Cohen & Company Inc. (NYSE American: COHN), a financial
services firm specializing in fixed income markets, today reported
financial results for its second quarter ended June 30, 2020.
Summary Operating Results
|
Three Months Ended |
($ in thousands) |
6/30/20 |
|
3/31/20 |
|
6/30/19 |
|
|
|
|
|
|
Total revenues |
$ |
24,119 |
|
$ |
17,770 |
|
$ |
11,169 |
Compensation and benefits |
11,324 |
|
14,134 |
|
6,432 |
Non-compensation operating
expenses, excluding goodwill impairment |
4,869 |
|
5,198 |
|
4,219 |
Goodwill impairment |
- |
|
7,883 |
|
- |
Operating income |
7,926 |
|
(9,445) |
|
518 |
Interest expense, net |
(3,081) |
|
(2,605) |
|
(1,939) |
Income (loss) from equity
method affiliates |
(1,233) |
|
(107) |
|
(248) |
Income (loss) before income
tax expense (benefit) |
3,612 |
|
(12,157) |
|
(1,669) |
Income tax expense
(benefit) |
343 |
|
(372) |
|
(641) |
Net income (loss) |
3,269 |
|
(11,785) |
|
(1,028) |
Less: Net income (loss)
attributable to the noncontrolling interest |
2,368 |
|
(8,683) |
|
(618) |
Net income (loss) attributable
to Cohen & Company Inc. |
$ |
901 |
|
$ |
(3,102) |
|
$ |
(410) |
Fully diluted net income
(loss) per share |
$ |
0.69 |
|
$ |
(2.70) |
|
$ |
(0.36) |
|
|
|
|
|
|
Adjusted net income
(loss) |
$ |
4,009 |
|
$ |
(3,742) |
|
$ |
(900) |
Fully diluted adjusted net
income (loss) per share |
$ |
0.80 |
|
$ |
(0.95) |
|
$ |
(0.54) |
- Net income was $3.3 million, or
$0.69 per diluted share, for the three months ended June 30, 2020,
compared to net loss of ($11.8) million, or ($2.70) per diluted
share, for the three months ended March 31, 2020, and net loss of
($1.0) million, or ($0.36) per diluted share, for the three months
ended June 30, 2019. Adjusted net income was $4.0 million, or $0.80
per diluted share, for the three months ended June 30, 2020,
compared to adjusted net loss of ($3.7) million, or ($0.95) per
diluted share, for the three months ended March 31, 2020, and
adjusted net loss of ($0.9) million, or ($0.54) per diluted share,
for the three months ended June 30, 2019. Adjusted net income
(loss) is not a measure recognized under U.S. generally accepted
accounting principles (“GAAP”). See Note 1 on page 4.
- Revenues during the three months
ended June 30, 2020 increased $6.3 million from the prior quarter
and $13.0 million from the prior year quarter.○ The increase
from the prior quarter was comprised primarily of (i) an increase
of $1.4 million in net trading revenue primarily from increased
revenue in the Company’s Gestation repo and Muni trading groups and
(ii) an increase of $4.9 million in principal transactions revenue
related to mark-to-market gains on the Company’s principal
investment portfolio.○ The increase from the prior year
quarter was comprised primarily of (i) an increase of $11.3 million
in net trading revenue primarily from increased revenue in the
Company’s GCF repo and Gestation repo businesses, as well as
increased revenue from the Company’s corporate group, and (ii) an
increase of $1.7 million in principal transactions related to
mark-to-market gains on the Company’s principal investment
portfolio.
- Compensation and benefits expense
as a percentage of revenue was 47% for the three months ended June
30, 2020, compared to 80% for the three months ended March 31, 2020
and 58% for the three months ended June 30, 2019. During the
quarter ended March 31, 2020, the Company’s variable compensation
structure had an outsized unfavorable impact on results due to the
significant negative revenue recorded from realized and unrealized
losses in certain trading books and from principal transactions
with no meaningful corresponding reduction in variable compensation
to offset the negative revenue. The number of Company employees was
94 as of June 30, 2020, compared to 95 as of March 31, 2020, and 90
as of June 30, 2019.
- Non-compensation operating expenses
excluding goodwill impairment during the three months ended June
30, 2020 decreased $0.3 million from the prior quarter and
increased $0.7 million from the prior year quarter. The decrease
from the prior quarter was primarily due to lower professional fees
and business development expenses. The increase from the prior year
quarter was primarily due to increased net trading revenue-driven
clearing and execution costs and professional fees in the current
quarter.
