 33,827 26,355 48,937 28.4% (30.9%)
------ ------ ------
Expenses
Employee
compensation
and benefits 15,956 14,916 17,815
Distribution and
service fees 3,837 3,132 7,017
General and
administrative 6,990 6,668 8,458
Depreciation and
amortization 1,072 1,028 1,019
Amortization,
deferred
commissions 157 188 624
--- --- ---
Total expenses 28,012 25,932 34,933 8.0% (19.8%)
------ ------ ------
Operating income 5,815 423 14,004 * (58.5%)
----- --- ------
Non-operating
income
Interest and
dividend
income - net 100 660 1,608
Income (loss)
from marketable
securities - net 3,526 (6,349) (11,548)
Foreign currency
gain (loss) -
net 586 326 (90)
--- --- ---
Total non-
operating
income
(loss) 4,212 (5,363) (10,030) * *
----- ------ -------
Income (loss)
from continuing
operations before
provision for
income taxes 10,027 (4,940) 3,974 * *
Provision for
income taxes 2,065 971 4,728
----- --- -----
Income (loss)
from continuing
operations 7,962 (5,911) (754) * *
Loss from
discontinued
operations,
net of tax - (5) (806) * *
--- -- ----
Net income (loss) 7,962 (5,916) (1,560) * *
Less: Net income
attributable to
redeemable
noncontrolling
interest (417) (505) -
---- ---- ---
Net income (loss)
attributable to
common
shareholders $7,545 $(6,421) $(1,560) * *
====== ======= =======
Earnings per
share - Basic:
Income (loss)
from continuing
operations
attributable to
common
shareholders $0.18 $(0.15) $(0.02) * *
----- ------ ------
Loss from
discontinued
operations,
net of tax,
attributable to
common
shareholders $- $(0.00) $(0.02) 0.0% (100.0%)
--- ------ ------
Net income (loss)
attributable to
common
shareholders $0.18 $(0.15) $(0.04) * *
----- ------ ------
Earnings per
share - Diluted:
Income (loss)
from continuing
operations
attributable to
common
shareholders $0.18 $(0.15) $(0.02) * *
----- ------ ------
Loss from
discontinued
operations,
net of tax,
attributable to
common
shareholders $- $(0.00) $(0.02) 0.0% (100.0%)
--- ------ ------
Net income (loss)
attributable to
common
shareholders $0.18 $(0.15) $(0.04) * *
----- ------ ------
Weighted average
shares outstanding
Basic 42,396 42,360 41,889
====== ====== ======
Diluted 42,633 42,360 41,889
====== ====== ======
* Not meaningful
Cohen & Steers, Inc. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
For the Periods Ended
(in thousands, except per share data)
Nine Months Ended % Change From
---------------------- -------------
September September September
30, 30, 30,
2009 2008 2008
--------- --------- ---------
Revenue
Investment advisory
and administration
fees $75,999 $138,102
Distribution and
service fees 5,321 14,777
Portfolio consulting
and other 2,362 4,055
----- -----
Total revenue 83,682 156,934 (46.7%)
------ -------
Expenses
Employee compensation
and benefits 43,047 50,399
Distribution and
service fees 10,039 20,383
General and
administrative 20,490 24,271
Depreciation and
amortization 3,120 2,811
Amortization, deferred
commissions 611 3,637
--- -----
Total expenses 77,307 101,501 (23.8%)
------ -------
Operating income 6,375 55,433 (88.5%)
----- ------
Non-operating income
Interest and dividend
income - net 1,426 4,816
Loss from marketable
securities - net (19,574) (11,856)
Foreign currency
gain - net 669 410
----- -----
Total non-operating
loss (17,479) (6,630) *
------- ------
(Loss) income from
continuing operations
before provision for
income taxes (11,104) 48,803 *
Provision for income
taxes 1,234 21,666
----- ------
(Loss) income from
continuing operations (12,338) 27,137 *
Loss from discontinued
operations, net of
tax (10) (2,117) (99.5%)
--- ------
Net (loss) income (12,348) 25,020 *
Less: Net income
attributable to
redeemable
noncontrolling
interest (1,007) -
------ ---
Net (loss) income
attributable to common
shareholders $(13,355) $25,020 *
======== =======
Earnings per share -
Basic:
(Loss) income from
continuing operations
attributable to
common shareholders $(0.32) $0.65 *
------ -----
Loss from discontinued
