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Cohen & Steers Reports First Quarter 2014 Results

NEW YORK, April 16, 2014 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) reported net income attributable to common stockholders of $19.4 million, or $0.43 per diluted share and $0.44 per basic share, for the quarter ended March 31, 2014, compared with $15.1 million, or $0.34 per share (diluted and basic), for the quarter ended March 31, 2013. Total revenue for the first quarter of 2014 was $72.8 million, an increase of 0.5% from $72.5 million for the first quarter of 2013.

The first quarter of 2013 results included after-tax expenses of approximately $0.10 per share associated primarily with the offering of Cohen & Steers MLP Income and Energy Opportunity Fund, Inc., a closed-end mutual fund. After adjusting for these items, earnings per share would have been $0.44.

 

Financial Highlights (Unaudited)

 

March 31, 2014 Compared with December 31, 2013











(in thousands, except per share data)

Three Months Ended






March 31,

2014


December 31,
2013


$ Change


% Change

Revenue

$

72,835



$

73,432



$

(597)



(0.8%)


Expenses

$

45,239



$

44,076



$

1,163



2.6%


Operating income

$

27,596



$

29,356



$

(1,760)



(6.0%)


Operating margin

37.9%



40.0%





(209) bps


Total non-operating income

$

3,181



$

1,971



$

1,210



61.4%


Net income attributable to common stockholders

$

19,445



$

19,413



$

32



0.2%


Diluted earnings per share attributable to common stockholders

$

0.43



$

0.43



$

0.00



(0.2%)


 

Revenue

Total revenue for the first quarter of 2014 was $72.8 million, a decrease of $597,000 from $73.4 million for the fourth quarter of 2013. The decrease was primarily attributable to:

  • Lower portfolio consulting and other revenue which decreased $416,000, primarily due to lower average assets under advisement from model-based strategies; and
  • A decline in open-end mutual fund revenue of $201,000, as the increase in average assets under management was more than offset by two fewer days in the first quarter of 2014.

Expenses

Expenses for the first quarter of 2014 were $45.2 million, an increase of $1.2 million from $44.1 million for the fourth quarter of 2013. The increase was primarily due to the following:

  • An increase in employee compensation and benefits of $1.7 million, primarily due to higher incentive compensation and higher amortization of restricted stock units; and
  • Lower general and administrative expenses which decreased $325,000, primarily due to lower marketing and IT related expenses.

Operating Margin

The company's operating margin decreased to 37.9% for the first quarter of 2014 compared with 40.0% for the three months ended December 31, 2013. The 209 bps decrease was primarily due to an increase in the compensation to revenue ratio, partially offset by a decrease in the G&A to revenue ratio.

Non-operating Income

Non-operating income, excluding net income attributable to redeemable noncontrolling interest, increased to $3.0 million for the three months ended March 31, 2014 compared with $2.0 million for the three months ended December 31, 2013, primarily due to higher earnings from the company's seed investments.

 

Assets Under Management Highlights (Unaudited)

 

March 31, 2014 Compared with December 31, 2013









(in millions)

Assets Under Management






As of





By Investment Vehicle

March 31,
2014


December 31,
2013


$ Change


% Change

     Institutional accounts

$

24,479



$

22,926



$

1,553



6.8%


     Open-end mutual funds

15,148



14,016



1,132



8.1%


     Closed-end mutual funds

9,404



8,965



439



4.9%


Total

$

49,031



$

45,907



3,124



6.8%










By Investment Strategy








     U.S. real estate

$

25,251



$

23,116



$

2,135



9.2%


     Global/international real estate

9,721



9,498



223



2.3%


     Preferred securities

5,126



4,722



404



8.6%


     Global listed infrastructure

5,072



4,714



358



7.6%


     Large cap value

2,857



2,907



(50)



(1.7%)


     Other

1,004



950



54



5.7%


Total

$

49,031



$

45,907



3,124



6.8%


 

Assets under management were $49.0 billion as of March 31, 2014, an increase of $3.1 billion from $45.9 billion at December 31, 2013. The increase from December 31, 2013 was due to market appreciation of $3.2 billion, partially offset by net outflows of $116 million.

