Cohen & Steers Reports Second Quarter 2016 Diluted EPS Of $0.53, Or $0.46, As Adjusted

NEW YORK, July 20, 2016 /PRNewswire/ — Cohen & Steers, Inc. (NYSE: CNS) reported net income attributable to common stockholders of $24.8 million, or $0.53 per diluted share and $0.54 per basic share, for the quarter ended June 30, 2016, compared with $19.0 million, or $0.42 per share (diluted and basic), for the quarter ended June 30, 2015. Total revenue for the second quarter of 2016 was a record $86.4 million, an increase of 3.4% from $83.5 million for the second quarter of 2015.

For the six months ended June 30, 2016, the company recorded net income attributable to common stockholders of $42.9 million, or $0.93 per share (diluted and basic), compared with $39.8 million, or $0.87 per diluted share and $0.88 per basic share, for the six months ended June 30, 2015.

U.S. GAAP

This section discusses the financial results of the company as presented in accordance with U.S. GAAP for the quarter and six months ended June 30, 2016, compared with the quarter ended March 31, 2016 and the six months ended June 30, 2015.

Revenue

Revenue for the second quarter of 2016 was $86.4 million, an increase of $6.7 million from $79.7 million for the first quarter of 2016. Higher average assets under management in the quarter resulted in the following increases in investment advisory and administration fees for the second quarter of 2016:

Revenue for the six months ended June 30, 2016 was $166.1 million, a decrease of $1.3 million from $167.3 million for the six months ended June 30, 2015.

Expenses

Expenses for the second quarter of 2016 were $52.2 million, an increase of $0.9 million from $51.4 million for the first quarter of 2016. The change was primarily due to:

Expenses for the six months ended June 30, 2016 were $103.6 million, an increase of $2.0 million from $101.6 million for the six months ended June 30, 2015.

Operating Margin

Operating margin increased to 39.5% for the second quarter of 2016 from 35.5% for the first quarter of 2016. The first quarter of 2016 included the accelerated vesting of certain restricted stock units. Operating margin decreased to 37.6% for the six months ended June 30, 2016 from 39.3% for the six months ended June 30, 2015.

Non-operating Income

Non-operating income for the second quarter of 2016 was $4.5 million, compared with non-operating income of $0.6 million for the first quarter of 2016. The increase was primarily due to unrealized gains on the company’s seed investments. Non-operating income for the six months ended June 30, 2016 was $5.1 million, compared with non-operating loss of $1.5 million for the six months ended June 30, 2015.

As Adjusted

This section discusses the financial results of the company as presented on a non-GAAP basis for the quarter and six months ended June 30, 2016, compared with the quarter ended March 31, 2016 and the six months ended June 30, 2015. The term “as adjusted” is used to identify non-GAAP information in the discussion below and excludes non-operating results from seed investments, the effect of the accelerated vesting of certain restricted stock units in the first quarter of 2016 and the tax effect on these items. Please refer to the “Non-GAAP Reconciliation” of this release for a reconciliation to the most directly comparable U.S. GAAP measures.

Diluted Earnings Per Share

Diluted earnings per share, as adjusted, were $0.46 for the quarter ended June 30, 2016, compared with $0.41 for the first quarter of 2016. For the six months ended June 30, 2016, diluted earnings per share, as adjusted, were $0.86 compared with $0.88 for the six months ended June 30, 2015.

Expenses

Expenses for the quarter ended June 30, 2016 were $52.2 million, an increase of $2.8 million compared with expenses, as adjusted, of $49.4 million for the first quarter of 2016. The increase was primarily due to higher incentive compensation which increased consistent with revenue growth. Expenses, as adjusted, for the six months ended June 30, 2016 were $101.7 million, compared with expenses of $101.6 million for the six months ended June 30, 2015.

Operating Margin

Operating margin for the second quarter of 2016 increased to 39.5% from 38.0%, as adjusted, for the first quarter of 2016. Operating margin for the six months ended June 30, 2016, decreased to 38.8%, as adjusted, from 39.3% for the six months ended June 30, 2015.

Assets under management were a record $58.7 billion as of June 30, 2016, an increase of $3.7 billion from $55.1 billion at March 31, 2016. The increase from March 31, 2016 was attributable to net inflows of $2.3 billion and market appreciation of $2.7 billion, partially offset by distributions of $1.3 billion.

Institutional Accounts

Assets under management in institutional accounts were $29.6 billion as of June 30, 2016, an increase of 6.2% from $27.9 billion at March 31, 2016. The change from March 31, 2016 was due to the following:

Open-end Funds

Assets under management for open-end funds were $19.8 billion as of June 30, 2016, an increase of 9.0% from $18.1 billion at March 31, 2016. The change from March 31, 2016 was due to the following:

Closed-end Funds

Assets under management for closed-end funds were $9.4 billion as of June 30, 2016, an increase of 3.7% from $9.1 billion at March 31, 2016. The increase from March 31, 2016 was due to market appreciation of $458 million, partially offset by distributions of $123 million.

Balance Sheet Information

As of June 30, 2016, cash, cash equivalents and seed investments were $207 million. As of June 30, 2016, stockholders’ equity was $255 million and the company had no debt.

Conference Call Information

Cohen & Steers will host a conference call tomorrow, July 21, 2016 at 10:00 a.m. (ET) to discuss the company’s second quarter results. Investors and analysts can access the live conference call by dialing 800-786-5706 (U.S.) or +1-212-231-2937 (international); passcode: 21814646. Participants should plan to register at least 10 minutes before the conference call begins. The presentation that will be reviewed as part of the conference call will be available on the company’s website at www.cohenandsteers.com under “Company – Press Releases.”

A replay of the call will be available for two weeks starting at approximately 12:00 p.m. (ET) on July 21, 2016 and can be accessed at 800-633-8284 (U.S.) or +1-402-977-9140 (international); passcode: 21814646. 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

Cohen & Steers is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Hong Kong, Tokyo and Seattle.

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, 2015 (the 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Reconciliation

Management believes that use of these non-GAAP financial measures may enhance the evaluation of the company’s results, as they provide greater transparency into the company’s operating results and allow for a more appropriate comparison with industry peers. In addition, these non-GAAP financial measures are used to prepare the company’s internal management reports and by management in evaluating the company’s business.

While management believes that this non-GAAP financial information is useful in evaluating the company’s results and operating performance, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.

 

 

 

SOURCE Cohen & Steers, Inc.

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