Cohen & Company Inc. (NYSE American: COHN), a financial
services firm specializing in fixed income and SPAC markets, today
reported financial results for its first quarter ended March 31,
2022.
Summary Operating Results
|
Three Months Ended |
|
($ in
thousands) |
3/31/22 |
|
12/31/21 |
|
3/31/21 |
|
|
|
|
|
|
|
|
Net trading |
$ |
12,022 |
|
|
$ |
15,204 |
|
|
$ |
19,183 |
|
|
Asset
management |
|
1,889 |
|
|
|
5,136 |
|
|
|
2,093 |
|
|
New issue
and advisory |
|
3,770 |
|
|
|
17,209 |
|
|
|
1,839 |
|
|
Principal
transactions and other revenue |
|
(18,363 |
) |
|
|
(10,507 |
) |
|
|
79,561 |
|
|
Total revenues |
|
(682 |
) |
|
|
27,042 |
|
|
|
102,676 |
|
|
Compensation
and benefits |
|
13,879 |
|
|
|
23,634 |
|
|
|
26,647 |
|
|
Non-compensation operating expenses |
|
5,317 |
|
|
|
6,069 |
|
|
|
5,584 |
|
|
Operating income |
|
(19,878 |
) |
|
|
(2,661 |
) |
|
|
70,445 |
|
|
Interest
expense, net |
|
(1,351 |
) |
|
|
(1,706 |
) |
|
|
(2,014 |
) |
|
Income
(loss) from equity method affiliates |
|
(12,104 |
) |
|
|
28,498 |
|
|
|
(835 |
) |
|
Income (loss) before income tax expense (benefit) |
|
(33,333 |
) |
|
|
24,131 |
|
|
|
67,596 |
|
|
Income tax
expense (benefit) |
|
1,833 |
|
|
|
(4,117 |
) |
|
|
868 |
|
|
Net income (loss) |
|
(35,166 |
) |
|
|
28,248 |
|
|
|
66,728 |
|
|
Less: Net income (loss) attributable to the convertible
non-controlling interest |
|
(12,850 |
) |
|
|
6,354 |
|
|
|
27,403 |
|
|
Less: Net income (loss) attributable to the non-convertible
non-controlling interest |
|
(14,704 |
) |
|
|
17,738 |
|
|
|
29,970 |
|
|
Net income (loss) attributable to Cohen & Company Inc. |
$ |
(7,612 |
) |
|
$ |
4,156 |
|
|
$ |
9,355 |
|
|
Fully diluted net income (loss) per share |
$ |
(5.46 |
) |
|
$ |
2.43 |
|
|
$ |
6.98 |
|
|
|
|
|
|
|
|
|
Adjusted
pre-tax income (loss) |
$ |
(5,779 |
) |
|
$ |
6,393 |
|
|
$ |
37,626 |
|
|
Fully
diluted adjusted pre-tax income (loss) per share |
$ |
(4.14 |
) |
|
$ |
1.23 |
|
|
$ |
7.52 |
|
|
|
|
|
|
|
|
|
Lester Brafman, Chief Executive Officer of Cohen
& Company, said, “Our financial results in the first quarter
were impacted by significant unrealized negative mark-to-market
adjustments in our principal investing portfolio. Nevertheless, we
continue to focus on our strategic objectives and are confident
that the initiatives underway in investment banking, CRE loan
origination, asset management, gestation repo, and in our SPAC
franchise will generate long-term value for our shareholders. In
the first quarter, we also continued to pay our regular quarterly
dividend.”
Brafman continued, “As we have stated in the
past, our involvement in the SPAC market as a sponsor, asset
manager, and investor has resulted in increased holdings of public
equity positions in post-business combination companies as part of
our principal investing portfolio. The current economic uncertainty
and capital markets disruption may continue to result in increased
volatility in the SPAC market, and may further impact our reported
results going forward.”
Financial Highlights
- Net loss attributable to Cohen
& Company Inc. was $7.6 million, or $5.46 per diluted share,
for the three months ended March 31, 2022, compared to net income
of $4.2 million, or $2.43 per diluted share, for the three months
ended December 31, 2021, and net income of $9.4 million, or $6.98
per diluted share, for the three months ended March 31, 2021.