operations, net of tax,
attributable to
common shareholders $(0.00) $(0.05) (99.5%)
------ ------
Net (loss) income
attributable to
common shareholders $(0.32) $0.60 *
------ -----
Earnings per share -
Diluted:
(Loss) income from
continuing operations
attributable to
common shareholders $(0.32) $0.64 *
------ -----
Loss from discontinued
operations, net of tax,
attributable to
common shareholders $(0.00) $(0.05) (99.5%)
------ ------
Net (loss) income
attributable to
common shareholders $(0.32) $0.59 *
------ -----
Weighted average
shares outstanding
Basic 42,319 41,881
====== ======
Diluted 42,319 42,136
====== ======
* Not meaningful
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
For the Periods Ended
(in millions)
Three Months Ended % Change From
--------------------------------- ------------------
September June September June September
30, 30, 30, 30, 30,
2009 2009 2008 2009 2008
--------- ---- --------- ---- ---------
Open-End Mutual
Funds
---------------
Assets under
management,
beginning of
period $4,238 $3,102 $7,644
------ ------ ------
Inflows 747 431 622
Outflows (361) (270) (943)
---- ---- ----
Net inflows
(outflows) 386 161 (321)
Market
appreciation
(depreciation) 1,279 975 (374)
----- --- ----
Total increase
(decrease) 1,665 1,136 (695)
----- ----- ----
Assets under
management,
end of period $5,903 $4,238 $6,949 39.3% (15.1%)
====== ====== ======
Average assets
under management
for period $5,122 $3,803 $7,288 34.7% (29.7%)
====== ====== ======
Closed-End
Mutual Funds
-------------
Assets under
management,
beginning of
period $4,213 $3,029 $9,531
------ ------ ------
Inflows 180 448 -
Market
appreciation
(depreciation) 799 736 (961)
--- --- ----
Total increase
(decrease) 979 1,184 (961)
--- ----- ----
Assets under
management,
end of period $5,192 $4,213 $8,570 23.2% (39.4%)
====== ====== ======
Average assets
under management
for period $4,759 $3,855 $9,191 23.5% (48.2%)
====== ====== ======
Institutional
Separate Accounts
------------------
Assets under
management,
beginning of
period $7,869 $5,469 $9,785
------ ------ ------
Inflows 1,634 954 314
Outflows (449) (172) (458)
---- ---- ----
Net inflows
(outflows) 1,185 782 (144)
Market
appreciation
(depreciation) 2,344 1,618 (536)
----- ----- ----
Total increase
(decrease) 3,529 2,400 (680)
----- ----- ----
Assets under
management,
end of period $11,398 $7,869 $9,105 44.8% 25.2%
======= ====== ======
Average assets
under management
for period $9,583 $6,970 $9,706 37.5% (1.3%)
====== ====== ======
Total
------
Assets under
management,
beginning of
period $16,320 $11,600 $26,960
------- ------- -------
Inflows 2,561 1,833 936
Outflows (810) (442) (1,401)
---- ---- ------
Net inflows
(outflows) 1,751 1,391 (465)
Market
appreciation
(depreciation) 4,422 3,329 (1,871)
----- ----- ------
Total increase
(decrease) 6,173 4,720 (2,336)
----- ----- ------
Assets under
management,
end of period $22,493 $16,320 $24,624 37.8% (8.7%)
======= ======= =======
Average assets
under management
for period $19,464 $14,628 $26,185 33.1% (25.7%)
======= ======= =======
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
For the Periods Ended
(in millions)
Nine Months Ended % Change From
----------------------- -------------
September September September
30, 30, 30,
2009 2008 2008
--------- -------- ---------
Open-End Mutual Funds
---------------------
Assets under management,
beginning of period $4,280 $8,900
------ ------
Inflows 1,502 2,170
Outflows (1,031) (2,892)
------ ------
Net inflows (outflows) 471 (722)
Market appreciation
(depreciation) 1,152 (1,229)
----- ------
Total increase (decrease) 1,623 (1,951)
----- ------
Assets under management,
end of period $5,903 $6,949 (15.1%)
====== ======
Average assets under
management for period $4,094 $7,968 (48.6%)
====== ======
Closed-End Mutual Funds
-----------------------
Assets under management,
beginning of period $4,278 $10,274
------ -------
Inflows 628 -