Institutional Accounts

Assets under management for institutional accounts were $24.5 billion as of March 31, 2014, an increase of 6.8% from $22.9 billion at December 31, 2013. The increase from December 31, 2013 was due to the following:

  • Market appreciation of $1.8 billion, including $1.2 billion from U.S. real estate, $350 million from global/international real estate and $100 million from global listed infrastructure;
  • Net outflows of $176 million from subadvisory relationships, including $164 million from global/international real estate and $23 million from large cap value, partially offset by net inflows of $21 million into commodities (which is included in "Other" above); and
  • Net outflows of $44 million from advisory relationships, including net outflows of $117 million from large cap value, partially offset by net inflows of $84 million into global listed infrastructure.

Open-End Mutual Funds

Assets under management for open-end mutual funds were a record $15.1 billion as of March 31, 2014, an increase of $1.1 billion from $14.0 billion at December 31, 2013. The increase from December 31, 2013 was due to the following:

  • Market appreciation of $1.0 billion, including $847 million from U.S. real estate, $101 million from preferred securities and $56 million from global/international real estate; and
  • Net inflows of $104 million, including net inflows of $179 million into preferred securities, partially offset by net outflows of $76 million from U.S. real estate.

Closed-End Mutual Funds

Assets under management for closed-end mutual funds were $9.4 billion as of March 31, 2014, an increase of 4.9% from $9.0 billion at December 31, 2013. The increase from December 31, 2013 was due to market appreciation of $439 million.

Balance Sheet Information

As of March 31, 2014, cash, cash equivalents and investments were $177 million. As of March 31, 2014, stockholders' equity was $231 million and the company had no debt.

Conference Call Information

Cohen & Steers will host a conference call tomorrow, April 17, 2014 at 11:00 a.m. (ET) to discuss the company's first quarter results. Investors and analysts can access the live conference call by dialing (800) 741-3792 (U.S.) or (212) 231-2903 (international); passcode: 21713820. 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 April 17, 2014 and can be accessed at (800) 633-8284 (U.S.) or (402) 977-9140 (international); passcode: 21713820. 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

Founded in 1986, Cohen & Steers is a leading global investment manager with a long history of innovation and a focus on real assets, including real estate, infrastructure and commodities. Headquartered in New York City, with offices in London, Hong Kong, Tokyo and Seattle, Cohen & Steers serves institutional and individual investors around the world.

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, 2013 ("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 Ended








(in thousands, except per share data)



















Three Months Ended


% Change From



March 31,

2014


December 31,
2013


March 31,

2013


December 31,
2013


March 31, 2013

Revenue










Investment advisory and administration fees

$

67,564



$

67,658



$

65,394






Distribution and service fees

3,470



3,557



3,434






Portfolio consulting and other

1,801



2,217



3,631






Total revenue

72,835



73,432



72,459



(0.8%)



0.5%


Expenses










Employee compensation and benefits

24,035



22,377



23,377






Distribution and service fees

8,304



8,127



15,081






General and administrative

11,093



11,418



11,179






Depreciation and amortization

1,262



1,496



1,347






Amortization, deferred commissions

545



658



765






Total expenses

45,239



44,076



51,749



2.6%



(12.6%)


Operating income

27,596



29,356



20,710



(6.0%)



33.2%


Non-operating income










Interest and dividend income—net

239



773



546






Gain from trading securities—net

983



344



1,624






Gain from available-for-sale securities—net

1,076



751



491






Equity in earnings of affiliates

935



418



536






Other losses

(52)



(315)



(271)






Total non-operating income

3,181



1,971



2,926



61.4%



8.7%


Income before provision for income taxes

30,777



31,327



23,636



(1.8%)



30.2%


Provision for income taxes

11,177



11,899



8,135






Net income

19,600



19,428



15,501



0.9%



26.4%


     Less: Net income attributable to redeemable

     noncontrolling interest

(155)



(15)



(360)






Net income attributable to common stockholders

$

19,445



$

19,413



$

15,141



0.2%



28.4%












Earnings per share attributable to common  stockholders










Basic

$

0.44



$

0.44



$

0.34



(0.5%)



27.0%


Diluted

$

0.43



$

0.43



$

0.34



(0.2%)



26.7%


Dividends declared per share










Quarterly

$

0.22



$

0.20



$

0.20



10.0%



10.0%


Special

$



$

1.00



$



*


*











Weighted average shares outstanding










Basic

44,633



44,325



44,137






Diluted

45,483



45,338



44,882
















* Not meaningful










 





















Cohen & Steers, Inc. and Subsidiaries










Assets Under Management (Unaudited)










By Investment Vehicle










For the Periods Ended










(in millions)