Adjusted pre-tax loss was $5.8 million, or $4.14 per diluted share,
for the three months ended March 31, 2022, compared to adjusted
pre-tax income of $6.4 million, or $1.23 per diluted share, for the
three months ended December 31, 2021, and adjusted pre-tax income
of $37.6 million, or $7.52 per diluted share, for the three months
ended March 31, 2021. Adjusted pre-tax income (loss) and adjusted
pre-tax income (loss) per diluted share are not measures recognized
under U.S. generally accepted accounting principles (“GAAP”). See
Note 1 below.
- Revenues were negative $0.7 million
for the three months ended March 31, 2022, compared to $27.0
million for the prior quarter and $102.7 million for the prior year
quarter.
- Net trading revenue was $12.0
million for the three months ended March 31, 2022, down $3.2
million from the prior quarter and $7.2 million from the prior year
quarter. The decrease from both prior quarters was primarily due to
lower trading revenue from the Company’s municipal, agencies,
gestation repo, and corporate groups.
- Asset management revenue was $1.9
million for the three months ended March 31, 2022, down $3.2
million from the prior quarter and $0.2 million from the prior year
quarter. The decrease from the prior quarter was primarily related
to an incentive allocation earned by the manager of the Company’s
SPAC funds in the prior quarter.
- New issue and advisory revenue was
$3.8 million for the three months ended March 31, 2022, down $13.4
million from the prior quarter and up $1.9 million from the prior
year quarter. In the current quarter, the Cohen & Company
Capital Markets investment banking team generated $1.5 million, the
CRE origination team generated $1.0 million, and the US insurance
origination team generated $1.2 million of the new issue and
advisory revenue.
- Principal transactions and other
revenue was negative $18.4 million for the three months ended March
31, 2022, compared to negative $10.5 million in the prior quarter
and positive $79.6 million in the prior year quarter. In the
current and prior quarters, the negative principal transactions and
other revenue was due to mark-to-market adjustments on the
Company’s principal investments related to the Company’s
involvement in the SPAC market as a sponsor, asset manager, and
investor, which has resulted in increased holdings of public equity
positions in post-business combination companies, often restricted,
which are subject to market adjustments, both up and down. In the
prior year quarter, the Company’s second sponsored insurance SPAC,
INSU Acquisition Corp. II, closed its business combination with
Metromile, Inc. in February 2021, which generated $73.2 million of
principal transactions revenue in the first quarter of 2021. Note
that the $18.4 million of negative principal transactions revenue
in the current quarter is offset by a $7.5 million credit recorded
in the net income (loss) attributable to the non-convertible
non-controlling interest line item.
- Compensation and benefits expense
during the three months ended March 31, 2022 decreased $9.8 million
from the prior quarter and $12.8 million from the prior year
quarter. The number of Company employees was 115 as of March 31,
2022, compared to 118 as of December 31, 2021, and 98 as of March
31, 2021.
- Interest expense during the three
months ended March 31, 2022 decreased $0.4 million from the prior
quarter and $0.7 million from the prior year quarter.
- Loss from equity method affiliates
for the three months ended March 31, 2022 was $12.1 million,
compared to income from equity method affiliates of $28.5 million
for the three months ended December 31, 2021 and loss from equity
method affiliates of $0.8 million for the three months ended March
31, 2021. Income (loss) from equity method affiliates fluctuates
primarily depending on the timing of the closing of the business
combinations by the Company’s equity method investees that are
sponsors of SPACs, which typically result in increased value of
founder shares allocable to the Company by the sponsors. However,
during the quarter ended March 31, 2022, a reduction in the value
of the founder shares held by the Company’s equity method
affiliates and allocable to the Company resulted in a corresponding
loss on the Company’s investments in equity method affiliates. Note
that the $12.1 million of loss from equity method affiliates in the
current quarter is offset by a $7.2 million credit recorded in the
net income (loss) attributable to the non-convertible
non-controlling interest line item.
- Income tax expense for the three
months ended March 31, 2022 was $1.8 million, compared to income
tax benefit of $4.1 million in the prior quarter, and income tax
expense of $0.9 million in the prior year quarter. The Company will
continue to evaluate its operations on a quarterly basis and may
make adjustments to the valuation allowance applied against the
Company's net operating loss and net capital loss tax assets.
Future adjustments could be material and may result in additional
tax benefit or tax expense.
Total Equity and Dividend Declaration
- As of March 31, 2022, total equity
was $121.5 million, compared to $151.4 million as of December 31,
2021; the non-convertible non-controlling interest component of
total equity was $11.5 million as of March 31, 2022 and $31.8
million as of December 31, 2021. Thus, the total equity excluding
the non-convertible non-controlling interest component was $110.0
million as of March 31, 2022, a $9.6 million decrease from $119.6
million as of December 31, 2021.