- A non-cash goodwill impairment
charge of $7.9 million was recognized during the three months ended
March 31, 2020, after the Company performed an impairment test of
goodwill attributable to its wholly owned subsidiary, J.V.B.
Financial Group, LLC. The Company has no goodwill attributable to
J.V.B. Financial Group, LLC after this impairment.
- Interest expense during the three
months ended June 30, 2020 increased $0.5 million from the prior
quarter and $1.1 million from the prior year quarter. The changes
in quarterly interest expense are primarily driven by fluctuations
in interest on redeemable financial instruments, which are driven
by certain Company groups’ revenues and profits.
- Loss from equity method affiliates
during the three months ended June 30, 2020 increased $1.1 million
from the prior quarter and $1.0 million from the prior year
quarter. The increase in loss from equity method affiliates was
primarily related to expenses incurred by the Company-sponsored
Insurance Acquisition Corp. (Nasdaq: INSU) (the “Insurance SPAC”),
a blank check company seeking to effect a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization, or
similar business combination with one or more businesses.
- As of June 30, 2020, total equity
was $40.4 million, compared to $48.8 million as of December 31,
2019.
Lester Brafman, Chief Executive Officer of Cohen
& Company, said, “We are pleased with our second quarter
results, and extremely excited about the development of some of our
longer term strategic initiatives across our SPAC franchise, as
well as our broker dealer and asset management businesses. We are
active in multiple aspects of the SPAC market, including as a
sponsor, asset manager and investor. Our company-sponsored
Insurance SPAC, Insurance Acquisition Corp, entered into a merger
agreement with Shift Technologies, Inc., and we are now also the
sponsor of a second special purpose acquisition company, which
intends to raise $175 million in an initial public offering of its
units.”
Brafman continued, “Our Vellar Funds, which
focus on investing in SPAC opportunities, raised additional capital
during the quarter. Cohen’s involvement in the SPAC market both as
a sponsor and as an asset manager has given the firm access to
unique investment opportunities, one of which drove the revenue in
our principal investing segment this period. We have a long history
in the SPAC space, and we intend to continue building our SPAC
franchise and capitalizing on opportunities in the space.
“On the broker dealer side, we continue to grow
our mortgage complex, specifically our gestation repo business,
where our balances increased to $2.3 billion by the end of the
quarter. Our European investment advisory subsidiary successfully
launched another series of closed-end investment vehicles with
total commitments in excess of €375 million.”
Brafman concluded, “I am proud of our company’s
ability to drive our initiatives forward while navigating this
uniquely challenging environment. We are optimistic that the
strategic investments we have made in these businesses will
continue to pay off, and we remain committed to executing on our
objectives, with a continued focus on enhancing stockholder
value.”
Insurance Acquisition Corp. Enters into Merger
Agreement
On June 29, 2020, Cohen & Company-sponsored
Insurance Acquisition Corporation (Nasdaq: INSU) (“Insurance SPAC”)
entered into an Agreement and Plan of Merger with IAC Merger Sub,
Inc., a Delaware corporation and direct wholly owned subsidiary of
Insurance SPAC (“Merger Sub”), and Shift Technologies, Inc., a
Delaware corporation (“Shift”). The Agreement and Plan of Merger
provides for, among other things, the acquisition of Shift by
Insurance SPAC pursuant to the proposed merger of Merger Sub with
and into Shift with Shift continuing as the surviving entity and a
direct wholly owned subsidiary of Insurance SPAC (the “Merger”).
Upon a closing of the Merger, the Company expects that its
consolidated subsidiaries, Insurance Acquisition Sponsor, LLC and
Dioptra Advisors, LLC (collectively, the “Sponsor Entities”), of
which the Company is the manager and a member, would collectively
retain an aggregate of 375,000 placement shares as well as between
4,000,000 and 4,500,000 founder shares (collectively, the “Sponsor
Shares”) of Insurance SPAC. In the event that the Merger is
consummated, the Company currently expects that 253,000 of the
placement shares and between 2,200,000 and 2,500,000 of the founder
shares would be distributed to the non-controlling interests of the
Sponsor Entities, with the Company retaining the balance of the
placement shares and the founder shares. Additional details
regarding the merger transaction are available in the Company’s
filings with the Securities and Exchange Commission (“SEC”).
