NEW YORK, July 22 /PRNewswire-FirstCall/ -- Cohen & Steers,
Inc. (NYSE: CNS) reported a loss from continuing operations
attributable to common shareholders of $6.4 million, or $0.15 per
share (diluted and basic), for the quarter ended June 30, 2009,
compared with income from continuing operations attributable to
common shareholders of $14.0 million, or $0.33 per diluted share
and $0.34 per basic share, for the quarter ended June 30, 2008.
Total revenue for the second quarter of 2009 was $26.4 million, a
decrease of 51.6% from $54.4 million for the second quarter of
2008. The second quarter 2009 results from continuing operations
attributable to common shareholders include an after-tax expense of
approximately $0.30 per share due to other-than-temporary
impairment charges recorded on available-for-sale securities. After
adjusting for this item, earnings per share from continuing
operations attributable to common shareholders would have been
$0.15 for the quarter ended June 30, 2009. For the six months ended
June 30, 2009, the company recorded a loss from continuing
operations attributable to common shareholders of $20.9 million, or
$0.49 per share (diluted and basic), compared with income from
continuing operations attributable to common shareholders of $27.9
million, or $0.66 per diluted share and $0.67 per basic share, for
the six months ended June 30, 2008. The 2009 results include the
after-tax expense mentioned above totaling approximately $0.30 per
share and an after-tax expense of approximately $0.39 per share due
to the previously reported other-than-temporary impairment charges
recorded during the first quarter of 2009. After adjusting for
these items, earnings per share would have been $0.20 per share for
the six months ended June 30, 2009. Assets Under Management Assets
under management were $16.3 billion as of June 30, 2009, an
increase of 40.7% from $11.6 billion at March 31, 2009 and a
decrease of 39.5% from $27.0 billion at June 30, 2008. The increase
from March 31, 2009 was due to market appreciation of $3.3 billion
and net inflows of $1.4 billion. The decrease from June 30, 2008
was due to market depreciation of $9.1 billion and net outflows of
$1.5 billion. Average assets under management were $14.6 billion
for the quarter ended June 30, 2009, an increase of 15.3% from
$12.7 billion for the quarter ended March 31, 2009 and a decrease
of 49.9% from $29.2 billion for the quarter ended June 30, 2008.
Open-end mutual funds had net inflows of $161 million during the
quarter ended June 30, 2009. Average assets under management for
open-end mutual funds were $3.8 billion in the quarter ended June
30, 2009, an increase of 13.3% from $3.4 billion in the quarter
ended March 31, 2009 and a decrease of 55.0% from $8.4 billion in
the quarter ended June 30, 2008. Closed-end mutual funds had
inflows of $448 million during the quarter ended June 30, 2009
through an increase in the funds' credit facility. Average assets
under management for closed-end mutual funds were $3.9 billion in
the quarter ended June 30, 2009, an increase of 3.5% from $3.7
billion in the quarter ended March 31, 2009 and a decrease of 61.8%
from $10.1 billion in the quarter ended June 30, 2008.
Institutional separate accounts had net inflows of $782 million
during the quarter ended June 30, 2009. Average assets under
management for institutional separate accounts were $7.0 billion in
the quarter ended June 30, 2009, an increase of 24.4% from $5.6
billion in the quarter ended March 31, 2009 and a decrease of 34.7%
from $10.7 billion in the quarter ended June 30, 2008. "Our
strategy to grow our asset gathering capabilities despite the
economic challenges we are facing is beginning to pay off," said
Robert Steers, co-chairman and co-chief executive officer of Cohen
& Steers. "We recorded significant net inflows into both our
open-end mutual funds and our institutional separate account
offerings. In addition, our institutional pipeline has never been
more promising." Results From Continuing Operations Total revenue
was $26.4 million for the three months ended June 30, 2009, a
decrease of 51.6% from $54.4 million for the three months ended
June 30, 2008. Operating expenses were $25.9 million for the three
months ended June 30, 2009, a decrease of 21.7% from $33.1 million
for the three months ended June 30, 2008. Operating income was
$423,000 for the three months ended June 30, 2009, compared with
$21.3 million for the three months ended June 30, 2008.