- The Company’s Board of Directors
has declared a quarterly dividend of $0.25 per share, payable on
June 3, 2022, to stockholders of record as of May 20, 2022. The
Board of Directors will continue to evaluate the dividend policy
each quarter, and future decisions regarding dividends may be
impacted by quarterly operating results and the Company’s capital
needs.
Conference Call
The Company will host a conference call at 10:00
a.m. Eastern Time (ET), today, May 5, 2022, 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 (888) 428-7458 (domestic) or (862) 298-0702
(international). A replay of the call will be available for three
days following the call by dialing (877) 660-6853 or (201)
612-7415.
About Cohen & Company
Cohen & Company is a financial services
company specializing in fixed income markets and, more recently, in
SPAC 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 S.A. in Europe. A division of JVB, Cohen & Company
Capital Markets is the Company’s full-service boutique investment
banking platform focusing on SPAC advisory, capital markets
advisory, and M&A advisory, with clients primarily in the
financial technology (commonly referred to as "fintech") and SPAC
spaces. The Asset Management segment manages assets through
collateralized debt obligations, managed accounts, and investment
funds. As of March 31, 2022, the Company managed approximately $2.3
billion in primarily fixed income assets in a variety of asset
classes including US and European trust preferred securities,
subordinated debt, and corporate loans. As of March 31, 2022, 51.8%
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 holds related to its
SPAC franchise and other 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 pre-tax income
(loss) and adjusted pre-tax 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, including those caused
by the Russian invasion of Ukraine, (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, (k) the possibility that payments to the Company of
subordinated management fees from its CDOs 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 Company’s third sponsored
insurance SPAC, INSU Acquisition Corp. III, does not successfully
consummate a business combination, (n) a reduction in the volume of
investments into SPACs, (o) the difficulty in identifying potential
business combinations as a result of increased competition in the
SPAC market, (p) the value of our holdings of founders shares in
Shift Technologies, Inc. and Metromile Inc. is volatile and may
decline and the possibility that significant portions of the
founder shares may remain restricted for a long period of time, (q)
the possibility that the Company will stop paying quarterly
dividends to its stockholders, and (r) 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 |
|
|
|
3/31/22 |
|
12/31/21 |
|
3/31/21 |
|
|
Revenues |
|
|
|
|
|
|
|
Net trading |
$ |
12,022 |
|
|
$ |
15,204 |
|
|
$ |
19,183 |
|
|
|
Asset management |
|
1,889 |
|
|
|
5,136 |
|
|
|
2,093 |
|
|
|
New issue and advisory |
|
3,770 |
|
|
|
17,209 |
|
|
|
1,839 |
|
|
|
Principal transactions and other revenue |
|
(18,363 |
) |
|
|
(10,507 |
) |
|
|
79,561 |
|
|
|
Total revenues |
|
(682 |
) |
|
|
27,042 |
|
|
|
102,676 |
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Compensation and benefits |
|
13,879 |
|
|
|
23,634 |
|
|
|
26,647 |
|
|
|
Business development, occupancy, equipment |
|
1,248 |
|
|
|
990 |
|
|
|
719 |
|
|
|
Subscriptions, clearing, and execution |
|
1,941 |
|
|
|
2,562 |
|
|
|
2,790 |
|
|
|
Professional services and other operating |
|
1,996 |
|
|
|
2,404 |
|
|
|
1,994 |
|
|
|
Depreciation and amortization |
|
132 |
|
|
|
113 |
|
|
|
81 |
|
|
|
Total operating expenses |
|
19,196 |
|
|
|
29,703 |
|
|
|
32,231 |
|
|
|
Operating income (loss) |