SPAC Sponsorship
In addition to the Insurance SPAC, Cohen &
Company is the sponsor of a second special purpose acquisition
company (“SPAC II”). SPAC II will seek to effect a merger, capital
stock exchange, asset acquisition, stock purchase, reorganization,
or similar business combination with one or more businesses that
provides insurance or insurance related services but will not be
required to complete a business combination with an insurance
business. In July 2020, SPAC II filed a registration statement with
the SEC with the intent to raise $175
million.
Successful Launch of €375 Million PriDe III
Funds
On July 20, 2020, the Company announced that
Cohen & Company Financial (Europe) Limited (“CCFEL”), an
investment advisory subsidiary of Cohen & Company Inc.,
successfully closed a series of closed-end investment vehicles with
total commitments in excess of €375 million (collectively referred
to as “PriDe III Funds” or “PriDe III”). PriDe III is the latest
series of funds advised by CCFEL (the “PriDe Program”) that focus
on investing in Tier II capital instruments issued by small and
mid-size insurance companies that have limited access to capital
markets. The PriDe Program enables insurers to enhance their
regulatory capital ratios, fund acquisitions or internal growth,
reduce reinsurance costs and/or lower their weighted average cost
of capital.
This launch continues the Company’s strong track
record as a leading investment specialist in the insurance market,
having deployed, through various funds managed or advised by its
subsidiaries, over $4.3 billion in more than 200 insurance
companies worldwide. In Europe alone, this represents €1.4 billion
in 64 insurance companies located in 18 different countries.
Conference Call
The Company will host a conference call at 10:00
a.m. Eastern Time (ET) to discuss these results. The conference
call will be available via webcast. Interested parties can access
the webcast by clicking the webcast link on the Company’s homepage
at www.cohenandcompany.com. Those wishing to listen to the
conference call with operator assistance can dial (877) 686-9573
(domestic) or (706) 643-6983 (international), with participant pass
code 2776918, or request the Cohen & Company earnings call. A
replay of the call will be available for one week following the
call by dialing (800) 585-8367 or (404) 537-3406, participant pass
code 2776918.
About Cohen & Company
Cohen & Company is a financial services
company specializing in fixed income markets. It was founded in
1999 as an investment firm focused on small-cap banking
institutions but has grown to provide an expanding range of capital
markets and asset management services. Cohen & Company’s
operating segments are Capital Markets, Asset Management, and
Principal Investing. The Capital Markets segment consists of fixed
income sales, trading, and matched book repo financing as well as
new issue placements in corporate and securitized products, and
advisory services, operating primarily through Cohen &
Company’s subsidiaries, J.V.B. Financial Group, LLC in the United
States and Cohen & Company Financial (Europe) Limited in
Europe. The Asset Management segment manages assets through
collateralized debt obligations, managed accounts, and investment
funds. As of June 30, 2020, the Company managed approximately $2.6
billion in fixed income assets in a variety of asset classes
including US and European trust preferred securities, subordinated
debt, and corporate loans. As of June 30, 2020, 78.2% of the
Company’s assets under management were in collateralized debt
obligations that Cohen & Company manages, which were all
securitized prior to 2008. The Principal Investing segment is
comprised primarily of investments the Company has made for the
purpose of earning an investment return rather than investments
made to support its trading, matched book repo, or other capital
markets business activity. For more information, please visit
www.cohenandcompany.com.
Note 1: Adjusted net income
(loss) and adjusted net income (loss) per share are non-GAAP
measures of performance. Please see the discussion under “Non-GAAP
Measures” below. Also see the tables below for the reconciliations
of non-GAAP measures of performance to their corresponding GAAP
measures of performance.