Non-operating loss was $5.4 million for the three months ended June
30, 2009, compared with non-operating income of $1.4 million for
the three months ended June 30, 2008. Excluding the
other-than-temporary impairment charge of $14.0 million,
non-operating income would have been $8.7 million for the three
months ended June 30, 2009. Pretax loss was $4.9 million for the
three months ended June 30, 2009, compared with pretax income of
$22.7 million for the three months ended June 30, 2008. Excluding
the aforementioned other-than-temporary impairment charge, pretax
income would have been $9.1 million for the three months ended June
30, 2009. Total revenue was $49.9 million for the six months ended
June 30, 2009, a decrease of 53.8% from $108.0 million for the six
months ended June 30, 2008. Operating expenses were $49.3 million
for the six months ended June 30, 2009, a decrease of 25.9% from
$66.6 million for the six months ended June 30, 2008. Operating
income was $560,000 for the six months ended June 30, 2009,
compared with $41.4 million for the six months ended June 30, 2008.
Non-operating loss was $21.7 million for the six months ended June
30, 2009, compared with non-operating income of $3.4 million for
the six months ended June 30, 2008. Excluding the
other-than-temporary impairment charges of $32.2 million,
non-operating income would have been $10.5 million for the six
months ended June 30, 2009. Pretax loss was $21.1 million for the
six months ended June 30, 2009, compared with pretax income of
$44.8 million for the six months ended June 30, 2008. Excluding the
aforementioned other-than-temporary impairment charge, pretax
income would have been $11.1 million for the six months ended June
30, 2009. Balance Sheet Information As of June 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 $163 million. As of June 30, 2009, stockholders' equity
was $253 million and the company had no long-term or short-term
debt. Conference Call Information Cohen & Steers will hold a
conference call tomorrow, July 23, 2009 at 11:00 a.m. (ET) to
discuss the company's second quarter results. Investors and
analysts can access the live conference call by dialing (866)
672-2663 (domestic) or (973) 582-2772 (international); passcode:
19991590. 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
July 23, 2009 and can be accessed at (800) 642-1687 (domestic) or
(706) 645-9291 (international); passcode: 19991590. Internet access
to the Web cast, which includes audio (listen-only), will be
available on the company's Web site at 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,
utilities and listed infrastructure, and preferred securities. The
company also offers alternative investment strategies such as
hedged real estate securities portfolios and private real estate
multimanager strategies. 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 http://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 ------------------
------------- June March June March June 30, 31, 30, 31, 30, 2009
2009 2008 2009 2008 ------ ------- ----- ------ ----- Revenue
Investment advisory and administration fees $23,997 $21,073 $47,901
Distribution and service fees 1,695 1,607 5,202 Portfolio
consulting and other 663 820 1,307 --- --- ----- Total revenue
26,355 23,500 54,410 12.1% (51.6%) ------ ------ ------ Expenses
Employee compensation and benefits 14,916 12,175 16,481
Distribution and service fees 3,132 3,070 6,744 General and
administrative 6,668 6,832 8,037 Depreciation and amortization
1,028 1,020 839 Amortization, deferred commissions 188 266 1,017
--- --- ----- Total expenses 25,932 23,363 33,118 11.0% (21.7%)
------ ------ ------ Operating income 423 137 21,292 * (98.0%) ---
--- ------ Non-operating income Interest and dividend income - net