Three Months Ended


% Change From



March 31,

2014


December 31,
2013


March 31,

2013


December 31,
2013


March 31,
2013

Institutional Accounts










Assets under management, beginning of period

$

22,926



$

23,291



$

24,850






     Inflows

432



549



246






     Outflows

(652)



(1,232)



(590)






     Net outflows

(220)



(683)



(344)






     Market appreciation

1,773



318



1,575






     Total increase (decrease)

1,553



(365)



1,231






Assets under management, end of period

$

24,479



$

22,926



$

26,081



6.8%



(6.1%)


Percentage of total assets under management

49.9%



49.9%



52.9%






Average assets under management for period

$

23,858



$

23,643



$

25,372



0.9%



(6.0%)












Open-End Mutual Funds










Assets under management, beginning of period

$

14,016



$

14,262



$

12,962






     Inflows

1,523



1,103



1,508






     Outflows

(1,419)



(1,373)



(849)






     Net inflows (outflows)

104



(270)



659






     Market appreciation

1,028



24



826






     Total increase (decrease)

1,132



(246)



1,485






Assets under management, end of period

$

15,148



$

14,016



$

14,447



8.1%



4.9%


Percentage of total assets under management

30.9%



30.5%



29.3%






Average assets under management for period

$

14,607



$

14,336



$

13,788



1.9%



5.9%












Closed-End Mutual Funds










Assets under management, beginning of period

$

8,965



$

8,783



$

7,985






     Inflows



50



458






     Outflows



(24)








     Net inflows



26



458






     Market appreciation

439



156



350






     Total increase

439



182



808






Assets under management, end of period

$

9,404



$

8,965



$

8,793



4.9%



6.9%


Percentage of total assets under management

19.2%



19.5%



17.8%






Average assets under management for period

$

9,241



$

8,991



$

8,251



2.8%



12.0%












Total










Assets under management, beginning of period

$

45,907



$

46,336



$

45,797






     Inflows

1,955



1,702



2,212






     Outflows

(2,071)



(2,629)



(1,439)






     Net (outflows) inflows

(116)



(927)



773






     Market appreciation

3,240



498



2,751






     Total increase (decrease)

3,124



(429)



3,524






Assets under management, end of period

$

49,031



$

45,907



$

49,321



6.8%



(0.6%)


Average assets under management for period

$

47,706



$

46,970



$

47,411



1.6%



0.6%


 





















Cohen & Steers, Inc. and Subsidiaries










Assets Under Management - Institutional Accounts (Unaudited)







By Investment Relationship










For the Periods Ended










(in millions)











Three Months Ended


% Change From



March 31,

2014


December 31,
2013


March 31,

2013


December 31,
2013


March 31,
2013

Subadvisory










Assets under management, beginning of period

$

16,693



$

16,833



$

17,582






     Inflows

311



385



147






     Outflows

(487)



(745)



(504)






     Net outflows

(176)



(360)



(357)






     Market appreciation

1,407



220



1,096






     Total increase (decrease)

1,231



(140)



739






Assets under management, end of period

$

17,924



$

16,693



$

18,321



7.4%



(2.2%)


Percentage of total assets under management

73.2%



72.8%



70.2%






Average assets under management for period

$

17,480



$

17,077



$

17,910



2.4%



(2.4%)












Advisory










Assets under management, beginning of period

$

6,233



$

6,458



$

7,268






     Inflows

121



164



99






     Outflows

(165)



(487)



(86)






     Net (outflows) inflows

(44)



(323)



13






     Market appreciation

366



98



479






     Total increase (decrease)

322



(225)



492






Assets under management, end of period

$

6,555



$

6,233



$

7,760



5.2%



(15.5%)


Percentage of total assets under management

26.8%



27.2%



29.8%






Average assets under management for period

$

6,378



$

6,566



$

7,462



(2.9%)



(14.5%)












Total Institutional Accounts










Assets under management, beginning of period

$

22,926



$

23,291



$

24,850






     Inflows

432



549



246






     Outflows

(652)



(1,232)



(590)






     Net outflows

(220)



(683)



(344)






     Market appreciation

1,773



318



1,575






     Total increase (decrease)

1,553



(365)



1,231






Assets under management, end of period

$

24,479



$

22,926



$

26,081



6.8%



(6.1%)


Average assets under management for period

$

23,858



$

23,643



$

25,372



0.9%



(6.0%)


 






















Cohen & Steers, Inc. and Subsidiaries










Assets Under Management (Unaudited)