Forward-looking Statements
This communication contains certain statements,
estimates, and forecasts with respect to future performance and
events. These statements, estimates, and forecasts are
“forward-looking statements.” In some cases, forward-looking
statements can be identified by the use of forward-looking
terminology such as “may,” “ might,” “will,”
“should,” “expect,” “plan,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “seek,”
or “continue” or the negatives thereof or variations thereon or
similar terminology. All statements other than statements of
historical fact included in this communication are forward-looking
statements and are based on various underlying assumptions and
expectations and are subject to known and unknown risks,
uncertainties, and assumptions, and may include projections of our
future financial performance based on our growth strategies and
anticipated trends in our business. These statements are based on
our current expectations and projections about future events. There
are important factors that could cause our actual results, level of
activity, performance, or achievements to differ materially from
the results, level of activity, performance, or achievements
expressed or implied in the forward-looking statements including,
but not limited to, those discussed under the heading “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition” in our filings with the Securities and Exchange
Commission (“SEC”), which are available at the SEC’s website at
www.sec.gov and our website at
www.cohenandcompany.com/investor-relations/sec-filings. Such risk
factors include the following: (a) a decline in general economic
conditions or the global financial markets, (b) losses caused by
financial or other problems experienced by third parties, (c)
losses due to unidentified or unanticipated risks, (d) a lack of
liquidity, i.e., ready access to funds for use in our businesses,
(e) the ability to attract and retain personnel, (f) litigation and
regulatory issues, (g) competitive pressure, (h) an inability to
generate incremental income from new or expanded businesses, (i)
unanticipated market closures or effects due to inclement weather
or other disasters, (j) losses (whether realized or unrealized) on
our principal investments, including on our CLO investments, (k)
the possibility that payments to the Company of subordinated
management fees from its European CLO will continue to be deferred
or will be discontinued, (l) the possibility that the stockholder
rights plan may fail to preserve the value of the Company’s
deferred tax assets, whether as a result of the acquisition by a
person of 5% of the Company’s common stock or otherwise, (m) the
possibility that the Merger between Merger Sub and Shift will not
be consummated, (n) the possibility that SPAC II does not
successfully consummate a business combination or an initial public
offering of its units, and (m) the impacts of the COVID-19
pandemic. As a result, there can be no assurance that the
forward-looking statements included in this communication will
prove to be accurate or correct. In light of these risks,
uncertainties, and assumptions, the future performance or events
described in the forward-looking statements in this communication
might not occur. Accordingly, you should not rely upon
forward-looking statements as a prediction of actual results and we
do not undertake any obligation to update any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Cautionary Note Regarding Quarterly Financial
Results
Due to the nature of our business, our revenue
and operating results may fluctuate materially from quarter to
quarter. Accordingly, revenue and net income in any
particular quarter may not be indicative of future results.
Further, our employee compensation arrangements are in large part
incentive-based and, therefore, will fluctuate with revenue. The
amount of compensation expense recognized in any one quarter may
not be indicative of such expense in future periods. As a
result, we suggest that annual results may be the most meaningful
gauge for investors in evaluating our business performance.
COHEN & COMPANY INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
6/30/20 |
|
3/31/20 |
|
6/30/19 |
|
6/30/20 |
|
6/30/19 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Net trading |