660 666 1,610 Loss from marketable securities - net (6,349)
(16,751) (364) Foreign currency gain (loss) - net 326 (243) 145
Total non-operating (loss) income (5,363) (16,328) 1,391 (67.2%) *
------ ------- ----- (Loss) income from continuing operations
before provision for income taxes (4,940) (16,191) 22,683 (69.5%) *
Provision (benefit) for income taxes 971 (1,802) 8,648 --- ------
----- (Loss) income from continuing operations (5,911) (14,389)
14,035 (58.9%) * Loss from discontinued operations, net of tax (5)
(5) (455) 0.0% (98.9%) -- -- ---- Net (loss) income (5,916)
(14,394) 13,580 (58.9%) * Less: Net income attributable to
redeemable noncontrolling interest (505) (85) - ---- --- --- Net
(loss) income attributable to common shareholders $(6,421)
$(14,479) $13,580 (55.7%) * ======= ======== ======= Earnings per
share - Basic: (Loss) income from continuing operations
attributable to common shareholders $(0.15) $(0.34) $0.34 (55.8%) *
------ ------ ----- Loss from discontinued operations, net of tax,
attributable to common shareholders $(0.00) $(0.00) $(0.01) 0.0%
(98.9%) ------ ------ ------ Net (loss) income attributable to
common shareholders $(0.15) $(0.34) $0.32 (55.8%) * ------ ------
----- Earnings per share - Diluted: (Loss) income from continuing
operations attributable to common shareholders $(0.15) $(0.34)
$0.33 (55.8%) * ------ ------ ----- Loss from discontinued
operations, net of tax, attributable to common shareholders $(0.00)
$(0.00) $(0.01) 0.0% (98.9%) ------ ------ ------ Net (loss) income
attributable to common shareholders $(0.15) $(0.34) $0.32 (55.8%) *
------ ------ ----- Weighted average shares outstanding Basic
42,360 42,198 41,850 ====== ====== ====== Diluted 42,360 42,198
42,037 ====== ====== ====== * Not meaningful Cohen & Steers,
Inc. and Subsidiaries Condensed Consolidated Statements of Income
(Unaudited) For the Periods Ended (in thousands, except per share
data) Six Months Ended % Change From ------------------
--------------- June 30, June 30, June 30, 2009 2008 2008 ---------
--------- --------------- Revenue Investment advisory and
administration fees $45,070 $94,544 Distribution and service fees
3,302 10,576 Portfolio consulting and other 1,483 2,877 ----- -----
Total revenue 49,855 107,997 (53.8%) ------ ------- Expenses
Employee compensation and benefits 27,091 32,584 Distribution and
service fees 6,202 13,366 General and administrative 13,500 15,813
Depreciation and amortization 2,048 1,792 Amortization, deferred
commissions 454 3,013 --- ----- Total expenses 49,295 66,568
(25.9%) ------ ------ Operating income 560 41,429 (98.6%) ---
------ Non-operating income Interest and dividend income - net
1,326 3,208 Loss from marketable securities - net (23,100) (308)
Foreign currency gain - net 83 500 Total non-operating (loss)
income (21,691) 3,400 * ------- ----- (Loss) income from continuing
operations before provision for income taxes (21,131) 44,829 *
(Benefit) provision for income taxes (831) 16,938 ---- ------
(Loss) income from continuing operations (20,300) 27,891 * Loss
from discontinued operations, net of tax (10) (1,311) (99.2%) ---
------ Net (loss) income (20,310) 26,580 * Less: Net income
attributable to redeemable noncontrolling interest (590) - ---- ---
Net (loss) income attributable to common shareholders $(20,900)
$26,580 * ======== ======= Earnings per share - Basic: (Loss)
income from continuing operations attributable to common
shareholders $(0.49) $0.67 * ------ ----- Loss from discontinued
operations, net of tax, attributable to common shareholders $(0.00)
$(0.03) (99.2%) ------ ------ Net (loss) income attributable to
common shareholders $(0.49) $0.63 * ------ ----- Earnings per share