|
(19,878 |
) |
|
|
(2,661 |
) |
|
|
70,445 |
|
|
|
Non-operating income (expense) |
|
|
|
|
|
|
|
Interest expense, net |
|
(1,351 |
) |
|
|
(1,706 |
) |
|
|
(2,014 |
) |
|
|
Income (loss) from equity method affiliates |
|
(12,104 |
) |
|
|
28,498 |
|
|
|
(835 |
) |
|
|
Income (loss) before income tax expense (benefit) |
|
(33,333 |
) |
|
|
24,131 |
|
|
|
67,596 |
|
|
|
Income tax expense (benefit) |
|
1,833 |
|
|
|
(4,117 |
) |
|
|
868 |
|
|
|
Net income (loss) |
|
(35,166 |
) |
|
|
28,248 |
|
|
|
66,728 |
|
|
|
Less: Net income (loss) attributable to the convertible
non-controlling interest |
|
(12,850 |
) |
|
|
6,354 |
|
|
|
27,403 |
|
|
|
Less: Net income (loss) attributable to the non-convertible
non-controlling interest |
|
(14,704 |
) |
|
|
17,738 |
|
|
|
29,970 |
|
|
|
Net income (loss) attributable to Cohen & Company Inc. |
$ |
(7,612 |
) |
|
$ |
4,156 |
|
|
$ |
9,355 |
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
Basic |
|
|
|
|
|
|
|
Net income
(loss) attributable to Cohen & Company Inc. |
$ |
(7,612 |
) |
|
$ |
4,156 |
|
|
$ |
9,355 |
|
|
|
Basic shares
outstanding |
|
1,395 |
|
|
|
1,328 |
|
|
|
1,034 |
|
|
|
Net income
(loss) attributable to Cohen & Company Inc. per share |
$ |
(5.46 |
) |
|
$ |
3.13 |
|
|
$ |
9.04 |
|
|
|
Fully
Diluted |
|
|
|
|
|
|
|
Net income
(loss) attributable to Cohen & Company Inc. |
$ |
(7,612 |
) |
|
$ |
4,156 |
|
|
$ |
9,355 |
|
|
|
Net income
(loss) attributable to the convertible non-controlling
interest |
|
- |
|
|
|
6,354 |
|
|
|
27,403 |
|
|
|
Net interest
attributable to convertible debt, net of taxes |
|
- |
|
|
|
301 |
|
|
|
289 |
|
|
|
Income tax
and conversion adjustment |
|
- |
|
|
|
2,583 |
|
|
|
(1,751 |
) |
|
|
Enterprise
net income (loss) |
$ |
(7,612 |
) |
|
$ |
13,394 |
|
|
$ |
35,296 |
|
|
|
Basic shares
outstanding |
|
1,395 |
|
|
|
1,328 |
|
|
|
1,034 |
|
|
|
Unrestricted
Operating LLC membership units exchangeable into COHN shares |
|
- |
|
|
|
2,856 |
|
|
|
2,838 |
|
|
|
Additional
dilutive shares |
|
- |
|
|
|
1,320 |
|
|
|
1,181 |
|
|
|
Fully
diluted shares outstanding |
|
1,395 |
|
|
|
5,504 |
|
|
|
5,053 |
|
|
|
Fully
diluted net income (loss) per share |
$ |
(5.46 |
) |
|
$ |
2.43 |
|
|
$ |
6.98 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted pre-tax income (loss) to net income
(loss) attributable to Cohen & Company Inc. and calculations of
per share amounts |
|
Net income
(loss) attributable to Cohen & Company Inc. |
$ |
(7,612 |
) |
|
$ |
4,156 |
|
|
$ |
9,355 |
|
|
|
Addback
(deduct): Income tax expense (benefit) |
|
1,833 |
|
|
|
(4,117 |
) |
|
|
868 |
|
|
|
Addback
(deduct): Net income (loss) attributable to the convertible
non-controlling interest |
|
- |
|
|
|
6,354 |
|
|
|
27,403 |
|
|
|
Adjusted
pre-tax income (loss) |
|
(5,779 |
) |
|
|
6,393 |
|
|
|
37,626 |
|
|
|
Net interest
attributable to convertible debt |
|
- |
|
|
|
390 |
|
|
|
375 |
|
|
|
Enterprise
pre-tax income (loss) for fully diluted adjusted pre-tax income
(loss) per share calculation |
$ |
(5,779 |
) |
|
$ |
6,783 |
|
|
$ |
38,001 |
|
|
|
|
|
|
|
|
|
|
|
Fully
diluted shares outstanding |
|
1,395 |
|
|
|
5,504 |
|
|
|
5,053 |
|
|
|
Fully
diluted adjusted pre-tax income (loss) per share |
$ |
(4.14 |
) |
|
$ |
1.23 |
|
|
$ |
7.52 |
|
|
|
|
|
|
|
|
|
|
COHEN & COMPANY INC. |
CONSOLIDATED BALANCE SHEETS |
(in thousands) |
|
|
|
|
|
|
|
|
March 31, 2022 |
|
|
|
|
|
(unaudited) |
|
December 31, 2021 |
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
62,510 |
|
|
$ |
50,567 |
|
|
|
Receivables from brokers, dealers, and clearing agencies |
|
102,049 |
|
|
|
68,392 |
|
|
|
Due from related parties |
|
1,705 |
|
|
|
4,581 |
|
|
|
Other receivables |
|
5,439 |
|
|
|
3,203 |
|
|
|
Investments - trading |
|
248,721 |
|
|
|
223,865 |
|
|
|