By Investment Strategy










For the Periods Ended










(in millions)











Three Months Ended


% Change From



March 31,

2014


December 31,
2013


March 31,

2013


December 31,
2013


March 31,
2013

U.S. Real Estate










Assets under management, beginning of period

$

23,116



$

23,237



$

22,613






     Inflows

756



766



753






     Outflows

(829)



(813)



(450)






     Net (outflows) inflows

(73)



(47)



303






     Market appreciation (depreciation)

2,208



(74)



1,539






     Total increase (decrease)

2,135



(121)



1,842






Assets under management, end of period

$

25,251



$

23,116



$

24,455



9.2%



3.3%


Percentage of total assets under management

51.5%



50.4%



49.6%






Average assets under management for period

$

24,362



$

23,614



$

23,541



3.2%



3.5%












Global/International Real Estate










Assets under management, beginning of period

$

9,498



$

9,630



$

11,155






     Inflows

485



345



317






     Outflows

(664)



(510)



(748)






     Net outflows

(179)



(165)



(431)






     Market appreciation

402



33



553






     Total increase (decrease)

223



(132)



122






Assets under management, end of period

$

9,721



$

9,498



$

11,277



2.3%



(13.8%)


Percentage of total assets under management

19.8%



20.7%



22.9%






Average assets under management for period

$

9,595



$

9,694



$

11,239



(1.0%)



(14.6%)












Preferred Securities










Assets under management, beginning of period

$

4,722



$

4,820



$

4,364






     Inflows

358



194



594






     Outflows

(180)



(340)



(147)






     Net inflows (outflows)

178



(146)



447






     Market appreciation

226



48



118






     Total increase (decrease)

404



(98)



565






Assets under management, end of period

$

5,126



$

4,722



$

4,929



8.6%



4.0%


Percentage of total assets under management

10.5%



10.3%



10.0%






Average assets under management for period

$

4,946



$

4,820



$

4,626



2.6%



6.9%












Global Listed Infrastructure










Assets under management, beginning of period

$

4,714



$

4,469



$

3,509






     Inflows

302



134



488






     Outflows

(224)



(57)



(18)






     Net inflows

78



77



470






     Market appreciation

280



168



197






     Total increase

358



245



667






Assets under management, end of period

$

5,072



$

4,714



$

4,176



7.6%



21.5%


Percentage of total assets under management

10.3%



10.3%



8.5%






Average assets under management for period

$

5,011



$

4,661



$

3,630



7.5%



38.0%












Large Cap Value










Assets under management, beginning of period

$

2,907



$

3,492



$

3,465






     Inflows

9



8



30






     Outflows

(155)



(902)



(64)






     Net outflows

(146)



(894)



(34)






     Market appreciation

96



309



315






     Total (decrease) increase

(50)



(585)



281






Assets under management, end of period

$

2,857



$

2,907



$

3,746



(1.7%)



(23.7%)


Percentage of total assets under management

5.8%



6.3%



7.6%






Average assets under management for period

$

2,822



$

3,279



$

3,654



(13.9%)



(22.8%)












Other










Assets under management, beginning of period

$

950



$

688



$

691






     Inflows

45



255



30






     Outflows

(19)



(7)



(12)






     Net inflows

26



248



18






     Market appreciation

28



14



29






     Total increase

54



262



47






Assets under management, end of period

$

1,004



$

950



$

738



5.7%



36.0%


Percentage of total assets under management

2.0%



2.1%



1.5%






Average assets under management for period

$

970



$

902



$

721



7.5%



34.5%












Total










Assets under management, beginning of period

$

45,907



$

46,336



$

45,797






     Inflows

1,955



1,702



2,212






     Outflows

(2,071)



(2,629)



(1,439)






     Net (outflows) inflows

(116)



(927)



773






     Market appreciation

3,240



498



2,751






     Total increase (decrease)

3,124



(429)



3,524






Assets under management, end of period

$

49,031



$

45,907



$

49,321



6.8%



(0.6%)


Average assets under management for period

$

47,706



$

46,970



$

47,411



1.6%



0.6%


 

SOURCE Cohen & Steers, Inc.

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SYS-CON Events announced today that A&I Solutions has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 1999, A&I Solutions is a leading information technology (IT) software and services provider focusing on best-in-class enterprise solutions. By partnering with industry leaders in technology, A&I assures customers high performance levels across all IT environments including: mai...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that Tappest will exhibit MooseFS at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that EARP will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.