$ |
20,006 |
|
$ |
18,561 |
|
$ |
8,670 |
|
$ |
38,567 |
|
$ |
17,394 |
|
|
Asset management |
1,692 |
|
1,615 |
|
1,745 |
|
3,307 |
|
3,747 |
|
|
New issue and advisory |
- |
|
- |
|
- |
|
- |
|
- |
|
|
Principal transactions |
2,304 |
|
(2,598) |
|
585 |
|
(294) |
|
935 |
|
|
Other revenue |
117 |
|
192 |
|
169 |
|
309 |
|
233 |
|
|
Total revenues |
24,119 |
|
17,770 |
|
11,169 |
|
41,889 |
|
22,309 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
11,324 |
|
14,134 |
|
6,432 |
|
25,458 |
|
12,796 |
|
|
Business development, occupancy, equipment |
640 |
|
756 |
|
895 |
|
1,396 |
|
1,706 |
|
|
Subscriptions, clearing, and execution |
2,548 |
|
2,580 |
|
2,056 |
|
5,128 |
|
4,329 |
|
|
Professional services and other operating |
1,597 |
|
1,782 |
|
1,190 |
|
3,379 |
|
2,869 |
|
|
Depreciation and amortization |
84 |
|
80 |
|
78 |
|
164 |
|
159 |
|
|
Impairment of goodwill |
- |
|
7,883 |
|
- |
|
7,883 |
|
- |
|
|
Total operating expenses |
16,193 |
|
27,215 |
|
10,651 |
|
43,408 |
|
21,859 |
|
|
Operating income (loss) |
7,926 |
|
(9,445) |
|
518 |
|
(1,519) |
|
450 |
|
|
Non-operating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
(3,081) |
|
(2,605) |
|
(1,939) |
|
(5,686) |
|
(3,793) |
|
|
Income (loss) from equity method affiliates |
(1,233) |
|
(107) |
|
(248) |
|
(1,340) |
|
(256) |
|
|
Income (loss) before income tax expense (benefit) |
3,612 |
|
(12,157) |
|
(1,669) |
|
(8,545) |
|
(3,599) |
|
|
Income tax expense (benefit) |
343 |
|
(372) |
|
(641) |
|
(29) |
|
(747) |
|
|
Net income (loss) |
3,269 |
|
(11,785) |
|
(1,028) |
|
(8,516) |
|
(2,852) |
|
|
Less: Net income (loss) attributable to the noncontrolling
interest |
2,368 |
|
(8,683) |
|
(618) |
|
(6,315) |
|
(1,240) |
|
|
Net income (loss) attributable to Cohen & Company Inc. |
$ |
901 |
|
$ |
(3,102) |
|
$ |
(410) |
|
$ |
(2,201) |
|
$ |
(1,612) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Cohen & Company Inc. |
$ |
901 |
|
$ |
(3,102) |
|
$ |
(410) |
|
$ |
(2,201) |
|
$ |
(1,612) |
|
|
Basic shares outstanding |
1,160 |
|
1,147 |
|
1,144 |
|
1,154 |
|
1,139 |
|
|
Net income (loss) attributable
to Cohen & Company Inc. per share |
$ |
0.78 |
|
$ |
(2.70) |
|
$ |
(0.36) |
|
$ |
(1.91) |
|
$ |
(1.42) |
|
|
Fully Diluted |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Cohen & Company Inc. |
$ |
901 |
|
$ |
(3,102) |
|
$ |
(410) |
|
$ |
(2,201) |
|
$ |
(1,612) |
|
|
Net income (loss) attributable to the convertible noncontrolling
interest |
3,107 |
|
(8,523) |
|
(491) |
|
(5,416) |
|
(1,109) |
|
|
Net interest attributable to convertible debt |
373 |
|
- |
|
- |
|
- |
|
- |
|
|
Income tax and conversion adjustment |
(930) |
|
966 |
|
298 |
|
29 |
|
351 |
|
|
Enterprise net income (loss) |
$ |
3,451 |
|
$ |
(10,659) |
|
$ |
(603) |
|
$ |
(7,588) |
|
$ |
(2,370) |
|
|
Basic shares outstanding |
1,160 |
|
1,147 |
|
1,144 |
|
1,154 |
|
1,139 |
|
|
Unrestricted Operating LLC membership units exchangeable into COHN
shares |
2,803 |
|
2,794 |
|
532 |
|
2,798 |
|
532 |
|
|
Additional dilutive shares |
1,057 |
|
- |
|
- |
|
- |
|
- |
|
|
Fully diluted shares outstanding |
5,020 |
|
3,941 |
|
1,676 |
|
3,952 |
|
1,671 |
|
|
Fully diluted net income (loss) per share |
$ |
0.69 |
|
$ |
(2.70) |
|
$ |
(0.36) |
|
$ |
(1.92) |
|
$ |
(1.42) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted net income (loss) to net income (loss)
and calculations of per share amounts |
|
Net income (loss) |
$ |
3,269 |
|
$ |
(11,785) |
|
$ |
(1,028) |
|
$ |
(8,516) |
|
$ |
(2,852) |
|
|
Impairment of goodwill |
- |
|
7,883 |
|
- |
|
7,883 |
|
- |
|
|
Noncontrolling interest share of the equity method loss from
Insurance SPAC |
740 |
|
160 |
|
128 |
|
900 |
|
132 |
|
|
Adjusted net income (loss) |
$ |
4,009 |
|
$ |
(3,742) |
|
$ |
(900) |
|
$ |
267 |
|
$ |
(2,720) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully diluted shares outstanding |
5,020 |
|
3,941 |
|
1,676 |
|
3,952 |
|
1,671 |
|
|
Fully diluted adjusted net income (loss) per share |
$ |
0.80 |
|
$ |
(0.95) |
|
$ |
(0.54) |
|
$ |
0.07 |
|
$ |
(1.63) |
|
|
|
|
|
|
|
|
|
|
|
|
|
COHEN & COMPANY INC. |
CONSOLIDATED BALANCE SHEETS |
(in thousands) |
|
|
|
|
|
|
|
|
June 30, 2020 |
|
|
|
|
|
(unaudited) |
|
December 31, 2019 |
|
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
235,018 |
|
$ |