Other investments, at fair value |
|
49,599 |
|
|
|
56,033 |
|
|
|
Receivables under resale agreements |
|
2,193,562 |
|
|
|
3,175,645 |
|
|
|
Investment in equity method affiliates |
|
17,714 |
|
|
|
48,238 |
|
|
|
Deferred income taxes |
|
10,049 |
|
|
|
11,513 |
|
|
|
Goodwill |
|
109 |
|
|
|
109 |
|
|
|
Right-of-use asset - operating leases |
|
11,087 |
|
|
|
10,273 |
|
|
|
Other assets |
|
4,188 |
|
|
|
3,885 |
|
|
|
Total assets |
$ |
2,706,732 |
|
|
$ |
3,656,304 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Payables to brokers, dealers, and clearing agencies |
$ |
158,172 |
|
|
$ |
160,896 |
|
|
|
Accounts payable and other liabilities |
|
50,590 |
|
|
|
22,819 |
|
|
|
Accrued compensation |
|
11,109 |
|
|
|
22,577 |
|
|
|
Trading securities sold, not yet purchased |
|
128,480 |
|
|
|
62,512 |
|
|
|
Other investments sold, not yet purchased |
|
208 |
|
|
|
2,488 |
|
|
|
Securities sold under agreements to repurchase |
|
2,188,415 |
|
|
|
3,171,415 |
|
|
|
Operating lease liability |
|
11,725 |
|
|
|
10,813 |
|
|
|
Redeemable Financial Instruments |
|
7,957 |
|
|
|
7,957 |
|
|
|
Debt |
|
28,598 |
|
|
|
43,394 |
|
|
|
Total liabilities |
|
2,585,254 |
|
|
|
3,504,871 |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Voting nonconvertible preferred stock |
|
27 |
|
|
|
27 |
|
|
|
Common stock |
|
17 |
|
|
|
17 |
|
|
|
Additional paid-in capital |
|
71,980 |
|
|
|
72,006 |
|
|
|
Accumulated other comprehensive loss |
|
(920 |
) |
|
|
(905 |
) |
|
|
Accumulated deficit |
|
(18,297 |
) |
|
|
(9,204 |
) |
|
|
Total stockholders' equity |
|
52,807 |
|
|
|
61,941 |
|
|
|
Noncontrolling interest |
|
68,671 |
|
|
|
89,492 |
|
|
|
Total equity |
|
121,478 |
|
|
|
151,433 |
|
|
|
Total liabilities and equity |
$ |
2,706,732 |
|
|
$ |
3,656,304 |
|
|
|
|
|
|
|
|
Non-GAAP Measures
Adjusted pre-tax income (loss) and adjusted
pre-tax income (loss) per diluted share
Adjusted pre-tax income (loss) is not a
financial measure recognized by GAAP. Adjusted pre-tax income
(loss) represents net income (loss) attributable to Cohen &
Company Inc., computed in accordance with GAAP, excluding income
tax expense (benefit), plus the net income (loss) attributable to
the convertible non-controlling interest. Income tax expense
(benefit) has been excluded because a pre-tax measurement of
enterprise earnings that includes net income (loss) attributable to
the convertible non-controlling interest is a useful and
appropriate measure of performance. Furthermore, our income tax
expense (benefit) has been, and we expect it will continue to be, a
substantially non-cash item for the foreseeable future, generated
from adjustments in our valuation allowance applied to the
Company’s gross deferred tax assets. Convertible non-controlling
interest is added back to adjusted pre-tax income because the
underlying Cohen & Company, LLC equity units are convertible
into Cohen & Company Inc. shares. Adjusted pre-tax income
(loss) per diluted share is calculated, by dividing adjusted
pre-tax income (loss) by diluted shares outstanding, both of which
include adjustments used in the corresponding calculation in
accordance with GAAP.
We present adjusted pre-tax 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 pre-tax 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 pre-tax income (loss) and
related per diluted share amounts to evaluate the performance of
our enterprise operations. Adjusted pre-tax 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 pre-tax income (loss) should
not be assessed in isolation from or construed as a substitute for
net income (loss) attributable to Cohen & Company Inc. prepared
in accordance with GAAP. Adjusted pre-tax 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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