- Diluted: (Loss) income from continuing operations attributable to
common shareholders $(0.49) $0.66 * ------ ----- Loss from
discontinued operations, net of tax, attributable to common
shareholders $(0.00) $(0.03) (99.2%) ------ ------ Net (loss)
income attributable to common shareholders $(0.49) $0.63 * ------
----- Weighted average shares outstanding Basic 42,279 41,877
====== ====== Diluted 42,279 42,086 ====== ====== * Not meaningful
Cohen & Steers, Inc. and Subsidiaries Assets Under Management
(Unaudited) For the Periods Ended (in millions) Three Months Ended
% Change From ------------------ ------------- June March June
March June 30, 31, 30, 31, 30, 2009 2009 2008 2009 2008 ------
------ ----- ------ ----- Open-End Mutual Funds -------------
Assets under management, beginning of period $3,102 $4,280 $8,432
------ ------ ------ Inflows 431 324 660 Outflows (270) (400) (818)
---- ---- ---- Net inflows (outflows) 161 (76) (158) Market
appreciation (depreciation) 975 (1,102) (630) --- ------ ---- Total
increase (decrease) 1,136 (1,178) (788) ----- ------ ---- Assets
under management, end of period $4,238 $3,102 $7,644 36.6% (44.6%)
====== ====== ====== Average assets under management for period
$3,803 $3,357 $8,448 13.3% (55.0%) ====== ====== ====== Closed-End
Mutual Funds ----------------------- Assets under management,
beginning of period $3,029 $4,278 $9,724 ------ ------ ------
Inflows 448 - - Outflows - (395) - --- ---- --- Net inflows
(outflows) 448 (395) - Market appreciation (depreciation) 736 (854)
(193) --- ---- ---- Total increase (decrease) 1,184 (1,249) (193)
----- ------ ---- Assets under management, end of period $4,213
$3,029 $9,531 39.1% (55.8%) ====== ====== ====== Average assets
under management for period $3,855 $3,723 $10,100 3.5% (61.8%)
====== ====== ======= Institutional Separate Accounts -------------
Assets under management, beginning of period $5,469 $6,544 $10,414
------ ------ ------- Inflows 954 522 776 Outflows (172) (127)
(618) ---- ---- ---- Net inflows 782 395 158 Market appreciation
(depreciation) 1,618 (1,470) (787) ----- ------ ---- Total increase
(decrease) 2,400 (1,075) (629) ----- ------ ---- Assets under
management, end of period $7,869 $5,469 $9,785 43.9% (19.6%) ======
====== ====== Average assets under management for period $6,970
$5,605 $10,673 24.4% (34.7%) ====== ====== ======= Total ------
Assets under management, beginning of period $11,600 $15,102
$28,570 ------- ------- ------- Inflows 1,833 846 1,436 Outflows
(442) (922) (1,436) ---- ---- ------ Net inflows (outflows) 1,391
(76) - Market appreciation (depreciation) 3,329 (3,426) (1,610)
----- ------ ------ Total increase (decrease) 4,720 (3,502) (1,610)
----- ------ ------ Assets under management, end of period $16,320
$11,600 $26,960 40.7% (39.5%) ======= ======= ======= Average
assets under management for period $14,628 $12,685 $29,221 15.3%
(49.9%) ======= ======= ======= Cohen & Steers, Inc. and
Subsidiaries Assets Under Management (Unaudited) For the Periods
Ended (in millions) Six Months Ended % Change From
---------------------- ------------- June 30, June 30, June 30,
2009 2008 2008 --------- --------- ------------ Open-End Mutual
Funds --------------------- Assets under management, beginning of
period $4,280 $8,900 ------ ------ Inflows 755 1,548 Outflows (670)
(1,949) ---- ------ Net inflows (outflows) 85 (401) Market
depreciation (127) (855) ---- ---- Total decrease (42) (1,256) ---
------ Assets under management, end of period $4,238 $7,644 (44.6%)
====== ====== Average assets under management for period $3,580
$8,308 (56.9%) ====== ====== Closed-End Mutual Funds
----------------------- Assets under management, beginning of
period $4,278 $10,274 ------ ------- Inflows 448 - Outflows (395) -