8,304 |
|
|
Receivables from brokers, dealers, and clearing agencies |
69,996 |
|
96,132 |
|
|
Due from related parties |
773 |
|
466 |
|
|
Other receivables |
4,723 |
|
46,625 |
|
|
Investments - trading |
237,541 |
|
307,852 |
|
|
Other investments, at fair value |
9,693 |
|
14,864 |
|
|
Receivables under resale agreements |
5,504,667 |
|
7,500,002 |
|
|
Investment in equity method affiliates |
4,556 |
|
3,799 |
|
|
Goodwill |
109 |
|
7,992 |
|
|
Right-of-use asset - operating leases |
6,583 |
|
7,155 |
|
|
Other assets |
3,023 |
|
8,433 |
|
|
Total assets |
$ |
6,076,682 |
|
$ |
8,001,624 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Payables to brokers, dealers, and clearing agencies |
$ |
121,458 |
|
$ |
241,261 |
|
|
Accounts payable and other liabilities |
227,022 |
|
20,295 |
|
|
Accrued compensation |
7,402 |
|
4,046 |
|
|
Trading securities sold, not yet purchased |
66,156 |
|
77,947 |
|
|
Securities sold under agreements to repurchase |
5,524,758 |
|
7,534,443 |
|
|
Deferred income taxes |
1,329 |
|
1,339 |
|
|
Operating lease liability |
7,091 |
|
7,693 |
|
|
Redeemable Financial Instruments |
16,878 |
|
16,983 |
|
|
Debt |
64,209 |
|
48,861 |
|
|
Total liabilities |
6,036,303 |
|
7,952,868 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Voting nonconvertible preferred stock |
27 |
|
27 |
|
|
Common stock |
12 |
|
12 |
|
|
Additional paid-in capital |
68,669 |
|
68,714 |
|
|
Accumulated other comprehensive loss |
(925) |
|
(915) |
|
|
Accumulated deficit |
(36,782) |
|
(34,519) |
|
|
Total stockholders' equity |
31,001 |
|
33,319 |
|
|
Noncontrolling interest |
9,378 |
|
15,437 |
|
|
Total equity |
40,379 |
|
48,756 |
|
|
Total liabilities and equity |
$ |
6,076,682 |
|
$ |
8,001,624 |
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
Adjusted net income (loss) and adjusted net
income (loss) per diluted share
Adjusted net income (loss) is not a financial
measure recognized by GAAP. Adjusted net income (loss) represents
net income (loss), computed in accordance with GAAP, excluding
impairment of goodwill and the noncontrolling interest share of the
equity method loss from Cohen & Company’s sponsored special
purpose acquisition corporation, Insurance Acquisition Corp.
(Nasdaq: INSU). Impairment of goodwill has been excluded from
adjusted net income (loss) because it is a non-recurring, non-cash
item. The noncontrolling interest share of the equity method loss
from INSU has been excluded from adjusted net income (loss) as it
represents the portion of the equity method loss that is not owned
by the Company. Adjusted net income (loss) per diluted share is
calculated, by dividing adjusted net income (loss) by diluted
shares outstanding calculated in accordance with GAAP.
We present adjusted net income (loss) and
related per diluted share amounts in this release because we
consider them to be useful and appropriate supplemental measures of
our performance. Adjusted net income (loss) and related per diluted
share amounts help us to evaluate our performance without the
effects of certain GAAP calculations that may not have a direct
cash or recurring impact on our current operating performance. In
addition, our management uses adjusted net income (loss) and
related per diluted share amounts to evaluate the performance of
our operations. Adjusted net income (loss) and related per diluted
share amounts, as we define them, are not necessarily comparable to
similarly named measures of other companies and may not be
appropriate measures for performance relative to other companies.
Adjusted net income (loss) should not be assessed in isolation from
or construed as a substitute for net income (loss) prepared in
accordance with GAAP. Adjusted net income (loss) is not intended to
represent, and should not be considered to be a more meaningful
measure than, or an alternative to, measures of operating
performance as determined in accordance with GAAP.
Contact:
Investors - |
Media - |
Cohen & Company Inc. |
Joele Frank, Wilkinson Brimmer
Katcher |
Joseph W. Pooler, Jr. |
James Golden or Andrew
Squire |
Executive Vice President and |
212-355-4449 |
Chief Financial Officer |
jgolden@joelefrank.com or
asquire@joelefrank.com |
215-701-8952 |
|
investorrelations@cohenandcompany.com |
|
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