Outflows (395) -
---- ---
Net inflows 233 -
Market appreciation
(depreciation) 681 (1,704)
--- ------
Total increase (decrease) 914 (1,704)
--- ------
Assets under management,
end of period $5,192 $8,570 (39.4%)
====== ======
Average assets under
management for period $4,112 $9,710 (57.7%)
====== ======
Institutional Separate
Accounts
----------------------
Assets under management,
beginning of period $6,544 $10,612
------ -------
Inflows 3,110 1,407
Outflows (748) (1,676)
---- ------
Net inflows (outflows) 2,362 (269)
Market appreciation
(depreciation) 2,492 (1,238)
----- ------
Total increase (decrease) 4,854 (1,507)
----- ------
Assets under management,
end of period $11,398 $9,105 25.2%
======= ======
Average assets under
management for period $7,386 $10,293 (28.2%)
====== =======
Total
------
Assets under management,
beginning of period $15,102 $29,786
------- -------
Inflows 5,240 3,577
Outflows (2,174) (4,568)
------ ------
Net inflows (outflows) 3,066 (991)
Market appreciation
(depreciation) 4,325 (4,171)
----- ------
Total increase (decrease) 7,391 (5,162)
----- ------
Assets under management,
end of period $22,493 $24,624 (8.7%)
======= =======
Average assets under
management for period $15,592 $27,971 (44.3%)
======= =======
Cohen & Steers, Inc. and Subsidiaries
Assets Under Management (Unaudited)
By Investment Category
(in millions)
As of As of As of
September June September
30, 2009 30, 2009 30, 2008
---------- --------- ----------
Open-End Mutual Funds
---------------------
U.S. Real Estate $3,512 $2,362 $3,998
International Real Estate 1,960 1,535 2,420
Large Cap Value 163 154 125
Preferreds 15 8 16
Utilities and Listed
Infrastructure 86 71 80
Other 167 108 310
------ ------ ------
Assets under management, end of
period $5,903 $4,238 $6,949
====== ====== ======
Closed-End Mutual Funds
-----------------------
U.S. Real Estate $1,730 $1,233 $3,424
International Real Estate 134 68 214
Large Cap Value 241 212 485
Preferreds 1,253 1,123 1,848
Utilities and Listed
Infrastructure 1,275 1,080 1,615
Other 559 497 984
------ ------ ------
Assets under management, end of
period $5,192 $4,213 $8,570
====== ====== ======
Institutional Separate Accounts
-------------------------------
U.S. Real Estate $4,571 $2,997 $4,514
International Real Estate 4,143 2,825 2,912
Large Cap Value 1,831 1,351 714
Preferreds 724 479 513
Utilities and Listed
Infrastructure 38 12 12
Other 91 205 440
------- ------ ------
Assets under management, end of
period $11,398 $7,869 $9,105
======= ====== ======
Total
------
U.S. Real Estate $9,813 $6,592 $11,936
International Real Estate 6,237 4,428 5,546
Large Cap Value 2,235 1,717 1,324
Preferreds 1,992 1,610 2,377
Utilities and Listed
Infrastructure 1,399 1,163 1,707
Other 817 810 1,734
------- ------- -------
Assets under management, end of
period $22,493 $16,320 $24,624
======= ======= =======
Cohen & Steers, Inc. and Subsidiaries
Other Fee Earning Assets (Unaudited)
(in millions)
As of As of As of
September June September
30, 2009 30, 2009 30, 2008
---------- --------- ----------
Unified Managed Accounts
------------------------ ---- ---- ----
Other fee earning assets, end of period $414 $268 $206
==== ==== ====
Exchange Traded Funds
--------------------- ------ ------ ------
Other fee earning assets, end of period $1,676 $1,104 $2,539
====== ====== ======
Unit Investment Trusts
---------------------- ------ ------ ------
Other fee earning assets, end of period $1,298 $1,124 $1,259
====== ====== ======
Total
------ ------ ------ ------
Other fee earning assets, end of period $3,388 $2,496 $4,004
====== ====== ======
Note: Other fee earning assets are defined as assets for which the
company provides investment advice but for which the company has no
discretion to execute trades, and therefore are not included in the
company's reported assets under management.
SOURCE Cohen & Steers, Inc.
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