---- - Net inflows 53 - Market depreciation (118) (743) ---- ----
Total decrease (65) (743) --- ---- Assets under management, end of
period $4,213 $9,531 (55.8%) ====== ====== Average assets under
management for period $3,788 $9,970 (62.0%) ====== ======
Institutional Separate Accounts ---------------------- Assets under
management, beginning of period $6,544 $10,612 ------ -------
Inflows 1,476 1,093 Outflows (299) (1,218) ---- ------ Net inflows
(outflows) 1,177 (125) Market appreciation (depreciation) 148 (702)
--- ---- Total increase (decrease) 1,325 (827) ----- ---- Assets
under management, end of period $7,869 $9,785 (19.6%) ====== ======
Average assets under management for period $6,288 $10,586 (40.6%)
====== ======= Total ------ Assets under management, beginning of
period $15,102 $29,786 ------- ------- Inflows 2,679 2,641 Outflows
(1,364) (3,167) ------ ------ Net inflows (outflows) 1,315 (526)
Market depreciation (97) (2,300) --- ------ Total increase
(decrease) 1,218 (2,826) ----- ------ Assets under management, end
of period $16,320 $26,960 (39.5%) ======= ======= Average assets
under management for period $13,656 $28,864 (52.7%) ======= =======
Cohen & Steers, Inc. and Subsidiaries Assets Under Management
(Unaudited) By Investment Category (in millions) As of As of As of
June 30, March 31, June 30, 2009 2009 2008 --------- ----------
-------- Open-End Mutual Funds --------------------- U.S. Real
Estate $2,362 $1,671 $3,848 International Real Estate 1,535 1,099
3,293 Large Cap Value 154 128 141 Preferreds 8 8 13 Utilities and
Listed Infrastructure 71 48 28 Other 108 148 321 ------ ------
------ Assets under management, end of period $4,238 $3,102 $7,644
====== ====== ====== Closed-End Mutual Funds
----------------------- U.S. Real Estate $1,233 $774 $3,533
International Real Estate 68 46 305 Large Cap Value 212 178 518
Preferreds 1,123 774 2,264 Utilities and Listed Infrastructure
1,080 827 2,334 Other 497 430 577 ------ ------ ------ Assets under
management, end of period $4,213 $3,029 $9,531 ====== ====== ======
Institutional Separate Accounts -------------------------------
U.S. Real Estate $2,997 $2,051 $4,478 International Real Estate
2,825 1,947 3,616 Large Cap Value 1,351 713 742 Preferreds 479 421
704 Utilities and Listed Infrastructure 12 10 12 Other 205 327 233
------ ------ ------ Assets under management, end of period $7,869
$5,469 $9,785 ====== ====== ====== Total ------ U.S. Real Estate
$6,592 $4,496 $11,859 International Real Estate 4,428 3,092 7,214
Large Cap Value 1,717 1,019 1,401 Preferreds 1,610 1,203 2,981
Utilities and Listed Infrastructure 1,163 885 2,374 Other 810 905
1,131 ------- ------- ------- Assets under management, end of
period $16,320 $11,600 $26,960 ======= ======= ======= Cohen &
Steers, Inc. and Subsidiaries Other Fee Earning Assets (Unaudited)
(in millions) As of As of As of June 30, March 31, June 30, 2009
2009 2008 -------- --------- --------- Unified Managed Accounts
------------------------ Other fee earning assets, end of ---- ----
---- period $268 $178 $196 ==== ==== ==== Exchange Traded Funds
--------------------- Other fee earning assets, end of ------ ----
------ period $1,104 $828 $2,354 ====== ==== ====== Unit Investment
Trusts ---------------------- Other fee earning assets, end of
------ ---- ------ period $1,124 $904 $1,578 ====== ==== ======
Total ------ Other fee earning assets, end of ------ ------ ------
period $2,496 $1,910 $4,128 ====== ====== ====== 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. DATASOURCE: Cohen & Steers,
Inc. CONTACT: Matthew S. Stadler, Executive Vice President, Chief
Financial Officer, Cohen & Steers, Inc., +1-212-446-9168 Web
Site: http://www.cohenandsteers.com/
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